ANNUAL REPORT 2020-2021 - KFintech eVoting System

ANNUAL REPORT

2020-2021

RELIGARE ENTERPRISES LIMITED

Annual Report 2020-21 1

Contents

• Company Information 2-5

• From the Desk of Executive Chairperson 6-9

• Our Businesses 10-13

• Board of Directors 14-17

• Awards and Recognitions 18-21

• Financial Declaration

Directors’ Report 24-71

Business Responsibility Report 72-77

Management Discussion and Analysis 78-89

Report on Corporate Governance 90-131

• Consolidated Financials

Auditors’ Report 134-142

Balance Sheet 143-144

StatementofProfitandLoss 145-146

Statement of Changes in Equity 147-148

Cash Flow Statement 149-150

Notes forming part of the Financial Statements 151-275

Form AOC-1 276-278

StatementonImpactofAuditQualification 279-281

• Standalone Financials

Auditors’ Report 284-292

Balance Sheet 293

StatementofProfitandLoss 294

Statement of Changes in Equity 295-296

Cash Flow Statement 297-298

Notes forming part of the Financial Statements 299-380

COMPANY

INFORMATION

4 Religare Enterprises Limited


BOARD OF DIRECTORS : Dr. Rashmi Saluja (Executive Chairperson)

Mr. Siddharth Dinesh Mehta

(Non-Executive Non-Independent Vice-Chairperson)

Ms. Vijayalakshmi Rajaram Iyer (Independent Director)

Mr. Malay Kumar Sinha (Independent Director)

Dr. Vijay Shankar Madan (Independent Director)

Mr. Hamid Ahmed (Independent Director)

GROUP CHIEF FINANCIAL OFFICER : Mr. Nitin Aggarwal

COMPANY SECRETARY : Ms. Reena Jayara

REGISTERED OFFICE : 1st Floor, P-14, 45/90,

P-Block, Connaught Place,

New Delhi - 110001

CIN NO : L74899DL1984PLC146935

Phone : +91-11-4002 1400

Fax No. : +91-11-4002 1401

E-mail : [email protected]

Website : www.religare.com

BANKERS TO THE COMPANY : HDFCBankLimited

AxisBankLimited

AUDITORS : M/s. S.P. Chopra & Co., New Delhi

(Statutory Auditors w.e.f. August 12, 2021)

M/s. S.S. Kothari Mehta & Co., New Delhi

(Statutory Auditors till August 12, 2021)

REGISTRAR & SHARE : KFin Technologies Private Limited

TRANSFER AGENT (formerly known as Karvy Fintech Private Limited)

Selenium Tower B, Plot 31-32, Financial District,

Nanakramguda, Serilingampally Mandal,

Hyderabad – 500032

Company Information

MESSAGE FROM

THE CHAIRPERSON’S

DESK


Dear Shareholders,

The year gone by had been phenomenal in terms of achievement of critical

businessandfinancialmilestonesby theCompanyand itssubsidiaries.All our businesses made remarkable progress to achieve scale and

profitability and the lending business is striving towards its revival andgrowth.ThenewBoardandManagementatReligareEnterprisesLimited(REL)havebeenworkingwith focusedenergyand intent to reviveandgrow different businesses of your Company. The Company is ensuring

that all our businesses are built around the strong pillars of impeccable

corporate governance, sound business models, adequate growth capital

and fair & honest value system and culture.

Message from the Chairperson

Iamhappytoreportthatinlinewithourguidancelastyear,ourRetailBrokingbusinessturnedprofitableinFY21,achievingaPATofRs10.5croreinFY21incomparisontoPATlossofRs21.4croreinFY20.ReligareBrokingLimited(RBL),a100%subsidiaryofREL,isnowfastscalingupnewclientsadditionsandtradingvolumes.Wehave infusedadditional equity ofRs50 crore inRBL inAugust 2021 to further invest inProducts,TechnologyandotherareasforachievingacceleratedandprofitablegrowthforBrokingBusiness.TheCompanyviewsRetailBrokingspaceasanimportantareaofgrowthandaspiresRBLtoreclaimitsgloryoftop10brokersinthecountry.

Our Insurancesubsidiary,CareHealth InsuranceLimited(CHIL), inwhichRELholds70.7%equitystakeasonMarch31,2021,achievedhighestGrossWrittenPremium(GWP)ofRs2,588croreinFY21andmorethan30%growth inGWPin theRetailsegment. (GWPachieved inFY20wasRs2,409crorewhich includedaOne-timePremiumofRs413croreunderAyushmanBharatschemeofaparticularstate).CHILwhichcommencedbusinessin2012isoneofthefastestgrowinginsurancecompanyinIndiawithaprofitabletrackrecordoflast3years.ThePATforFY21forCHILwasRs102croreincomparisontoPATofRs66croreinFY20.CHILalsoraisedprimaryequitycapitalofmorethanRs300croreinFY21andhadhealthySolvencyRatioof2.45asonMarch31,2021.CHILnowhasanetworkpresenceat1,200+locationsacrosscountrywith158branchesand16,000+hospitalsandhealthcare centres empaneled for cashless claims.

TheMSMElendingNBFCandwhollyownedsubsidiaryofREL,ReligareFinvestLimited(RFL),hastakenseveralimportant actions during the year, to correct its asset liability mismatch and resume normal business operations.

RFLhasrepaidmorethanRs6,890croretoitslenderssinceJanuary2018toMarch31,2021.RFLisworkingwith its lendersona revisedDebtRestructuringPlan (DRP)underwhichReligareEnterprisesLimitedshallbecontinuingasthepromoterofRFL.TheCompanyhasalreadyraisedrequisitefundsviapreferentialissuetoinfusethe necessary capital in RFL tomeet the one of the pre-condition of the proposedDRP.We are confident ofreceivingthefinalapprovaltotheproposedDRPandRFLtobeabletorestartbusinessinQ3FY22.

YourCompany’saffordableHousingFinancebusinessisunderReligareHousingDevelopmentFinanceCorporationLimited (RHDFCL), a step down subsidiary of REL in whichREL holds 87.5% equity stake. RHDFCL has 26brancheswithadiversifiedgeographicalpresence.TheaverageticketsizeforthehomeloansgivenbyRHDFCLisaroundRs11.4lakhand97%ofitsfundingtoistoretailborrowers.RHDFCLenvisionsitselftobeafuturereadycompany and hence it aims tomaximize digitization in its processes.RHDFCL is forming alliance/tie-upswithBanksandFinancial Institutions towiden itsborrowing& lendingbases. InFY22,RHDFCLplans toaccelerateitsdisbursementactivityandachievestrongloanbookgrowth.YourcompanyisworkingtoensurethatRHDFCL


achieves its potential of exponential growth in affordable housing space, as structurally affordable housing is in

sweet spot in India’s growth story.

I am also delighted to highlight that in July 2021, your Company raised Rs. 570 crore of growth capital from some

existing shareholders/new investors by way of a Preferential Issue. The Company plans to invest majority of these

funds in its subsidiaries, towards growth and revival of various businesses including Rs 411 crore of fund infusion

inReligareFinvestLimited(RFL)aspartofitsproposedDebtResolutionPlan.

Lastbutnottheleast,ontheapplicationofyourCompany,datedJuly31,2020,yourCompanyreceivedapprovalofboththestockexchangesviz.NationalStockExchangeofIndiaLimited(NSEL)andBombayStockExchangeLimited (BSEL)onJune11,2021andJune12,2021 respectively for re-classificationoferstwhilePromoters&PromoterGroupintopubliccategory.PursuanttotheRe-classificationoferstwhilePromoters/PromotersGroupaspublicshareholders,theRELhasnowbecomea“Listed entity with no Promoters”.

AsIreflectbackonabovedevelopments,itgivesmemoreconfidencetoreassurethattheBoardandManagementatReligareiscommittedtomaximizethestakeholderandshareholderreturns,followingethical&bestbusinesspractices. I once again express my sincere thanks to all shareholders for supporting the Company in all its efforts.

Stay safe and stay healthy.

WithBestRegards,Dr. Rashmi Saluja

Executive Chairperson

OUR

BUSINESSES


Our Businesses

Religare Group Structure and Business Model

ReligareEnterprisesLimited(‘REL’or‘Company’)isaCoreInvestmentCompany(CIC)registeredwiththeReserveBankofIndia(RBI).RELisalsothelistedholdingcompanyforthesubsidiariesconductingdiver-sifiedfinancialservicesbusinessesofthegroup.Thefourkeyfinancialservicesbusinessesundertakenthrough its subsidiaries are as following:

Insurance (Health) - CareHealthInsuranceLimited(CHIL)

SME Finance NBFC - ReligareFinvestLimited(RFL)

Housing Finance (Affordable) - ReligareHousingDevelopmentFinanceCorporationLimited(RHDFCL)

Retail Broking -ReligareBrokingLimited(RBL)

AlltheseReligareGroup(REL&subsidiaries)businesseshaveindependentmanagementteamstoconducttheirday-to-dayoperations.RELsupportsitssubsidiariesbyprovidingrequisiteGrowthCap-

ital, Board Oversight & Governance, Brand Equity, Strategic Advisory & Consulting and need based

CorporateServices(Legal,Technology,HR,etc.).TheReligareGrouphasaccesstoawidereachof customers – 1 million+ policy holders in insurance business, 1 million+ broking customers, more

than26k+customerservedthroughMSMEfinance&10k+customerscontactsinaffordablehousingfinance.AsonMarch31,2021Grouphasoverallemployeebaseofmore11,000professionalsservic-

ingdiversifiedsetofcustomersandGrouphasreachtoaround1,000+locationsaroundIndia.

A. Insurance (Health & Travel) - Care Health Insurance Limited (CHIL)

CHIL,70.7%heldbyREL,ranksnumber2intermsofGDPamongsttheStandAloneHealthInsur-anceCompanies(SAHI).CHILcommencedbusinessin2012andhasanetworkpresenceat1,200+locations across country with 158 branches and 16,000+ hospitals and healthcare centres empaneled

forcashlessclaims.Ithasaproductbouquetof25productsencompassinggroup,travel,fixedbenefitandindemnitycategoriestoservevariedcustomerneeds.CHILhasadifferentiatedserviceofferingfor corporate businesses, like wellness programs & preventive health check-up, thereby helping in

negotiating higher premiums & improves customer stickiness. It follows a multi-channel distribution

strategy through agency, brokers, corporate agents, online and bancassurance and its major focus is

onretailandSMEcustomers.CHILcontinuedtoinvestinDigitalpropertiesforitscustomers,partnersand its employees.

B. SME Finance NBFC - Religare Finvest Limited (RFL)

ReligareFinvestLimited(RFL),isawhollyownedsubsidiaryofRELregisteredwithRBIasanon-de-

posittaking,systemicallyimportantNon-BankingFinancialCompany(NBFC-ND-SI).RFL’sbusinessis focused on providing debt capital to Small & Medium Enterprises (SMEs) to enable them to enhance

theirproductivecapacityandthroughput.ItisamongstthefirstNBFCsinIndiatofocusonthisseg-

ment,havingstartedthebusinessin2008andby2016,RFLhadgrowntobuildapeakbusinessbookofoverRs16,000croretobecomeoneofthelargestSMEfinancingplatformsinIndia.Currently,RFLhasanemployeebaseofover300andithas19branchespanIndia.RFL’sproductofferingscompriseof:


Our Businesses

a) SME-Secured:RFL’sSME-Securedproductenablesitscustomerstoobtainloansagainsttheirresidential or commercial property. Loans offered under this productmay be utilized towardsdifferent purposes including business expansion and purchase of plant and machinery.

b) SME-Unsecured:Thisproductcaterstoworkingcapitalandotherfinancialrequirementsofsmallandmediumenterprises,self-employedbusinessmenandprofessionals.Loansaregrantedafteranin-depthanddetailedfinancialanalysisandcreditunderwritingoftheclients.

c) Short Term Trade Finance: This product empowers our customers to bridge their short term

financialgaps.Ourshort termtradefinancegives freedomtoSMEstoavailfinancingagainstpurchase payables.

C. Housing Finance - Religare Housing Development Finance Corporation Limited (RHDFCL)

Religare Housing Development Finance Corporation Limited (RHDFCL), a step down subsidiaryof REL in which REL holds 87.5% equity stake through RFL, offers residential collateral backedmortgage loans for home purchase, construction, extension & renovation along with loan against

residential property to customers both formal & informal income segment essentially belonging to

the low&mediumincomegroups.RHDFCLisregisteredHousingFinanceCompany(Non-deposittaking) with a SARFAESI License. RHDFCL operates through 26 branches and has a diversifiedgeographical presence across Delhi NCR, Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Tamil

Nadu,Karnataka,TelanganaandAndhraPradesh.RHDFCLhasremainedprofitableineachyearofits operations since it became a part of the Religare group in year 2009.

D. Retail Broking -Religare Broking Limited (RBL)

Retail Broking: TheRetailBrokingbusinessisprimarilyundertakenbyReligareBrokingLimited(RBL),awhollyownedsubsidiaryofREL.RBLprovidestradingcapabilitiesacrossallproductsegments – cash equities, equity derivatives, commodities, currency derivatives, and mutual

funds;onallmajorstockandcommoditiesexchangesinIndia.RBLhasmorethan900pointsofpresence spanning 400+ towns and cities across the length and breadth of India and it services

morethan1millionuniquecustomers.RBL’sdistributionstrategyentailsajudiciouscombinationofitsownbranchesandastrongnetworkofsub-brokersandfranchiseesthathelpextendRBL’spresenceandmaketheReligarebrandvisible in the farcornersof India.RBLprovidesmulti-platformoptionsfortradingsuchasBranch,Web,mobileApp,Call&Tradetoenhancecustomerconvenience and ease. The Retail Broking business also has Bancinvest partnerships with

variousbankslikeAndhraBank,BankofMaharashtra,CorporationBank,IndusIndBankLimited,KarurVysyaBankLimited,SouthIndianBankLimited,UCOBankandUnionBankofIndiaetc.

Ancillary Services: RBL is also a TIN (Tax Information Network) and PAN (Income TaxPermanentAccountNumber) facilitationpartnerofNSDLandoffersservices relating toPAN,TAN(TaxDeductionandCollectionAccountNumber),andfilingofTDS/TCS(TaxDeductionatSource/TaxCollectionatSource)returnsatselectbranches,tohelpitscustomersfulfilltheirmajorfinancialservicesneedsunderasingleroof.RBLisalsoempaneledwithE-mudraasRegisteringAuthority/Agent for issuanceofDigitalSignatureCertificateand isanAMFIregisteredmutualfunddistributor.RBLisalsoregisteredasPointofPresence(POP)withPensionFundRegulatoryDevelopmentAuthority(‘PFRDA’)underPFRDAPointofPresenceRegulations,2015andwithInsurance Regulation & Development Authority as a composite corporate agent to distribute

insurance products.

BOARD OF

DIRECTORS


DR. RASHMI SALUJA

EXECUTIVE CHAIRPERSON

Dr.RashmiSalujaisadoctorandanentrepreneur.SheisanMBBS,MD,LLB,PhD&MBA(Finance)byqualification.Dr. Saluja has administrative experience of more than 25 years, setting up institutions and being involved in social

andcharitableactivities.AsExecutiveChairpersonofReligareEnterprisesLimited,ChairpersoncumManagingDirectorofReligareFinvestLimitedandNon-ExecutiveChairpersonofCareHealthInsuranceLimited(formerlyReligareHealth InsuranceCompanyLimited)ReligareHousingDevelopmentFinanceCorporationLimitedandReligareBrokingLimited,subsidiarycompanies,Dr.Salujahasbeenleadingtherevivaloftheorganisationfromthefront,throughchallengingtimes,tobuildastrongandintegratedfinancialservicesgroup.

MR. SIDDHARTH DINESH MEHTA

VICE CHAIRPERSON (NON –EXECUTIVE & NON-INDEPENDENT)

Mr.SiddharthMehtaistheFounderandCIOofBayCapitalPartners,anIndiafocussedinvestmentfirm.Inacareerspanning 21 years, he has gathered extensive experience as a fund manager working closely with global institutional

investors and managing and advising on their Indian investments. In 2006, he founded his own investment house,

BayCapitalPartners,whichhasgrowntobecomeasignificantinvestorinthelong-termstructuralgrowthofIndia.

AkeenobserveroffinancialtrendsinbothIndiaandworldover,helpshisdeepunderstandingofeconomicandgeo-politicalpoliciesandimpactontheIndianmarket,hehasaparticularinterestincompaniesthatbenefitfromtheIndian growth story. His experience and expertise means he is often asked to provide insight-led analysis on Indian

markets.UK-educated,Mr.SiddharthMehtaholdsabachelor’sdegreeinBusinessManagementandFinancefromKing’sCollege,UniversityofLondon.

MS. VIJAYALAKSHMI RAJARAM IYER

INDEPENDENT DIRECTOR

Ms. Vijayalakshmi Rajaram Iyer joined Insurance Regulatory and Development Authority of India (IRDAI) as Member

(Finance & Investments) on June 15, 2015 on a two year engagement till May 2017.

Prior to joining IRDAI, Mrs. Iyer was the Chairperson and Managing Director of Bank of India which is among the

topNationalizedBanksofthecountry.ShehaspoweredtheBankaheadinvariousareasofbusinessandcontrol.The Bank has seen quantum growth in business during her tenure and the Bank turned out to be a leader in the

PSUbankingspace.

Shestartedhercareer inUnionBankof India inDecember1975.Shehasrichandvariedexposure tobranchbanking, having headed very large branches in Mumbai. She was instrumental for setting up the Risk Management

Department in 2000, inter alia, putting in place various Risk Policies, developing Risk measures and structuring the

reportingframework.In2006-2007,shewasresponsibleforbringingallthebranchesofUnionBankonasingleCore Banking platform and later on went to head both the IT and Risk Management Verticals of the Bank, as its

General Manager. She was also instrumental in the Bank expanding to Hong Kong, China and Dubai.

In September 2010, Ms. Iyer was elevated as Executive Director of Central Bank of India. During her tenure in

Central Bank, she oversaw Credit, HR, IT, Treasury, Risk Management, Credit Monitoring and Audit & Inspection.

She also spearheaded implementation of Core Banking in that Bank, as well as rolling out Alternate Delivery

Channels and other initiatives on the Technology front.

Board of Directors


MR. MALAY KUMAR SINHA


Mr.MalayKumarSinhahasdonehisB.A.(Hons)andM.A.fromDelhiUniversityinHumanitiesandM.PhilfromMadrasUniversityinStrategicStudies.

He started his career as an Executive in TISCO, Jamshedpur and in 1981 joined the Indian Police Service. After

servinginUPPoliceandIB,MHA,indifferentcapacities,bothinIndiaandabroad,heworkedasJointSecretaryintheMinistryofExternalAffairsandfinallyasSecretarySecurity,CabinetSecretariat,RashtrapatiBhawan,fromwhere he superannuated in September 2016.

HeisanalumnusofFBINationalAcademy,Quantico,Virginia,USAandNationalDefenceCollege,NewDelhi.AsJointSecretaryintheMEAhehadledtheevacuationofIndiansinBengaziareafromtheseaduringthewarinLibyain 2011. He has been a keen sportsperson and was Secretary of All India Police Sports Control Board for several

years. He is a recipient of Police Medal for Meritorious Service and President’s Police Medal for Distinguished

Service.

DR. VIJAY SHANKAR MADAN


Dr.VijayShankarMadanisanalumnusoftheMaulanaAzadMedicalCollege,UniversityofDelhi.HejoinedtheIndian Administrative Service (IAS) in 1981 and served for 35 years during which period he held a number of senior

positions in the Government of Goa; Government of NCT of Delhi; and, the Central Government. He also worked

briefly as anOfficer in thePunjabNational Bank before joining the IAS.His international experience includesrepresenting India on the Council of ICAO (Montreal) and later as the Chief, Economic Policy (Air Transport Bureau)

of ICAO.

Dr.MadanservedastheDirectorGeneralofUIDAI(Aadhaar)duringtheperiod2013-15,andwassubsequentlypostedas theSecretary,LandResources,Governmentof India fromwhichposthe retired inAugust2016.Hehas served on the Boards of Directors of several Government companies, including most recently, M/s Bharat

ElectronicsLimited(2017-20).

MR. HAMID AHMED


Mr. Hamid Ahmed born in New Delhi, India in 1977 did schooling from St. Columba’s School New Delhi. In 1998

completedB.A.(Eco.)fromDelhiUniversity.

HetookoverastheChiefExecutiveOfficer(CEO)ofHamdardLaboratoriesIndia(HLI)in2016,holdingreinsoftheorganizationhejoinedin2000.Hestartedhiscareerasadirectorin2000aftergettinghisM.B.A.fromLondon,U.K.He was appointed as a director by his grandfather and the founder of Hamdard Mr. Hakeem Abdul Hameed in 1995.

Withhisdynamicspirit and leadershipabilities,hesoonbecame theCEOofHLI,aprofessionalwithvaluableexperience to steer the company ahead in its growth plans. Spanning a career of over 20 years’ experience, he

has travelled widely across India and abroad and handled diverse portfolios that have helped him understand the

dynamicsofAYUSHandFoodIndustrytrendsinthemarket.Heiswell-versedintheintricaciesofIndia’sregionaldiversities and consumer needs.

HeisholdingthepositionofHon’bleChancellorinJamiaHamdard,CEO-HamdardLaboratoriesIndia(FoodsDiv.),Secretary – Hamdard National Foundation India (HECA), Gen. Secretary – Business and Employment Bureau and

President–UnaniDrugsManufacturersAssociation(UDMA).

Board of Directors

AWARDS &

RECOGNITION


Care Health Insurance Limited (formerly Religare Health

Insurance Company Limited) : ‘B Silver Award for Best Search

Marketing Campaign at IAMAI 11th India Digital Summit and Awards.

Religare Commodities Limited : ‘Krishi Pragati Award 2021

Care Health Insurance Limited (formerly Religare Health

Insurance Company Limited) : ‘Best SEO/SEM Campaign at Afaqs

DIGIES Digital Awards, 2021

Religare Health Insurance Co. Ltd. : ‘Health Insurance

Category Award’ – FICCI Healthcare Excellence Awards 2018

Religare Health Insurance Co. Ltd. : ‘Best Health InsuranceCompanyoftheYear’–EmergingAsiaInsuranceAwards2019

Awards & Recognitions


Religare Health Insurance Co. Ltd. : ‘India’sMostPreferredHealthInsurance Brand’ – India’s Most Preferred Smart City Brands 2018-19

Religare Commodities Ltd. : ‘BestBrokingHouse–Bullion’– MCX Awards 2019

Religare Health Insurance Co. Ltd. : ‘India’sBestTravel Insur-ance Product’ – India Travel Awards 2018

Awards & Recognitions

Religare Health Insurance Co. Ltd. :‘BestClaimsServiceProvideroftheYear’–InsuranceIndiaSummit&Awards2018

Religare Health Insurance Co. Ltd. : ‘India’sMostPreferredTravelInsurance Product’ for the Product – Explore by India’s Most Preferred

Travel & Tourism Brands 2018

FINANCIAL

DECLARATION


To,

The Members,

Religare Enterprises Limited

Your Directors have pleasure in presenting this 37th Annual Report on the business and operations of the Company

togetherwithAuditedFinancialStatementsforthefinancialyearendedMarch31,2021.

STATE OF AFFAIRS OF THE COMPANY

Asindicatedandcommittedinthelastyear’sreport,yourCompanyisonthepathofrecoveryandrevivaltobringbacktheGrouptoitspastgloryhavinglaidastrongfoundationfortheeraofgrowthandprofitabilityasvisibleinattractinginvestmentsfrominvestorsintheCompanyandsubsidiaries,appreciatingvaluationofbusinessesundersubsidiariesandconfidenceandsupportoftheregulators,shareholdersandemployees.

Therehavebeensignificantmilestonesachieved in theFinancialYear2020-21and thereafter tilldateoffinalizationof thisreportwhichhavepositionedtheCompanyaswellastheGroupintoanewrespectfulidentitywhichwastarnishedduetothepastfinancialirregularitiescommittedagainsttheCompanyandReligareFinvestLimited(“RFL”),amaterialsubsidiaryoftheCompany,bytheerstwhilepromotersandex-management.ThenewBoardandManagementisleavingnostoneunturnedtoreinventtheReligareGroupbystrategicallyrevivingandgrowingdifferentbusinessesofyourCompany.

Thekeyachievementsanddevelopmentsduring the lastoneyearhavebeen thereceiptofapprovalofRe-classificationofPromotersandPromotersgroupintothePublicshareholderscategoryfromthestockexchanges,raisingoffundstothetuneofRs.570cr.fromtheprimarycapitalissuancethroughpreferentialallotmentintheCompany,raisingoffundstothetuneofRs.567cr.inthehealthinsurancesubsidiarycompanyCareHealthInsuranceLimitedwhichincludeRs.200cr.comingintotheCompanyfromthesecondarysaleofpartofitsstaketothenewinvestors,lendersconsenttoconsidertheDebtRestructuringofRFLwithRELcontinuingastheshareholderofRFLthedetailsofwhichareelsewhereexplainedintheReport,settlementofsomepastdisputesandlegacyissueswhichwereimpendingthegrowthandrevivalstrategy,simplificationofthegroupstructurebyfilingamergerschemeandremovalofpastauditqualificationsetc..TheCompanyandRFLarealsoactivelypursuingallregulatoryandlegalactions,bothcivilandcriminal,toensurerecoveryoffundssiphonedfromReligaregroup.

Withthefreshcapitalraise,theCompanyintendstorepayitsoutstandingduestoRFL,meetworkingcapitalneedsofitsotheroperatingsubsidiariesand toutlise the funds forothergeneralcorporatepurposesso that the revival,valueprotectionandenhancementatsubsidiariescanbeachievedwhichwillultimatelystrengthentheCompany.

Withallthesesignificantstepsinplaceandcontinuedsupportfrominvestorsandotherstakeholders,weexpecttheCompanyandtheGrouptoemergeasshinierandstronger.

COVID-19 IMPACT

TheCOVID-19pandemic hasbeen significantly impacting the economic activities andbusiness operations of thecompaniesacrosstheCountryonaccountoflockdownconditionsthatstartedandprevailedformostofthefinancialyear. TheCompany, being a Core Investment Company (CIC), has invested its funds primarily inmoneymarketinstruments and inter corporate loan to its subsidiaries. Hence, temporarymarket shocks (such as those due topandemics/epidemicslikeCOVID-19)arenotconsideredtohaveamaterialimpactonthebusinessoftheCompanyperse.

TheCOVID-19pandemichashoweverimpactedtheGroup’sbusinessoperationsinrespectofitshealthinsurancesubsidiary (CareHealth InsuranceLimited (CHIL)) and subsidiariesengaged in thebusinessof lending (i.e.RFL,togetherwithitssubsidiary,ReligareHousingDevelopmentFinanceCorporationLimited(RHDFCL)).

ConsideringthefactthatCOVID-19cansubstantiallyimpacttheclaimlevelinfuture,andthe‘Reserveforunexpiredrisk’heldinnormalcoursemaynotbeadequatetomeettheincreasedlevelofclaims,CHILhascreatedprovisionasatMarch31,2021ofRs13,587.83Lakh(March31,2020:Rs2,445.62Lakh)towardspremiumdeficiency,basedonthereviewconductedandasadvisedbyitsAppointedActuary,whichisalsointermsofitsaccountingpolicyonPremiumDeficiencyReserve.

Apartfromotheradverseeffects,thepandemichasputconstraintsonrecoveryofoverduesfromcustomersofRFLandRHDFCL.Duringtheyear,bothRFLandRHDFCLhaveensuredcompliancewithvariousmeasuresannouncedby various authorities from time to time such as extension of moratorium granted to borrowers, benefit of assetclassification,ResolutionFrameworkforCOVID-19-relatedstress,grantofex-gratiapaymentofdifferencebetweencompoundinterestandsimpleinterest,etc.RFLisrequiredtorefund/adjustanestimatedsumofRs.876.05Lakh(outofwhichRFL’sshareisRs.838.50Lakh)totheeligibleborrowersforrefundofinterestoninterest/compoundinterest/

Directors’ Report


penalinterest,whichwillberefunded/adjustedininstalmentsduefromrespectiveborrowersinFY2021-22.Similarly,RHDFCLhascomputedanamountofRs66.93Lakhtoberefunded/adjustedinaccountsoftheborrowers.

TheGroupbelievesthatthefactorsconsideredarereasonableunderthecurrentcircumstances.TheGrouphasusedearly indicators of moratorium and delayed payment metrics observed alongwith an estimation of potential stress on

probabilityofdefaultandexposureatdefaultduetoCOVID-19situationindevelopingtheestimatesandassumptionstoassesstheexpectedcreditlossesonloans.Giventhedynamicnatureofthepandemicsituation,theseestimatesare subject to uncertainty andmaybeaffectedby the severity andduration of the pandemic. In the event of theimpactsbeingmoresevereorprolongedthananticipated,thiswillhaveacorrespondingimpactonthecarryingvalueoffinancialassets,thefinancialpositionandperformanceoftheGroup.

FINANCIAL RESULTS AND BUSINESS OPERATIONS

ThehighlightsofstandaloneandconsolidatedfinancialperformanceoftheCompanyforthefinancialyears2020-21and2019-20areasunder:

(Rupees in Lakhs)

Particulars

For the financial year 2020-2021

For the

financial year 2019-2020Standalone

(Audited)

Consolidated

(Audited)

Standalone

(Audited)

Consolidated

(Audited)

TotalIncome 11,878.19 253,046.94 6,058.94 239,747.85

TotalExpenditure 5,443.26 302,784.64 20,075.27 325,746.28

Profit before Tax 6,434.93 (49,737.70) (14,016.33) (85,998.43)

ExceptionalItems - - (17,000.00) (17,000.00)

Profit / (Loss) before Tax after exceptional items 6,434.93 (49,737.70) (31,016.33) (102,998.43)

ShareinProfit/(Loss)ofJointVentures - (8.41) - (13.14)

Profit / (Loss) Before Tax 6,434.93 (49,746.11) (31,016.33) (103,011.57)

IncometaxExpense/(Credit) 35.23 (1,964.36) - 785.99

Profit / (loss) After Tax 6,399.70 (47,781.75) (31,016.33) (103,797.56)

Other Comprehensive Income 41.69 2,868.86 (51.50) 1383.75

Total Comprehensive Income for the period 6,441.39 (44,912.89) (31,067.83) (102,413.81)

Less:ShareofNon-ControllingInterest - 3,776.17 - (10,357.44)

Total Comprehensive Income/ (Loss) (after tax and non-controlling interest)

6,441.39 (48,689.06) (31,067.83) (92,056.37)

(i) Consolidated Performance

Werecordeda‘LossAfterExceptionalItemsandBeforeTax’ofRs49,737.70Lakhs,forFinancialYear2020-21ascomparedto‘LossAfterExceptionalItemsandBeforeTax’ofRs.102,998.43Lakhs,forFinancialYear2019-20.‘LossAfterTaxandShareinprofit/lossofJointVenture’wasRs47,781.75LakhsforFinancialYear2020-21ascomparedto‘LossAfterTaxandShareinprofit/lossofJointVenture’ofRs.103,797.56LakhsforFinancialYear2019-20.TotalComprehensiveIncome/(Loss)attributabletotheOwneroftheCompanyfortheFinancialYear2020-21isRs(48,689.06)LakhsascomparedtoRs.(92,056.37)LakhsinFinancialYear2019-20.BasicearningspershareincreasedtoRs.(19.65)inFinancialYear2020-21fromRs.(39.55)inFinancialYear2019-20.

(ii) Standalone Performance

Werecordeda‘ProfitAfterExceptionalItemsandBeforeTax’ofRs.6,434.93Lakhs,forFinancialYear2020-21ascomparedto‘LossAfterExceptionalItemsandBeforeTax’ofRs.31,016.33Lakhs,forFinancialYear2019-20.‘ProfitAfterTax’wasRs.6,399.70LakhsforFinancialYear2020-21ascomparedto‘LossAfterTax’ofRs.31,016.33LakhsforFinancialYear2019-20.TotalComprehensiveIncome/(Loss)fortheFinancialYear2020-21isRs.6,441.39LakhsascomparedtoRs.(31,067.83)LakhsinFinancialYear2019-20.BasicearningspershareincreasedtoRs.2.47inFinancialYear2020-21fromRs.(13.16)inFinancialYear2019-20.


(iii) Operating Performance of Businesses

In theLendingbusiness, our subsidiaryReligareFinvest Limited (“RFL”),which is focusedprimarily on lending to theSMEsegment,hadtotalbooksizeofRs.487,274LakhsoutofwhichSMEbookconstituted48%andamountedtoRs.234,310LakhsasatMarch31,2021inaccordancewithInd-AS.RFLhasbeenundertheCorrectiveActionPlan(“CAP”)ofRBIvideitsletterdatedJanuary18,2018andhasbeenprohibitedfromexpansionofcredit/investmentportfoliootherthaninvestmentingovernmentsecuritiesandnottopaydividend.Therefore,RFLhasfocuseditseffortsoncollections,recoveryandcorrectingtheassetliabilitymismatchinitsbooks.DuringtheyearRFLpaidasumofRs.51,292Lakhstoitslenders.RFLhasapproacheditslenderswitharevisedDebtResolutionPlanwithRELcontinuingasRFL’spromoter/sponsor,tocorrecttheassetliabilitymismatchinitsbusiness.RFLhasalreadymadeprovisionsonitsentireCorporateLoanBookofRs.203,670Lakhsinpreviousyears.RFLretainsitspresenceacross19branchesacrossSMEclustersinIndiaalongwithitsexperiencedSMEfocusedmanagementteam.RFLisalsoactivelypursuinglegalandregulatorymatterstowardsresolvingallissues.RFListakingnecessarycorrectiveactionsandmakingalleffortstocomeoutoftheRBICAPandresumenormalbusinessoperationsattheearliest.

RFL’ssubsidiary,ReligareHousingDevelopmentFinanceCorporationLimited(“RHDFCL”)focusesonprovidingloanstotheaffordablehousingsegmentanditstotalbooksizestandsatRs.45,657LakhsasonMarch31,2021inaccordancewith Ind-AS.Thetotal incomeandPATafterOCI for thefinancialyearwererespectivelyRs.8,251LakhsandRs.912Lakhs.TheaverageticketsizeforthehomeloanshasbeenaroundRs.12Lakhs.RHDFCLhasapanIndiapresencewithanetworkof26branches.RHDFCLhasremainedprofitableineachyearofitsoperationssinceitbecameapartoftheReligaregroup.

OurHealthInsurancebusiness,CareHealthInsuranceLimited(Formerly known as Religare Health Insurance Company

Limited)(“CHIL”)registeredGrossWrittenPremiumofRs.258,802LakhsduringtheFinancialYear2020-21,agrowthof7%overthepreviousfinancialyearandreportedPBTofRs.7,549Lakhs.AsatMarch31,2021,CHILhasestablishedaPan-Indiadistributionnetworkof155+branches.Itservicesover1100+locationsacrosstheCountryandhasahospitalnetworkof15,000+hospitalsandhealthcarecentres.Itoffers25productstocatertovariedcustomerneeds.CHILfollowsamulti-productandmulti-channeldistributionstrategy.Itsproductsspanacrossretailhealth,grouphealth,travelinsurance,etc.andithasagoodchannelmixconsistingofagency,brokers,corporateagents,onlineandbancassurance.

TheRetail Broking business,which comprises ofReligareBroking Limited (“RBL”) andReligareCommodities Limited(“RCL”),reportedrevenueofRs.24,087LakhsandRs532LakhsrespectivelyduringFY21.ThePATforRBLandRCLwasRs.685LakhsandRs.367LakhsrespectivelyforthefinancialyearendedMarch31,2021.RBLservicesmorethanonemillionuniquecustomersandhaspresencein400+townsandcitiesacrossIndia.RBLprovidesmulti-platformoptionssuchasBranch,Web,App,CallnTradetoenhancecustomerconvenienceandease.RBLalsohasBancinvestpartnershipswithvariousbankslikeIndusIndBankLimited,AndhraBank,BankofMaharashtra,CorporationBank,KarurVysyaBankLimited,SouthIndianBankLimited,UCOBankandUnionBankofIndiaetc.

CHANGE IN NATURE OF BUSINESS

Duringtheyearunderreview,therewasnochangeinthenatureofbusinessoftheCompany.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management’sDiscussionandAnalysisReportfortheyearunderreviewdetailingeconomicscenarioandoutlook,asstipulatedunderScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBI LODR Regulations”)

ispresentedinaseparatesectionandformsanintegralpartofthisReport.

DIVIDEND AND RESERVES

Keepinginviewofthepastlossesandfuturerequirements,nodividendhasbeendeclaredbytheCompanyforthefinancialyearendedMarch31,2021.

Undersection45-IC(1)ofReserveBankofIndiaAct,1934,non-bankingfinancialcompanies(NBFCs)arerequiredtotransferasumnotlessthan20%ofitsnetprofitstoreservefund.Accordingly,theCompanyhastransferredasumofRs.1,279.94Lakhstoitsreservefund.

TheCompanyhadformulatedandapprovedaDividendDistributionPolicy(“thePolicy”)pursuanttotherequirementundertheSEBI(ListingObligationsandDisclosureRequirements)(SecondAmendment)Regulations,2016initsmeetingheldonOctober26,2016.DetailsofthesamehavebeenuploadedonthewebsiteoftheCompanyandcanbeaccessedthroughthelinki.e.https://www.religare.com/pdf/Rel_Dividend_PolicyNov2016.pdf


However,themembersmaypleasenotethattheReserveBankofIndia(“RBI”)videitsletterdatedApril5,2019hasadvisedtheCompanytostoppayingdividendstillfurtherordersfromRBIandhascontinuedthatrestrictionvideitsletterdatedDecember19,2019.

SUBSIDIARIES & JOINT VENTURES

As atMarch 31, 2021, your Company has 25 direct and indirect subsidiaries. During the year under review, thebusinessesoftheCompanyanditssubsidiariesandchanges,ifany,havebeenexplainedelsewhereinthisreportandManagement’sDiscussionandAnalysisReport.IntermsofSection129(3)oftheCompaniesAct,2013(“Act”),yourCompany has prepared a statement containing the salient features of the Financial Statements of our subsidiaries

&jointventures in theprescribedformatAOC-1which isattachedto theConsolidatedFinancialStatementsof theCompany.Thesaidstatementcontainsareportontheperformanceandfinancialpositionofeachofthesubsidiariesandhenceisnotrepeatedhereforthesakeofbrevity.Further,thedetailsofmajorsubsidiariesoftheCompanyandtheir business operations during the year under review are covered in the Management’sDiscussionandAnalysisReport.

AsatMarch31,2021,yourCompanyhas1jointventurei.e.IBOFInvestmentManagementPrivateLimitedinwhichtheCompanyholds50%sharecapital.

Religare Finvest Limited (“RFL”)

1. Capital Adequacy Ratio

TheCapitaltoRiskWeightedAssetsratio(“CRAR”)ofRFLasonMarch31,2021isbelowtheprescribedlimit.ReserveBankofIndia(“RBI”)videitsletterdatedJanuary18,2018hasadvisedRFLtoadheretocorrectiveactionplan(“CAP”)givenby it.ThesaidCAP, interalia,prohibitsRFL fromexpansionofcredit/investmentportfoliosother than investmentinGovernmentSecuritiesandadvicesRFLnot topaydividend. In this regard,RFL is taking thenecessarycorrectivemeasuresasadvisedbyRBItoseekremovalofCAPintheduecourse.

RFLhasalsomadedefaultsinrepaymentofitsobligationtowardsitslendersandanamountofRs.3,296.02crore(Rs.1,771.21croreasonMarch31,2020)areoverdueasonMarch31,2021.Further,RFLhasnotredeemedtheUnsecuredRated Listed Redeemable Non-Convertible Subordinated Debentures aggregating to Rs. 10,620 lakhs comprising ofprincipalofRs.10,000lakhsandinterestofRs.620lakhsonthedateofmaturityi.e.April30,2021.

2. Corporate Loan Book

RFLhasanexposureofRs.203,670LakhsasperfinancialsasatMarch31,2021towardstheCorporateLoanBook.RBIhasraisedconcernsinthepastaboutthecreditworthinessoftheborrowers,creditappraisalandloansanctioningmechanismfollowedbyRFLinrespectofthisbook.Basedonthematuritydatesoftheloans,recoverystepsinstitutedandthefinancialreportsoftheborrowers,RFLhad,onaprudentbasis,madefullprovisionofRs.203,670Lakhsduringthepreviousyearsagainstthisportfolio.InsolvencyproceedingshavebeeninitiatedbeforetheHon’bleNCLTDelhiagainsttheBorrowersformingpartoftheCorporateLoanBook.RFLhasfiledpetitionsinHon’bleNCLTforrecoveryofcorporateloans.However,theHon’bleSupremeCourthasstayedtheseproceedingsinahearingofthemattertitledDaiichiSankyoCompanyLimitedvs.OscarInvestmentsLimited.REL,RFLandRCTLhavefiledapplicationfor interventionwhichhasbeenallowedbytheSupremeCourt.TheapplicationforvacationofstayisheardbytheHon’bleCourtandthejudgementisreservedonthesame.

RFLhadfiledacriminalcomplaintonDecember19,2018beforetheEconomicOffenceWing(EOW),forvariouscriminalactionscommittedbytheerstwhilepromotersandotherassociatedpersons/entities.TheEOWfileditschargesheetonJanuary5, 2020against variousaccusedpersonsandentities.TheEnforcementDirectoratehas suo-moto lodgedanenforcementcaseunderthePreventionofMoneyLaunderingAct.TheEDhasfileditschargesheetonJanuary10,2020andcognizancehasalsobeentakenbytheCourt.TheCompanyandRFLhavealsofiledacomplaintwithCBIagainstvariousaccusedundervarioussectionsofIndianPenalCode,1860.RFLisactivelypursuingtherecoverystepsinthematterandishopefulofrecoveries.

3. Debt Resolution Plan

During theyearendedMarch31,2021,RFLhassubmitted revisedDebtRestructuringPlan (DRP) to the lendersandproposedrevisedDRP,withReligareEnterprisesLimited(REL / Company)continuingasthepromoterofRFL.TheLeadBankerofRFLinaforesaidDRPi.e.StateBankofIndia(SBI)hasvideletterdated03.06.2021conveyedthattheaforesaidproposalisunderconsiderationonmerit(withRELasashareholder)andthesamewillbeconsideredifitisincomplianceofRBIcirculardatedJune07,2019(DBRNo.BP.BC.45/21.04.048/2018-2019)subjecttonecessaryinternalapprovals


byallConsortiumLenders.Itwasalsoconveyedthatthisdoesnotamounttoacommitmentonitsparttore-structurethefacilitysanctionedtoRFL.Thereafter,theCompanyhasraisedrequisitefundsviapreferentialallotmentofequitysharesinordertorepaytheloansduetoRFLfromtheCompanyanditssubsidiarytomeetthepre-conditionoftheproposedDRP.However,consideringthattherevisedDRPapproval/implementationwilltakesometime;lendersdecidedtoappropriateRs.400Croreson31March2021outofthefundslyinginthecurrentaccountofRFLmaintainedwithSBI.ThefundsweredistributedinaccordancewiththeproposedDRP.ThefinancialstatementsofRFLhavebeenpreparedonGoingConcernbasis.

4. Matters related to Strategic Credit Capital Private Limited (“SCCPL”) and its Associates

(i) As disclosed in previous annual reports, during the year endedMarch 31, 2018, RFL entered into a settlementagreementwithSCCPLanditsassociatecompaniesforwithdrawingvariouslitigationsagainsteachotherinrespectofassignmentofloansbyRFLtoSCCPL.RFLispursuingrecoveryofRs.79,367.20Lakhs(fullyprovidedfor)fromSCCPL.Despitethesettlement,SCCPLanditsassociateshavefiledasuitbeforetheHon’bleDistrictCourtSaketseekingvariousreliefsandalsoseekingdischargeoftheirobligationsundertheSettlementAgreement.RFLandRELhavefiledapplicationfordismissalofsuit.Thematterissub-judice.

(ii) SCCPL&ParticipationFinance&Holdings(India)Pvt.Ltd.(PFH)havefiledacommercialcivilsuitbeforeHon’bleDelhiHighCourtagainstLakshmiVilasBank(LVB),whereintheyhavearrayedtheCompanyandotherentitiesasparty.SCCPLandPFHareseekingvariousreliefsinthepetitionagainstLVBandamongstotherrelief,adirectionagainsttheRFL’sfixeddepositsplacedwithLVB.AninterimorderdatedFebruary22,2018waspassedtomaintainstatusquoregardingtheReligaretrademarkasdescribedintheScheduleoftheDeedofAssignment.TheCompanyhasalsofiledapplicationforrejectionofplaintunderorder-VIIRule-11andapplicationu/s340Cr.PCagainstSCCPLforfilingfabricatedindemnificationcumreleaseagreement.Further,LoancoreServicingSolutionsPvt.Ltd.(Loancore)hasfiledsubstitutiononbehalfofSCCPLbywayofassignmentdeed.Thereafter,SCCPLalsomovedanapplicationu/o39R-1/2ofCPCseekinginjunctionagainsttheCompany&RFL,restrainingthemfromsellinglendingbusiness.Thesaidapplicationwasdisposed-offonAugust9,2019intermsoforderdatedFebruary22,2018.Nowthecaseislistedfordisposalofinterimapplications.Thematterissub-judice.

(iii) RFLhasalsofiledinsolvencyproceedingsagainstSCCPLandPerpetualCapitalandServicingPvt.Ltd.(PCSPL).Themattersaresub-judice.

(iv) RFLhasalsofiledvariouscomplaintswithEOW,NewDelhiagainst,SCCPL,Mr.FrancisDanielLee,Mr.MohnishMukkar and their associates for various offences including but not limited to cheating,misappropriation, forgery,criminal intimidation, extortion, criminal breachof trust, and criminal conspiracyagainstSCCPLand its associateentities&individuals.

5. Fixed Deposits with Lakshmi Vilas Bank

InrelationtoadjustmentoffixeddepositsofRs.79,145Lakhs(excludingRs.2,703.39Lakhsinterestaccrued&duetillthedateoforiginalmaturityi.e.July20,2018)withandbytheLakshmiVilasBank(LVB)againsttheloansgiventoerstwhilepromotergroupcompaniesinthepreviousyears,RFLhadfiledasuitforrecoveryoffixeddepositsamountingtoRs79,145LakhsmisappropriatedbyLVBonMay31,2018beforetheHon’bleDelhiHighCourt.TheHon’bleDelhiHighCourtpassedinterimOrdersdirectingthatstatusquobemaintainedinrespectofRFL’scurrentaccountmaintainedwithLVB.Further,StateBankofIndiaandSCCPLalongwithitsassociateshavefiledapplicationforimpleadmentinthesaidsuit.

Apartfromcivilsuitforrecovery,RFLhadalsofiledacriminalcomplaintagainstLVBandothersonMay15,2019withEconomicOffencesWing,Delhi(EOW).TheEOWhasregisteredaFIRbearingno.189of2019datedSeptember23,2019againstLVB&Ors.forcommittingoffenceofcriminalbreachoftrustandcriminalconspiracy.RFLhasalsoplacedonrecord,theFIRlodgedbyitagainstLVB&ors.

TheEOWhasfileditschargesheetonMarch23,2020,cognizanceonwhichisyettobetakenbytheCourt.Thematterissub-judice.Also,theEnforcementDirectoratehaslodgedanECIRonthebasisoftheFIRlodgedbyEOW.

WhilethemattercontinuedtobeunderlitigationatHon’bleHighCourtofDelhifordeclarationandrecovery,RFLhasfiledapplicationtotheHon’bleCourtforsubstitutionofLVBwithDBSBankIndiaLimited(DBS).Further,StateBankofIndiaandSCCPLalongwithitsassociateshavefiledapplicationforimpleadmentinthesaidsuit.Thematterissubjudice.


MAJOR EVENTS

� Re-classification of Promoters and Promoters Group

WithrespecttotheCompany’sapplicationwithstockexchangesforre-classificationofexistingPromotersandPromotersGroupsubmittedonJuly31,2020postrequisiteapprovalsoftheBoardofDirectorsandShareholders,theCompanyhasreceivedapprovalofboththestockexchangesviz.NationalStockExchangeofIndiaLimitedandBSELimitedonJune11,2021andJune12,2021respectivelyforre-classificationoffollowingPromoters&PromoterGroupintopubliccategory:

Promoters

1. MalvinderMohanSingh

2. ShivinderMohanSingh

Promoters Group

3. JapnaMalvinderSingh

4. AditiShivinderSingh

5. AbhishekSingh

6. RHCFinancePrivateLimited

7. RHCHoldingPrivateLimited

8. PSTrust(heldinthenameofMalvinderMohanSingh&ShivinderMohanSingh)

Inthisregard,30,000sharesheld/acquiredbyNimritaParvinderSingh(whomtheCompanybelievedtobetheDaughterofMalvinderMohanSingh,oneof theerstwhilePromoters) for thequartersendingDecember31,2020andMarch31,2021wereincludedintheShareholdingPatternunderthecategoryofPromotersGrouponlytocomplywithCompany’sdisclosurerequirementsintermsoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andSEBI(IssueofCapitalandDisclosureRequirements)Regulations,2018(SEBI ICDR Regulations) since she was falling

underdefinitionofPromoterGroupprovidedintheSEBIICDRRegulations.

However,nowconsequenttotheapprovalofRe-classificationofPromoters(MalvinderMohanSingh&ShivinderMohanSingh) intoPublicCategory,NimritaParvinderSinghisautomaticallyoutofPromotersGroupasdefinedinSEBIICDRRegulationsandhenceisnotbeingclassifiedunderthePromoters/PromotersGroupintheShareholdingPatternoftheCompanyw.e.f.June12,2021.

PursuanttotheRe-classificationofPromoters/PromotersGroup,theCompanyhasnowbecomea“Listed entity with no

Promoters”.

� Raising of funds through the Preferential Allotment

PostMarch31,2021,theCompanyhasraisedfundsofRs.570Cr.throughpreferentialallotmentof5,41,56,761equitysharesintermsofSEBI(IssueofCapitalandDisclosureRequirement)Regulations,2018onJuly14,2021atissuepriceofRs.105.25pershare(includingapremiumofRs.95.25pershare)intermsoftheapprovaloftheBoardofDirectorsandShareholdersoftheCompanyobtainedonJune08,2021andJuly03,2021respectively.

TheCompany is utilizing the funds as per the objectsmentioned in notice of extra-ordinary generalmeeting send toshareholdersforapproval.

� Composite Scheme of Arrangement

OnDecember18,2019,theBoardofDirectorsoftheCompanyapproved,subjecttorequisiteapprovals,thedraftSchemeofAmalgamation(“Scheme”)thatisdesignedtosimplifytheGroupcorporatestructure.IntermsoftheScheme,four(4)direct/indirectwhollyownedsubsidiariesoftheCompanynamely,ReligareComtradeLimited,ReligareInsuranceLimited,ReligareAdvisorsLimitedandReligareBusinessSolutionsLimitedwillmergewith/intotheCompanysubjecttotermsandconditionsasprovidedintheScheme.Further,theearlierSchemeapprovedbytheBoardonMay23,2019waswithdrawnaccordingly.

TheSchemeisincontinuationofthestepstheCompanyhastakeninthepasttosimplifythestructureandhasthefollowingrationale:


• Noactivebusinesshasbeencarriedonby theTransferorCompanies.Further,asondate,all liabilitiesowedbythe Transferor Companies are payable to the group entities which are ultimately consolidated into the Transferee

Company.Consideringthepresenteconomicenvironment,consolidationofthesaidentitiesisenvisagedthroughthisScheme.

• TheSchemewillalsoresultinsimplificationofholdingstructure,therebyresultinginreductioninmultiplicityoflegalandregulatorycompliances,reductionofcostsandpoolingofcommonresources.

• TheSchemewillalsofacilitatetheTransfereeCompanytomeetobligationsoftheTransferorCompanies.

TheSchemehasbeenfiledwiththeHon’bleNCLTonOctober31,2020.

� Divestment of partial stake in Health Insurance Business

The Company has entered into the definitive agreements (Share Subscription and Share Purchase Agreement andShareholdersAgreement)onFebruary06,2020withM/s.KedaaraCapitalFundIILLPandM/s.TrishikharVenturesLLP(jointlyreferredas ‘Kedaara’) fordivestmentofpartof itsstakeinReligareHealthInsuranceCompanyLimited(namechanged to Care Health Insurance Limitedw.e.f.August19,2020)(“CHIL”).

Pursuanttosame,theCompanyhasdivestedpartofitsinvestmentinCHIL,asubsidiarycompanyonJune02,2020toKedaara.Thetotal investmentmadebyKedaaratoacquiresharesofCHILisRs.56,730.54LakhswhichcomprisesofprimarycapitalinfusionofRs.30,000LakhsinCHILandRs.26,730.54LakhsforthepurchaseofitssharesfromexistingshareholdersofCHIL,includingpurchaseof6.39%stakefromtheCompanyagainstaconsiderationofRs.20,000Lakhs.TheCompanycurrentlyholds68.72%stakeinCHIL.

� Settlement with Axis Bank Limited

InrelationtoorderdatedMarch21,2018passedbyHon’bleDebtRecoveryTribunal–II,NewDelhi(DRT–II)intheOriginalApplicationfiledbyAxisBankLtd.(“OA”)apartfromotherparties,theCompany,ReligareCapitalMarketsLtd(“RCML”),andReligareCapitalMarketsInternational(Mauritius)Limited(“RCMIML”),weremadepartiesforrecoveryofRs.31,293.93LakhsinrelationtoaloanfacilityobtainedbyRCMIMLfromAxisBankwhichwas,interalia,securedbypersonalguaranteesexecutedbyMr.MalvinderMohanSinghandMr.ShivinderMohanSinghandcertainothersecuritiesprovidedtoAxisBank.TheCompanyhasnotprovidedanyguarantee/securityinrelationtothefacilityobtainedbyRCMIMLfromAxisBank.Inthematter,inviewofthefullandfinalpaymentmadebytheCompanytoAxisBankintermsoftheConsentAgreementdatedOctober01,2019enteredintoamongsttheCompany,RCML,RCMIMLandAxisBank,theHon’bleTribunalvideitsorderdatedJuly13,2020hasdeletedREL,RCMLandRCMIMLfromthearrayofpartiesandInterimorderspassedonMarch21,2018andAugust26,2019againstREL,RCMLandRCMIMLstandvacated.InaccordancewiththeConsentAgreement,apaymentofRs.17,000LakhshasbeenmadebytheCompanytoAxisBank.

REGULATORY UPDATES

Reserve Bank of India (“RBI”)

RBIconductedan inspectionoftheCompanyundersection45NoftheReserveBankofIndiaAct,1934inthemonthofDecember2020forthefinancialpositionasonMarch31,2020.TheSupervisoryConcernswereissuedbytheRBIinApril2021pursuanttosaidinspection.

Further,videSupervisoryConcerns/AdvisoryLetterdatedDecember19,2019issuedbytheRBIforinspection for the

financialpositionasonMarch31,2019,RBIhasadvisedtheCompanytocontinuetobedebarredfromdeclaringthedividends.

Securities and Exchange Board of India (“SEBI”)

i. InconnectionwiththeinvestigationoftheCompany/RELinitiatedbySEBIinFebruary2018,theCompanyanditssubsidiaryRFLhavecooperatedintheaforesaidinvestigationandhaveprovidedtherequisiteinformation/documentsfromtimetotimeandmadenecessarysubmissionswithSEBI.

SEBIvideitsOrderdatedNovember12,2020hasissueddirectionstoinitiateadjudicationproceedingsunderappropriatelegalprovisionsagainstcertainentitiesmentionedinthesaidOrder.

Thereafter,theCompany/RELreceivedtheShowCauseNoticedatedNovember17,2020fromSEBIinthematterthroughwhichRELwascalledupontoshowcauseastowhyappropriatedirections,asdeemedfit,underSections11B(1)and11(4)readwithSection11(1)ofSEBIAct1992andSection12A(1)ofSCRAAct,1956shouldnotbeissuedagainst it.RELisfurthercalledupontoshowcauseastowhyappropriatedirectionsforimposingpenaltyunderSections11(4A)and


11B(2)readwithSection15HAand15HBofSEBIAct,1992andSection12A(2)readwithSection23EoftheSCRAAct,1956andSEBI(ProcedureforHoldingInquiryandImposingPenalties)Rules,1995andSecuritiesContract(Regulation)(Procedureforholdinginquiryandimposingpenalties)Rules,2005shouldnotbeissuedagainstREL.

ChargesallegedonRELrelatestoviolationofprovisionsofSections12A(a)(b)&(c)oftheSEBIAct,1992andRegulations3(b), 3(c) & 3 (d), 4(1), 4(2)(f), and 4(2)(r) of the SEBI (PFUTP)Regulations, 2003 aswell as clauses 32 and 36 oftheListingAgreement,Clause49(I)(C)(1)(a)&49(I)(C)(1)(d)oftheListingAgreement[postcirculardatedApril17,2014]readwithRegulation103ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,(“SEBI(LODR)Regulations”)andSection21oftheSCRAAct,1956;Regulations4(1)(a),4(1)(b),4(1)(c),4(1)(d),4(1)(g),4(1)(h),4(1)(i),4(1)(j),30(1),and48ofSEBI(LODR)Regulations.

RFLalsoreceivedaShowCauseNoticedatedNovember17,2020inwhichthechargesallegedonRFLrelatestoviolationofprovisionsofSection12A(a)(b)&(c)oftheSEBIActandRegulations3(b),3(c)&3(d)and4(1)oftheSEBI(PFUTP)Regulations,2003readwithSection11(4), (4A)and11B(1)& (2)of theSEBIAct,1992and theSEBI (Procedure forholdinginquiryandimposingpenalties)Rules,1995.RFLwascalledupontoshowcauseastowhyappropriatedirections,asdeemedfit,underSections11B(1)and11(4)readwithsection11(1)ofSEBIActshouldnotbeissuedagainstit.RFLisfurthercalledupontoshowcauseastowhyappropriatedirectionsforimposingpenaltyunderSections11(4A)and11B(2)readwithSection15HAofSEBIActSEBI(ProcedureforHoldingInquiryandImposingPenalties)Rules,1995shouldnotbeissuedagainstRFL.

REL&RFLhavejointlyfiledreplyonFebruary11,2021andpartargumentshavealsobeenheardbytheWholeTimeDirector.

InaccordancewiththeSEBI(SettlementProceedings)Regulations,2018andguidelinesandcircularsissuedbySEBI,RFLandRELhavealsofiledajointapplicationforsettlement(withoutprejudice)onMarch31,2021.Thematterhasbeenkeptforadjudicationofthesettlementapplication.

ii. Inthemattersofinterimex-parteOrderpassedbySEBIonOctober17,2018,readwithConfirmatoryOrderdatedMarch19,2019andmodifieddirectionsdatedJune28,2019inthematterofFortisHealthcareLimited(“FHL”)(“SEBI Order”)anappealwaspreferredbyReligareFinvestLimited(“RFL”),subsidiarycompanyofREL,againsttheSEBIOrder.Afterhearingtheparties,theSecuritiesAppellateTribunal(“SAT”)haspassedanOrderdatedJanuary29,2020quashingandsettingaside theSEBIOrderquaRFL.TheSAThas remitted thematter toWhole-timeMember (“WTM”)ofSEBI forpassingfreshorder,iftheysodesireaftergivinganopportunityofhearingtoRFL.

SAThasfurtherdirectedRFLtomaintainitsassetsworthRs.200croresforaperiodofthreemonthsfromtheSATOrder.IftheWTMisunabletopassanyOrderwithinthesaidperiod,thislimitedrestraintorderpassedbytheSATwillcometoanend.

Inthesaidmatter,FortisHospitalsLtd.hasfiledasuitforrecoveryfromRFL&Ors. onthebasistheSEBIOrderdatedOctober17,2018andconfirmatoryOrderMarch19,2019.Thematterissub-judice.

Thereafter,SEBIpassedanotherorderdated12thNov,2020(WTM/GM/IVD/ID2/48/2020-21)wherein,SEBIbyvirtueofSection19readwithsections11and11BofSEBIAct,1992hasrevokedthedirectionsissuedvidetheorderdate19thMarch,2019readwithorderdated28June,2019againstBestHealthcarePrivateLimited,FernHealthcarePrivateLimitedandModlandWearsPrivateLimitedandhasalsodisposedoftheongoingproceedingsundersection11/11BoftheSEBIAct,1992against them.SEBIfurtherhasdirectedthat theAdjudicatingOfficerappointed in thematterpursuant tothisordershallcarryout theadjudicationproceedings inan independentmannerwithoutgetting influencedbythisorderofrevocation.

Recently, SEBI has issued a notice dated 09thApril, 2021 (EAD-4/ADJ/GR/KG/OW/8529/1/2021) to various entities/individualsvidewhich,RFLhasbeencalledupontoshowcauseastowhyaninquiryshouldnotbeimposedundersections15HAand15HBoftheSEBIAct,1992,within14daysfromthedateofthereceiptofthesaidnotice.RFLhasfileditsreplyalongwithsettlementapplicationwhichispendingfordisposalasondate.

Serious Fraud Investigation Office (“SFIO”)

InthematterofongoinginvestigationoftheCompanyinitiatedbySFIOinFebruary2018,asorderedbyMinistryofCorporateAffairs,GovernmentofIndia,theCompanyanditssubsidiarieshavebeencooperatingintheaforesaidinvestigationandhavebeenprovidingtherequisiteinformation/documentsfromtimetotime.


LEGAL UPDATES

a. Cancellation of allotment of 2,50,00,000 Preference Shares issued to RHC Finance Pvt. Ltd.

TheCompanyhasfiledapetitionbeforeHon’bleNCLT,DelhiunderSection55readwithSection59andotherapplicableprovisionsoftheCompaniesAct,2013seekingrectificationofregisterofmembersoftheCompany.Thesaidpetitionisfiledwiththeprayertoorderdeclaringthattheallotmentof2,50,00,0000.001%Non-ConvertibleRedeemablePreferenceSharesissuedbytheCompanytoRHCFinancePrivateLimitedonAugust30,2016asvoidabinitioand/orotherwiseunlawful,andtoconsequentlycancelthesaidallotment.Thematterissub-judice.TheamountoutstandingagainstsuchpreferencesharesasonMarch31,2021isRs.4,030.06lakhs.

b. Redemption of 15,00,000 preference shares

In thematterofDaiichiSankyoCompanyLimitedvs.MalvinderMohanSingh&Others (PetitionO.M.P. (EFA)(COMM)NO.6OF2016),aninterimapplicationhasbeenfiledbytheCompanydisputingitsliabilityasagarnishee.The Company has not redeemed 15,00,000 preference shares due for redemption onOctober 31, 2018 anddisputedtheliabilitystatingthetransactiontobeanillegalone.TheHon’bleHighCourtofDelhiremarkedthatitexpectedRELtofileacomplaintwiththeconcernedPoliceStation.Accordingly,incompliancethereof,RELhasfiledanaffidavitdisclosingnamesofpersonswhowereonBoardofDirectorsatrelevanttimesandhasalsofiledacriminalcomplaintonMarch22,2019withtheEconomicOffencesWing,DelhiPolice(EOW)forvariousoffencesundertheIndianPenalCode,1860w.r.ttransactionsrelatingtoissuanceandredemptionofPreferenceShares.TheComplaint isfiledwith theEOW. InvestigatingOfficer isassigned in thematterandnotice is issued to theaccused.TheCompanyhasbeenservedwithwarrantsofattachmentasGarnishee,whichisbeingcontested/challenged.InSupremeCourttherearethecontemptproceedingsagainsttheSinghBrothersforallegedlyviolatingDelhiHighCourtordersandsellingtheirstakeinFortisHealthcareLimited.Hon’bleSupremeCourtofIndiahasstayedtheproceedingwhichwaspendingbeforetheNCLT,NewDelhiforpassingorderonadmissionhearingofinsolvencypetitions.Now,RFL,RELandRCTLareimpleadedasapartyinthesaidproceedings.

However,theCompanyhascreatedanadhocprovisionofRs1,209.06LakhstowardsthepotentialinterestliabilityfromtheredemptiondatetillMarch31,2021.

ThetermsheetsignedbytheCompanyprovidesaRedemptionEventthat“holdersofthePreferenceShares,mayhavetheoptiontosubscribetoequitysharesinRELthoughpreferentialallotmentworththeDueAmountsubjecttoapprovaloftheshareholdersatthetimeifrequiredandsubjecttocompliancewithSEBIregulationsandotherapplicablelaw.

c. Petition against the Company under Insolvency and Bankruptcy Code, 2016

LoancoreServicingSolutionsPvt.Ltd. (Loancore)allegedlyfiledasoperationalcreditor to initiatecorporate insolvencyresolutionprocess(“CIRP”)underSection9oftheInsolvencyandBankruptcyCode,2016(“IBC”)readwithrule6oftheInsolvencyandBankruptcy(ApplicationtoAdjudicatingAuthority)Rule,2016onthebasisofthePenaltyFeeAgreementofRs.125Croreapprox.Asper theCompany’sunderstandingsaidpetitionwasnotmaintainableongrounds: (a) theCompanyisinfinancialservicessectorandhencecanbereferredtoCIRPunderIBConlybyRBI;(b)ThereisnoassuchPenaltyFeeAgreementwithLoancoreapprovedbytheBoardofDirectorsoftheCompanyever.ThepetitionhasbeendismissedfordefaultonJuly28,2021intheNCLT,Delhi.

d. Petition for rectification of Register of Members of the Company

LoancoreServicingSolutionsPvt.LimitedhasfiledapetitionwiththeHon’bleNCLT,DelhiunderSections58and59oftheCompaniesAct,2013seekingrectificationofRegisterofMembersoftheCompany.TheCompanyiscontestingthesameonmaintainabilityofthepetition.Thematteriscurrentlysub-judice.TheBoardandmanagementstronglybelievethatthisisafrivolouspetitionbyLoancoreandtheCompanywillstronglydefendthecase.

e. Promoter Indemnity Agreement

InthematterofMalvinderMohanSinghvs.ReligareEnterprisesLimited&Ors.,inHon’bleDelhiHighCourt,MalvinderMohanSinghhasfiledSuitfordeclarationthattheterminationofIndemnificationcumReleaseAgreementdatedNovember14,2017(“Indemnity”)issuedbytheCompanyisunlawful.ThenewBoardhadcancelledtheIndemnityonSeptember02,2018.NonoticeisissuedonthesaidPetition.TheCompanyhasraisedobjectionsregardingmaintainabilityofsuit.Thematterissub-judice.


f. Petition by Finserve Shared Services Limited (“FSSL”)

FSSLhasfiledapetitionagainsttheCompanyunderSection11oftheArbitrationandConciliationAct,1996forappointmentoftheArbitralTribunalallegingthattheCompanyhadexecutedaMasterServicesAgreementdated09.11.2011 (“MSA’’)withFSSL tocentralize thecostsofRELby thecreationofaseparateentitywhichwouldprovidecorporateservicestoRELanditssubsidiarieswhichwouldalsofacilitatethereductionoftheoverallcostsofRELanditssubsidiariesandpersuadedRHCHoldingPvtLtd.(“RHC”)tomakeaninvestmentofRs.83,900LakhsinFSSL,bywayofequity,preferenceanddebt.Thematterissub-judice.

g. Non-redemption of preference shares by Religare Capital Markets Limited (“RCML”)

RHCHoldingPvtLimitedhasfiledapetitionagainstRCMLunderSection11oftheArbitrationandConciliationAct,1996forappointmentoftheArbitralTribunaldemandingthepaymentofitsinvestmentamountinthepreferencesharecapital ofRCMLofRs.52,447LakhsalongwithpremiumofRs.53,841Lakhswhichhasbeendue forredemptionbutnotredeemedbyRCMLduetolosses.TheCompanyhasalsobeenarrayedaspartytothesaidpetition.Thematterissub-judice.

CHANGE OF THE REGISTERED OFFICE

DuringthefinancialyearendedMarch31,2021,theregisteredofficeofthe Company has been shiftedfrom“2ndFloorRajlokBuilding,24,NehruPlace,NewDelhi110019”toFirst Floor, P-14, 45/90, P- Block, Connaught Place, New Delhi -110001 w.e.f. May 13, 2020.

EQUITY SHARE CAPITAL

ThecurrentAuthorizedShareCapitaloftheCompanyisRs.816,45,00,000/-(RupeesEightHundredSixteenCroresFortyFiveLakhsonly)dividedinto65,44,50,000(SixtyFiveCroresFortyFourLakhsandFiftyThousand)EquitySharesofRs.10/-(RupeesTenonly)eachand16,20,00,000(SixteenCroresTwentyLakhs)RedeemablePreferenceSharesofRs.10/-(RupeesTenonly)each.

Duringtheyearunderreview,theissued,subscribedandpaidupequitysharecapitaloftheCompanywasincreasedfromRs.258,12,81,520(RupeesTwoHundredFiftyEightCroresTwelveLakhsEightyOneThousandFiveHundredandTwentyonly)consistingof25,81,28,152(TwentyFiveCroresEightyOneLakhsTwentyEightThousandOneHundredandFiftyTwoonly)equitysharesofRs.10/-(RupeesTenonly)eachtoRs.259,41,39,020(RupeesTwoHundredFiftyNineCroresFortyOneLakhsThirtyNineThousandandTwentyonly)consistingof25,94,13,902(TwentyFiveCroresNinetyFourLakhsThirteenThousandNineHundredandTwoonly)equitysharesofRs.10/-(RupeesTenonly)each.

Theissued,subscribedandpaidupequitysharecapitalasonMarch31,2021isRs.259,41,39,020/-.

PostMarch 31, 2021 and till the date of this report, theCompany allotted 78,000 Equity Shares of face value ofRs.10/-eachatexercisepriceofRs.29.43eachpursuant toexerciseofstockoptionsgrantedunder theReligareEnterprisesLimitedEmployeeStockOptionPlan2019and54,156,761EquitySharesof facevalueofRs.10/-eachunderthePreferentialIssueofEquitySharesmadeintermsoftheSEBI(IssueofCapitalandDisclosureRequirement)Regulations,2018.Pursuanttothesaidallotments,theissued,subscribedandpaidupequitycapitaloftheCompanystandsincreasedfromRs.259,41,39,020/-dividedinto25,94,13,902equitysharesofRs.10/-eachtoRs.313,64,86,630/-dividedinto31,36,48,663equitysharesofRs.10/-each.

PREFERENCE SHARE CAPITAL

TheCompanyhastwotypesofPreferencesharesoutstandingasondatecomprising15lakhs13.66%CumulativeNon-ConvertibleRedeemablePreferenceSharesofRs.10/-eachissuedin2008(2008PreferenceShares)and2.5crores0.01%Non-CumulativeNon-ConvertibleRedeemablePreferenceSharesofRs.10/-eachissuedin2016(2016PreferenceShares).

TheCompanydidnotredeemthe2008PreferenceSharesonduedateofOctober31,2018basistheinterimapplicationfiledbeforetheHon’bleHighCourtofDelhipraying among other reliefs for the stay of redemption pending the outcome of

investigationsintotheaffairsoftheCompanyanditssubsidiariesalreadyinitiatedbySEBIandSFIO.

Further,duetonon-paymentofdividendbytheCompanycontinuouslyfortwoyearson2016PreferenceShares,theholderofthesesharesareentitledforvotingrightsofapprox.8.81%onthetotalvotingcapitaloftheCompany.TheCompanyhasalsonotpaiddividendon2008PreferenceSharesbuttheCompanyhasaletterdatedAugust20,2012fromthenholderofthesesharesirrevocablyandunconditionallywaivingoffthevotingrightson2008PreferenceShares.


TheCompanyhasfiledthepetitionbeforetheHon’bleNationalCompanyLawTribunal,NewDelhiBenchonJune14,2019seekingrectificationofRegisterofMembersoftheCompanybycancellationof2016PreferenceSharesandanyotherappropriatereliefs,includinginterimreliefwithrespecttofreezingofvotingrightsanddividendrightsattachedtothesaid2016PreferenceShares.Thematterissubjudice.

NON-CONVERTIBLE DEBENTURES

Therearenooutstandingnon-convertibledebenturesasondate.

PUBLIC DEPOSITS

YourCompanyhasneitherinvitednoracceptedanydepositsfrompublicwithinthemeaningofSection73oftheCompaniesAct,2013readwithCompanies(AcceptanceofDeposits)Rules,2014duringtheperiodunderreview.

ANNUAL RETURN

Asper the requirementsofSection92(3) readwithSection134(3)(a)of theCompaniesAct, 2013 readwithRules framedthereunder,thedraftAnnualReturnasonMarch31,2021isavailableonwebsiteoftheCompanyandcanbeaccessedthroughthelinkhttps://www.religare.com/Annual-Returns.aspx

CAPITAL REQUIREMENTS

YourCompany is registeredwith theReserveBankof India (“RBI”)1 as a Non-DepositTakingSystemically ImportantCoreInvestmentCompany(“CIC-ND-SI”)videCertificateNo.N-14.03222datedJune03,2014.IntermsoftheRBINotificationdatedAugust13,2020, theCIC-ND-SIwillhenceforthbe termedasCore InvestmentCompany.TheCompanyprimarily functionsasan investmentholdingcompanywithmore than90%of its totalassetsconsistingof investments insharesofsubsidiarycompanies/jointventurecompanies.

AsaCoreInvestmentCompany,theCompanyisrequiredto–

a. maintainminimumAdjustedNetWorthof30%ofitsaggregateriskweightedassetsonbalancesheetandriskadjustedvalueofoff-balancesheetitemsasonthedateofthelastauditedbalancesheetasattheendofthefinancialyear;and

b. restricttheoutsideliabilitiesupto2.5timesofitsAdjustedNetWorthasonthedateofthelastauditedbalancesheetasattheendofthefinancialyear.

TheCompanyisincompliancewiththeabovementionedrequirementsasatMarch31,2021.

RELIGARE EMPLOYEES STOCK OPTION SCHEMES

NominationandRemunerationCommittee(“Committee”)oftheBoardofDirectorsoftheCompany,interalia,administersandmonitors theEmployees’StockOptionSchemesof theCompany inaccordancewith theSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014(erstwhileSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999)(‘theSEBIESOPRegulations’).

During the year under review, the Committee granted 11,500,000 stock options under the “Religare Enterprises LimitedEmployeesStockOptionPlan2019”andfurther2,500,000stockoptionsweregrantedafterthecloseoftheFY2021tillthedateofthisReport.

DetailsasrequiredundertheSEBIESOPRegulations,forReligareEmployeesStockOptionScheme2010,ReligareEmployeesStockOptionScheme2012andReligareEmployeesStockOptionPlan2019havebeenuploadedonthewebsiteoftheCompanyandcanbeaccessedthroughthelinkhttps://www.religare.com/Employee-Stock-Option-Schemes.aspx

ThereisnoothermaterialchangeintheESOPschemesoftheCompanyduringtheyear.

CertificatefromtheAuditorsconfirmingthatschemeshavebeenimplementedinaccordancewiththeSEBIESOPRegulationswillbeavailableforinspectionbythemembersintheforthcomingAnnualGeneralMeetingoftheCompany.

1 RBI Disclaimer: (a) Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the

financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for discharge of liability by the company; (b) Neither is there any provision in law to keep, nor does the company keep any part of the deposits with the Reserve Bank and by issuing the Certificate of Registration to the company, the Reserve Bank neither accepts any responsibility nor guarantee for the payment of the public funds to any person/ body corporate.


DIRECTORS AND KEY MANAGERIAL PERSONNEL

AllIndependentDirectors(IDs)havegivendeclarationsthattheymeetthecriteriaof independenceaslaiddownunderSection149(6)oftheActandRegulation16ofSEBILODRRegulations.All theIDsoftheCompanyhaveregistered their nameswith the data bank of IDsmaintained by the Indian Institute of CorporateAffairs (IICA).Further,intermsofRegulation25(8)oftheSEBILODRRegulations,theIndependentDirectorshaveconfirmedthattheyarenotawareofanycircumstancesorsituationwhichexistormaybeanticipated,thatcouldimpairorimpacttheirabilitytodischargetheirduties.Further,intheopinionoftheBoard,IndependentDirectorsqualifythecriteriaofIndependentDirectorasmentionedintheActandSEBILODRRegulationsandareindependentofthemanagement.

Further,alltheDirectorsoftheCompanyhaveconfirmedthattheysatisfythe“fit&proper”criteriaasprescribedintheDirectorsFit&ProperPolicyoftheCompany.

Followingchangesoccurredinthedirectorships/keymanagerialpositions(KMP)oftheCompanyduringtheFY2020-21:

Sr. No. Name of Director Particulars of Change(Appointment / Resignation/Others)

Effective Date of change

1 Dr.VijayShankarMadan AppointedasNon-ExecutiveIndependentDirector February10,2021

2 Mr.HamidAhmed AppointedasNon-ExecutiveIndependentDirector February10,2021

3. Ms.SabinaVaisoha ResignedasNon-ExecutiveIndependentDirector February10,2021

TheBoard places on record its appreciation and gratitude toMs.SabinaVaisoha for her participation in theBoard of theCompanyduringhertenure.

Postendofthefinancialyear2021,Mr.SushilChandraTripathi,Non-Executive&IndependentDirectorwaspassedawayafteralongbattlewithCovid-19onMay19,2021.TheBoardexpressesitsheartfeltcondolencesforhisuntimelydeath and wishes to put on record its sincere and deep appreciation for his invaluable guidance and contribution

duringhistenure.TheCompanyimmenselybenefittedfromhisvision,enrichedexperienceandleadershipduringhistenureontheBoardoftheCompany

IntermsofSection203oftheAct,followingaretheKMPsoftheCompanyasonMarch31,2021:

1. Dr.RashmiSaluja,ExecutiveChairperson

2. Mr.NitinAggarwal,GroupChiefFinancialOfficer

3. Ms.ReenaJayara,CompanySecretary

InaccordancewiththeprovisionsoftheCompaniesAct,2013andRegulation36oftheSEBILODRRegulations,Dr.RashmiSaluja(DIN:01715298),retiresattheensuingAnnualGeneralMeeting(AGM),andbeingeligibleoffersherselfforre-appointment.Thebriefresumeandotherdetailsrelatingtothedirectors,whoaretobere-appointedasstipulatedunderRegulation36(3)oftheSEBILODRRegulationsandSecretarialStandardsissuedbyICSI,arefurnishedintheNoticeoftheensuingAGM.TheBoardofDirectorsrecommendsthere-appointmentoftheDirectorliabletoretirebyrotationattheensuingAGM.

BOARD EVALUATION

Pursuant to theprovisionsof theActandSEBILODRRegulations, theBoard is required tocarryoutanannualperformanceevaluationofitsownperformance,theperformanceofthedirectorsindividuallyaswellastheevaluationoftheworkingofitsCommittees.

TheperformanceevaluationofthemembersoftheBoard,theBoardlevelCommitteesandBoardasawholewascarriedoutinJune2021aspertheBoardEvaluationPolicyoftheCompany.ThemannerinwhichevaluationhasbeencarriedoutandcriteriaofevaluationhasbeenexplainedintheCorporateGovernanceReport.

REMUNERATION POLICY

RemunerationPolicyformedbytheBoardontherecommendationoftheNominationandRemunerationCommitteeisinplaceforselectionandappointmentofDirectors,KeyManagerialPersonnelandtheirremunerationaswellas


policyonotheremployees’remuneration.TheRemunerationPolicyisstatedintheCorporateGovernanceReport.The relevantPolicy(ies)havebeenuploadedon thewebsiteof theCompanyandcanbeaccessed through thelink https://www.religare.com/Policies.aspx

BOARD/COMMITTEE COMPOSITION AND MEETINGS

AcalendarofmeetingsispreparedandcirculatedinadvancetotheDirectors.ThedetailsofcompositionofBoardandCommitteesandtheirmeetingsheldduringtheyeararegivenintheCorporateGovernanceReportwhichformsintegralpartofthisReport.TheinterveninggapbetweentheMeetingswaswithintheperiodprescribedundertheActandtheSEBILODRRegulations.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

IncompliancewithSection135of theActreadwiththeCompanies(CorporateSocialResponsibilityPolicy)Rules,2014asamended, the Company has established a Corporate Social Responsibility (“CSR”) Committee. The CSR Committee hasformulatedandrecommendedtotheBoard,aCSRPolicywhichprovidestheoverviewofprojectsorprogramsandtheguidingprinciples for selection, implementation andmonitoring of theCSRactivities,which has beenapprovedby theBoard.ThestrategicintentwastoadoptaunifiedcauseacrosstheReligareGroupandhencetheCSRpolicyandprogramtobesupportedhasbeencascadedacrossallGroupentities.

TheCompanywasnotrequiredtospendmoneyunderCSRforfinancialyearended2020-21asprescribedunderSection135oftheActsincetheCompanyincurredanaveragenetlossesofRs.11,804Lakhsforlastthreefinancialyears.

AnnualReportonCSRintheformatprescribedinCompanies(CorporateSocialResponsibilityPolicy)Rules,2014asamendedisattachedas“Annexure A”.

AWARDS & RATINGS

FollowingawardsandrecognitionswerereceivedbythesubsidiariesoftheCompanyduringtheperiodunderreview–

Awards

• Care Health Insurance Limited (formerly Religare Health Insurance Company Limited):

i. SilverAwardforBestSearchMarketingCampaignatIAMAI11thIndiaDigitalSummitandAwards.

ii. BestSEO/SEMCampaignatAfaqsDIGIESDigitalAwards,2021

• Religare Commodities Limited:

i. KrishiPragatiAward2021

Ratings

TheCompanyhadnoratingsduringtheyearunderreviewastherewerenooutstandingfacility(ies)whichrequirestheCompanytohaveanyrating.

LISTING ON STOCK EXCHANGES

TheEquitySharesoftheCompanyarelistedonNationalStockExchangeofIndiaLimitedandBSELimited.Theannuallistingfeesfortheyear2021-22havebeenpaidtoboththeStockExchanges.

STATUTORY DISCLOSURES

NoneoftheDirectorsofyourCompanyisdisqualifiedasperprovisionofsection164(2)oftheAct.TheDirectorsoftheCompanyhavemadenecessarydisclosures,asrequiredundervariousprovisionsoftheActandtheSEBILODRRegulations.

CONSOLIDATED FINANCIAL STATEMENTS

AsrequiredundertheRegulation34ofSEBILODRRegulationsandSection129(3)oftheAct,consolidatedfinancialstatementsoftheCompanyanditssubsidiariesareattachedtotheAnnualReport.TheconsolidatedfinancialstatementshavebeenpreparedinaccordancewithIndianAccountingStandardIndAS-103,“BusinessCombination”andIndAS-110“ConsolidatedFinancialStatements”issuedbyTheInstituteofCharteredAccountantsofIndiaandnotifiedbytheMCA.TheauditedconsolidatedfinancialstatementstogetherwithAuditor’sReportformpartoftheAnnualReport.


Though, theCompany holds 100% equity share capital in ReligareCapitalMarkets Limited (“RCML”), howeverinthepresentscenariocontrollingthroughvotingrightsofRCMLisnottherewiththeCompany.Besidethis, thetripartiteagreemententeredinto,infinancialyear2011-12,betweenREL,RCMLandRHCHoldingPrivateLimited(“RHCHPL”), forprovidingfinancialsupport toRCMLbyRHCHPL(bysubscribingPreferenceSharesofRCML),severelongtermrestrictionsandsignificantrestrictivecovenantsonmajordecisionmakingatRCMLwereimposedby theholderof preferenceshares.Accordingly in viewof theabove, the financial statementsofRCMLand itssubsidiaries havebeenexcluded from the consolidated financial statements of theCompanyw.e.f.October 01,2011,inaccordancewithapplicableaccountingstandards.TheCompanyhasalreadyprovidedfullyfortheentireinvestmentmadebyitintoRCMLinpreviousyears.

The Consolidated Financial Statements presented by your Company, including financial information of all itssubsidiaries,excludingRCMLandRCML’ssubsidiaries,havebeendulyauditedbytheStatutoryAuditorsandthesameispublishedinyourCompany’sAnnualReport.

CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

EventhoughoperationsoftheCompanyarenotenergyintensive,themanagementhasbeenhighlyconsciousofthe importance of conservation of energy and technology absorption at all operational levels and efforts are made in

thisdirectiononacontinuousbasis.InviewofthenatureofactivitieswhicharebeingcarriedonbytheCompany,theparticularsasprescribedunderSection134(3)(m)oftheActreadwithRule8oftheCompanies(Accounts)Rules,2014regardingconservationofenergyandtechnologyabsorptionarenotapplicabletotheCompanyandhencehavenotbeenprovided.

FOREIGN EXCHANGE EARNINGS AND OUTGO

TheCompanyhasincurredexpenditureofRs.2.39Lakhs(previousyear:Rs.1.08Lakhs)inforeignexchangeandearnedNil(previousyear:Nil)inforeignexchangeduringtheyearunderreviewonastandalonebasis.

MAINTAINANCE OF COST RECORDS

TheCompanyisinthefinancialservicesindustry. InviewofthenatureofactivitieswhicharebeingcarriedonbytheCompany,themaintenanceofcostrecordsasspecifiedbytheCentralGovernmentundersub-section(1)ofsection148oftheActisnotapplicableontheCompanyandhencesuchaccountsandrecordsarenotmaintained.

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

Noamountwas required tobe transferredby theCompany to the InvestorEducationandProtectionFund (IEPF)duringthefinancialyearunderreporting.

TheCompanyhasappointedaNodalOfficerfortheIEPFauthority,thedetailsofwhichareavailableonthewebsiteofthe Company at https://www.religare.com/investor-contacts.aspx

DIRECTORS’ RESPONSIBILITY STATEMENT

PursuanttoSection134(5)oftheAct,theBoardofDirectors,tothebestoftheirknowledgeandability,confirmthat:

(a) inthepreparationoftheannualfinancialstatementsfortheyearendedMarch31,2021,theapplicableaccountingstandardshavebeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;

(b) theyhaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthat are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the

endofthefinancialyearandoftheProfitoftheCompanyforthatperiod;

(c) theyhavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewith the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud

andotherirregularities;

(d) theyhavepreparedtheannualaccountsonagoingconcernbasis;

(e) theyhavelaiddowninternalfinancialcontrolstobefollowedbytheCompanyandsuchinternalfinancialcontrolsareadequateandoperatingeffectively;and

(f) theyhavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemsareadequateandoperatingeffectively.


CORPORATE GOVERNANCE

TheCompanyiscommittedtoupholdhighstandardsofCorporateGovernanceandadheretotherequirementssetoutbytheSecuritiesandExchangeBoardofIndia.

AdetailedreportonCorporateGovernancealongwiththeCertificateofM/sSanjayGrover&Associates,CompanySecretariesregardingcompliancewithconditionsofCorporateGovernanceasstipulatedinPartCofScheduleVoftheSEBILODRRegulationsandacertificatefromaPracticingCompanySecretarythatnoneofthedirectorsontheBoardoftheCompanyhavebeendebarredordisqualifiedfrombeingappointedorcontinuingasdirectorsofcompaniesbyBoard/MinistryofCorporateAffairsoranysuchstatutoryauthorityformsintegralpartofthisReport.

AUDITORS

M/sS.S.KothariMehta&Co.,CharteredAccountants,(FirmRegistrationNo.000756N)(“SSKM”),wereappointedasstatutoryauditorsof theCompanyby theshareholdersat the33rdAnnualGeneralMeetingof theCompany(“AGM”)heldonSeptember21,2017, toholdofficeforaperiodoffiveconsecutiveyearscommencingfromthefinancialyear2017-18i.e.fromtheconclusionof33rdAGMuntiltheconclusionofthe38thAGMtobeheldintheyear2022.

However,RBIhasissuedaCircularon‘GuidelinesforAppointmentofStatutoryCentralAuditors(SCAs)/StatutoryAuditors (SAs) ofCommercial Banks (excludingRRBs),UCBs andNBFCs (includingHFCs)’ onApril 27, 2021(RBI SA Guidelines)providingnecessaryinstructionsforappointmentofSCAs/SAs,thenumberofauditors,theireligibilitycriteria,tenureandrotation,etc.whileensuringtheindependenceofauditors.

AsperabovesaidguidelinesofRBI,EntitieswillhavetoappointtheSCAs/SAsforacontinuousperiodofthreeyears,subjecttothefirmssatisfyingtheeligibilitynormseachyear.Since,SSKM,theexistingauditorshadalreadycompletedatenureofthreeyears,theyshallnotbeabletocontinueasStatutoryAuditor.

TheCompanyisinreceiptofletterdatedAugust12,2021fromSSKMcommunicatingtheirintentiontoresignasstatutory auditors of the Company since they have completed four years of continuous audit and are ineligible to

continueasauditorsbeyond30September2021.

Incompliancewiththeabovesaidregulatoryrequirement,theCompanyhasevaluatedtheproposalsreceivedfromvariousauditfirmseligibletobeappointedasStatutoryAuditoroftheCompany.Basisthevariousproposalsreceivedfromtheeligibleauditfirms,theBoardofDirectorsoftheCompanyonrecommendationofAuditCommitteemadethe appointment of M / s S. P. Chopra & Co., Chartered Accountants (Firm Registration No. 000346N) as Statutory Auditors of the Company w.e.f.August12,2021,tofillthecasualvacancycausedbyresignationofSSKM,tilltheconclusionofthisAnnualGeneralMeeting(AGM)andhasalsorecommendedforapprovaloftheMembers,theappointmentofM/s S. P. Chopra & Co., Chartered Accountants (Firm Registration No. 000346N) as Statutory Auditors of the Company for a period ofthreeyearsfromtheconclusionof37thAGMuntiltheconclusionofthe40thAGMtobeheldintheyear2024.ThefirstyearofauditwillbeofthefinancialstatementsfortheyearendingMarch31,2022,whichwillincludetheaudit/limitedreviewofthequarterlyfinancialresultsfortheyear.Inthisregard,theCompanyhasreceivedcertificatetotheeffectthattheysatisfythecriteriaprovidedunderSection141oftheActandRBISAGuidelinesandthatthere-appointment,ifmade,shallbeinaccordancewiththeapplicableprovisionsoftheActandrulesframedthereunder.

AUDITORS’ REPORT

TheReportsgivenby theAuditorson thefinancial statementsof theCompany formpart of theAnnualReport.ThereisnoqualificationintheAuditorsReportonthestandalonefinancialstatementsforthefinancialyearendedMarch31,2021.TheManagementresponseontheStatutoryAuditors’QualificationsontheCompany’sconsolidatedfinancialstatementsforthefinancialyearendedMarch31,2021isasbelow.

Management’s response on the Statutory Auditors’ Qualification on the Company’s consolidated financial statements:

i. Qualification pertaining to Lakshmi Vilas Bank adjusting the fixed deposits of Religare Finvest Ltd., subsidiary of the Company (RFL): RFLhadfiledasuitforrecoveryofFixedDepositsamountingtoRs.79,145Lakhsmisappropriatedby theLakshmiVilasBank(“LVB”)onMay31,2018before theHon’bleDelhiHighCourt thatpassedinterimordersdirectingthatstatusquobemaintainedinrespectofRFL’scurrentaccountmaintainedwithLVB.RFLhasalsofiledanapplicationtotheHon’bleCourt forsubstitutionofLVBwithDBSBankIndiaLimited(DBS).Further,StateBankofIndiaandSCCPLalongwithitsassociateshavefiledapplicationforimpleadmentinthesaidsuit.Thematterissubjudice.


RFLhadalsofiledacomplaintagainstLVBandothersonMay15,2019withEconomicOffenceWing(EOW).TheEOW,DelhihasregisteredaFIRagainstLVB&Ors.forcommittingoffenceofcriminalbreachoftrustandcriminalconspiracy.TheEOWhasfileditschargesheetonMarch23,2020,cognizanceonwhichisyettobetakenbytheCourt.Thematterissub-judice.Also,theEnforcementDirectoratehaslodgedanECIRonthebasisoftheFIR.Further,managementhastakenappropriatelegalremediesandnoexpectedcreditloss/provisionisrequiredatthispointoftime.

ii. Qualification pertaining to sale of GNPA of Rs. 3,038.13 lakhs for a value of Rs. 2,278.60 lakhs to a Trust for security receipt as a consideration by Religare Housing Development Finance Corporation Ltd., subsidiary of RFL (RHDFCL): ThesaleofGNPAtoRelianceARCwasconcludedwithin theRBI frameworkand RHDFCL has obtained true sale opinion for concluding the transaction.Accordingly, RHDFCL has derecognizedtheNPAloanreceivablesandhasrecognizedsecurityreceiptsasinvestmentsinthebooksofaccounts.RHDFCLshallrecognizeprofit/lossontheSecurityReceiptsbasedontheevaluationbyindependentratingagencyasstipulatedunderRBIRegulation.UnderINDAS,thesecurityreceiptsissuedbythetrustwouldfull-fillthecriteriaforafinancialassetandhasbeenrecognizeditinitsbooks.

Further,RHDFCLhadobtainedthirdpartyopinion,whichisalsosupportingtheaccountingtreatmentforderecognitionoftheloanportfolioandrecognitionofsecurityreceiptsasInvestmentsaspertheapplicableprovisionsofIndASparticularlyIndAS-109,FinancialStatements.

SECRETARIAL AUDITORS’ REPORT

AsperprovisionsofSection204oftheAct,theBoardofDirectorsoftheCompanyhasappointedM/sPI&Associatesas theSecretarialAuditorof theCompany toconduct theSecretarialAudit.TheSecretarialAuditReport for thefinancialyearendedMarch31,2021,isannexedtothisReport.Managementcommentsonqualificationgivenbyauditorsinthereportareasfollows:

i. Levy of fine by the stock exchanges for non-compliance of composition of Audit Committee in terms of the requirement of Regulation 18(1)(b) of the SEBI LODR Regulations during the period from February 26, 2020 to September 02, 2020: PursuanttorequirementsSEBILODRRegulations,theAuditCommitteeshallcompriseofminimum3directorsasmemberswith2/3rdofthememberstobeIndependentDirectors.TheAuditCommitteeoftheCompanycomprisedof5membersandsince2/3rdof5arriveat3.3,theCompanywasoftheviewthat3.3istoberoundedtothenearestnumberwhicharrivesat3.However,postreceiptofnecessaryclarificationfromtheexchangesinthematter,theCompanyimmediatelytookthecorrectivestepsbyre-constitutionoftheAuditCommitteeonSeptember02,2020andmakingthecompositionincomplianceoftheexchangerequirements.TheCompanyhasalsopaidthefinesimposedbyExchangesinthematter.

Further, thesecretarialaudit reportsofmaterialsubsidiariesof theCompany inFY2020-21areannexed to thisAnnualReport.

PARTICULARS OF INVESTMENTS, LOANS AND GUARANTEES

TheCompany,beinganNBFC,isexemptedfromtheprovisionsofSection186[exceptsub-section(1)]oftheAct.Accordingly,detailsofparticularsof loans,guaranteesor investmentsasrequired tobeprovidedasperSection134(3)(g)oftheActarenotprovided.

RELATED PARTY TRANSACTIONS

All relatedparty transactions thatwereentered intoduring thefinancialyearwereonanarm’s lengthbasisandwereintheordinarycourseofbusiness.TherearenomateriallysignificantrelatedpartytransactionsenteredbytheCompanywithrelatedpartieswhichmayhaveapotentialconflictwiththeinterestoftheCompany.

All Related Party Transactions are placed before the Audit Committee for approval as per the Related Party Transactions

PolicyoftheCompanyasapprovedbytheBoard.ThepolicyisalsouploadedonthewebsiteoftheCompany&canbeaccessedthroughthelink https://www.religare.com/pdf/Related_party_Transaction_Policy_02042019.PDF

Sinceallrelatedpartytransactionsthatwereenteredintoduringthefinancialyearwereonanarm’slengthbasisandwere in the ordinary course of business and there was no material related party transaction entered by the Company

during theyearasperRelatedPartyTransactionsPolicy,nodetailsare required tobeprovided inFormAOC-2prescribedunderclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014.


Thedetailsofthetransactionswithrelatedpartiesareprovidedinthenotestoaccompanyingstandalonefinancialstatements.

RISK MANAGEMENT

The Board of Directors of the Company has constituted a Risk Management Committee, responsible to frame,implement,monitor and periodically review the effectiveness of the riskmanagement plan andmake appropriatechangesasandwhennecessary.

TheCompany isaCore InvestmentCompanyand thereforeasan investmentholdingcompany themanagementfunction includes oversight of risk function prevalent to its key operating group companies. The Company has acomprehensiveRiskManagementframeworkandoverarchingRiskManagementPolicy,whichisadoptedbyeachofthekeyoperatingsubsidiarieswhileformulatingtheirRiskPolicy.RiskManagementPolicyoftheCompanyidentifiesthekeyrisk,ifany,whichmaythreatentheexistenceoftheCompany.RiskManagementPolicyisaimedatidentification,evaluation/assessment,mitigation,monitoringandreportingofidentifiablerisksandrecordingofeachidentifiedriskalongwiththeirmitigationplan.Respectivefunctionalheadand/orriskmanagementdepartmentofkeysubsidiariesareresponsibleforimplementationoftheRiskManagementsystemandmaintenanceofrecordofriskandmitigationplan inRisk&ControlMatrix (RCM) for their respective functionalarea,which is testedandupdatedperiodically.Therefore,theriskframeworkdefinestheriskmanagementapproachacrosstheenterpriseatvariouslevelsincludingdocumentationandreporting.TheframeworkhasdifferentriskmodelswhichhelpinidentificationofrisksandtheirclassificationasHigh,MediumandLowcategoriesonthebasisoflikelihood,impactandvelocity.

The testing and evaluation of control environment around Risk Management is integrated with the internal auditconductedbytheInternalAuditors.TheRiskManagementCommitteeoftheCompanyanditskeyoperatingsubsidiariesreviewstheriskmanagementpolicyonanannualbasis.Further,adequacyofdesignandoperatingeffectivenessofkey processes and controls, as documented in the risk and controlmatrices, is tested by internal auditors and aconsolidateddashboardofRiskandControlreviewresultsacrosstheCompanyanditkeyoperatingsubsidiariesispresentedtotheRiskManagementCommitteeofyourCompanyonperiodicbasis.

Therefore, the Company has implemented a formal risk management policy and framework. Financial reportingand fraud risksaredulyconsidered in the riskmanagement framework.RisksaremappedwithcontrolsandRiskmanagementframeworkisrevisitedandrevisedonthebasisofprevailingpracticeandrelevance.

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

TheCompanyhasavigilmechanismnamedWhistleBlowerPolicytodealwithinstanceofunethicalpractices,fraudandmismanagement,actualorsuspectedfraudorviolationoftheCompany’scodeofconductorethicspolicyandany leak/suspected leakofUnpublishedPriceSensitive Informationorgrossmisconductby theemployeesof theCompany,ifany,thatcanleadtofinanciallossorreputationalrisktotheorganization.ThedetailoftheWhistleBlowerPolicyhasbeenpostedonthewebsiteoftheCompany&canbeaccessedthroughthelinkhttps://www.religare.com/Policies.aspx

Duringtheyearunderreview,nocomplaintpertainingtotheCompanywasreceivedundertheWhistleBlowermechanism.

INTERNAL FINANCIAL CONTROLS AND INTERNAL CONTROL SYSTEM

TheCompanyhasanInternalControlSystem,commensuratewiththesize,scaleandcomplexityofitsoperations.TheInternalControlsof thecompanyencompassesthepolicies,standardoperatingproceduremanuals,approval/authorizationmatrix,circulars/guidelines,andrisk&controlmatricesadoptedbythecompanyforensuringtheorderlyandefficientconductofitsbusiness&supportfunctions,adherencetothesepolicies&procedures,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformationduringtheprocessoffinancialreporting.

TheCompanyanditskeyoperatingsubsidiarieshaveadequatecontrolenvironmentforidentificationandassessmentofapplicablerisksonaperiodicalbasis.Mitigationplansandcontrolsaredocumentedforeachidentifiedriskintheformofpolicies&proceduresandrisk&controlmatrices(RCM).Risks/controlsdocumentedintheriskandcontrolmatricesaremapped toeachof thefinancialstatement line itemsandfinancialassertions toensureavailabilityofmitigationplansandinternalfinancialcontrolsforeachofthematerialbalancescontainedinthefinancialstatements.The Company has prepared separate RCMs for Process Level Controls (PLC) and Entity Level Controls (ELC).Similarly,ITGeneralControls(ITGC)havealsobeenidentified,assessedanddocumented.


TheCompanyhassatisfactorysystemofperiodicalmonitoringandreportingofinternalfinancialcontrols.KeypoliciesandproceduresincludingtheRisk&ControlMatricesareupdatedonaperiodicalbasis.Managementensuresthatcontrolsasdesignedareoperatingeffectivelyandthat lapsesare identifiedandremedied ina timelymanner.ThemonitoringactivitiesarecarriedoutthroughControlSelf-Assessment(CSA)mechanismintegratedwiththeinternalauditfunction,conductedbyInternalAuditor,wherebykeyrisksandcontrolsarereviewedonaquarterlybasisanddashboardcontainingresultsofevaluationofTestofDesign(TOD)andTestofOperatingEffectiveness(TOE)arepresentedtotheAuditCommitteeoftheCompanyanditskeyoperatingsubsidiaries.AhalfyearlyreportonTOD/TOEtestingispresentedtotheRiskManagementCommittee.

TheCompanyanditskeyoperatingsubsidiarieshaveanelaboratequarterly internalauditsystem.Thescopeandauthority of the InternalAudit function is defined in the comprehensive agreementwith the internal auditor,whichis reviewedandapprovedby theAuditCommitteeof theCompanyand its respectivesubsidiaries.Tomaintain itsobjectivityandindependence,theInternalAuditorfirmdirectlyreportstotheAuditCommittee.

TheInternalAuditorevaluatestheefficacyandadequacyoftheinternalcontrolsystemandinternalfinancialcontrols(IFC) in the Company, its compliance with operating systems, accounting procedures, policies and regulatoryrequirementsatkeylocationsof theCompanyanditssubsidiaries.Basedontheintegratedreportof internalauditfunctionand IFC,processownersundertakecorrectiveaction in their respectiveareasand therebystrengthen theinternalcontrols.Significantinternalauditobservationsandcorrectiveactionsthereon,alongwithIFCdashboard,arepresentedtotheAuditCommitteeonquarterlybasis.

Therefore,theBoardhaslaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectivelyduringthefinancialyear.

DETAILS OF FRAUD REPORTABLE BY AUDITOR

During theyearunder review,neither thestatutoryauditorsnor thesecretarialauditorsof theCompanyhasdisclosedanyinstanceof fraudcommittedagainst theCompanyby itsofficersoremployees required tobedisclosed in termsofSection143(12)oftheAct.

HUMAN RESOURCES

The Company has successfully strengthened the overall position of the group and has created a blueprint to move

ahead.Thecompanyanditssubsidiariesaresteadilyrestoringconfidenceamongstitsvariousstakeholders.Withthesincereeffortsofdedicated,committedandloyalemployees,theCompanyhasstoodstrongevenduringdifficultcircumstancesintherecentpastandhasmadeastrongpresencefeltacrossindustry.

Aswehavepavedourwaytoachievegreaterheights,theCompanycontinuedtoinvestincreatingapooloftalentforthegrowingbusinessneedsbywayofretaininghighlyexperiencedandcompetentresourcesandbyattractingnewtalent.Employeesarethemostimportantandcriticalassetandwearecommittedtowardstheiroveralldevelopment.Wefocusonpromotingacollaborative,transparentandparticipativeorganizationculture,andhavedevelopedstrongperformancemanagementpracticeswhereininnovationandmeritocracyisrecognizedandrewarded.TheCompanyalsoinitiatedvariouswellnessinitiativestohelpemployeesintheirphysicalandpsychologicalwell-beingduringthedifficulttimesofCOVID19Pandemic.Experttalksandsessionsonvarioustopicsrelatedtophysicalandmentalhealthandfitnesswereorganized.TheCompanyiscommittedtowardsbuildingencouragingworkenvironmentwithahealthyworklifebalance.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT THE WORK PLACE (PREVENTION,

PROHIBITION AND REDRESSAL) ACT, 2013

TheCompanyhasinplacePreventionofSexualHarassmentatWorkplacePolicyinlinewiththerequirementsofTheSexualHarassmentofWomenattheWorkPlace(Prevention,ProhibitionandRedressal)Act,2013andrulesmadethereunder.AnInternalComplaintsCommittee(ICC)isinplaceaspertherequirementsofthesaidActtoredresscomplaintsreceivedregardingsexualharassment.Allemployees(permanent,contractual,temporary,trainees)arecoveredunderthispolicy.Nocasehasbeenreportedduringtheyearunderreview.

PARTICULARS OF EMPLOYEES

ThedetailsrequiredunderSection197(12)oftheActreadwithRule5(1)&5(2)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,areannexedas“Annexure B”tothisreport.


COMPLIANCE WITH SECRETARIAL STANDARDS

TheBoardofDirectorsaffirm that, theCompanyhascompliedwith theapplicableSecretarialStandards issuedbytheInstituteofCompanySecretariesofIndia(SS1andSS2)respectivelyrelatingtoMeetingsoftheBoard,itsCommitteesandtheGeneralMeetings.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

TherearenosignificantormaterialorderspassedbytheRegulators/CourtswhichwouldimpactthegoingconcernstatusoftheCompanyanditsoperationsinfutureexcepttotheextentmentionedinthisReport.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION

TherearenomaterialchangesandcommitmentsadverselyaffectingthefinancialpositionoftheCompanywhichhaveoccurredbetweentheendofthefinancialyearoftheCompanytowhichthefinancialstatementsrelate(i.e.March31,2021)andasofdateofthereporti.e.August12,2021.

ACKNOWLEDGEMENTS

YourDirectorswouldliketoexpresstheirsincereappreciationfortheco-operationandassistancereceivedfromtheCompany’sBankers,RegulatoryBodies,StakeholdersincludingFinancialInstitutionsandotherbusinessassociateswhohaveextendedtheirvaluablesustainedsupportandencouragementduringtheyearunderreview.

Your Directors also wish to place on record their deep sense of gratitude and appreciation for the commitment

displayedbyallexecutives,officersandstaffatalllevelsoftheCompanyduringtheyearunderreview.YourDirectorswouldalsoliketothankallshareholdersfortheircontinuedfaithintheCompanyandlookforwardtoyourcontinuedsupportinthefuture.

By order of the Board of Directors

For Religare Enterprises Limited

Sd/- Dr. Rashmi Saluja Executive Chairperson DIN: 01715298

Place:NewDelhi Address: Prius Global, A-3,4,5,

Date: August12,2021 Sector – 125, Noida – 201 301


Annexure AANNEXURE –II

ANNUAL REPORT ON CSR ACTIVITIESTO BE INCLUDED IN THE BOARD’S REPORT FOR FINANCIALYEAR COMMENCING ON OR AFTER 1ST DAY OF APRIL, 2020

1. Brief outline on CSR Policy of the Company:

Company has adopted its CSR Policy which aims at enhancing the welfare measures for the underprivileged communities

and aims to contribute towards access to good quality education, healthcare, sports, environment, facilities for seniorcitizensandorphans,enhancingvocationalskillsandsanitationinitiatives.Italsoaimstoempowercommunitiestoleadaself-reliantandhealthierlifeatlarge.

CSR Policy of the Company provides the overview of projects or programs and the guiding principles for selection,implementationandmonitoringoftheCSRactivities.

TheCSRPolicyoftheCompanycanbeassessedatthecompany’swebsitethroughthelink:

https://www.religare.com/pdf/Corporate_Social_Responsibility_Policy.pdf

2. Composition of CSR Committee:

SI

No.

Name of Director Designation/Nature of Directorship Number of meetings of CSR Committee

held during the year

Number of meetings of CSR Committee

attended during

the year1 Dr.RashmiSaluja ExecutiveChairperson/Executive

Director

1 1

2 Mr.SiddharthMehta Non-ExecutiveNonIndependentViceChairperson

1 1

3 Mr.MalayKumarSinha Non-ExecutiveIndependentDirector 1 14 Mr.HamidAhmed1 Non-ExecutiveIndependentDirector 1 N.A5 Ms.SabinaVaisoha2 Non-ExecutiveIndependentDirector 1 16 LateMr.SushilChandra

Tripathi3Non-ExecutiveIndependentDirector 1 1

1Mr. Hamid Ahmed appointed as Member of Corporate Social Responsibility Committee w.e.f. May 24, 2021;

2Ms. Sabina Vaisoha resigned as Independent Director from the Board of Directors on February 10, 2021 and consequently

ceased to be member of the Committee on that date;

3Mr. Sushil Chandra Tripathi ceased to be Independent Director w.e.f. May 19, 2021 due to his sad demise on May 19, 2021

after a long battle with COVID-19 and consequently ceased to be member of the Committee on that date.

3. Provide theweb-linkwhereCompositionofCSRcommittee,CSRPolicyandCSRprojectsapprovedby theboardaredisclosedonthewebsiteofthecompany.-

Composition of CSR Committee

https://www.religare.com/Committees-of-Board.aspx

CSR Policy

https://www.religare.com/pdf/Corporate_Social_Responsibility_Policy.pdf

CSR projects approved by the board - Not Applicable

4. ProvidethedetailsofImpactassessmentofCSRprojectscarriedoutinpursuanceofsub-rule(3)ofrule8oftheCompanies(CorporateSocialresponsibilityPolicy)Rules,2014,ifapplicable(attachthereport).–

Not Applicable - Due to losses during the past three years, the Company was not required to spend money under CSR

for financial year 2020-21 as prescribed under Section 135 of the Companies Act, 2013, hence project assessment is not applicable


5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of theCompanies (Corporate SocialresponsibilityPolicy)Rules,2014andamountrequiredforsetoffforthefinancialyear,ifany-Nil

Sl. No. Financial Year Amount available for set-offfrom preceding financial years (in Rs)

Amount required to be setoff for the financial year, if any (in Rs)

Nil TOTAL

6. Averagenetprofitofthecompanyaspersection135(5)-LossofRs.11,804Lakhs

7. (a) Twopercentofaveragenetprofitofthecompanyaspersection135(5)–Nil

(b) SurplusarisingoutoftheCSRprojectsorprogrammesoractivitiesofthepreviousfinancialyears.-Nil

(c) Amountrequiredtobesetoffforthefinancialyear,ifany-Nil

(d)TotalCSRobligationforthefinancialyear(7a+7b-7c).–Nil

8. (a) CSRamountspentorunspentforthefinancialyear:

Total Amount

Spent for the Financial Year.

(in Rs.)

Amount Unspent (in Rs.)

Total Amount transferred to Unspent CSR Account as per

section 135(6).

Amount transferred to any fund specified under Schedule VII as per second proviso to section

135(5).

Amount. Date of transfer. Name of the Fund

Amount Date of transfer.

N/A N/A N/A N/A N/A N/A

Due to losses during the past three years, the Company was not required to spend money under CSR for

financial year 2020-21 as prescribed under Section 135 of the Companies Act, 2013

(b) DetailsofCSRamountspentagainston-going projects forthefinancialyear:

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)Sl.

No.

Name

of theProject.

Item from thelist of activitiesin Schedule VII

to the Act.

Local

area

(Yes/No).

Location of theproject.

Projectduration.

Amount

allocated

for theproject(in Rs.).

Amount

spent in

the

current

financial Year (in

Rs.).

Amount

transferred toUnspent CSR

Account for the

project as perSection 135(6)

(in

Rs.).

Mode ofImplementa

tion –

Direct

(Yes/No).

Mode of Implementation -

Through

Implementing

Agency

State. District. Name CSR

Registration

number

NotApplicableTOTAL

(c) DetailsofCSRamountspentagainstother than on-going projects forthefinancialyear:(1) (2) (3) (4) (5) (6) (7) (8)Sl.

No.

Name of the Project

Item from the list ofactivities

in

schedule

VII to the

Act

Local

area

(Yes/No)

Location of the project.

Amount

spent for the

project(in Rs.).

Mode ofimplementation

on -

Direct

(Yes/No).

Mode of implementation -

Through

implementing

agency.

State District. Name CSR

registration

number.

NilTOTAL


(d) AmountspentinAdministrativeOverheads-Nil

(e) AmountspentonImpactAssessment,ifapplicable-Nil

(f) TotalamountspentfortheFinancialYear(8b+8c+8d+8e)–Nil

(g) Excessamountforsetoff,ifany-Nil

SI.No. Particular Amount (in Rs.)

(i) Twopercentofaveragenetprofitofthecompanyaspersection135(5) Nil(ii) Total amount spent for the Financial Year Nil(iii) Excessamountspentforthefinancialyear[(ii)-(i)] Nil(iv) SurplusarisingoutoftheCSRprojectsorprogrammesoractivitiesofthe

previousfinancialyears,ifanyNil

(v) Amountavailableforsetoffinsucceedingfinancialyears[(iii)-(iv)]

Nil

9.(a)DetailsofUnspentCSRamountfortheprecedingthreefinancialyears:Nil

Sl.

No.

Preceding

Financial

Year.

Amount

transferred to Unspent CSR

Account under

section 135 (6)

(in Rs.)

Amount spent in

the

reporting

Financial Year (in

Rs.).

Amount transferred to any fund specified under Schedule VII as per section 135(6), if any.

Amount

remaining to

be spent in

succeeding

financialyears. (in Rs.)

N a m e

of the Fund

Amount

(in Rs).

Date of Transfer.

NilTOTAL

(b) DetailsofCSRamountspentinthefinancialyearforon-going projects oftheprecedingfinancialyear(s):Nil

(1) (2) (3) (4) (5) (6) (7) (8) (9)Sl.

No.

ProjectID.

Name of the

Project.

Financial

Year in which the

project wascommenced.

Projectduration.

Total

amount

allocated

for theproject(in Rs.).

Amount

spent on

the project in the

reporting

Financial

Year (in

Rs).

Cumulative

amount spent

at the end ofreporting

Financial

Year. (in Rs.)

Status of the project –

Completed

/Ongoing.

NilTOTAL

10. Incaseofcreationoracquisitionofcapitalasset,furnishthedetailsrelatingtotheassetsocreatedoracquiredthroughCSRspentinthefinancialyear–Not Applicable

(asset-wise details).

(a) Dateofcreationoracquisitionofthecapitalasset(s).

(b) AmountofCSRspentforcreationoracquisitionofcapitalasset.

(c) Detailsoftheentityorpublicauthorityorbeneficiaryunderwhosenamesuchcapitalassetisregistered,theiraddressetc.

(d) Providedetailsof thecapitalasset(s) createdoracquired (includingcompleteaddressand locationof thecapitalasset).


11. Specifythereason(s),ifthecompanyhasfailedtospendtwopercentoftheaveragenetprofitaspersection135(5).–Not

Applicable



Place:NewDelhiDate: August12,2021

Sd/-Dr. Rashmi Saluja

Executive Chairperson

DIN:01715298Address:PriusGlobal,A-3,4,5,Sector–125,Noida–201301

Sd/-Mr. Hamid Ahmed

Chairperson - CSR Committee meeting

DIN:09032137Address:PriusGlobal,A-3,4,5,Sector–125,Noida–201301


Annexure B

DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013

READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL)

RULES, 2014

(i) TheratiooftheremunerationofeachdirectortothemedianremunerationoftheemployeesoftheCompanyforthefinancialyear:

Name & Designation Ratio to Median REL Remuneration

Dr.RashmiSaluja–ExecutiveChairperson 119:1

(ii) The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, CompanySecretaryorManager,ifany,inthefinancialyear:

Name & Designation % increase in REL remuneration in the financial year

Dr.RashmiSaluja–ExecutiveChairperson NA

Mr.NitinAggarwal–GroupCFO NA

Ms.ReenaJayara-CompanySecretary 10

(iii) Thepercentageincreaseinthemedianremunerationofemployeesinthefinancialyear:Thereisdecreaseinthemedianremunerationofemployeesinthefinancialyear.

(iv) Thenumberofpermanentemployeesontherollsofcompany:29 (as on 31 March’21)

(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last

financialyearanditscomparisonwiththepercentileincreaseinthemanagerialremunerationandjustificationthereofandpointout if thereareanyexceptionalcircumstancesfor increaseinthemanagerialremuneration:Average percentage

increase already made in the salaries of employees other than the managerial personnel in the last financial year was 1% whereas the average percentage increase in the applicable managerial remuneration for the same financial year was 5% .

(vi) Affirmationthattheremunerationisaspertheremunerationpolicyofthecompany: ItisherebyaffirmedthattheremunerationpaidisaspertheRemunerationPolicyforDirectors,KeyManagerialPersonnelandotherEmployees.


Statement of Employee remuneration pursuant to Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

S.

No.

Name Age Designation Gross

Remuneration

(Rs.)

Qualification Experience(years)

Date of Commencement of

Employment

Last Employment

1 RashmiSaluja 47 ExecutiveChairperson

103,307,533 MBBS,MD,LLB,MBA

(Finance)PhD

26 26-Feb-20 SelfEmployed

2 NitinAggarwal 45 GroupChiefFinancialOfficer

25,151,976 B.Com,CA 23 9-Sep-19 ReligareBrokingLimited

3 NishantSinghal* 40 Director&GeneralCounsel

11,695,700 B.Com,LLB 16 1-Jun-20 ReligareFinvestLtd

4 MayurRanjanDwivedi 40 EVP&Head-Strategy,M&AandInvestorRelations

8,884,863 MBA(PGDIM),Bachelorof

Engg.

13 1-Jun-20 ReligareFinvestLtd

5 NityaKishoreSahu1 63 GroupHead–Compliance

8,433,845 MA(Economics),

CAIIB

37 23-Apr-18 ReserveBankofIndia


S.

No.


Remuneration

(Rs.)



Employment

Last Employment

6 RajeshSharma* 52 Director-InternalAudit

7,739,744 B.Com,CA 26 1-Jan-18 Religare Support

ServicesLimited7 ShalabhGarg 42 VP-Information

Technology

5,396,008 BE(ComputerScience),PGDBA

16 1-Jan-18 Religare Support

ServicesLimited

8 SanjeevTandon 43 SVP-Finance&Accounts

4,474,236 B.Com,CA 21 1-Jan-18 Religare Support

ServicesLimited9 ReenaJayara 39 VP & Company

Secretary

4,118,151 B.Com,CS 15 17-Nov-17 Religare Support

ServicesLimited10 SandeepKumarDiwan 44 VP-Finance&

Accounts

2,667,479 CA,CMA,MBA(Finance)

20 1-Sep-18 ReligareFinvestLtd

1Resignedw.e.f.December1,2020*NonBoardmembers

Statement of Employee remuneration pursuant to Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014(EmployedforthepartoftheyearwithanaveragesalaryaboveRs.8.5Lakhpermonthnotcoveredabove)

S.

No.


Remuneration

(Rs.)



Employment

Last Employment

1 AmarjeetSinghArora1 58 Director-Legal&Recovery

1,966,480 B.Com, 39 1-Jan-18 Religare Support

ServicesLimited

1NonBoardmember&Resignedw.e.f.April30,2020

1) Personsnamedaboveare/werepermanentemployeesoftheCompanyexceptMr.NityaKishoreSahuwhoseappointmentwasonfixedtermbasis.

2) Remuneration includessalary,allowances, leaveencashment,bonus, leavetravelconcession&EmployercontributiontowardsNPS.Inaddition, theemployeesareentitledtogratuity,employer’scontributiontoProvidentFund,FoodVoucher,GroupinsuranceandOtherPerquisitesinaccordancewithCompany’sRules.

3) Theappointmentoftheaboveemployeesisnon-contractualexceptasstatedin1.abovehowevertheyareallgovernedbytheCompanypolicyandrules

4) Noneoftheemployeesabovehasequityshareholdinginthecompanyexceeding2%oftheequitysharesasonMarch31,2021

5) NoneoftheemployeesmentionedabovearerelativeofanyDirectoroftheCompany.

6) Noneoftheemployeeswereinreceiptofremunerationwhichintheaggregate,isinexcessofthatdrawnbyManagingDirectoroftheCompanyandalsoholdsbyhimselforalongwithhisspouseanddependentchildren,2%oftheequitysharesoftheCompany

7) Remunerationmentionedaboveisinclusiveofretirement/separationbenefitspaidduringtheyear



Sd/- Dr. Rashmi Saluja Executive Chairperson DIN: 01715298

Place:NewDelhi Address: Prius Global, A-3,4,5,

Date: August12,2021. Sector – 125, Noida – 201 301


FORM MR - 3

SECRETARIAL AUDIT REPORT

FORTHEFINANCIALYEARENDEDMARCH31,2021

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014]

To,TheMembers,Religare Enterprises Limited

(L74899DL1984PLC146935)

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate

practices by Religare Enterprises Limited(hereinaftercalled“theCompany”or“REL”).TheSecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.Asinformedtous,theCompanyisregisteredwiththeReserveBankofIndia(RBI)asaSystemicallyImportantCoreInvestmentCompany.

BasedonourverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofSecretarialAudit,weherebyreportthatinouropinion,duringtheauditperiodcoveringthefinancialyearendedonMarch31,2021,theCompanyhascompliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanism inplace to theextentbasedonthemanagementrepresentation letter/confirmation,inthemannerandsubjecttothereportingmadehereinafter.

Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedonMarch31,2021,accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(‘theAct’)andtherulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment,

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018;

d. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeesBenefits)Regulations,2014;

e. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008(not applicable

to the Company during the audit period);

f. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993


regardingtheCompaniesActanddealingwithclient;(not applicable to the Company during the audit period)

g. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;(not applicable to the

Company during the audit period)

h. TheSecurities andExchangeBoardof India (Buy - backofSecurities)Regulations, 2018; (not applicable to the

Company during the audit period)

i. TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(‘ListingRegulations’).

(vi) BasedupontheManagementRepresentationwhereverrequiredfromtheCompany,wefurtherreportthatsubjecttotheobservationsmentionedhereinafter,thereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewiththefollowingpertinentlaws,rules,regulationsandguidelinesasspecificallyapplicabletotheCompany:-

i. TheReserveBankofIndiaAct,1934totheextentitisapplicabletoCoreInvestmentCompanies(CIC)and

ii. MasterDirectionsonCoreInvestmentCompanies(ReserveBank)Directions,2016includingrevisedMasterDirectors,2020(“RevisedNBFCCICDirections”effectivefromOctober5,2020).

Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia:

WenotedthattheCompanyisgenerallyregularincomplyingwiththestandards.

(ii) TheListingAgreementsenteredintobytheCompanywiththeBSELimitedandNationalStockExchangeofIndiaLimitedreadwiththeListingRegulations.

During theperiodunder review, theCompanyhascompliedwith theprovisionsof theAct,Rules,Regulations,Guidelines,Standards,etc.mentionedaboveexcepttotheextentasmentionedbelow:

1. That the constitution of the Audit Committee was comprised of 3 independent directors out of 5 total members from February 26, 2020 till September 2, 2020 and the same was not in line with the Regulation 18(1)(b) of the Listing Regulations which

requires the Company to have two-third of total number of members as independent directors (i.e. minimum 4 members

ought to be independent directors). Thereafter, NSE vide its letters dated July 02, 2020, August 20, 2020, November 17,

2020 and BSE vide its letters dated July 03, 2020, August 20, 2020, November 17, 2020 had levied a penalty of Rs. 70,000/-

, Rs.1,82,000/-, Rs.1,28,000/- each respectively which have been paid by the Company to both the exchanges as on date

of this report.

We further report that:

i. TheBoardofDirectorsof theCompany isduly constitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

ii. AdequatenoticeisgiventoallDirectorstoscheduletheBoardMeetings.Agendaanddetailednotesonagendaweresentat leastsevendaysinadvanceexceptfewBoardMeetingswhichwereheldonshorternotice,andasystemexistsforseekingandobtainingfurther informationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

iii. Majoritydecisionswerecarriedthroughandtherewerenoinstanceswhereanydirectorexpressinganydissentingviews.


We further noted that:

i. In termsof theRevisedNBFCCICDirections, everyCIC is required to obtain the registration fromall 4 (four)CreditInformationCompanies.Inthisregard,wenotedthattheCompanyaftercommencementofRevisedCICDirectionsfrom

October5,2020,hasobtainedregistrationfrom2(two)CreditInformationCompaniesasonthedateofthisreportanditisinprocessofobtainingtheregistrationfromrest2(two)CreditInformationCompanies.

ii. That in termsof theRevisedNBFCCICDirections, everyCICshall constituteaGroupRiskManagementCommittee(“GRMC”)whichshallcompriseofatleast5membersoutwhich2membersshallbeindependentdirectors,oneofwhomshallbechairpersonandGRMCshallmeetat leastonce inaquarter. In this regard,wenoted that theCompanyhasreconstituted its existing Risk Management Committee in accordance with the Revised Directions however the saidCommitteeoftheCompanydidnotmeetinthelastquarterendedonMarch31,2021.

We further report thatduringtheauditperiod,followingeventswereoccurredhavingamajorbearingonthecompany’saffairsinpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standards,etc.referredtoabove:

i. That in continuation of thematter disclosed in our previous year’s report regarding re-classification of promoters andpromotergroup,theCompanyhasreceivedapproval,undertheprovisionsofRegulation31AoftheListingRegulationsfromboththestockexchangesviz.BSELimiteddatedJune12,2021andNationalStockExchangeofIndiaLimiteddatedJune11,2021,forre-classificationofMr.MalvinderMohanSingh,Mr.ShivinderMohanSingh,Ms.JapnaMalvinderSingh,Ms.AditiShivinderSingh,Mr.AbhishekSingh,RHCFinancePrivateLimited,RHCHoldingPrivateLimitedandPSTrust(heldinthenameofMalvinderMohanSingh&ShivinderMohanSingh).Consequently,Companybecomealistedentitywithnopromoters.

ii. ThattheCompanyhasfiledapetitionbeforeHon’bleNationalCompanyLawTribunal,NewDelhiBench(“NCLT”)onJune14,2019seekingrectificationofRegisterofMembersoftheCompanybycancellationof25,000,000,0.01%PreferenceShares(“PreferenceShares”)issuedonAugust30,2016toRHCFinancePrivateLimited,aPromoterGroupCompany.Also,theCompanyhassoughtinterimreliefwithrespecttosuspensionofvotingrightsanddividendrightsattachedtothesaidPreferenceshares.ThematterisstillpendingbeforetheNCLT.

iii. ThatapetitionhasbeenfiledagainsttheCompanybyLoancoreServicingSolutionsLtd.beforeNCLTunderSections58and59oftheCompaniesActseekingrectificationofRegisterofMembersofRELwhereinthepetitionersclaimthattheyshouldbeallotted24.5%sharesofRELintermsofaPenaltyFeeAgreementwhichallegedlyhasbeenexecutedbyS.Laxminarayanintheirfavour.RELdeniesexistenceofsuchPenaltyFeeAgreement.ThematterislistedbeforetheHon’bleNCLTNewDelhibenchandpendingfordisposal.

iv. ThattheBoardofDirectorsinitsMeetingheldonDecember18,2019approvedtheSchemeofMerger/Amalgamationof4(four)direct/indirectwhollyownedsubsidiariesoftheCompany,namelyReligareComtradeLimited,ReligareInsuranceLimited,ReligareAdvisorsLimitedandReligareBusinessSolutionsLimitedwith/into theCompany.As informed tous,the filingof theSchemewasdelayeddue to the lockdownsituationonaccountofCOVID-19pandemicoutbreakandconsequentlywasfiledwiththeNCLTonOctober31,2020andtheapprovalofNCLTisstillpendingasontheevendate.

v. IncontinuationoftheSEBIorderSEBIvideOrderNo.WTM/GM/IVD/100/2018-19datedMarch14,2019readwithorderNo.WTM/GM/IVD/34/2019-20datedSeptember11,2019,theSEBIissuedShowCauseNotice(“SCN”)datedNovember17,2020totheCompanyforallegedviolationofprovisionsofsection12A(a)(b)&(c)oftheSEBIAct,1992(“SEBIAct”)andRegulations3(b),3(c)&3(d),4(1),4(2)(f),and4(2)(r)oftheSEBI(PFUTP)Regulations,2003aswellasclauses32and36oftheListingAgreement,Clause49(I)(C)(1)(a)&49(I)(C)(1)(d)oftheListingAgreement[postcirculardatedApril17,2014]readwithRegulation103ofListingRegulationsandSection21oftheSecuritiesContract(Regulation)Act,1956;Regulations4(1)(a),4(1)(b),4(1)(c),4(1)(d),4(1)(g),4(1)(h),4(1)(i),4(1)(j),30(1),and48ofListingRegulations.


TheCompanywascalledupontoshowcauseastowhyappropriatedirections,asdeemedfit,underSections11B(1)and11(4)readwithsection11(1)ofSEBIActandSection12A(1)ofSCRAAct,1956shouldnotbeissuedagainstit.TheCompany was further called upon to show cause as to why appropriate directions for imposing penalty under Sections

11(4A)and11B (2) readwithSection15HAand15HBofSEBIAct and section12A (2) readwithSection23Eof theSCRAAct,1956andSEBI(Procedure forholding inquiryand imposingpenalties)Rules,1995andSecuritiesContract(Regulation)(Procedureforholdinginquiryandimposingpenalties)Rules,2005shouldnotbeissuedagainsttheCompany.Thereafter,theCompanyhasfileditsreplyandpartargumentshavealsobeenheardinthematter.

Further, the Company has also submitted a settlement application with SEBI in accordance with provisions of SEBI(SettlementProceedings)Regulations,2018onMarch31,2021whichispendingfordisposalasondate.

vi. Asperthedateofthisreport,theBoardofDirectorsoftheCompanyhasapprovedonJune08,2021toraisefundsthroughpreferentialbasisbyissuingupto5,41,56,761equitysharesatanissuepriceofRs.105.25pershareandthesamehasbeenapprovedbytheShareholderintheextra-ordinarygeneralmeetingheldonJuly03,2021.ThereaftertheCompanyhasmadeallotmentofequitysharesonJuly14,2021.

Limitations

It is to be noted that due to Covid-19 situation in the Country and in compliance of the Covid-19 norms issued by the Government of India and State Governments from time to time, the Firm had carried out the audit virtually and the documents, registers, forms, etc. were made available to us by the company through electronic medium. Further, wherever possible we have also taken confirmations from the company but the audit, as conducted, is subject to limitation of availability of documents due to continuous restrictions imposed by governments.

For PI & Associates,

Company Secretaries

Sd/-Nitesh Latwal

Partner

ACS No.: 32109

C P No.: 16276

Date: August4,2021 UDIN: A032109C000733524Place: NewDelhi

The above 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.


“Annexure A”

To,TheMembers,RELIGARE ENTERPRISES LIMITED

OurSecretarialAuditReportofevendateistobereadalongwiththisletter.

1. MaintenanceofsecretarialrecordsistheresponsibilityofthemanagementoftheCompany.OurResponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctnessofthecontentsofthesecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.

4. Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationandhappeningofeventsetc.

5. Thecomplianceoftheprovisionsofcorporateandotherapplicablelaws,rules,regulations,standardsaretheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAuditReportisneitheranassuranceastofutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.


Company Secretaries

Sd/-Nitesh Latwal

Partner

ACS No.: 32109

C P No.: 16276

Date: August4,2021 UDIN: A032109C000733524Place: NewDelhi


FORM NO. MR - 3


FORTHEFINANCIALYEARENDEDMARCH31,2021[Pursuant to section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies (Appointment and Remuneration of


To,TheMembers,Care Health Insurance Limited

(U66000DL2007PLC161503)

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good

corporate practices by Care Health Insurance Limited (hereinafter called “the Company”).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinion thereon.ThisCompany isgovernedmainlyunder theprovisionsof the InsuranceAct,1938and the InsuranceRegulatoryandDevelopmentAuthorityAct,1999 (‘InsuranceLaws’)andunder theCompaniesAct,2013and rules framedthereunderwherethereisnoinconsistencywiththeInsuranceLaws.

BasedonourverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompany,theinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedonMarch31,2021,compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextentandasapplicabletotheCompany,inthemannerandsubjecttothereportingmadehereinafter:

Wehaveexamined the books, papers,minute books, formsand returns filed andother recordsmadeavailable to us andmaintainedbytheCompanyforthefinancialyearendedonMarch31,2021asmentionedinAnnexure-A and Annexure-B,accordingtotheprovisionsof:


(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;(Not applicable to the Company

during the audit period)


(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings;(Not applicable to the Company during the

audit period)


a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

c. TheSecurities andExchangeBoard of India (Issue ofCapital andDisclosureRequirements)Regulations, 2018; (Not

applicable)

d. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014;

e. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;(Not applicable)

f. The Securities and Exchange Board of India (Registrars to an Issue and Share TransferAgents) Regulations, 1993;regardingtheCompaniesActanddealingwithclient;

g. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;(Not applicable)


h. TheSecuritiesandExchangeBoardofIndia(Buy-backofSecurities)Regulations,2018;(Not applicable)i. TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(Not

applicable)(vi) AndtheCompanybeinginthebusinessofInsuranceotherthanLifeInsurance,theSpecialActasapplicabletoitisthe

InsuranceAct,1938andextantRules&RegulationframedunderInsuranceRegulatoryandDevelopmentAuthorityAct,1999(IRDA).

Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndiawithrespecttoboardandgeneralmeetings. (ii) TheListingAgreementsenteredintobytheCompanywiththeStockExchange(s),ifapplicable;(Not applicable)

We further report that: I. TheBoardofDirectorsof theCompany isduly constitutedwithproperbalanceofExecutiveDirectors,Non-Executive

DirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheCompaniesAct,2013andIRDARegulationsincl.CorporateGovernanceguidelines.

II. AdequatenoticewasgiventoallDirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvanceformeetingsotherthanthoseheldatshorternotice,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

III. Majoritydecisionwerecarriedthroughandtherewerenoinstanceswhereanydirectorexpressinganydissentingviews.We further report that thereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.We further report that during the audit period the Company had following events which had bearing on the Company’s affairs

inpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standardsetc:I. That the Company has altered its Articles of Association in accordance with the conditions contained in the Share

SubscriptionandSharePurchaseAgreemententeredintobetweenM/s.KedaaraCapitalFundIILLP(InvestmentParent),M/sTrishikarVenturesLLP(Investors)(Jointlyreferredas“Kedaara”),M/s.ReligareEnterprisesLimitedandtheCompanydated06thFebruary,2020.

II. TheCompanyissuedandallotted791,76,564equitysharesoftheCompany,offacevalueofRs.10each,onpreferentialallotment/privateplacementbasisatapriceofRs.37.89/-perequityshare(includingpremiumofRs.27.89)aggregatingtoRs.300,00,00,009.9toM/s.TrishikharVenturesLLP.

III. That theCompanyalso issuedandallotted6,91,416EquitySharesof theCompanyof facevalueofRs.10each,onpreferentialallotment/privateplacementbasisatapriceofRs.37.89/-perequityshare(includingpremiumofRs.27.89)aggregatingtoRs.2,61,97,752.24tocertainInvestors.

IV. ThattheCompanyallotted1,66,33,239equitysharesoffacevalueofRs.10eachatapriceofRs.10eachamountingtoRs.16,63,32,390/-toMr.AnujGulati,ManagingDirector&CEOoftheCompanypursuanttoESOPoptionsexercisedbyCEOunderReligareHealthInsuranceCEOStockOptionScheme2014.

For PI & Associates Company Secretaries

Sd/- Nitesh Latwal

Partner ACS No.: 32109

Date: June 15, 2021 C P No.: 16276 Place: New Delhi UDIN: A032109C000698467

The above report is to be read with our letter of even date which is annexed as “Annexure A and B” and forms an integral part

of this report.


“Annexure A”

Under Companies Act, 2013: -

1. Memorandum&ArticlesofAssociationoftheCompany.

2. AnnualReportforthefinancialyearendedMarch31,2020.

3. MinutesofthemeetingsoftheBoardofDirectors,AuditCommitteeandNomination&RemunerationCommittee,alongwithAttendanceRegisterheldduringthefinancialyearunderreport.

4. MinutesofGeneralBodyMeetingsheldduringthefinancialyearendedMarch31,2021underreport.

5. StatutoryRegistersasperCompaniesAct2013.

6. Agendapaperssubmittedtoallthedirectors/membersfortheBoardMeetingsandCommitteeMeetings.

7. DeclarationsreceivedfromtheDirectorsoftheCompanypursuanttotheprovisionsofSection149(6)&(7),Section164andSection184oftheCompaniesAct,2013.

8. E-FormsfiledbytheCompany,fromtime-to-time,underapplicableprovisionsoftheCompaniesAct,2013andattachmentsthereofduringthefinancialyearunderreport.

9. VariousPolicies framedby theCompany requiredunder theCompaniesAct, 2013viz.NominationandRemunerationPolicy,CorporateSocialResponsibilityPolicy,BoardEvaluationPolicyetc.

10. DocumentspertainingtoAppointment,ResignationofDirectorsandKMPandapprovalsreceivedfromIRDAI.

11. OtherrelevantdocumentsasrequiredtobemaintainedandpublishedonwebsitebytheCompany.

Under Insurance Act, 1938 and Insurance Regulatory and Development Authority of India Act (IRDAI) 1999: -

1. Minutes of InvestmentCommittee,PolicyholdersProtectionCommittee,RiskManagementCommittee required as perIRDAICorporateGovernanceGuidelinesalongwithAttendanceRegister,heldduringthefinancialyearunderreport.

2. DeedofCovenantsatthetimeofappointment.

3. DeclarationandundertakingsfromDirectors.

4. Compliance/CorrespondencewithIRDAIi.e.Monthly,Quarterly,Halfyearly,Annuallyetc.

5. DocumentspertainingtoAppointmentofDirectorsandKMPandapprovalsreceivedfromIRDAI.

Limitations

It is to be noted that due to Covid-19 situation in the Country and in compliance of the Covid-19 norms issued by the Government

of India and State Governments from time to time, the Firm had carried out the audit virtually and the documents, registers,

forms, etc. were made available to us by the company through electronic medium. Further, wherever possible we have also

taken confirmations from the company but the audit, as conducted, is subject to limitation of availability of documents due to continuous restrictions imposed by governments.


“Annexure B”

To,TheMembers,Care Health Insurance Limited



2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the

correctnessofthecontentsofthesecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.


4. Whereeverrequired,wehaveobtainedtheComplianceCertificateaboutthecomplianceoflaws,rulesandregulationandhappeningofeventsetc.



For PI & Associates

Company Secretaries

Sd/- Nitesh Latwal

Partner

ACS No.: 32109

C P No.: 16276

UDIN: A032109C000698467

Date: June 15, 2021

Place: New Delhi


FORM MR - 3


FORTHEFINANCIALYEARENDEDMARCH31,2021

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies (Appointment and Remuneration

Personnel) Rules, 2014]

To,TheMembers,RELIGARE BROKING LIMITED

(U65999DL2016PLC314319)

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate

practices by Religare Broking Limited(hereinaftercalled“theCompany”).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.Asinformedtous,TheCompanyisregisteredasaResearchAnalystw.e.f.March29,2019underSEBI(ResearchAnalyst)Regulations, 2014, as aStockBrokerw.e.f.May 3, 2018 underSEBI (StockBrokers)Regulations, 1992, as aDepositoryParticipantw.e.f.October16,2018underSEBI(DepositoryParticipants)Regulations,2018,asaCorporateAgentw.e.f.July23,2018underIRDAI(RegistrationofCorporateAgents)Regulations,2015andasaPointofPresencew.e.f.June7,2018underPFRDA(PointofPresence)Regulations,2018.

BasedonourverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedonMarch31,2021,compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanism inplace to theextentbasedonthemanagementrepresentation letter/confirmation,inthemannerandsubjecttothereportingmadehereinafter:

Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedonMarch31,2021accordingtotheprovisionsof:-

i. TheCompaniesAct,2013(‘theAct’)andtherulesmadethereunder;

ii. TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

iii. TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

iv. ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereunder;(Not applicable)

v. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;(Not applicable)

(b) TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015, (Not applicable)

(c) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

(c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018; (Not

applicable)


(d) TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014;(Not applicable)

(e) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008; (Not applicable)

(f) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993;(ApplicabletotheextentincaseofIssuer)

(g) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;(Not applicable) and

(h) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018; (Not applicable)

vi. BasedupontheManagementRepresentationletterwhereverrequiredfromtheCompanyandtheauditreportsasmadeavailable tousof the respectiveauditorsappointedunder specificLaws/Regulations/Rules,we report that thereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancesexcepttotheextentqualifiedbythesaidauditorswiththefollowingpertinentlaws,rules,regulationsandguidelinesasspecificallyapplicabletotheCompany:-

(i) OnthebasisofbusinessoperationsandregistrationsobtainedbytheCompany,wefurtherreportthatwehavereliedupontheInternalAuditReports/concurrentauditreports/systemauditreportprovidedtousoftherespectiveauditorssoappointed,andsoughtconfirmationswhereverrequiredfromthemanagementoftheCompany,underthefollowingspecificallyapplicableRegulations:

a) TheSecuritiesandExchangeBoardofIndia(ResearchAnalyst)Regulations,2014;(‘RA Regulations’)

b) TheSecuritiesandExchangeBoardof India(Stock-Brokers)Regulations,1992readwithMasterCircular forStockBroker;(‘Broking Regulations’)

c) The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018; (‘DP

Regulations’);

d) PensionFundRegulatoryandDevelopmentAuthority(PointofPresence)Regulations,2018(‘POP Regulations’);

e) InsuranceRegulatoryandDevelopmentAuthorityofIndia(RegistrationofCorporateAgents)Regulations,2015;and

f) PreventionofMoneyLaunderingAct,2002readwithPreventionofMoney-Laundering(MaintenanceofRecords)Rules,2005totheextentoffilinginformationofclients.

Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:-

(i) Secretarial Standards issued by The Institute of Company Secretaries of India: The Company is generally regular incomplyingwiththestandards;

(ii) TheListingAgreementsenteredintobytheCompanywiththeStockExchange(s)andSecuritiesExchangeBoardofIndia(ListingObligations&DisclosureRequirements)Regulations,2015.(Not applicable)

During theperiodunder review, theCompanyhascompliedwith theprovisionsof theAct,Rules,Regulations,Guidelines,Standards,etc.andotherspecificapplicableregulationsasmentionedabove.


a) TheBoardofDirectorsof theCompany isduly constitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.


b) AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastseven(7)daysinadvanceexceptthefewBoardMeetingswhichwereheldonshorternotice,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

c) Majoritydecisionwerecarriedthroughandtherewerenoinstanceswhereanydirectorexpressinganydissentingviews.

We further report thatduringtheperiodunderreview,thestockexchangesnamelyBombayStockExchange(BSE),NationalStockExchange(NSE)andMultiCommodityExchange(MCE)hadrespectivelyleviedanominalpenaltyontheCompanyforfewoftheoperationallapsesandasconfirmedtous,suchpenaltieshavebeenpaidtothestockexchanges.

We further report that duringtheauditperiodnoeventsoccurredwhichhaveamajorbearingontheCompany’saffairs inpursuanceofthelaws,rules,regulations,guidelines,standardsetc.referredtoabove.

Limitations






Company Secretaries

Sd/-(Ajay Khandelwal)

Partner

ACS No.: A22362C P No: 18606

Date: July26,2021 UDIN: A022362C000690249

Place: NewDelhi

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.


“Annexure A”

To,

TheMembers,

RELIGARE BROKING LIMITED









Company Secretaries

Sd/-(Ajay Khandelwal)

Partner

ACS No.: A22362C P No: 18606

Date: July26,2021 UDIN: A022362C000690249

Place: NewDelhi


FORM MR - 3




To,TheMembers,Religare Finvest Limited

(U74999DL1995PLC064132)

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good

corporate practices by Religare Finvest Limited (hereinafter called “theCompany”).SecretarialAuditwas conducted in amannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.TheCompanyisprimarilyengagedinthelendingbusinessandregisteredwiththeReserveBankofIndia(RBI)asaSystemicallyImportantNon-DeposittakingNon-BankingFinancialCompany(NBFC-ND-SI).TheCompanyalsoholdsthecertificate/registrationas(i)distributionofmutualfundproductsfromRBI(ii)DepositoryParticipantwithCDSL(iii)AssociationofMutualFundsinIndia(AMFI)and(iv)CorporateAgent(Composite)fromtheInsuranceRegulatoryandDevelopmentAuthorityofIndia(IRDAI).TheNon-ConvertibleDebentures(NCDs)oftheCompanyissuedonprivateplacementbasisarelistedonBSELimited.

BasedonourverificationoftheCompany,books,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofSecretarialAudit,weherebyreportthatinouropinion,duringtheauditperiodcoveringthefinancialyearendedonMarch31,2021,theCompanyhascompliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasBoard-processesandcompliance-mechanisminplacetotheextentbasedonthemanagementrepresentationletter/confirmation,inthemannerandsubjecttothereportingmadehereinafter.



(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;


(iv) TheForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment;(not applicable to the Company)


a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;(not

applicable to the Company)

b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015(SEBI(PIT)Regulations,2015)(for listed NCDs of the Company);

c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018;(not

applicable to the Company during the audit period)


d. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeesBenefits)Regulations,2014;(not applicable

to the Company)

e. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008(not applicable

to the Company during the audit period);

f. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesAct,2013;

g. TheSecuritiesandExchangeBoardof India (DelistingofEquityShares)Regulations,2021;(not applicable to the

Company)

h. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018;(not applicable to the Company

during the audit period)

i. TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015totheextentitisapplicabletolisteddebt.

(vi) Based upon the Management Representation wherever required from the Company and the audit report as madeavailabletousoftherespectiveauditorappointedunderspecificanyLaw/Regulations,wefurtherreportthatsubjecttotheobservationsmentionedhereinafter,therearesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewiththefollowingpertinentlaws,rules,regulationsandguidelinesasspecificallyapplicabletotheCompany:-

(a) TheReserveBankofIndiaAct,1934(RBIAct,1934)totheextentitisapplicabletoNBFC;

(b) RBIMasterDirections-NBFC-ND-SI,2016;(“NBFCDirections”)

(c) RBIMasterDirections-KYCDirections,2016;

(d) RBI’sMasterDirections-InformationTechnologyFrameworkfortheNBFCs,2016;

(e) RBI’sMasterDirections-MonitoringofFraudsinNBFCs,2016

(f) RBI’sMasterDirections-ReturnsbyNBFCs,2016

(g) SEBI(DepositoryandParticipant)Regulations,2018;and

(h) IRDAI(RegistrationofCorporateAgents)Regulations,2015.


I. SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia:WenotedthattheCompanyisgenerallyregularincomplyingwiththestandards.

II. TheListingAgreementsenteredintobytheCompanywiththeStockExchange(s)withrespecttoitsdebtlistedonprivateplacementbasis.

During theperiodunder review, theCompanyhascompliedwith theprovisionsof theAct,Rules,Regulations,Guidelines,Standards,etc.mentionedaboveexcepttotheextentasmentionedbelow:-

1. That the Capital to Risk Assets Ratio (CRAR) of the Company as on March 31, 2021 is

(-)78.27% which is in breach of the limits of minimum 15% at all time as required under NBFC Directions;

2. That the Net Owned Fund (NOF) of the Company as on March 31, 2021 is Rs(-)1,831.78crores which is in breach of the


requirement of having NOF of Rs. 200 Lakhs at all time in terms of the provisions of RBI Act, 1934 and due to negative

Owned Fund as on March 31, 2021 the Company has accordingly exceeded the limits of concentration of lending to a

single borrower and any single group of borrowers of 15% and 25% of Owned Fund, respectively. Further, the cumulative mismatches in the ALM Returns filed with the RBI in all buckets have exceeded the limit defined by the RBI; and

3. That in terms of Liquidity Risk Management Framework Guidelines issued by the RBI dated November 04, 2019 wherein

applicable NBFCs are required to comply with the Liquidity Coverage Ratio (LCR) which needs to be achieved 100% by

December 1, 2024 in a progressive manner beginning from 50% as at end of December 1, 2020. However, we noted that the Company has not achieved the minimum LCR even as on date of the report.


i. Thatasattheendoftheperiodunderreview,theBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

ii. AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings.AgendaanddetailednotesonagendaweresentatleastsevendaysinadvanceexceptthatoffewBoardMeetingswhichwereheldonshorternoticeincompliancewiththeapplicablestatutoryrequirements,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

iii. Majority decisions are carried throughwhile the dissentingmembers’ views are captured and recorded as part of theminutes.

We noted that ConsequenttoapprovalofReserveBankofIndia(RBI)onCompany’sapplicationforchangeindesignationofDr.RashmiSalujafromNon-Executive&IndependentDirector toNon-Executive&Non-IndependentDirector, theCompanyhadappointedDr.RashmiSaluja,ChairpersoncumManagingDirector,asDesignatedDirectoroftheCompanyintermsoftheprovisionsofPreventionofMoneyLaunderingAct,2002readwithRBI(KnowyourClient)Directions,2016w.e.f.September11,2020.

We further report that duringtheauditperiodfollowingeventswereoccurredwhichhaveamajorbearingonthecompany’saffairsinpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standards,etc.referredtoabove:

1. That theCompanyhadmadedefaults in therepaymentof itsobligations towards its lenders(other thanNCDholders)andanamountofRs.329,602.94lacswereoverdueasatMarch31st,2021sincetheCompanyisfacingsignificantassetliabilitymismatches.Aftertheclosuretheperiodunderreview,theCompanyhasbeenunabletoserviceitsobligationsinrespectofpaymentofprincipalandinterestamountstowardstheNon-ConvertibleDebentures,dueonApril30,2021,totheeligibledebentureholder(s).

2. ThattheCompanyhasbeenplacedundertheCorrectiveActionPlan(“CAP”)bytheRBIvideitsletterdatedJanuary18,2018whichinter-aliaprohibitsitfromtheexpansionofcredit/investmentportfoliosotherthaninvestmentinGovernmentSecuritiesandadvisestheCompanytonottopaydividend.Asinformedtous,theCompanyistakingnecessarycorrectiveactionsandmakingalleffortstocomeoutoftheCAPimposedbytheRBI.TheCompany,inordertoreviveitsbusinessandtoensureproperalignmentofitsassetliabilityprofilehasproposedaDebtResolutionPlan(“DRP”)toitslenderssubjecttoall requisiteapprovalsandcomplianceswithallapplicablenorms/ regulations. Incontinuation thereof, theCompanyhasreceivedaletterdatedJune3,2021fromStateBankofIndiastatingthattheproposalisunderconsiderationonmeritandwillbeconsideredifitcompliesoftheRBIcirculardatedJune7,2019subjecttonecessaryinternalapprovalsbyallConsortiumlenders.TheCompanyalongwithholdingCompanyisworkingtowardstherevivalandremovalofCAPbyRBI.

3. InreferencetoourReportfortheFinancialYear2019-20datedAugust27,2020,theshowcausenoticereceivedfromtheSEBIinthematterofDeccanChronicleHoldingsLimiteddatedDecember31st,2019forinadvertentnon-filingofdisclosures


underRegulation13(1)oftheSEBI(PIT)Regulations,1992andRegulation29(4)oftheSEBI(SAST)Regulations,2011intheyear2012,hasbeendisposedofinpursuancetosettlementapplicationfiledbytheCompanyonOctober16,2020bytheAdjudicatingOfficer in lieuofSettlementamountofRs.13,80,591/-(RupeesThirteenlakhseightythousandfivehundredandninety-oneonly).

4. As informedtous, theCompanyhasfiledasuit forrecovery foranamountofRs.800croreapproximatelywhichwasmisappropriatedbytheLakshmiVilasBank(LVB)ontheaccountofillegalliquidationofFixedDepositsplacedwithit.ThesaidsuitwasfiledinMay,2018beforetheHon’bleDelhiHighCourt.However,duringtheyearendedMarch31st,2020,theCompanyhadfiledanapplicationforamendmentofitsoriginalsuitstatingthattheappropriationsofFDsbyLVBwasillegalasLVBhadcolludedandconspiredwiththeoldpromotersandExDirectorsandtwootherentities.InthesaidsuitStateBankofIndia(SBI)hasalsopreferredanapplicationforinterventionwhichispendingforadjudication.

TheCompanyhasalsofiledacriminalcomplaintbeforetheEconomicOffencesWing(EOW),Delhi.AsExplained, theEOWhasfileditschargesheetaswellthesupplementarychargesheetagainsttheaccusedpersonsincludingtheseniorLVBofficials,cognizanceonwhichhasalreadybeentaken.TheCourthasalsosummonedDBSBankinthematter.TheEnforcementDirectoratehassuo-motolodgedanECIRonthebasisofFIR.

5. ThatStrategicCreditCapitalPrivateLimited(SCCPL)&ParticipationFinance&Holdings(India)PrivateLimited(PFH)havefiledacommercialcivilsuitbeforeHon’bleDelhiHighCourtagainstLakshmiVilasBank(LVB),whereintheyhavearrayedCompanyandotherentitiesasparty.SCCPLandPFHareseekingvariousreliefinpetitionagainstLVBamongstotherrelief,adirectionagainsttheCompany’sFixedDepositplacedwithLVB.TheCompanyhadfiledapplicationu/s340ofCr.pcagainstSCCPL,forfilingfabricatedindemnificationcumreleaseagreement.Further,LoancoreServicingSolutionsPrivate Limited (Loancore) filedanapplication for substitution in placeof plaintiffs.Thereafter,SCCPLalsomovedanapplicationu/o39R-1/2ofCPCseekinginjunctionagainsttheCompanyanditsholdingCompany,restrainingthemfromsellingtheirbusiness.ThesaidapplicationwasdisposedofintermsoforderdatedFebruary22,2018i.e.statusquoonbrand.LoancoreServicingSolutionsPvt.LtdhadfiledsubstitutiononbehalfofSCCPLbywayofassignmentdeed.TheMatterisnowlistedforargumentsonallpendingapplicationsonAugust9,2021.

6. ThatSCCPLanditsassociatecompanieshavefiledasuitseekingreliefinteraliainthenatureofspecificperformanceofpartoftheSettlementAgreemententeredintobetweenRFLandthePetitionersinJuly2017.ThepetitionersareseekingdischargeoftheirobligationsunderthesaidSettlementAgreement.TheCompanyhadfiledapplicationsfortherejectionofplaint,extensionoftimeforfilingwrittenstatementandforexaminationofdocumentsandseekingresponsestoquestions.

SCCPLanditsassociatecompanieshavefiledrepliestotheapplicationsfiledbytheCompany.TheCourthasgivenlibertytotheCompanytofilerejoinder,ifany.SCCPLhasfiledtwoapplications1)seekinginjunctiveordersquatheinvestigatingagency(EOW)(underorder39rule1&2CPC)towhichtheCompanyhastofileitsreply&2)applicationforamendmentofplaint(underorder6rule17CPC)towhichreplyhasalreadybeenfiledbytheCompany.ThematterisnowscheduledforhearingonAugust24,2021forconcludingargumentsonapplicationforamendment.

7. NishuFinleasePrivateLimited(NFPL)enteredintoaloanagreementwithSCCPLonJuly21,2015,wherebytheSCCPLhadavailedaloanfacilityofRs.40CrorefromNFPL.TheCompanyenteredintoasaleagreementwithNFPL,wherebytheCompanypurchasedtheoutstandingloan,alongwithunderlyingsecuritiesandreceivables,givenbyNFPLtoSCCPLunderLoanAgreementforapurchaseconsiderationofRs.45Crore.TheCompanyhadinvokeditsrightunderclause24.1oftheloanagreementandterminatedtheloanagreementbyissuingaterminationcumrecallnoticedatedJune24,2016.However,SSCPLfailedtopaytheCompany,consequentlyhadfiledinsolvencypetitionagainstSCCPLbeforetheHon’bleNCLT,NewDelhiandmatterislistedonSeptember14,2021.

8. PerpetualCapitalandServicingPrivateLimited(PCSPL)hadtakentheloanofRs.225CroreagainstthepledgeofsharesandoptionallyfullyconvertibledebenturesonJune8,2015byenteringintoaloanagreement.Furtheranadditionalamount


ofRs. 35Crorewas also sanctioned vide letter datedDecember 30, 2015.However, PCSPL defaulted inmaking thepaymentthatwasdueandpayableundertheloanagreement.Onaccountoffailuretomakepayment,theCompanyhadconsequentlyfiledinsolvencypetitionagainstPCSPLbeforetheHon’bleNCLT,MumbaiandmatterislistedonSeptember22,2021Also,PCSPLhasfiledatransferpetitionseekingtransferofcompanypetitionfromMumbaiBenchtothePrincipalBenchofDelhi,againstwhichRFLhasfileditsreplywhichispostedforhearingon12-Aug-21beforetheNCLT,NewDelhi.

9. InthematterofInterimex-parteorderpassedbySEBIonMarch14,2019readwithCorrigendumdatedApril18,2019andConfirmatoryOrderdatedSeptember11,2019(“SEBIOrder”)w.r.t.theOrderpassedbySEBIonNovember12,2020inthematterofReligareEnterprisesLimited,parentcompany,theCompanyhasreceivedaShowCauseNoticedatedNovember17,2020 fromtheSEBI.Thereafter, theCompanyalongwithholdingCompanyhassubmittedasettlementapplicationwithSEBIinaccordancewithprovisionsofSEBI(SettlementProceedings)Regulations,2018onMarch31,2021whichispendingfordisposalasondateatSEBIend.

10. SEBIhas issuedanoticedated09thApril, 21 (EAD-4/ADJ/GR/KG/OW/8529/1/2021)with respect toFortisHealthcareLimitedmatter,whereinRFLhasbeencalledupon toshowcauseas towhyan inquiry shouldnotbe imposedundersections15HAand15HBoftheSEBIAct,1992,within14daysfromthedateofthereceiptofthesaidnotice.RFLvideitsletterdated23rdApril,2021requestedSEBItograntpermissionforinspectionofreliedupondocumentshowever,thesaidrequestwasturneddownbySEBI.Thematterwaspartlyheardon15thJune,2021afterwhichSEBIdirectedRFLtofilewrittensubmissionsby25-Jun-21.RFLhasalreadyfileditsreplyandwrittensubmissionsalongwithsettlementapplication(withoutpre-judice).

11. TheCompanyhadborrowedfundsfromAxisBankLimitedthroughissuanceofUnsecuredRatedListedRedeemableNon-ConvertibleSubordinatedDebenturesofSeriesLIII(53)(NCDs)issuedonprivateplacementbasisofRs.10,00,000/-eachforcashatparforuptoRs.100croreonSeptember30,2015.TheDebenturescarriedacouponrateof10.68%p.a.whichwaspayableannually.TheCompany,yearonyear,honoreditscontractualobligationbymakingannualpaymentsoftheinterestdueontheDebenturestoAxisBank,withoutdefault.However,onduedateofmaturityi.e.30April,2021,duetosignificantassetsliabilitiesmismatches,theCompanywasnotinapositiontopayandconsequently,hasnotpaidthetotaloutstandingofRs.10,620LacscomprisingofprincipalofRs.10,000LacsandinterestofRs.620lacs.Consequently,theratingagency,IndiaRatings,hasdowngradedtheratingsonlowerTier-2debtfromINDCtoINDD.ThesamehasbeenappropriatelydisclosedbytheCompanytotheregulatory/statutoryauthoritiesandallstakeholders.Further,AxisTrusteeisnowintheprocesstonominateaNomineeDirectorontheBoardoftheCompany,forrepresentingtheDebentureHolder.

Limitations

It is to be noted that due to Covid-19 situation in the Country and in compliance of the Covid-19 norms issued by the Government of India and State Governments from time to time, the Firm had carried out the audit virtually and the documents, registers, forms, etc. were made available to us by the company through electronic medium. Further, wherever possible we have also taken confirmations from the company but the audit, as conducted, is subject to limitation of availability of documents due to continuous restrictions imposed by governments.

For PI & Associates,Company Secretaries

Sd/-Nitesh Latwal

PartnerACS No.: 32109 C P No.: 16276

Date: August4,2021 UDIN:A032109C000733581Place: NewDelhi



“Annexure A”To,TheMembers,RELIGARE FINVEST LIMITED








For PI & Associates,Company Secretaries

Sd/-Nitesh Latwal

PartnerACS No.: 32109 C P No.: 16276

Date: August4,2021 UDIN:A032109C000733581Place: NewDelhi


FORM MR - 3




To,TheMembers,Religare Housing Development Finance Corporation Limited

(U74899DL1993PLC054259)

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate

practices by Religare Housing Development Finance Corporation Limited (hereinaftercalled“theCompany”/“RHDFCL”).The Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/

statutorycompliancesandexpressingmyopinionthereon.ItisalsonotedthattheCompanyisaHousingFinanceCompany(HFC)registeredwithNationalHousingBank(NHB)undersection29AoftheNationalHousingBankAct,1987.

BasedonourverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofSecretarialAudit,weherebyreportthatinouropinion,duringtheauditperiodcoveringthefinancialyearendedonMarch31,2021,theCompanyhascompliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanism inplace to theextentbasedonthemanagementrepresentation letter/confirmation,inthemannerandsubjecttothereportingmadehereinafter.



(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;(not applicable to the Company);

(iii) TheDepositoriesAct,2018andtheRegulationsandBye-lawsframedthereunder;(not applicable to the Company);

(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment;


a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;(not applicable)

b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;(not applicable)

c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018;(not

applicable)

d. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeesBenefits)Regulations,2014;(not applicable)

e. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008(not applicable);

f. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesAct;(not applicable)

g. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2021;(not applicable)

h. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018;(not applicable)

i. TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.(not applicable)


(vi) Based upon theManagement Representation wherever required from the Company, we further report that there areadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewiththefollowingpertinentlaws,rules,regulationsandguidelinesasspecificallyapplicabletotheCompany:-

1) TheNationalHousingBankAct,1987;

2) TheHousingFinanceCompanies (NHB)Directions,2010 readwithHousingFinanceCompanies (ReserveBank)Directions,2021;

3) MasterCircularonFairPracticeCodeforHousingFinanceCompanies;and

4) MasterCircular-HousingFinanceCompanies–CorporateGovernance(NHB)Directions,2016.


(i) Secretarial Standards issued by The Institute of Company Secretaries of India: The Company is generally regular incomplyingwiththestandards.

(ii) TheListingAgreementsenteredintobytheCompanywiththeStockExchange(s).(Not applicable)

During theperiodunder review, theCompanyhascompliedwith theprovisionsof theAct,Rules,Regulations,Guidelines,Standards,etc.mentionedabove.


i. TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectorsandNon-ExecutiveDirectorsincludingindependentdirectorsasattheendoftheperiodunderreview.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedout incompliancewiththeprovisionsoftheCompaniesAct,2013.FurtheritisnotedthatDr.RashmiSalujawasappointedasaWholeTimeDirector/ExecutiveDirectoroftheultimateholdingcompany(i.e.ReligareEnterprisesLimited)w.e.fFebruary26,2020andconsequently,sheceasedtoholdtheofficeasanIndependentDirectoroftheCompanyfromthatdateintermsoftheprovisionsofSection149oftheCompaniesAct,2013.However,itispertinenttonotethattheBoardofDirectorsofRHDFCLonFeb01,2020hadapprovedthechangeindesignationofDr.RashmiSalujafromNon-ExecutiveIndependentDirectortoNon-Executive&Non-IndependentDirectorsubjecttoreceiptofpriorapprovalfromNationalHousingBank(NHB).Accordingly,RHDFCLhadsubmittedtheapplicationwithNHBforseekingpriorapprovalinthesaidmatter.TheCompanyreceivedtheapprovalfromReserveBankofIndia(RBI)onJune24,2020forchangeindesignationofDr.RashmiSalujafromNon-ExecutiveIndependentDirector toNon-Executive&Non-IndependentDirectorofRHDFCL.Change indesignationofDr.RashmiSalujafromNon-ExecutiveIndependentDirectortoNon-Executive&Non-IndependentDirectorw.e.fFebruary26,2020asperprovisionsoftheCompaniesAct,2013,couldnothappenduetopendingapprovalofRBI/NHB,beingtheregulatoroftheCompany.Thereafter,uponappointmentofMs.SabinaVaisohaw.e.fSeptember10,2020asanIndependentDirector,thecompositionoftheboardofdirectors,AuditandNomination&RemunerationCommitteeswasincompliancewiththeAct.

ii. AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings.AgendaanddetailednotesonagendaweresentatleastsevendaysinadvanceexceptthatoffewBoardMeetingswhichwereheldonshorternotice,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

iii. Majoritydecisionswerecarriedthroughandtherewerenoinstanceswhereanydirectorexpressinganydissentingviews.

We noted that

i. Thatinpursuancetopara7(h)ofRBICircularonReviewofRegulatoryFrameworkforHousingFinanceCompaniesdatedOctober22,2020,theCompanyisrequiredtocomplywiththeLiquidityRiskManagementFrameworkforNBFCandCICandthesamehasbeenadoptedbytheCompanyintheBoardMeetingheldonJune16,2021;and

ii. TheCompanyhasmarkedlienonitsFixedDeposit(FD)ofRs.20LakhsinfavourofFederalBank(‘Bank’)andasinformedtous,itisinprocessofmakingrequesttotheBanktoregisterthechargewiththeRegistrarofCompaniesundertheAct.


Wefurtherreportthatduringtheauditperiodtherewerenospecificevents/actionshavingamajorbearingonCompany’saffairsinpursuanceoftheabove-referredlaws,rules,regulations,guidelines,standardsetcreferredtoabove.

Limitations






Company Secretaries

Sd/-(Ankit Singhi)

Partner

ACS No: A20642

C P No: 16274

UDIN: A020642C000725775

Date: August2,2021Place: NewDelhi



“Annexure A”

To,TheMembers,RELIGARE HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED



2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the

correctnessofthecontentsofthesecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.






Company Secretaries

Sd/-(Ankit Singhi)

Partner

ACS No: A20642

C P No: 16274

UDIN: A020642C000725775

Date: August2,2021Place: NewDelhi



Business Responsibility Report-2021SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

CorporateIdentityNumber(CIN)oftheCompany L74899DL1984PLC146935

NameoftheCompany ReligareEnterprisesLimited

Registered address 1stFloor,P-14,45/90,P-Block,ConnaughtPlace,NewDelhi–110001

Website www.religare.com

E-mailid [email protected]

Financial Year reported 2020-21

Sector(s)thattheCompanyisengagedin Investmentactivity(NICCode–64200)

List three key products/services that the Companymanufactures/provides(asinbalancesheet)

Investmentactivity(NICCode–64200)SupportServices(NICCode–78300)

Total number of locations where business activity is

undertakenbytheCompany

(a)NumberofInternationalLocations Nil

(b)NumberofNationalLocations Threeoffices(Delhi-2andNoida-1)

MarketsservedbytheCompany India

SECTION B: FINANCIAL DETAILS OF THE COMPANY

PaidupCapital(INR) 2,594,139,020

TotalTurnover(INR) 1,187,818,661.35

Totalprofitaftertaxes(INR) 639,969,793.31

TotalSpendingonCorporateSocialResponsibility(CSR)aspercentageofprofitaftertax(%)

Refer Annual Report on CSR activities

Listofactivities inwhichexpenditure in4abovehasbeenincurred

Refer Annual Report on CSR activities

SECTION C: OTHER DETAILS

Does the Company have any Subsidiary Company/

Companies?

Yes(25directandindirectsubsidiaries)

Do the Subsidiary Company/Companies participate in the

BR Initiativesof theparentcompany? If yes, then indicatethenumberofsuchsubsidiarycompany(s)

Ingeneral,theCompany’sapproachistodevelopandadoptpoliciesrelatingtoBRattheGrouplevel,whichareadoptedand implemented by all Indian subsidiaries to the extentrelevant. As such, all Indian subsidiaries with operatingbusinessesdirectlyorindirectlyparticipateintheBRinitiativesoftheCompany.

Doanyotherentity/entities(e.g.suppliers,distributorsetc.)that the Company does business with, participate in theBR initiatives of the Company? If yes, then indicate thepercentageofsuchentity/entities?[Lessthan30%,30-60%,Morethan60%]

No


SECTION D: BR INFORMATION

Details of Director/Directors responsible for BR

(a) Details of the Director/Directors responsible for implementation of the BR policy/policies 1. DINNumber 01715298

2. Name Dr.RashmiSaluja

3. Designation ExecutiveChairperson

(b) Details of the BR head 1. DINNumber(ifapplicable) NotApplicable

2. Name Mr.NitinAggarwal

3. Designation GroupChiefFinancialOfficer

4. Telephone number 0120-6356588

5. e-mailid [email protected]

2. Principle-wise (as per NVGs) BR Policy/policies

Principle1(P1) Businessesshouldconductandgovernthemselveswithethics,transparencyandaccountability

Principle2(P2) Businessesshouldprovidegoodsandservicesthataresafeandcontributetosustainabilitythroughouttheir life cycle

Principle3(P3) Businessesshouldpromotethewellbeingofallemployees

Principle4(P4) Businessesshouldrespect the interestsof,andberesponsive towardsallstakeholders,especiallythosewhoaredisadvantaged,vulnerableandmarginalized

Principle5(P5) Businessesshouldrespectandpromotehumanrights

Principle6(P6) Businessesshouldrespect,protect,andmakeeffortstorestoretheenvironment

Principle7(P7) Businesses,whenengagedininfluencingpublicandregulatorypolicy,shoulddosoinaresponsiblemanner

Principle8(P8) Businessesshouldsupportinclusivegrowthandequitabledevelopment

Principle9(P9) Businessesshouldengagewithandprovidevaluetotheircustomersandconsumersinaresponsiblemanner

(a) Details of compliance (Reply in Y/N)

No. Questions P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9

1 Doyouhaveapolicy/policiesfor.... Y N.A Y Y N* Y Y Y N.A

2 Has the policy being formulated in consultation with therelevantstakeholders?

Y - Y Y - Y Y Y -

3 Does the policy conform to any national / international

standards?Ifyes,specify?(50words)- - - - - - - - -

4 HasthepolicybeingapprovedbytheBoard?Ifyes,hasitbeensignedbyMD/Owner/CEO/appropriateBoardDirector?

Y - Y Y - Y Y Y -

5 Does the company have a specified committee of theBoard/Director/Officialtooverseetheimplementationofthe policy?

Y - Y Y - Y Y Y -

6 Indicatethelinkforthepolicytobeviewedonline? Relevant policies and code of conduct are available on our

website www.religare.com

BusinessResponsibilityReport-FY2020-21



7 Hasthepolicybeenformallycommunicatedtoallrelevantinternalandexternalstakeholders?

Thepoliciesarecommunicatedtokeyinternalandexternalstakeholdersanditisanongoingprocess.

8 Doesthecompanyhave in-housestructureto implementthepolicy/policies.

Y - Y Y - Y Y Y -

9 Does the Company have a grievance redressal mechanism

related to the policy/ policies to address stakeholders’grievances related to the policy/ policies?

Y - Y Y - Y Y Y -

10 Hasthecompanycarriedoutindependentaudit/evaluationof the working of this policy by an internal or externalagency?

Y - Y Y - Y Y Y -

*TheCompanyisdedicatedtoupholdthehumanrightsofallitsemployeesanditstrictlyensurescompliancewithallapplicablelawsofthelandpertainingtohumanrights.TheCompanydidnotreceiveanycomplaintrelatingtoviolationofhumanrightsduringtheyear2020-21.

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


1 The company has not understood the Principles - - - - - - - - -

2 Thecompany isnotatastagewhere itfinds itself inaposition to formulate and implement the policies on

specifiedprinciples

- - - - √ - - - -

3 The company does not have financial or manpowerresourcesavailableforthetask

- - - - - - - - -

4 Itisplannedtobedonewithinnext6months - - - - - - - - -

5 Itisplannedtobedonewithinthenext1year - - - - - - - - -

6 Anyotherreason(pleasespecify)

The Company is a holding and investment company and

is not involved in any manufacturing activity or services

underthepurviewofBRR.

- √ - - - - - - -

The Company being a holding and investment company

does not have any direct customers under the scope of

theBRR

- - - - - - - - √

3. Governance related to BR

(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year

TheBoardandBoardCommitteesassesstheBRperformanceoftheCompanyonaperiodicbasisandasandwhenneedarises.

(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

Startingfrom2016-17,theCompanypublishestheinformationonBRwhichformspartoftheAnnualreportoftheCompany.TheAnnualreport isavailableonthewebsiteoftheCompanyatwww.religare.com.However,sincetheCompanywasnotfallinginthelistoftop500companiesaspermarketcapitalizationasonMarch31,2019,theBRReportfortheyear2019wasnotpublishedbytheCompanyforthatyear.TheCompanyresumedpublishingthesamefromtheyear2020.


SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1

1. Does the policy relating to ethics, bribery and corruption cover only the company?

No

Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others?

Whistleblowerpolicycoversallthestakeholders.

2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.

Stakeholder’s Complaints

Complaints No of Complaints received

No. of Complaints resolved % of complaints resolved

Shareholders Complaints 1 1 100%

Principle 2 : Not Applicable

The Company is a holding and investment company and is not involved in any manufacturing activity or services under the

purviewofBRR.

Principle 3

1. Please indicate the Total number of employees :29

2. Please indicate the Total number of employees hired on temporary/contractual/casual basis:Nil

3. Please indicate the Number of permanent women employees. :9

4. Please indicate the Number of permanent employees with disabilities:Nil

5. Do you have an employee association that is recognized by management. :No

6. What percentage of your permanent employees is members of this recognized employee association?NA

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

No. Category No of complaints filed during the financial

year

No of complaints pending as on end of

the financial year 1 Child labour/forced labour/involuntary labour Nil Nil

2 Sexualharassment Nil Nil

3 Discriminatory employment Nil Nil

8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?

(a) PermanentEmployees-None

(b) PermanentWomenEmployees-NA

(c) Casual/Temporary/ContractualEmployees-NA

(d) EmployeeswithDisabilities-NA


Principle 4 :

1. Has the company mapped its internal and external stakeholders? : Yes

2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders. : Yes

3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so, provide details thereof, in about 50 words or so.

Yes,WehaveaGroupCSRpolicywhichtargetstheunderprivilegedcommunitiesandaimstocontributetowardsaccesstogoodqualityeducation,healthcare,sports,environment,facilitiesforseniorcitizensandorphans,enhancingvocationskills,andsanitationinitiatives.Italsoaimstoempowercommunitiestoleadaself-reliantandhealthierlifeatlarge.

Principle 5

1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

TheCompanydoesnothaveapolicyonhumanrights.However,theCompanyisdedicatedtoupholdthehumanrightsofallitsemployeesanditstrictlyensurescompliancewithallapplicablelawsofthelandpertainingtohumanrights.

2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

TheCompanydidnotreceiveanycomplaintrelatingtoviolationofhumanrightsduringtheyear2020-21.

Principle 6

1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.

SocialandEnvironmentalManagementPolicyoftheCompanyextendstosubsidiariesoftheCompany,whereverapplicable.

2. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If yes, please give hyperlink for webpage etc.

TheCompanycontinuallyendeavorstoensureeffectivesocial&environmentalmanagementpracticesinallitsactivities,productsandservicesasperSocialandEnvironmentalManagementPolicy

3. Does the company identify and assess potential environmental risks? Y/N

Yes

4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed?

No

5. Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please give hyperlink for web page etc.

Even thoughoperationsof theCompanyarenotenergy intensive, themanagementhasbeenhighlyconsciousof theimportance of conservation of energy and technology absorption at all operational levels and efforts are made in this

directiononacontinuousbasis.

6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported?

Notapplicable


7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year.

NotApplicable

Principle 7

1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:

YescompanyismemberofFederationofIndianChambersofCommerceandIndustry(FICCI),AssociatedChambersofCommerceandIndustryofIndia(ASSOCHAM),ConfederationofIndianIndustry(CII)andForumforIndianDevelopmentCooperation(FIDC).

2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas ( drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)

No

Principle 8

1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.

TheCompanyhasadoptedaGroupCSRPolicywhichseeks tocreatesignificantsocial impactandpromote inclusivegrowth.However,duringFY2020-21,theCompanywasnotrequiredtoundertakeanyCSRinitiativesduetoabsenceofaverageprofitsbasedonthepreviousthreeyears’financialperformance.

2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organization?

NotApplicableasduetonon-availabilityofaverageprofitsinlastthreeyears,theCompanyhasnotmadeanyCSRspendintheFY21.

3. Have you done any impact assessment of your initiative?

NotApplicable

4. What is your company’s direct contribution to community development projects- Amount in INR and the details of the projects undertaken.

Nil–astheCompanywasnotrequiredtoundertakeanyCSRinitiatives.RefertotheAnnualReportonCSRactivitiesforfurther information

Principle 9 :Not Applicable

TheCompanybeingaholdingandinvestmentcompanydoesnothaveanydirectcustomersunderthescopeoftheBRR


1. MACROECONOMIC DEVELOPMENT & INDUSTRY OVERVIEW

Macroeconomic Developments

Growth of Indian Economy

TheIndianeconomycontractedby8.0%inFinancialYear2020-21(FY21)duetoadverseimpactofCOVID-19pandemicandtherelatedlockdownsimposedtorestrictthespreadofthedisease.Thefull-yearGDPde-growthwasexceptionalandGDPfallwasgreatestsince1979-80.Thede-growthinIndia’sGDPwasamassive24.4%inQ1FY21and7.3%inQ2FY21.Amongstthelargeeconomiesthiswasthehighestde-growthwitnessedinworldover.

FY 2018 FY 2019 FY 2020 FY 2021

Real GDP Growth 6.8% 6.5% 4% (8.0)%Real GVA Growth 6.2% 5.9% 4.1% (6.5)%

Source:GovernmentofIndia,CSO.Asperrevisedandprovisionalestimateavailable

HoweverinsecondhalfofFY21theeconomicactivitypickedupandseveralhighfrequencyeconomicindicatorsshowedthateconomicactivitywasbacktopre-pandemiclevels.Finallyfortheyear,India’sGDPcontractedby8.0%,whichwaslesserthanexpectationaftertheQ1FY21GDPnumberswereannounced.ThoughInternationalMonetaryFund(IMF)hasforecastedIndia’sGDPtogrowbetween11.5%to12.5%inFY22butpostthesecondwaveofCOVID-19pandemicinIndia,Moody’slatestforecastof9.5%GDPgrowthlooksmorerealistic.

Impact of COVID-19

TheunprecedentedpandemiccrisisofCOVID-19andresultantlockdownshasgivenamassiveshocktoeconomiesworldover.TheIndianeconomywasnegativelyimpactedbyanunprecedentedhealthcrisisin2020-21withthehighlycontagiousCOVID-19spreadingacrossthecountry.Inresponsetothepandemic,Governmenthastakenseveralproactivepreventiveandmitigatingmeasuresstartingwithprogressivetighteningofinternationaltravel,issue of advisories for themembers of the public, setting up quarantine facilities, contact tracing of personsinfectedbythevirusandvarioussocialdistancingmeasures.InIndianationwidelockdownsresultedinmassiveGDPcontractioninfirstquarterofFY21.HoweverbytheendofsecondquarterofFY21alotofeconomicactivityhasnormalizedandinmanysectorseconomicactivityhasreachedupto90%ofpre-Covidlevel.

Macroeconomic Outlook

EconomicconditionsshallremainmixedinFY22,consideringthatdisastroussecondwaveinQ1FY22alreadyadverselyaffectedeconomicactivity,especiallyinservicesandfinancialsectorandthethreatofpotentialthirdwaveisalsoaloomingdangeroneconomicgrowth.ThoughafterinitialhiccupsIndia’svaccinationprogrammehasgatheredmorepaceand country hasalready crossedmilestoneof delivering50 crores vaccinedosage,continuedmomentumofvaccinationdriveandadequateattentiononcontrolling thespreadofdiseasewillbecritical to protect the economy from potential lockdowns from a future surges ofCOVID-19 pandemic.Whilesystemicliquidityisabundant,theeconomicweaknesscausedbythepandemicanditseffectsonlabourmarket,willimpactbankingsectorloangrowth,revenues,margins,assetqualityandcreditcostsTheGovernmentofIndia(GOI)hasalsoannouncedspecialeconomicandcomprehensivepackagesunderAtmanirbharBharat tofighttheCOVID-19pandemicinIndia.SeveralstructuralreformsannouncedincludechangeindefinitionofMSMEs,newPSUpolicy,commercializationofcoalmining,higherFDIlimitsindefenseandspacesector,developmentofIndustrialLand/LandBankandIndustrialInformationSystem,ProductionLinkedIncentiveSchemes,revampofViabilityGapfundingschemeforsocialinfrastructure,newpowertariffpolicyandincentivizingstatestoundertakesectorreforms..StronggrowthinTechnology,Metals,Infrastructure,ChemicalsandExportsetc,isexpectedtocontinueandthisshallcontributetosupportotherconsumptionbasedsectors.

Industry Overview- Financial Services

NBFC Sector

Non-BankingFinancialCompanies(NBFCs)playacriticalroleinfinancialintermediationandpromotinginclusivegrowthbyprovidinglast-mileaccessoffinancialservicestomeetthediversifiedfinancialneedsofless-bankedcustomers.NBFCshavealsobeenasignificantsourceof credit to theMicro,SmallandMediumEnterprises(MSMEs)sector,whichaccountsforabout29%ofIndia’sGDP.Overtheyears,thesegmenthasgrownrapidlyandNBFCsareleveragingtechnologytoadopttech-basedinnovativebusinessmodels.AutomationandDigitalization

ManagementDiscussion&Analysis-FY2020-21


hasacceleratedreinventionoffinancialproducts.NewagetechnologiesandstrategicpartnershipswithFin-TechshavealsoallowedNBFCstolowerthecostofoperationsandacquirenewcustomerrapidly.

The aftermath of liquidity stress post IL&FS andDHFL resulted in difficultmarket conditions forNBFCswithrespecttoraisingliabilities.WhileNBFCswithbetterassetqualityandrobustbusinessmodelsmanagedtocomeoutstronger, thesmallerNBFCsandMicrofinance Institutions (MFIs),whichcontributed to the lastmilecreditdelivery,gotimpactedadverselyduetoliquiditysqueeze.Asthesectorwasslowlynormalizing,theoutbreakofCOVID-19anddisruptionsineconomicactivityduetolockdownsagainledtostressinfinancialsystemandtheimpactedNBFCsseverely,strainingtheirprofitability.

Banksareakeysourceofcredit forNBFCs.TheReserveBankof India’s (RBI) regulationshave incentivizedtheflowofcreditfrombankstoNBFCsbymakingon-lendingbyNBFCstocertainspecificsectors,eligibleforclassificationasprioritysectorlending.TherelianceofNBFCsonmarket-basedinstruments,likeCorporateBondsandCommercialPaper(CPs),tomeettheirfinancingneeds,hasalsogrownandbetterperformingNBFCsfindeasieraccesstomarketfinancing.

Impact of COVID19 and Lockdown on financial sector

Thelockdownhasaffectedthecashflowandliquiditypositionofmanyborrowers(individuals,smallbusinessesandcorporates),impactingtheirdebt-servicingcapabilities.Theimpactwouldbemoreprominentinthecaseofself-employedborrowers, thedailywageworkforce,andsmallbusinesses(non-essentials).Non-banks largelycatertotheself-employedborrowersegmentinretailspace,wherethecashflowsareexpectedtobemorevolatileinthecurrentsituationvis-à-vistheirsalariedcounterparts.

NBFCs,whicharealreadyfacingfundingconstraintsandanexpectedincreaseindelinquencies,arelikelytofocusmoreoncollections,atleastinthenearterm.Therefore,thelackofsupplementarycreditfundingcouldhaveasignificantnegativeimpactontheseborrowersastheircashflowmismatcheswouldcompoundwiththepassageoftime.Deteriorationintheassetqualitycouldfurtherstiflethefundflowtothesectorasbankcredittothesectorisalreadyhighandfundingfromothersourceslikemutualfunds(MFs),insurance,foreigninstitutionalinvestor(FIIs),etc.,arelikelytobequitemuted

Financial sector measures:

Togettheeconomymoving,theGovernmentofIndiaandReserveBankofIndiaannouncedvariousmeasuresincludingpolicychanges,reforms,reliefpackages,bankloans,andinfrastructurebuildingplansandsoon.TheMinistryofFinanceandRBIalsoannouncedalistofmeasurestoboosttheeconomyandproviderelieftothebusinesseswhichincluded:

• RBIhadannounced6monthsEMImoratoriumfortheperiodMarch2020–August2020videitsguidelinesdatedMarch27,2020,April17,2020andMay23,2020.

• EmergencyCreditLineGuaranteeScheme(ECLGS)–TheschemewasannouncedbyCentralGovernmentaspartofCOVID-19reliefpackagebyproviding100%guaranteetomembers lending institutions on the loan

extendedbythemtotheeligibleborrowers.

• Resolution Framework for COVID-19 related stress - to provide the sectors a relief by way of onetimerestructuring which were facing any financialstressonAugust06,2020.

• MSMErestructuring2020–Toprovideone-timereliefbyrestructuringofMSMEsaccountshavingaggregateexposureofuptoRs.25croresinAugust2020.

• Ex-Gratia Payment Scheme –To grant ex-gratia payment of difference between compound interest andsimpleinterestforsixmonths(01March2020to31August2020)toeligibleborrowersvideRBIcirculardatedOctober26,2020.

• InterestonInterestRefund–InlinewiththeHon’bleSupremeCourtofIndiajudgementonMarch23,2021,RBIvideitscirculardatedApril07,2021advisedtorefundtheinterestoninterestchargedduringthemoratoriumperiod.

• ResolutionFrameworkResolutionFramework2.0–ResolutionofCovid-19relatedstressofMicro,SmallandMediumEnterprises (MSMEs)–Toextendone-time restructuring relief toMSMEshavingaggregateexposureofuptoRs.50croresimpactedbyCOVID-19.


Measures undertaken by the RBI may considerably ease the stress in financial market conditions; Gradualeconomic recovery and adequate provisioning by financial institutions towards deterioration in portfolio creditqualityshouldgraduallyrestoremoreconfidenceinfinancialsectorandNBFCsectorinparticular.

2. BUSINESS OVERVIEW & KEY DEVELOPMENTS

Religare Group Structure and Business Model

ReligareEnterprisesLimited(‘REL’or‘Company’)isaCoreInvestmentCompany(CIC)registeredwiththeReserveBankofIndia(RBI).RELisalsothelistedholdingcompanyforthesubsidiariesconductingdiversifiedfinancialservicesbusinessesofthegroup.Thefourkeyfinancialservicesbusinessesundertakenthroughitssubsidiariesareasfollowing:

Insurance (Health) - CareHealthInsuranceLimited(CHIL)

SME Finance NBFC - ReligareFinvestLimiited(RFL)

Housing Finance (Affordable) - ReligareHousingDevelopmentFinanceCorporationLimited(RHDFCL)

Retail Broking -ReligareBrokingLimited(RBL)

All theseReligareGroup (REL& subsidiaries) businesses have independentmanagement teams to conducttheirday-to-dayoperations.RELsupportsitssubsidiariesbyprovidingrequisiteGrowthCapital,BoardOversight& Governance, Brand Equity, Strategic Advisory & Consulting and need based Corporate Services (Legal,Technology,HR,etc.).TheReligareGrouphasaccesstoawidereachofcustomers–1million+policyholdersin insurancebusiness,1million+brokingcustomers,morethan26k+customerservedthroughMSMEfinance&10k+customerscontacts inaffordablehousingfinance.AsonMarch31,2021Grouphasoverallemployeebaseofmore11,000professionalsservicingdiversifiedsetofcustomersandGrouphasreachtoaround1,000+locationsaroundIndia.

Key Developments:

Capital Raise by REL and Subsidiary Level

Preferential Issue of Rs 570 crores by REL: TheCompanyraisedRs.570crorebywayofPreferentialallotmentof5,41,56,761equitysharesofRELonJuly14,2021atanissuepriceofRs.105.25pershare(includingapremiumofRs.95.25pershare) tosomeexistingshareholdersandnew investors,asper the termsofSEBI (IssueofCapitalandDisclosureRequirement)Regulations,2018.TheCompanyintendstoinvestmajorityofthesefundsinitssubsidiaries,towardsgrowthandrevivalofvariousfinancialservicesbusinessesconductedbyitssubsidiaries.

CHIL Stake Sale to Kedaara Capital:RELanditssubsidiary,CareHealthInsuranceLimited(CHIL)enteredintothedefinitiveagreement(ShareSubscriptionandPurchaseAgreement)onFebruary06,2020withM/s.KedaaraCapitalFundIILLPandM/s.TrishikharVenturesLLP(jointlyreferredas‘Kedaara’)forraisingprimarycapitalforCHILandpartdivestmentofREL’sstakeinCHIL.Pursuanttosame,RELhasdivestedpartofitsinvestmentinCHILonJune02,2020toKedaara.ThetotalinvestmentmadebyKedaaratoacquiresharesofCHILisRs567.31crore,whichcomprisesofprimarycapitalinfusionofRs300croreinCHILandRs267.31croreforthepurchaseof its shares fromexisting shareholders ofCHIL, including purchase of 6.39%stake from theRELagainst aconsiderationofRs200crore.

Re-classification of Erstwhile Promoters as public shareholders

OnCompany’sapplication, submittedon July 31, 2020 to stockexchanges, for re-classificationofPromotersandPromotersGroup,thestockexchangesviz.NationalStockExchangeofIndiaLimited(NSEL)andBombayStockExchangeLimited(BSEL)gave theirapprovalonJune11,2021andJune12,2021respectively for re-classificationoffollowingPromoters&PromoterGroupintopubliccategory:

Promoters(Erstwhilenow)

1. MalvinderMohanSingh

2. ShivinderMohanSingh

PromotersGroup(Erstwhilenow)

3. JapnaMalvinderSingh

4. AditiShivinderSingh


5. AbhishekSingh

6. RHCFinancePrivateLimited

7. RHCHoldingPrivateLimited

8. PSTrust(heldinthenameofMalvinderMohanSingh&ShivinderMohanSingh)

TheErstwhilePromoters&PromoterGroupheldcombinedequityshareholdingof0.31%oftotalequitysharesoftheCompanyasonMarch31,2021.PursuanttotheRe-classificationofPromoters/PromotersGroup(Erstwhilenow),theCompanyhasnowbecomea“Listed entity with no Promoters”.

Revival efforts of Religare Finvest Limited

TheReserveBankofIndia(RBI)videitsletterdatedJanuary18,2018,advisedReligareFinvestLimited(RFL)toadheretoCorrectiveActionPlan(RBICAP),whichinter-aliaprohibitsRFLfromexpansionofcredit/investmentportfoliosotherthaninvestmentingovernmentsecuritiesandadvisedRFLtonotpayanydividends.RFL’snewBoardandManagementhavebeentakingnecessarycorrectivemeasuresasadvisedbytheRBIandismakingconcertedeffortstowardstherevivalofRFL.DuringtheyearendedMarch31,2021,RFLhassubmittedrevisedDebtRestructuringPlan(DRP)tothelendersandproposedrevisedDRP,withReligareEnterprisesLimited(REL/Company)continuingasthepromoterofRFL.TheLeadBankerofRFLinaforesaidDRPi.e.StateBankofIndia(SBI)hasvideletterdatedJune3,2021conveyedthattheaforesaidproposal isunderconsiderationonmerit(withRELasashareholder)andthesamewillbeconsideredifitisincomplianceofRBIcirculardatedJune07,2019(DBRNo.BP.BC.45/21.04.048/2018-2019)andthesameissubjecttonecessaryinternalapprovalsbyallConsortiumLenders.Itwasalsoconveyedthatthisdoesnotamounttoacommitmentonitsparttore-structurethefacilitysanctionedtoRFL.Thereafter, theCompanyhasraisedrequisitefundsviapreferentialallotmentofequitysharesinordertorepaytheloansduetoRFLfromtheCompanyanditssubsidiarytomeettheoneofthepre-conditionoftheproposedDRP.

Settlement with Axis Bank Limited:

AxisBankfiledalegalcaseinHon’bleDebtRecoveryTribunal,NewDelhi(DRT)againsttheCompanyanditssubsidiaries,ReligareCapitalMarketsLtd(RCML)andReligareCapitalMarketsInternational(Mauritius)Limited(RCMIML)amongstother, for recoveryofRs312.93crore inrelation toaCreditFacilityobtainedbyRCMIMLfromAxisBank.WhiletheCompanyhadnotprovidedanyguarantee/securitiesinrelationtotheaforesaidFacility,Company had executed aNonDisposalUndertaking (NDU) in favour ofAxis Bank,with regard to its equityshareholdinginCHIL.TheHon’bleDRThadpassedinterimrestraintordersdated21.03.2018and26.08.2019,againsttheCompanyamongstothers,restrictingitfromsaleofanyassets.InviewofsametheCompanysettledthedisputewithAxisBankbypayingatotalsettlementamountofRs170crore,intranches(Rs17croreinFY20andRs153croreinJune2020)andpursuanttothissettlementtheHon’bleDRTvideitsorderdatedJuly13,2020hasdeletedREL,RCMLandRCMIMLfromthelistofpartiesandvacatedinterimrestraintsorderspassedearlier.

COVID-19 Impact:

TheCOVID-19pandemichasbeensignificantly impacting theeconomicactivitiesandbusinessoperationsofthecompaniesacrosstheCountryonaccountoflockdownconditionsthatstartedandprevailedformostofthefinancialyear.TheCompany,beingaCoreInvestmentCompany(CIC),hasinvesteditsfundsprimarilyinmoneymarketinstrumentsandintercorporateloantoitssubsidiaries.Hence,temporarymarketshocks(suchasthoseduetopandemics/epidemicslikeCOVID-19)arenotconsideredtohaveamaterialimpactonthebusinessoftheCompanyonstandalonebasis.TheCOVID-19pandemichashoweverimpactedtheGroup’sbusinessoperationsinrespectofitshealthinsurancesubsidiary(CareHealthInsuranceLimited(CHIL))andsubsidiariesengagedinthebusinessoflending(i.e.RFL,togetherwithitssubsidiary,ReligareHousingDevelopmentFinanceCorporationLimited(RHDFCL)).

ConsideringthefactthatCOVID-19cansubstantiallyimpacttheclaimlevelinfuture,andthe‘Reserveforunexpiredrisk’heldinnormalcoursemaynotbeadequatetomeettheincreasedlevelofclaims,CHILhascreatedprovisionasatMarch31,2021ofRs135.87crore(asMarch31,2020:Rs24.5crore)towardspremiumdeficiency,basedonthereviewconductedandasadvisedbyitsAppointedActuary,whichisalsointermsofitsaccountingpolicyonPremiumDeficiencyReserve.

Apartfromotheradverseeffects,thepandemichasputconstraintsonrecoveryofoverduesfromcustomersofRFLandRHDFCL.During theyear,bothRFLandRHDFCLhaveensuredcompliancewithvariousmeasuresannouncedbyvariousauthoritiesfromtimetotimesuchasextensionofmoratoriumgrantedtoborrowers,benefit


ofassetclassification,ResolutionFrameworkforCOVID-19-relatedstress,grantofex-gratiapaymentofdifferencebetweencompoundinterestandsimpleinterest,etc.RFLisrequiredtorefund/adjustanestimatedsumofRs.8.76croretotheeligibleborrowersforrefundofinterestoninterest/compoundinterest/penalinterest,whichwillberefunded/adjustedininstalmentsduefromrespectiveborrowersinFY22.Similarly,RHDFCLhascomputedanamountofRs66.9Lakhtoberefunded/adjustedinaccountsoftheborrowers.

3. KEY SUBSIDIARIES AND OPERATIONAL PERFORMANCE

ThetablebelowliststhekeysubsidiarieswithoperationsasatMarch31,2021:

Company Status REL’s

Stake

Major Area(s) of Operation

Lending

ReligareFinvestLimited(RFL) Subsidiary 100% •SMEFinance

Religare Housing DevelopmentFinance Corporation Limited(RHDFC)

Step down subsidiary

(heldthroughRFL)87.5% • AffordableHousingFinance

Health Insurance

CareHealthInsuranceLimited(CHIL) Subsidiary 70.71% • Healthinsurance&relatedproducts

Broking

ReligareBrokingLimited(RBL) Subsidiary 100% • RetailBroking• Depository&E-Gov.Services

SME Finance NBFC - Religare Finvest Limited (RFL)

ReligareFinvestLimited(RFL),isawhollyownedsubsidiaryofRELregisteredwithRBIasanon-deposittaking,systemicallyimportantNon-BankingFinancialCompany(NBFC-ND-SI).RFL’sbusinessisfocusedonprovidingdebtcapital toSmall&MediumEnterprises (SMEs) toenable them toenhance theirproductivecapacityandthroughput.ItisamongstthefirstNBFCsinIndiatofocusonthissegment,havingstartedthebusinessin2008andby2016,RFLhadgrowntobuildapeakbusinessbookofoverRs16,000croretobecomeoneofthelargestSMEfinancingplatformsinIndia.Currently,RFLhasanemployeebaseofover300andithas19branchespanIndia.RFL’sproductofferingscompriseof:

a) SME-Secured:RFL’sSME-Securedproductenablesitscustomerstoobtainloansagainsttheirresidentialorcommercialproperty.Loansofferedunderthisproductmaybeutilizedtowardsdifferentpurposesincludingbusinessexpansionandpurchaseofplantandmachinery.

b) SME-Unsecured:Thisproductcaterstoworkingcapitalandotherfinancialrequirementsofsmallandmediumenterprises,self-employedbusinessmenandprofessionals.Loansaregrantedafteranin-depthanddetailedfinancialanalysisandcreditunderwritingoftheclients.

c) Short Term Trade Finance:Thisproductempowersourcustomerstobridgetheirshorttermfinancialgaps.OurshorttermtradefinancegivesfreedomtoSMEstoavailfinancingagainstpurchasepayables.

RBI Cap and Revival efforts:

TheReserveBankof India (RBI)vide its letterdatedJanuary18,2018,advisedRFL toadhere toCorrectiveActionPlan(RBICAP),whichinter-aliaprohibitsRFLfromexpansionofcredit/investmentportfoliosotherthaninvestment ingovernmentsecuritiesandadvisedRFL tonotpayanydividends.Thepastwrongdoingsof theerstwhilepromotergroupandex-managementresultedinsiphoningofRs2,037crorethroughCorporateLoanBook(CLB)transactions,whichcametolightthroughforensicaudits,variousRBIreportsandSEBIinvestigations.TheotherfinancialchallengesfacedbyRFL, includemisappropriationofRs791croreofRFL’sFixedDepositbyLaxmiVilasBank(LVB)andothernon-core(nonSME) investmentsdonebyRFL’sex-management,whichresultedinlossesforthecompany.

RFL’s newBoard andManagement havebeen taking necessary correctivemeasures as advisedby theRBIandismakingconcertedeffortstowardstherevivalofthecompany.Forensicaudits,filingoflegalproceedings


forrecoveryofCLBfunds,submissionofcriminalcomplaints&evidencestoinvestigatingagencies,expeditingcollections&recoveryefforts,saleofNPA’stoAssetReconstructionCompanies(ARCs),resolvingotherlegacyissuesandputtinginplacesystems&controlsforresponsiblecorporategovernancearesomeofthekeystepsbeingtakentowardsrevivalofRFLinlast3years.DespitebeingunderRBICAP,RFLhasrepaidmorethanRs6,890croretoitslenderssinceJanuary2018toMarch31,2021.

DuringtheyearendedMarch31,2021,RFLhassubmittedrevisedDebtRestructuringPlan(DRP)tothelenderswithReligareEnterprisesLimited(REL/Company)continuingasthepromoterofRFL.TheLeadBankerofRFLinaforesaidDRP i.e.StateBankof India (SBI)hasvide letterdated03.06.2021conveyed that theaforesaidproposalisunderconsiderationonmerit(withRELasashareholder)andthesamewillbeconsideredifitisincomplianceofRBIcirculardatedJune07,2019(DBRNo.BP.BC.45/21.04.048/2018-2019)andthesameissubjecttonecessaryinternalapprovalsbyallConsortiumLenders.Itwasalsoconveyedthatthisdoesnotamounttoacommitmentonitsparttore-structurethefacilitysanctionedtoRFL.

Operational Performance

RFL’stotalloanbooksizewasRs4,873croreasonMarch31,2021,decreasedfromRs5,306asonMarch31,2020.SMEbookconstituted48%oftotalbookandamountedtoRs2,343crore.TheTotalincomeearnedduringtheyearwasRs295.5crore,declinedby32%fromthelastfinancialyear.RFL’snetNPAsstoodat38%oftotalbooksizeandCapitaltoRiskAssetsRatio(CRAR)asonMarch31,2020was-78.3%.BeingunderRBICAP,RFLhasfocuseditseffortsoncollections,recoveryandcorrectingtheassetliabilitymismatchinitsbooks.DuringtheyearendedMarch31,2021,RFLhassubmittedrevisedDebtRestructuringPlan(DRP)tothelendersandproposedrevisedDRP,withReligareEnterprisesLimited(REL/Company)continuingasthepromoterofRFL.RFListakingnecessarycorrectiveactionsandmakingalleffortstocomeoutoftheRBICAPandresumenormalbusinessoperationsattheearliest.

RFL-SMESecuredLending:

AsonMarch31,2021,RFL’sSME-SecuredloanbookwasatRs2,340crorewith1,663no.ofactiveaccounts

SME Secured Book Size YoY

(FiguresinCr.,FY21)

SME-UnsecuredLending

AsonMarch31,2021,RFL’sSMEworkingcapitalloanbookstoodatRs3crorewith299no.ofactiveaccounts

SME Unsecured Book Size YoY

(FiguresinCr.,FY21)


SME Portfolio by Industry segment

(Figuresin%,FY21)

Threats /Risks: ThesecondwaveoftheCOVID19pandemichasimpactedtheeconomicrecoverywhichwasseverely impactedandcrippledduring thefirstwaveof thepandemic.MostMSMEsof India inpre-COVID-19timeswereknowntocarryouttheiroperationssolelythroughabrickandmortarmodel,whichisknowntolimittheoutreachtotheirgeographicallocation,andalsoproductivity.WhileMSMEsinIndiacanproducegoodsofagoodstandard,lackofaccesstoglobalvaluechainshinderstheirabilitytoincreasetheirrevenueandsetoffthevirtuouscycleofgrowthasmentionedearlier.Someoftheotherpotentialthreatsareasbelow:

• Outbreakof thepandemicCOVID-19across theworld has impactedall industriesandmost specific theMSMEindustry.

• Highcostoffunds

• RisingNPAsacrosstheindustry

• Continuedlockdown

• ResurgenceofCOVIDviathirdwaveandotherdeltavariants

Opportunities :TheNewtoCreditcustomerprovidesavastopportunityfortheNBFCs.SinceNBFCsbynaturearenimble,agileandbringbothflexibilityandspeedofprocessingtheywillbequickinonboardingnewcustomers.‘Co-lending’isanopportunitywhereinNBFCscanprovidefinancingtotheunderservedprioritysectors.CoLendinghelpsinsharingtherisksandrewardsandmakeavailablefundstotheultimatebeneficiaryatanaffordablecost,considering the lowercostof funds frombanksandgreater reachof theNBFC. In thebudgetamendment totheSecuritisationandReconstructionofFinancialAssetsandEnforcementofSecurityInterest(SARFAESI)Act,2002,theloanthresholdlimitforapplicabilityofSARFAESIprovisiontoNBFCwasfurtherbroughtdowntoRs20LacsfromtheearlierlimitofRs50Lacs.ReducingtheamountfortakingSARFAESIactionwillprovideNBFCsbetteraccesstofasttrackandoutofcourtenforcementmechanism,whichwouldleadtobetterdisciplineinthefinancingworld.

Housing Finance - Religare Housing Development Finance Corporation Limited (RHDFCL)

ReligareHousingDevelopmentFinanceCorporationLimited(RHDFCL),astepdownsubsidiaryofRELinwhichRELholds87.5%equitystakethroughRFL,offersresidentialcollateralbackedmortgageloansforhomepurchase,construction, extension & renovation alongwith loan against residential property to customers both formal &informalincomesegmentessentiallybelongingtothelow&mediumincomegroups.RHDFCLisregisteredHousingFinanceCompany(Non-deposittaking)withaSARFAESILicense.RHDFCLoperatesthrough26branchesandhasadiversifiedgeographicalpresenceacrossDelhiNCR,Rajasthan,Maharashtra,Gujarat,MadhyaPradesh,TamilNadu,Karnataka,TelanganaandAndhraPradesh.RHDFCLhas remainedprofitable ineachyearof itsoperationssinceitbecameapartoftheReligaregroupinyear2009.

RHDFCLenvisionsitselftobeafuturereadycompanyandhenceitaimstomaximizedigitizationinitsprocessesandworktowardsenablinganefficientworkforce.RHDFCLisincreasinglyusinganalyticsandbigdatatobetterunderstandinventory,migrationandpricingtrends.Theabilitytoassessthecreditworthinessofpotentialborrowersiscrucialforsucceedinginthissegment;robustcreditassessmentprocessespositionRHDFCLextremelywelltocapitalizeonthisopportunity.Customercentricityhasalsobeenaforefrontvisionofthecompanyandcompanyisfollowing‘ClosertoCustomer’strategytohaveabetteroutreachtothecustomers.



AsonMarch31,2021,RHDFCL’sloanbooksizewasRs457crorewith100%ofcollateralasresidentialpropertiesand97%fundingtoretailborrowers.Outofthetotalbooksize,68.3%ofthelendinghasbeenforHomeLoans,28.3%forLoanagainstProperty(LAP)and3.4%towardsbuilderfunding.ThetotalloanbooksizehasreducedfromRs603croreasonMarch31,2020.ThereductioninthebookwasprimarilyduetoconstraintsfacedbyRHDFCL in raisingmore fundsor liabilities from its lendersonaccountof financial stress facedby itsparentcompany,RFL.TheTotalIncomeandPATafterOCIforthefinancialyearwererespectivelyRs82.5croreandRs9.1crore.TheaverageticketsizeforthehomeloanshasbeenaroundRs11.4lakh.RDHFCLmaintainedaCRARof67.7%asonMarch31,2021.TheGrossNPAandNetNPAratiowererespectively10.7%and5.7%ofthetotalassets.RHDFCLisworkingwithitslenderstowardsmobilizationofborrowings,sincefromanequityandregulatorycapitalperspectiveRHDFCL isverywellcapitalizedwithhighCRARof67.7%.RHDFCLsalesanddistribution,riskmanagement,operationsfunctionsareadequatelyrobusttoscaleuplendingoperationsinaprudentmanner.

Insurance (Health & Travel) - Care Health Insurance Limited (CHIL)

CHIL,70.7%heldbyRELasonMarch31,2021,ranksnumber2 intermsofGDPamongsttheStandAloneHealthInsuranceCompanies(SAHI).CHILcommencedbusinessin2012andhasanetworkpresenceat1,200+locationsacrosscountrywith158branchesand16,000+hospitalsandhealthcarecentresempaneledforcashlessclaims.Ithasaproductbouquetof25productsencompassinggroup,travel,fixedbenefitandindemnitycategoriestoservevariedcustomerneeds.CHILhasadifferentiatedserviceofferingforcorporatebusinesses,likewellnessprograms&preventivehealthcheck-up, therebyhelping innegotiatinghigherpremiums& improvescustomerstickiness.Itfollowsamulti-channeldistributionstrategythroughagency,brokers,corporateagents,onlineandbancassuranceanditsmajorfocusisonretailandSMEcustomers.CHILcontinuedtoinvestinDigitalpropertiesforitscustomers,partnersanditsemployees.


DuringtheFY21,CHILgarneredGrossWrittenPremiumofRs2,588crore(whichrepresentedagrowthof30%fromFY20ongranular/regularbusiness–i.e.excludingonetimeGrossPremiumofRs413croreunderAyushmanBharatschemeofaparticularstatefromoverallGrossWrittenPremiumofRs2,409croreachievedbyCHILinFY20).CHILreportedPBTofRs75.5croreandPATofRs102croreinFY21.AsonMarch31,2021CHILhadanetworthofRs1,037crore.InJune2020,KedaaraCapitalinvestedaprimarycapitalofRs300croreinCHILalongwithinvestmentinsecondarypurchaseofCHILshares.Thiscapital infusionhashelpedthecompanytomakeinvestmentsindistribution,technology,servicingopportunitiesandbuildinghealthysolvencymargins.CHILiscontinuouslymonitoringtheimpactofpandemiconthebusinessoperations.

Threats / Risks: IRDAIhasinstructedthatCOVID-19claimswillalsobeacceptedaspartofactivehealthinsurancepolicies.TheRisks forCOVID-19werenot factored inwhileat the timeof issuanceofearlierpolicies,henceadditionalclaimsrelatedtoCOVID-19mayimpactprofitabilityofHealthInsurancecompanies.AlsosomestudieshaveshownthatCOVID-19affectstheco-morbiditiessuchasdiabetes,renalorotherchronicdiseasesandthiscanresultinlongertrailofnonCOVIDchronicclaimsforaforextendedperiodbeyondCOVID-19crisis.

Opportunities: Indianhealth insurancemarket isagrowingmarketandregisteredamarketsizeofRs56,798croreinFY20,upby11.6%fromlastyear.OutofallhealthinsuranceserviceprovidersinIndia,PublicSectorinstitutionshaveamarketshareof46%andPrivate Insurershavingamarketshareof29%andStandAloneHealthInsuranceCompanies(SAHI)hold25%marketshare.HoweverintermsofretailGrossWrittenPremium(GWP),SAHIhadthebiggestshareof50%inFY20.Thegroupbelievesthathavinginvestedinpeople,processes,alliances,technologyandcustomerservices,CHILiswellplacedtoserveandgrowinthestructuralgrowthstoryofinsurancesectorinIndiaandspeciallyhealthinsurancesector.FurthertheonsetofCOVID-19hasincreasedawarenesstowardsneedofHealthInsuranceproductsandthismayresultinadditionaldemandforhealthproductfornextfewyears.

Retail Broking -Religare Broking Limited (RBL)

TheRetailBrokingbusinessisprimarilyundertakenbyReligareBrokingLimited(RBL),awhollyownedsubsidiaryof REL. RBL provides trading capabilities across all product segments – cash equities, equity derivatives,commodities,currencyderivatives,andmutual funds;onallmajorstockandcommoditiesexchanges in India.RBLhasmorethan900pointsofpresencespanning400+townsandcitiesacrossthelengthandbreadthofIndia


anditservicesmorethan1millionuniquecustomers.RBL’sdistributionstrategyentailsajudiciouscombinationofitsownbranchesandastrongnetworkofsub-brokersandfranchiseesthathelpextendRBL’spresenceandmaketheReligarebrandvisibleinthefarcornersofIndia.RBLprovidesmulti-platformoptionsfortradingsuchasBranch,Web,mobileApp,Call&Tradetoenhancecustomerconvenienceandease.TheRetailBrokingbusinessalsohasBancinvestpartnershipswithvariousbankslikeAndhraBank,BankofMaharashtra,CorporationBank,DhanlaxmiBankLimited,IndusIndBankLimited,KarurVysyaBankLimited,SarasvatBank,SouthIndianBankLimited,TamilnaduMercantileBankLimited,UCOBankandUnionBankofIndiaetc.UndertheBrokingBusinessthefollowingkeysegmentsoperate:

• Retail Equity Broking: TheretailequitybrokingbusinessisoperatedbyRBL.RBLisregisteredasaStockandcommodityBrokerwithSecuritiesandExchangeBoardofIndia(SEBI).RBLisaalsomemberoftheNationalStockExchangeofIndiaLimited(NSE),BombayStockExchangeLimited(BSE),MetropolitanStockExchangeLimitedofIndiaLimited(MSE),NationalCommodity&DerivativesExchangeLtd.(NCDEX)andMultiCommodityExchangeof IndiaLtd. (MCX). Inaddition,RBL isadepositoryparticipantwithNationalSecurityDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSL),whichfacilitatessmoothsettlementofclient’sdelivery-basedtransactions.

• Retail Commodity Broking: CommodityBrokingprovidesplatformforExchange-basedtradingoffuturesinvariousagriculturalproducts,bullion,metalsandoil&gasprovidesproducers,end-usersandintermediarieswhoareexposedtopricerisksinthesecommodities,tolock-infuturepricesandtherebyhedgetheirexposures.RBLisamemberofNationalCommodity&DerivativesExchangeLtd.(NCDEX),MultiCommodityExchangeofIndiaLtd.

• Retail Currency Broking: Trading in currency futures and options allows clients to hedge the capital and

tradingexposurestheymayhaveincurrenciesotherthantheIndianrupee.TheseproductsareofferedbyRBLasamemberofthecurrencysegmentonNSE,BSEandMSEI.Currently,theexchangespermitfuturestradinginfourcurrencypairs,viz.USdollar-Indianrupee,Euro-Indianrupee,PoundSterling-IndianrupeeandJapaneseyen-Indianrupee,andoptionstradingintheUSdollar-Indianrupeepair.

• Ancillary Services: RBLisalsoaTIN(TaxInformationNetwork)andPAN(IncomeTaxPermanentAccountNumber)facilitationpartnerofNSDLandoffersservicesrelatingtoPAN,TAN(TaxDeductionandCollectionAccountNumber),andfilingofTDS/TCS(TaxDeductionatSource/TaxCollectionatSource)returnsatselectbranches, tohelp itscustomersfulfill theirmajorfinancialservicesneedsunderasingleroof.RBLisalsoempaneledwithE-mudraasRegisteringAuthority/AgentforissuanceofDigitalSignatureCertificateandisanAMFIregisteredmutualfunddistributor.RBLisalsoregisteredasPointofPresence(POP)withPensionFundRegulatoryDevelopmentAuthority(‘PFRDA’)underPFRDAPointofPresenceRegulations,2015andwithInsuranceRegulation&DevelopmentAuthorityasacompositecorporateagenttodistributeinsuranceproducts.


RBL reported total consolidated revenue of Rs 244.5 crore in FY21, compared to Rs 220 crore of revenueachievedinFY20.RBLturnedprofitableinFY21,achievingaPATofRs10.5croreinFY21incomparisontoPATlossofRs21.4croreinFY20.TheAverageDailyTradingTurnoverforthecompanyincreasedby23%inFY21.TheE-GovernancebusinessofRBL increased its franchisesignificantly fromaround2,635 to5,983 franchisetouchpoints.

Threats/ Risk: Acontinuedslowdowninrealeconomymayresultinpessimismtowardscapitalmarkets.ThereishighamountofliquidityinmarketsduetomonetaryandfiscaleasingbyCentralBanksgloballyandreversalofthisphenomenonmayimpactmarketadversely.However,thepenetrationofCapitalMarketsinIndiaisstilllowanditleavesalotofscopetostructuralgrowthofmarkets.FurtherBrokingbusinessisseeingalotofdiscountBrokersofferingverylowornegligiblebrokerageimpactingprofitability.RBLisadaptingitsproducts;technologyandserviceexperiencetoincreaseitsvolumesandmitigatedthisrisk.

Opportunities: The revival inmarketsentiments isexpected togivepush to theprimarymarketactivitiesandoverall volumes.The commoditiesmarket hasadjustedwell to thenew regulatory regime.After fewyearsofhiatusduetosystemicissuesofthepast,theregulatorhasproposedtheintroductionofnewproductsandnewparticipantsinthemarket.Astheseeffortscometofruition,thecommoditiesmarketwillbewellpositionedtoentera new phase of growth


4. REVIEW OF FINANCIAL PERFORMANCE:

ThehighlightsofstandaloneandconsolidatedfinancialperformanceoftheCompanyinFY21areasunder:

(Rs in Crs)

Particulars Financial Year 2020-21 Financial Year 2019-20

Standalone

(Audited)Consolidated

(Audited) Standalone

(Audited)Consolidated

(Audited)

Total Income 118.78 2530.47 60.59 2397.48

TotalExpenditure 54.43 3027.85 200.75 3257.46

Profit before Tax 64.35 (497.38) (140.16) (859.98)

ExceptionalItems - - (170.00) (170.00)

Profit/(Loss) before Tax after exceptional items 64.35 (497.38) (310.16) (1029.98)

ShareinProfit/(Loss)ofJointVentures - (0.08) - (0.13)

Profit/(Loss) Before Tax 64.35 (497.46) (310.16) (1030.12)

IncometaxExpense/(Credit) 0.35 (19.64) - 7.86

Profit/(loss) After Tax 64.00 (477.82) (310.16) (1037.98)

OtherComprehensiveIncome 0.42 28.69 (0.52) 13.84

Total Comprehensive Income for the period 64.41 (449.13) (310.68) (1024.14)

Less:ShareofNon-ControllingInterest 0.00 37.76 0.00 (103.57)

Total Comprehensive Income/(Loss) (after tax & non-controlling interest)

64.41 (486.89) (310.68) (920.56)

Consolidated Performance

RELrecordeda‘LossafterExceptionalItemsandBeforeTax’ofRs497.38crore,forFY21ascomparedto‘LossafterExceptionalItemsandBeforeTax’ofRs.1,029.98crore,forFY20.‘LossAfterTaxandShareinprofit/lossofJointVenture’wasRs477.82croreforFY21ascomparedto‘LossAfterTaxandShareinprofit/lossofJointVenture’ofRs.1,037.98crore forFY20.TotalComprehensive Income/(Loss)attributable to theOwnerof theCompanyfortheFY21wasRs(486.89)croreascomparedtoRs.(920.56)croreinFY20.BasicEarningsperSharewasRs.(19.65)inFY21comparedtoRs.(39.55)inFY20.

Standalone Performance

RELrecordeda‘ProfitAfterExceptionalItemsandBeforeTax’ofRs.64.35crore,forFY21ascomparedto‘LossAfterExceptionalItemsandBeforeTax’ofRs.310.16crore,forFY20.‘ProfitafterTax’wasRs.64croreforFY21ascomparedto‘LossAfterTax’ofRs.310.16croreforFY20.TotalComprehensiveIncome/(Loss)fortheFY21wasRs.64.41crore,comparedtoRs.(310.68)crorefortheFY20.BasicearningspershareIncreasedtoRs.2.47inFY21fromRs.(13.16)inFY20.

Segment-wise Performance(Consolidated)

Ourincomefromoperationsiscomprisedofincomefromlendingactivities,insurancepremium,brokingoperations,interestfromfixeddepositswithbanks,incomefromnon-currentinvestments,incomefromcurrentinvestments,interest from delayed payments, profit on assignment of loans, income from advisory services, investmentmanagementandadvisoryfeesandincomefromarbitrageandtradingofsecuritiesandderivatives.AcomparisonoftheincomefromouroperationsinFY21andinFY20istabulatedbelow:


(RsinCrore)

Particulars As per Ind AS

FY21 FY 20

Amount % of Total income

Amount % of Total income

IncomeFromLendingActivities 341.13 13.48% 479.55 20.00%InterestIncomeonFixedDepositswithBanks 19.86 0.78% 16.91 0.71%InterestIncome/ChargesonDelayedPayments 11.51 0.45% 23.82 0.99%IncomefromInvestments 169.99 6.72% 119.14 4.97%CommissionIncome 7.02 0.28% 34.05 1.42%IncomeFromBrokingOperations 204.85 8.10% 167.96 7.01%IncomeFromAdvisoryServices - 0.11 0.00%NetIncomeFromInsurancePremium 1729.47 68.35% 1,507.79 62.89%OtherBusinessIncome 2.94 0.12% 6.03 0.25%Total Revenue From Operations 2486.77 98.27% 2,355.36 98.24%

OtherIncome 43.70 1.73% 42.12 1.76%Total Income 2530.47 100.00% 2,397.48 100.00%

Details of Other Income (Consolidated):

Otherincomeprimarilyincludesbalanceswrittenback/baddebtsandloanswrittenoffrecovered,profitonsale/redemptionof Investments, interest incomeon loansandfixeddepositswithbanks,etc.ContributionofotherincomeofRs43.70crore,outof total incomedecreased to1.73%ascompared1.76% inFY20.Below isacomparisonofthecomponentsofourotherincomeduringFY21withthatinFY20:

(RsinCrore)Particulars FY 21 FY20

BalancesWrittenBack/BadDebtsandLoansWrittenoffRecovered 3.06 1.85IncomeFromSupportServices 0.01 0.67InterestIncomeFromFixedDepositsWithBanks* 0.07 0.22NetGainonde-recognitionofProperty,PlantandEquipment 0.36 0.84ProfitonSale/RedemptionofInvestments(Net) 0.15 5.26InterestIncomeFromInvestments 5.46 5.83InterestIncomeonOthers 20.40 16.63IncometowardsARCtransaction(Net) 4.23 5.50MiscellaneousIncome 9.96 5.32Total Other Income 43.70 42.12

Key Ratios (Consolidated level): (RsinCrore)

Particulars FY 21 FY 20

TotalIncome 2,530.47 2,397.48EBITDA 286.39 50.12EBITDAMargin% 11% 2%PBT (497.46) (1,030.12)PBTMargin% (20%) (43%)PAT (477.82) (1,037.98)PATMargin% (19%) (43%)


Particulars FY 21 FY 20

Current Ratio 0.53 0.65DebtEquityRatio 16.42 27.57ReturnonNetworth* (160%) (534%)

Thecompany’sprofitabilityratioshaveimprovedonbothstandaloneandconsolidatedlevels.EBIDTAMargin/PBTMargin/PATMarginhaveimprovedduetoimprovedprofitabilityinallkeysubsidiarybusinessesandreducedlossatRFL.PAThaveincreasedinCHILtoRs102croreinFY21fromRs75.5croreinFY20,RBLhadPATofRs10.5croreinFY21comparedtolossofRs21.4croreinFY20,RDHFCLachievedaPATofRs9.1croreinFY21incomparisontoPATofRs4.9croreinFY20andRFL’slosshasreducedtoRs575.4croreinFY21incomparisontolossofRs896.8croreinFY20.RELalsorealizedPATofRs64croreinFY21incomparisontolossRs310.16croreinFY20,primarilyduetoprofitfromsaleofsecondarystakeof6.39%inCHILinFY21andreductiononcosts.Theimprovedprofitabilityduringyearalsoresultedinimprovementofdebt/equityratioto16.42inFY21from27.57inFY20andimprovementofReturnonNetworthratiowhichwasnegative160%inFY21incomparisontonegative534%inFY20.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

TheCompanyhasanInternalControlSystem,commensuratewiththesize,scaleandcomplexityofitsoperations.TheInternalControlsofthecompanyencompassesthepolicies,standardoperatingproceduremanuals,approval/authorizationmatrix,circulars/guidelines,andrisk&controlmatricesadoptedbythecompanyforensuringtheorderlyandefficientconductofitsbusiness&supportfunctions,adherencetothesepolicies&procedures,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformationduringtheprocessoffinancialreporting.

The Company and its key operating subsidiaries have adequate control environment for identification andassessment of applicable risks on a periodical basis.Mitigation plans and controls are documented for eachidentifiedriskintheformofpolicies&proceduresandrisk&controlmatrices(RCM).Risks/controlsdocumentedintheriskandcontrolmatricesaremappedtoeachofthefinancialstatementlineitemsandfinancialassertionstoensureavailabilityofmitigationplansandinternalfinancialcontrolsforeachofthematerialbalancescontainedinthefinancialstatements.TheCompanyhaspreparedseparateRCMsforProcessLevelControls(PLC)andEntityLevelControls(ELC).Similarly,ITGeneralControls(ITGC)havealsobeenidentified,assessedanddocumented.

TheCompanyhassatisfactorysystemofperiodicalmonitoringandreportingof internalfinancialcontrols.KeypoliciesandproceduresincludingtheRisk&ControlMatricesareupdatedonaperiodicalbasis.Managementensuresthatcontrolsasdesignedareoperatingeffectivelyandthatlapsesareidentifiedandremediedinatimelymanner.ThemonitoringactivitiesarecarriedoutthroughControlSelf-Assessment(CSA)mechanismintegratedwiththe internalaudit function,conductedbyInternalAuditor,wherebykeyrisksandcontrolsarereviewedonaquarterlybasisanddashboardcontainingresultsofevaluationofTestofDesign(TOD)andTestofOperatingEffectiveness(TOE)arepresentedtotheAuditCommitteeoftheCompanyanditskeyoperatingsubsidiaries.AhalfyearlyreportonTOD/TOEtestingispresentedtotheRiskManagementCommittee.

6. HUMAN RESOURCES

TheCompanyand its subsidiarieshavebeenoperating in challenging times.However, in continuation toourdedicatedeffortstowardsrebuildingtheGroup,wehaveseenalotoftangibleandpositivedevelopmentsintheCompany:increasedcorporategovernanceandcontrols,improvementinsystemsandprocessesincludingcostrationalization,enhancedengagementwithregulatorsandretentionofcriticaltalent.

AsthetransitionoftheCompanyintothisnewphasecontinues,ourmanagementandemployeesarestronglyalignedtowardsbuildinganenablingeco-systemtorestorehighgrowthandprofitability.Employeesareourvitalandmost valuable assets. In linewith the business strategy, talent strategy has been focused on employeeengagement, providing role elevation opportunities to existing talent and developing a strong culture oftransparencythroughconstantemployeecommunication.Inordertoboosttheemployeemorale,theorganizationhasrecognizedthecommitment,loyaltyandcontributionofitsinternalstakeholders.TheCompanyisdedicatedtoofferingitsemployeesfavorableworkenvironmentandopportunitiestonavigatethroughthecurrentperiodandalsoinfluenceitsfuturecourseofdirectionasplanned.

AtReligareGroup,BusinessandHumanResourceteamsarecontinuouslystrivingtowardsachievingbusinessobjectives,dealingwithexceptionaladversities,ensuringadherencetoestablishedhumanresourceprocessesandpolicies,maintainingcrediblecommunicationwithemployees,toreinforcetheprofessionalvaluesystemandtransparentworkcultureoftheGroup.


IncompliancewithRegulation34(3)readwithscheduleVoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015andamendmentsmadethereunder(“SEBIListingRegulations”), theCompanysubmitstheCorporateGovernanceReportfortheyearendedMarch31,2021:

1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE

TheCompanyiscommittedtoensurethatallstakeholders’interestsareprotectedbycontinuouslystrivingtoincreasetheefficiencyoftheoperationsaswellasthesystemsandprocessesforuseofcorporateresources.TheCompanyaimsatachievingnotonlythehighestpossiblestandardsoflegalandregulatorycompliances,butalsoofeffectivemanagement.

Whileworkingtoenhancethecorporatevalueofthegroupinthemediumtolongterm,weplacethehighestimportanceonstrengtheningandfurtherdevelopingyourCompany’scorporategovernanceinitiatives.Thecorporatestructure,businessanddisclosurepracticeshavebeenalignedtoCorporateGovernancephilosophy,transparency,accountability,fairnessandintensivecommunicationwithstakeholderswhichareintegraltoyourcompany’sfunctioning.Webelieveinperformanceorientedsystems.Weaccordhighestprioritytothesesystemsandprotecttheinterestsofallshareholders,particularlytheminorityshareholders.

The Board of Directors (the “Board”), guided by above philosophy, formulate strategies and policies having focus onoptimizingvalueforvariousstakeholderslikeconsumers,shareholdersandthesocietyatlarge.YourCompany’sCorporateGovernanceframeworkensuresthatwemakethetimelydisclosuresandsharecorrectinformationregardingourfinancialsandperformanceaswellasbusinessoftheCompanyfromtimetotime.

YourCompanyhascompliedwiththerequirementsofCorporateGovernanceaslaiddownunderChapterIVoftheSEBIListingRegulationsexceptasmentionedinthisReport.

2. BOARD OF DIRECTORS

A. BOARD’S COMPOSITION AND CATEGORY

TheBoardcomprisesofeminentpersonswithhighcredentialsofconsiderableprofessionalexperienceandexpertiseindiversefieldswhoeffectivelycontributetotheCompany’sgrowthandpolicymakingdecisions.ThecompositionofBoardofDirectorsoftheCompanyisinconformitywiththerequirementsofRegulation17ofSEBIListingRegulationsaswellasprovisionsoftheCompaniesAct,2013(“theAct”)andtheArticlesofAssociationoftheCompanyandallotherapplicable lawsand inaccordancewithbestpractices.TheChairpersonof theBoardof theCompany isanExecutiveDirector.

ThecategorywisecompositionofBoardofDirectorsunderRegulation17ofSEBIListingRegulationsasonMarch31,2021isasunder:

S. No. Category No. of Directors

1 ExecutiveDirector 1

2 Non-Executive,IndependentDirector(includingWomanDirector)* 5

3 OtherNon-ExecutiveDirector* 1

Total 7

*NoneoftheNon-ExecutiveDirectorsareresponsibleforthedaytodayaffairsoftheCompany.

ReportonCorporateGovernanceforFY2020-21


The details relating to composition, category of Directors, directorships held by them in other companies and theirmembershipandchairpersonshipinvariousCommitteesofBoardofothercompanies,asonMarch31,2021areasfollows:

S.

No.

Name of the Director

DIN Category of Directors

No. of Directorships

held in other

Companies

(other than

in Religare

Enterprises

Limited)

No. of Memberships/Chairpersonship in various other

Board Committees (other than

Religare Enterprises Limited)

Directorship in other

listed entity & Category of Directorship

Member

including

Chairpersonship

Chairpersonship

1 Dr.RashmiSaluja 01715298 ExecutiveChairperson

(Whole TimeDirector)

5 6 Nil Nil

2 Mr.MalayKumarSinha

08140223 Independent,Non-Executive

5 6 1 Nil

3 Mr.SushilChandraTripathi1


9 9 5 1. MothersonSumiSystemsLimited(Independent,

Non-Executive Director);2. GinniFilamentsLimited

(Independent, Non-

Executive Director);4 Ms.Vijayalakshmi

RajaramIyer05242960 Independent,

Non-Executive10 10 5 1. MagmaFincorpLimited

(Independent, Non-

Executive Director);2. AdityaBirlaCapitalLimited

(Independent, Non-

Executive Director);3. ICICISecuritiesLimited

(Independent, Non-

Executive Director

4. GICHousingFinanceLimited(Independent,

Non-Executive Director)5. Computer Age

ManagementServicesLimited(Independent, Non-

Executive Director)5 Ms.SabinaVaisoha2 00207306 Independent,

Non-ExecutiveNA NA NA NA

6 Mr.SiddharthDineshMehta

02665407 Non-Independent,Non-ExecutiveVice-Chairperson

2 2 Nil Nil

7 Mr.HamidAhmed3 09032137 Independent,Non-Executive

2 2 Nil Nil

8 Dr.VijayShankarMadan3


3 2 1 Nil

1Ceased to be Non-Executive Independent Director from the Board of the Company w.e.f. May. 19, 2021 due to his sad

demise after long battle against COVID-19;

2Resigned as a Non-Executive Independent Director on February 10, 2021;

3Appointed as Non-Executive Independent Director on February 10, 2021


BelowarethedetailsofresignationofNon-ExecutiveIndependentDirectorsfromtheBoardoftheCompanyduringthefinancialyear2020-21beforetheexpiryoftheirtenure:

S.

No.

Name of the Director Date of Cessation of Directorship

Reason for Cessation

1 Ms.SabinaVaisoha February10,2021 NottobeinpositiontodevoteenoughtimeasanIndependentDirector of the Company due to her pre-occupation andotherprofessionalcommitments.

Ms.SabinaVaisohaalsoconfirmed that there isnoothermaterial reason for her resignation other than reason stated

inherresignationletter.

Notes:

I. The Independenceof aDirector is determinedby the criteria stipulatedunderRegulation16(1)(b) of theSEBI ListingRegulations&Section 149 (6) of theAct.All the IndependentDirectors have confirmed that theymeet the criteria ofindependenceasmentionedunder theRegulation 16(1)(b) of theSEBI ListingRegulations andare not aware of anycircumstancesorsituationwhichexistormaybereasonablyanticipated,thatcouldimpairorimpacttheirabilitytodischargedutieswithanobjectiveindependentjudgmentandwithoutanyexternalinfluence.Further,intheopinionoftheBoard,theIndependentDirectorsfulfilltheconditionsspecifiedintheseregulationsandareindependentofthemanagement.

II. NoneoftheDirectorsoftheCompanyholdsdirectorshipinmorethan20companies.Thisincludesalternatedirectorshipbutdoesnotincludethedirectorshipsheldinforeigncompanies,dormantcompaniesandcompaniesunderSection8oftheAct.Further,noneoftheDirectorsholddirectorshipinmorethan10publiccompanies.

III. NoneoftheDirectorsoftheCompanyisholdingpositionofDirectorinmorethansevenlistedcompanies.

IV. NoneoftheDirectorsoftheBoardisholdingpositionofIndependentDirectorinmorethansevenlistedcompanies;

V. NoneoftheDirectorsontheBoardisaMemberofmorethan10CommitteesorChairpersonofmorethan5Committees(asspecifiedinRegulation26oftheSEBIListingRegulations)acrossallthepubliclimitedcompaniesinwhichthepersonisaDirector.NecessarydisclosuresregardingCommitteepositionsinotherPublicLimitedCompaniesasonMarch31,2021havebeenmadebytheDirectors.TheCommitteesconsideredforthepurposearethoseprescribedunderRegulation26oftheSEBIListingRegulationsviz.AuditCommitteeandStakeholders’RelationshipCommitteeofallIndianPublicLimitedCompanies.

VI. AlltheDirectorsintheirindividualcapacityhaveconfirmedthattheyarenotdebarredordisqualifiedbySEBI/MinistryofCorporateAffairsoranyotherstatutoryauthoritytocontinueasDirectoroftheCompany.TheCompanyhasalsoobtainedacertificatefromaCompanySecretary,inWholeTimePracticeinthisregard.

VII. NoneoftheNon-ExecutiveDirectorshaveanymaterialpecuniaryrelationshiportransactionswiththeCompany.

VIII.TheBoardofDirectorsperiodicallyreviewsthecompliancereportofallthelawsapplicabletotheCompany.

IX. As required under Regulation 17 of SEBI Listing Regulations and second proviso to Section 149(1) of theAct, Ms.VijayalakshmiRajaramIyeristheWomanIndependentDirectorontheBoardoftheCompany.

X. NoneoftheDirectorsoftheCompanyhasattainedtheageofseventyfiveyearsasonMarch31,2021.

XI. NoneoftheDirectorsontheBoardoftheCompanyhasbeendebarredfromaccessingthecapitalmarketand/orrestrainedfromholdingpositionofDirectorinanylistedcompanybyvirtueofanySEBIOrderoranysuchauthority.

XII. Therearenointer-serelationshipsbetweenourBoardmembers.


B. BOARD MEETINGS & ATTENDANCE

Minimumfourpre-scheduledBoardmeetingsareheldannually.AdditionalBoardmeetingsareconvenedbygivingappropriatenoticetoaddresstheCompany’sspecificneeds.DatesofQuarterlyBoardMeetingsarefixedinadvanceandagendapapersarecirculatedtoDirectorsgenerallyoneweekbeforethemeetingexceptformeetingswhichareheldonshorternoticeperiod.Eachagendaitemisprovidedwithsufficientbackgroundandallmaterialinformationisincorporatedintheagendapapersforfacilitatingmeaningfulandfocuseddiscussionsatthemeeting.Whereitisnotpracticabletoattachanydocumenttotheagenda,itistabledbeforethemeetingwithspecificreferencetothiseffectintheagenda.Inspecialandexceptionalcircumstances,additionalorsupplementaryitem(s)ontheagendaarepermitted.VideoconferencingorotheraudiovisualfacilitiesareusedtofacilitateDirectorsresidingabroadorwhoarenotabletoattendmeetingsphysicallyinIndiaandpresentatotherlocations,toparticipateinthemeetings.Incaseofexigenciesorurgencies,resolutionsareconsideredbycirculationaswell.

TheBoardisgivenpresentationscoveringtheCompany’smajorbusinesssegmentsandtheiroperations,overviewofbusinessoperationsofmajorsubsidiarycompanies,businessenvironment,theCompany’sbusinessareas,includingbusinessopportunitiesandstrategyandriskmanagementpracticesbeforetakingonrecordtheCompany’squarterly/annualfinancialresults.

Newdirectors tobe inductedare identifiedbyNominationandRemunerationCommitteeandareupdatedby themanagementregardingtheCompany’sbusinessandoperations,governingdocuments,detailedbusinessstrategyforvariousbusinesses,informationonkeypersonnel,andfinancialinformationthroughpersonalorientationinseparatemeetings.

Duringthefinancialyear2020-21,Six (06)Boardmeetingswereheld:July28,2020,September02,2020,September14,2020,November11,2020,February10,2021,andMarch27,2021.Timegapbetweentwoconsecutiveboardmeetingswasnotmorethan120daysexceptfortheboardmeetingheldonJuly28,2020astheCompanyavailedexemptiongivenbyMCAvideitscircularno.11/2020datedMarch24,2020andSEBIvideitscircularno.SEBI/HO/CFD/CMD1/CIR/P/2020/110datedJune26,2020.

Further,inaccordancetotherelaxationprovidedbytheRegistrarofCompanies,DelhivideitsOrderdatedSeptember08,2020,thelastAnnualGeneralMeetingoftheCompanywasheldonDecember17,2020.

Details of attendanceofDirectorsat variousBoardMeetingsandat theAnnualGeneralMeetingheldduring thefinancialyear2020-21areasunder:

S.

No.

Name of Director No. of Board meetings

attended

Whether

attended

last AGM

1. Dr.RashmiSaluja 6/6 Yes

2. Mr.MalayKumarSinha 6/6 Yes

3. Mr.SushilChandraTripathi1 6/6 No

4. Ms.VijayalakshmiRajaramIyer 6/6 Yes

5. Ms.SabinaVaisoha2 4/4 Yes

6. Mr.SiddharthDineshMehta 6/6 No

7. Mr.HamidAhmed3 1/1 NA

8. Dr.VijayShankarMadan3 1/1 NA

1Ceased to be Non-Executive Independent Director from the Board of the Company w.e.f. May. 19, 2021 due to his

sad demise after long battle against COVID-19; 2Resigned as Non-Executive Independent Director w.e.f. February 10, 2021; 3Appointed as Non-Executive Independent Director w.e.f. February 10, 2021.


Skills/Expertise/Competence of the Board of Directors:

The tablebelowsummarizes theskill/expertise/competenciesof theDirectors identifiedby theBoard foreffectivefunctioningoftheCompanyandwhichareavailablewiththeBoardoftheCompanyasonMarch31,2021.

SI.

No.

Core

Competencies

SI.

No

Sub-Competencies Name of the Directors having Skills/Expertise/CompetenceDr.

Rashmi

Saluja

Mr.

Malay Kumar

Sinha

Mr.

Sushil

Chandra

Tripathi1

Ms.

Vijayalakshmi Rajaram Iyer

Dr. Vijay Shankar

Madan

Mr.

Hamid

Ahmed

Mr.

Siddharth

Dinesh

Mehta

1 Industryknowledge/experience& Technical

Expertise

i. Should have adequateknowledge to makeinformed decisions about

the industry and the

organization

√ √ √ √ √ √ √

ii. To ensure overall

efficiency&profitability√ √ √ √ √ √ √

iii. Tomitigatelargerrisksbyensuring compliance

√ √ √ √ √ √ √

iv. Knowledge of broadpublic policy direction

& understanding of

government legislation

√ √ √ √ √ √ √

v. Understanding of macro-economic factors,trends, challenges andopportunities, or uniquedynamics in financialmarketthatarerelevanttoReligareEnterprises

√ - √ √ √ √ √

2. Governance i. Should have essential

knowledge andunderstanding of

governance related matter

√ √ √ √ √ √ √

ii. Ability to thinkstrategically, identify andcritically assess strategic

opportunities and

threats. Develop effectivestrategiesinthecontextofthestrategicobjectivesofthe Religare Enterprise’srelevant policies and

priorities. The ability tosupport, promote, andensure alignment with the

organization’s vision andvalues

√ √ √ √ √ √ √

iii. Ability to identify keyissues and opportunities

for Religare Enterpriseswithin Financial Services

industry and develop

appropriate policies to

define the parameterswithin which the

organisation should

operate.

√ - √ √ - √ √


SI.

No.

Core

Competencies

SI.

No

Sub-Competencies Name of the Directors having Skills/Expertise/Competence

Dr.

Rashmi

Saluja

Mr.

Malay Kumar

Sinha

Mr.

Sushil

Chandra

Tripathi1

Ms.


Dr. Vijay Shankar

Madan

Mr.

Hamid

Ahmed

Mr.

Siddharth

Dinesh

Mehta

iv. Ability to make prudentbusiness decisions based

on risk assessment andmarket conditions thatreflect the risk appetiteand corporate values of

theorganization;includingthe ability to apply practical

business experience at agovernance level

√ √ √ √ √ √ √

3 Leadership i. Abilitytoinspire,motivateand offer direction and

leadership to others.They also demonstrate

an understanding of the

importance of teamworkto the success of the

board. This may includeanabilitytorecognizeandvalue the contributions of

all board members, staff,andstakeholders

√ √ √ √ √ √ √

ii. Make use of availableresources by delegating

responsibilities and

directing resources to

desired results

√ √ √ √ √ √ √

4 Strategic

thinkinganddecision

making

i. Ability to see the big

picture and also being

goal/future oriented

√ √ √ √ √ √ √

ii. Ability to thinkindependently & critically

√ √ √ √ √ √ √

iii. Ability to make informeddecisionsefficiently&takenecessary actions

√ √ √ √ √ √ √

iv. Ability to analyse &

understand report and

data presentations

√ √ √ √ √ √ √

v. Ability to review and

analyse proposed

budgets & vacancies to

provide organization withstrategic inputs & priorities

√ √ √ √ √ √ √


SI.

No.

Core

Competencies

SI.

No

Sub-Competencies Name of the Directors having Skills/Expertise/CompetenceDr.

Rashmi

Saluja

Mr.

Malay Kumar

Sinha

Mr.

Sushil

Chandra

Tripathi1

Ms.


Dr. Vijay Shankar

Madan

Mr.

Hamid

Ahmed

Mr.

Siddharth

Dinesh

Mehta

5 Personal

Attributes/

Behaviouralcompetencies

-Theattributes and

competencies

enabling the

individual

director to use

theirknowledgeandskillstofunction well

as a team

member and to

interactwithkeystakeholders.

i. Leadership&Collaboration-Ability to inspire,motivateand offer direction and

leadership to others.They also demonstrate

an understanding of the

importance of teamwork tothe success of the board.This may include an ability

to recognize and valuethe contributions of all

board members, staff, andstakeholders

√ √ √ √ √ √ √

ii. Communication Skills- Ability to both listeneffectively and articulate

ideas, opinions, rationalesand comments in a

clear, concise manner.This includes accepting

accountability for engaging

in frank, open and honestdiscussions, valuing adiversity of opinions and

perspectives, makingwell-informed decisionsand seeking to achievein-group consensus in thebest interest of Religare

Enterprises

√ √ √ √ √ √ √

iii. Integrity-Acommitmentto:a) putting the

Company’s interests before

any personal interests

b) acting in a

transparent manner and

declaring any activities or

conduct that might be a

potentialconflictc) m a i n t a i n i n g

Board confidentiality at alltimes.

√ √ √ √ √ √ √

iv. Influencer and negotiator- The ability to negotiateoutcomes and influenceothers to agree with those

outcomes, including anability to gain stakeholdersupport for the Board’sdecisions;

√ √ √ √ √ √ √

V. Commitment - A visiblecommitment to the

purpose for which Religare

Enterprises has beenestablished and operates,anditson-goingsuccess

√ √ √ √ √ √ √

1Ceased to be be Non-Executive Independent Director from the Board of the Company w.e.f. May. 19, 2021 due to his

sad demise after long battle against COVID-19.


Information available to the Board During theyear2020-21,minimum informationasmentioned inPartAofSchedule IIof theSEBIListingRegulations,

whereverapplicable,hasbeenplacedbeforetheBoardforitsconsideration. The aforesaid information is generally provided as a part of the agenda of the board meeting and/or is placed at the

tableduring thecourseof themeeting.KeyManagerialPersonnelandotherseniormanagementstaffarealso invitedto the Board Meetings to present reports on the Company’s operations and internal control systems. The CompanySecretary,inconsultationwiththeChairpersonpreparestheagenda.Inspecialandexceptionalcircumstances,additionalorsupplementaryitem(s)ontheagendaarepermittedtobetakenupas‘anyotheritem’.Further,theBoardperiodicallyreviewsComplianceReportsinrespectoflawsandregulationsapplicabletotheCompany.

Separate Meeting of Independent Directors & Familiarization Programme for Independent Directors Duringfinancialyear2020-21,separatemeetingoftheIndependentDirectorsoftheCompanywasheldonJune12,2020

withoutthepresenceofNon-IndependentDirectorsandmembersofmanagement.Alongwithothermatters,IndependentDirectorsdiscussedthemattersspecifiedinScheduleIVoftheActandRegulation25(4)ofSEBIListingRegulations.

CompanyhasalsocarriedoutFamiliarizationProgrammeforitsNon–ExecutiveIndependentDirectorsonJune12,2020inaccordancewith theRegulation25(7)ofSEBIListingRegulations readwith IndependentDirectorTrainingPolicyoftheCompany.DetailsofFamiliarizationProgrammesconductedareuploadedonthewebsiteoftheCompany&canbeaccessedthroughthelinkhttps://www.religare.com/Familiarisation-Prgm-for-ID.aspx

Shareholding of Executive Directors AsonMarch31,2021, theCompanyhasoneExecutiveDirectoron theBoardof theCompany.Dr.RashmiSaluja is

ExecutiveChairperson(WholeTimeDirector)anddoesnotholdanysharesoftheCompanyasonMarch31,2021.Further,shewasgranted50,00,000StockOptionsonJune01,2020under theReligareEnterprisesLimitedEmployeesStockOptionPlan2019.

C. COMMITTEES OF THE BOARD

The Board has constituted 9 Committees viz.Audit andGovernance Committee, Nomination and RemunerationCommittee,StakeholdersRelationshipCommittee,CorporateSocialResponsibilityCommittee,Investment,BorrowingandShareAllotmentCommittee,RiskManagementCommittee,AssetLiabilityCommittee,RPTSub-CommitteeandITStrategyCommittee.

Detailsof the roleandcompositionofBoardCommitteesconstitutedasper requirementsof theAct,SEBIListingRegulationsandRBIMasterDirectionsincludingnumberofmeetingsheldduringthefinancialyearandattendancethereatareprovidedhereunder:I. Audit and Governance Committee

(i) Composition

TheCompositionoftheAuditandGovernanceCommitteeasatMarch31,2021isasunder:

S. No. Name of Member/Chairperson Position

1 Ms.VijayalakshmiRajaramIyer Chairperson

2 Mr.MalayKumarSinha Member3 Mr.SushilChandraTripathi1 Member4 Dr.RashmiSaluja Member5 Mr.SiddharthDineshMehta2 Member

1Ceased to be Member of the Committee w.e.f. May 19, 2021 due to his sad demise;

2Ceased to be Member of the Committee w.e.f. September 02, 2020.

TheCompositionoftheCommitteeasonMarch31,2021andtermsofreferenceareincompliancewithSection177oftheActandRegulation18ofSEBIListingRegulations.TheChairpersonoftheCommitteeisanIndependentDirector.TheCompanySecretaryoftheCompanyactsastheSecretarytotheCommittee.AllthemembersoftheCommitteearefinanciallyliterateandhaveaccountingorrelatedfinancialmanagementexpertise.


(ii) Terms of Reference:

Primarily,theAuditandGovernanceCommitteeisresponsiblefor:

1. OversightoftheCompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible.

2. Recommending to theBoard, theappointment, re-appointmentand, if required, the replacementorremovalofthestatutoryauditorandthefixationofauditfees.

3. Approvalofpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors.

4. Reviewing,withthemanagement,theannualfinancialstatementsandauditorsreportthereonbeforesubmissiontotheBoardforapproval,withparticularreferenceto:

a. MattersrequiredbeingincludedintheDirector’sResponsibilityStatementtobeincludedintheBoard’sReportintermsofclause(c)ofsub-section3ofSection134oftheCompaniesAct,2013

b. Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame

c. Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement.

d. Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings

e. Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements

f. Disclosureofanyrelatedpartytransactions

g. Qualificationsinthedraftauditreport.

5. Reviewing,withthemanagement,thequarterlyfinancialstatementsbeforesubmissiontotheBoardforapproval.

6. Reviewing,withthemanagement,thestatementofuses/applicationoffundsraisedthroughanissue(publicissue,rightsissue,preferentialissue,etc.),thestatementoffundsutilizedforpurposesotherthan those stated in the offer document/prospectus/notice and the report submitted by the monitoring

agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriaterecommendationstotheBoardtotakeupstepsinthismatter.

7. Reviewingandmonitoringindependenceandperformanceofauditors,effectivenessofauditprocess.

8. Reviewingtheadequacyofinternalauditfunction,ifany,includingthestructureoftheinternalauditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructurecoverageandfrequencyofinternalaudit.

9. Discussionwithinternalauditorsofanysignificantfindingsandfollowupthereon.

10. Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditorsintomatterswherethereissuspected fraud or irregularity or a failure of internal control systems of a material nature and reporting

themattertotheBoard.

11. Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern.

12. Tolookintothereasonsforsubstantialdefaultsinthepaymenttothedepositors,debentureholders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors.

13. Approval of appointment of Chief Financial Officer (“CFO”) (i.e., theWhole-time Finance Directoror any other person heading the finance function or discharging that function) after assessing thequalifications,experience&background,etc.ofthecandidate.

14. Approvaloranysubsequentmodificationoftransactionsofthecompanywithrelatedparties;includingtheomnibusapprovalfortherelatedpartytransactionsproposedtobeenteredbytheCompany.


15. Scrutinyofinter-corporateloansandinvestments.

16. Valuationofundertakingsorassetsofthecompany,whereveritisnecessary,

17. Evaluationofinternalfinancialcontrolsincludinginternalcontrolsrelatingtotheinsidertradingandriskmanagementsystems.

18. Reviewing,with themanagement, performance of statutory and internal auditors, adequacy of theinternalcontrolsystems.

19. ToreviewthefunctioningoftheWhistleBlowermechanism.

20. Reviewofutilizationofloansand/oradvancesfrom/investmentbytheCompanyinanyofitssubsidiaryexceedingRs. 100 crore or 10%of the asset size of that subsidiary,whichever is lower includingexistingloans/advances/investments.

21. To consider and comment on rationale, cost-benefits and impact of schemes involving merger,demerger,amalgamationetc.

22. Suchotherrole/functionsasmaybespecificallyreferredtotheCommitteebytheBoardofDirectorsand/orothercommitteesofDirectorsoftheCompanyandspecifiedinListingRegulations.

(iii) Meetings and attendance during the year

Duringthefinancialyear2020-21,Five (5)meetingsoftheAuditandGovernanceCommitteewereheld:July28,2020,September02,2020,September14,2020,Nov.11,2020andFebruary10,2021.

TheattendanceofMembersatthemeetingsoftheCommitteeheldduringtheyearisasfollows:

S. No. Name of the Member/Chairperson No. of Meetings Attended1 Ms.VijayalakshmiRajaramIyer 5/52 Mr.MalayKumarSinha 5/53 Mr.SushilChandraTripathi1 5/54 Dr.RashmiSaluja 5/55 Mr.SiddharthDineshMehta2 2/2

1Ceased to be Member of the Committee w.e.f. May 19, 2021 due to his sad demise; 2Ceased to be Member of the Committee w.e.f. September 02, 2020.

Chief Financial Officer, Representatives of the Statutory and InternalAuditors usually attend theAuditCommitteemeetingsbyinvitation.

II. Nomination and Remuneration Committee

(i) Composition

TheNomination andRemunerationCommittee’s composition and termsof reference are in compliancewiththeprovisionsoftheSection178oftheActandRegulation19oftheSEBIListingRegulations.ThecompositionoftheNominationandRemunerationCommitteeasatMarch31,2021isasunder:-

S. No. Name of Member/Chairperson Position

1 Mr.MalayKumarSinha Chairperson

2 Dr.RashmiSaluja Member3 Mr.SushilChandraTripathi1 Member4 Ms.VijayalakshmiRajaramIyer2 Member5 Mr.SiddharthDineshMehta Member


2Ceased to be Member of the Committee w.e.f May 24, 2021.

ChairpersonoftheCommitteeisanIndependentDirector.TheCompanySecretaryactsastheSecretarytotheNominationandRemunerationCommittee.


(ii) Terms of Reference TheroleoftheNominationandRemunerationCommitteeincludes:

1. Formulation,SuperintendenceandadministrationofDirector’sappointment&remunerationpolicy;2. Formulation, Superintendence and administration of KeyManagerial Personnel’s appointment and

remunerationpolicy;3. Formulation,SuperintendenceandadministrationofEmployeesremunerationpolicy;&reviewofannual

performanceevaluationofSeniorManagementPersonnelandmakingsuitablerecommendationstotheBoard;

4. Formulation, Superintendence and administration ofAnnual Performance Evaluation Policy of theBoard;

5. OverseetheCompany’snominationprocessforthetoplevelmanagementandspecificallytoidentify,screenandreview individualsqualified toserveasexecutivedirectors,non-executivedirectorsandindependentdirectorsconsistentwiththecriteriaapprovedbytheBoardandtorecommendforapprovalbytheBoardnomineesforelectionattheAnnualGeneralMeetingoftheCompany;

6. SuperintendenceandadministrationoftheEmployeeStockOptionSchemesoftheCompany;7. Suchotherrole/functionsasmaybespecificallyreferredtotheCommitteebytheBoardofDirectors

and/orothercommitteesofDirectorsoftheCompanyormentionedintheSEBIListingRegulations.(iii) Meetings and attendance during the year Duringthefinancialyear2020-21, Four (4)meetingsoftheCommitteewereheld:June27,2020,July27,

2020,September02,2020,andFebruary10,2021. TheattendanceofMembersatthemeetingsoftheCommitteeheldduringtheyearisasfollows:-

S. No. Name of the Member/Chairperson No. of Meetings attended1 Mr.MalayKumarSinha 4/42 Ms.VijayalakshmiRajaramIyer1 4/44 Mr.SushilChandraTripathi2 4/45 Dr.RashmiSaluja 4/46 Mr.SiddharthDineshMehta 3/4

1Ceased to be Member of the Committee w.e.f. May 24, 2021;

2Ceased to be Member of the Committee w.e.f. May 19, 2021 due to his sad demise.

III. Stakeholders Relationship Committee

(i) Composition

TheStakeholdersRelationshipCommitteehasbeenconstitutedtospecificallylookintovariousaspectsofinterestofShareholdersandInvestorscomplaintsandothershareholdersrelatedissues.

ThecompositionofStakeholdersRelationshipCommitteeasatMarch31,2021isasunder:-

S. No. Name of the Member/Chairperson Position


2 Ms.SabinaVaisoha1 Member3 Mr.SushilChandraTripathi2 Member4 Dr.RashmiSaluja Member5 Mr.SiddharthDineshMehta Member

1Ceased to be Member of the Committee w.e.f. February 10, 2021 due to her resignation as Non-Executive

Independent Director;


ChairpersonoftheCommitteeisaNon–ExecutiveIndependentDirector.TheCompanySecretaryoftheCompanyactsastheSecretarytotheCommittee.


(ii) Terms of Reference

i. OverseeingandreviewingallmattersconnectedwithsecuritiesoftheCompany;

ii. RedressalofShareholders’/Investors’/Debentureholders’/othersecurityholderscomplaints/queriesrelatedtotransfer/transmission/consolidation/splittingofshares/rematerialisation,non-receiptofAnnualReport,declareddividend,issueofnew/duplicatecertificates,generalmeetingsetc.;

iii. Overseeing the performance of the Registrar and Transfer Agent of the Company and recommendsmeasuresforoverallimprovementinthequalityofInvestorservices;

iv. Review of adherence of the service standards adopted by theCompany in respect of various servicesrenderedbytheRegistrar&ShareTransferAgent;

v. ReviewofvariousmeasuresandinitiativetakenbytheCompanyforreducingthequantumofunclaimeddividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the

shareholdersoftheCompany.


DuringtheyearendedMarch31,2021,four (4)meetingsoftheCommitteewereheld:July27,2020,September14,2020,November10,2020andFebruary10,2021.

TheattendanceofMembersatthemeetingsoftheCommitteeheldduringtheyearisasfollows:-

S. No. Name of the Member/Chairperson No. of Meetings attended

1 Ms.SabinaVaisoha1 3/3

2 Mr.MalayKumarSinha 4/4

3 Mr.SushilChandraTripathi2 4/4

4 Dr.RashmiSaluja 4/4

5 Mr.SiddharthDineshMehta 3/4




Thedetailsofinvestorcomplaints(asreportedunderRegulation13ofSEBIListingRegulations)receivedandresolvedduringtheperiodfromApril1,2020toMarch31,2021isasunder:

No. of Investor Complaints pending at

the beginning of April 1, 2020

No. of Investor Complaints received

from April 1, 2020 to March 31, 2021

No. of Investor Complaints resolved

from April 1, 2020 to March 31, 2021

No. of Investor Complaints pending at

the end of March 31, 2021

0 1 1 0

TheCompanyaddressesallcomplaints/grievances,suggestionsandgrievancesexpeditiouslyandreplieshavebeensent/issuesresolvedwithin15daysfromthedateoflodgementofcomplaint’s/grievances.

Ms.ReenaJayara,CompanySecretaryistheComplianceOfficeroftheCompany.


IV. Corporate Social Responsibility Committee (i) Composition

TheCorporateSocialResponsibilityCommitteeoftheBoard(“CSRCommittee”)hasbeenconstitutedtooversee theCSRPolicyof theCompanyand recommendandmonitor theamountofexpenditure tobeincurredontheactivitiesmentionedintheScheduleVIIoftheAct.

ThecompositionofCSRCommitteeasatMarch31,2021isasunder:-


1 Ms.SabinaVaisoha1 Member

2 Mr.MalayKumarSinha Member

3 Mr.SushilChandraTripathi2 Member

4 Dr.RashmiSaluja Member

5 Mr.SiddharthDineshMehta Member





i. FormulationofCorporateSocialResponsibilityPolicy;

ii. RecommendtheamountofexpendituretobeincurredontheCorporateSocialResponsibilityactivitiestotheBoard;

iii. Monitoring and ensuring implementation of the projects / programmes / activities proposed to beundertakenbythecompany;

iv. Dischargesuchotherrole/functionsasmaybespecificallyreferredtotheCommitteebytheBoardofDirectorsinrelationtoCorporateSocialResponsibilityPolicyoftheCompanyfromtimetotime.


DuringtheyearendedMarch31,2021,One (1)meetingoftheCommitteewasheld:September02,2020.

TheattendanceofMembersatthemeetingoftheCommitteeheldduringtheyearisasfollows:-

S. No. Name of the Member/Chairperson No. of Meetings attended1 Mr.MalayKumarSinha 1/12 Mr.SushilChandraTripathi1 1/13 Ms.SabinaVaisoha2 1/14 Dr.RashmiSaluja 1/15 Mr.SiddharthDineshMehta 1/1



Independent Director.


V. Investment, Borrowing and Share Allotment Committee

(i) Composition

The compositionof Investment,BorrowingandShareAllotmentCommitteeasatMarch31, 2021 is asunder:-


1 Mr.MalayKumarSinha Member

2 Ms.VijayalakshmiRajaramIyer1 Member

3 Dr.RashmiSaluja Member

4 Mr.SushilChandraTripathi2 Member

5 Mr.SiddharthDineshMehta Member

1Ceased to be Member of the Committee w.e.f. May 24, 2021.



i. To invest the funds of the Company; borrowmonies andmake loans in the form of subscription/acquisition/purchaseofsecurities,loans,Guarantees,(includingCorporateandCounterGuarantee),InterCorporateDeposits[ICDs]inSubsidiaries/JointVenturesorotherwiseandprovidingsecurityonbehalfofsubsidiariesasmaydecidedbytheCommitteefromtimetotimeuptoRs.6000CroresandtoborrowmoniesfromBanks,otherBodiesCorporateorIndividualsintheformoftermloan,ICD’s,WorkingCapitalLoanorotherwiseasmaybedecidedbythemembersoftheCommitteefromtimetotimeuptoRs.3000Crores;

ii. Tolookafterthematterspertainingtotheissue,offer,allotmentandcancellationofsecuritiesincludingESOP/SAR/Equity/Preferenceshares/instrumentsconvertibleintoEquityShares,whetheroptionallyorotherwiseandGDRs,oftheCompany,tomakecallonsecurities,toinvite&acceptfurthersubscriptionmoneyonsecurities,toissuesharecertificates/receipts,toredeem/convertsecuritiesandtodoallsuchacts,deedsandthingsasmaybeconsiderednecessaryandincidentalthereto.


DuringtheyearendedMarch31,2021,Four (4)meetingsoftheCommitteewereheld:June01,2020,July01,2020,July17,2020andFebruary10,2021.

TheattendanceofMembersatthemeetingsoftheCommitteeheldduringtheyearisasfollows:-

S. No. Name of the Member/Chairperson No. of Meetings attended

1 Ms.VijayalakshmiRajaramIyer1 4/4








VI. Risk Management Committee

(i) Composition

The RiskManagement Committee has been constituted to review integrated risk of the Company andto provide operational and policy guidance to the Company which paves the way for an effective riskmanagementincludingthecybersecuritysoastosafeguardtheinterestoftheCompanyandthegroup.ThecompositionofRiskManagementCommitteeasatMarch31,2021isasunder:-



2 Ms.VijayalakshmiRajaramIyer Member3 Dr.RashmiSaluja Member4 Mr.SiddharthDineshMehta1 Member5 Mr.SushilChandraTripathi2 Member6 Mr.NitinAggarwal3–GroupCFO Member


2Appointed as Member of the Committee on November 11, 2020 and ceased to be Member w.e.f. May 19,

2021 due to his sad demise;

3Appointed as Member of the Committee on November 11, 2020.


Role and responsibility of the Committee is to review integrated risk of the Company and to provideoperationalandpolicyguidanceto theCompanywhichpavesthewayforaneffectiveriskmanagementincludingthecybersecuritysoastosafeguardtheinterestoftheCompanyandinter-aliaincludes:

(1) Toformulateadetailedriskmanagementpolicywhichshallinclude:

(a) Aframeworkforidentificationofinternalandexternalrisksspecificallyfacedbythelistedentity,inparticularincludingfinancial,operational,sectoral,sustainability(particularly,ESGrelatedrisks),information,cybersecurityrisksoranyotherriskasmaybedeterminedbytheCommittee.

(b) Measuresforriskmitigationincludingsystemsandprocessesforinternalcontrolofidentifiedrisks.

(c) Businesscontinuityplan.

(2) Toensurethatappropriatemethodology,processesandsystemsareinplacetomonitorandevaluaterisksassociatedwiththebusinessoftheCompanyanditssubsidiaries;

(3) To monitor and oversee implementation of the risk management policy, including evaluating theadequacyofriskmanagementsystems;

(4) Toperiodicallyreviewtheriskmanagementpolicy,atleastonceintwoyears,includingbyconsideringthechangingindustrydynamicsandevolvingcomplexity;

(5) Tokeeptheboardofdirectorsinformedaboutthenatureandcontentofitsdiscussions,recommendationsandactionstobetaken;

(6) Toconsiderandapprovetheappointment,removalandtermsofremunerationoftheChiefRiskOfficer(ifany).

(7) Tocoordinateitsactivitieswithothercommittees,ininstanceswherethereisanyoverlapwithactivitiesofsuchcommittees,aspertheframeworklaiddownbytheBoardofDirectors.

(8) Suchotherrole/functionsasmaybespecificallyreferredtotheCommitteebytheBoardofDirectorsand/orothercommitteesofDirectorsoftheCompanyandspecifiedinSEBI/RBIRegulations.


(iii) Meetings and attendance during the year DuringtheyearendedMarch31,2021,two (2)meetingsoftheCommitteewereheld:July27,2020and

November10,2020. TheattendancesofMembersatthemeetingsoftheCommitteeheldduringtheyearareasfollows:-

S. No. Name of the Member/Chairperson No. of Meetings attended1 Ms.VijayalakshmiRajaramIyer 2/2



4 Mr.SiddharthDineshMehta1 2/2


6 Mr.NitinAggarwal3 0/0

1Ceased to be Member of the Committee w.e.f. May 24, 2021; 2Appointed as Member of the Committee on November 11, 2020 and ceased to be Member w.e.f. May 19,

2021 due to his sad demise; 3Appointed as Member of the Committee on November 11, 2020.

VII. Asset Liability Committee

(i) Composition

TheAssetLiabilityCommitteehasbeenconstituted tomanage liquidityand interest rate riskand toputinplace theALMsystemand todecide theproductpricing for the loans,maturityprofileandmixof theincrementalassetsandliabilities.

ThecompositionofAssetsLiabilityCommitteeasatMarch31,2021isasunder:-


1 Dr.RashmiSaluja Chairperson

2 Ms.VijayalakshmiRajaramIyer Member3 Mr.SushilChandraTripathi1 Member4 Mr.MalayKumarSinha Member5 Mr.SiddharthDineshMehta2 Member6 Mr.NitinAggarwal Member

1Ceased to be Member of the Committee w.e.f. May 19, 2021 due to his sad demise; 2Ceased to be Member of the Committee w.e.f. May 24, 2021.

(ii) Meetings and attendance during the year

During theyearendedMarch31,2021,Four (4)meetingsof theCommitteewereheld: July27,2020,September14,2020,November10,2020andFebruary10,2021.

TheattendancesofMembersatthemeetingsoftheCommitteeheldduringtheyearisasfollows:-

S. No. Name No. of Meetings attended1 Dr.RashmiSaluja 4/42 Ms.VijayalakshmiRajaramIyer 4/43 Mr.SushilChandraTripathi1 4/44 Mr.MalayKumarSinha 4/45 Mr.SiddharthDineshMehta2 3/46 Mr.NitinAggarwal–GroupCFO 4/4




VIII. RPT Sub-Committee

(i) Composition

RPTSub-CommitteehasbeenconstitutedtomonitorandregulatetransactionsbetweentheCompanyanditsRelatedPartiesintermsofshareholderagreementwithInternationalFinanceCorporation.

ThecompositionofRPTSub-committeeasatMarch31,2021isasunder:-


1 Ms.VijayalakshmiRajaramIyer Member2 Mr.MalayKumarSinha Member3 Mr.SushilChandraTripathi1 Member4 Dr.RashmiSaluja Member5 Mr.SiddharthDineshMehta Member


(ii) Meetings and attendance during the year

During theyearendedMarch31,2021 three (3)meetingsof theCommitteewereheld: July27,2020,September14,2020andNovember10,2020.

TheattendancesofMembersatthemeetingsoftheCommitteeheldduringtheyearisasfollows:-

S. No. Name of the Member/Chairperson No. of Meetings attended1 Ms.VijayalakshmiRajaramIyer 3/3






IX. IT Strategy Committee

(i) Composition

InpursuanttotheMasterDirection–InformationTechnologyFrameworkfortheNBFCSectorissuedbyRBI,theITStrategyCommitteewasconstitutedbytheCompanyinMay2019.

ThecompositionofITStrategyCommitteeasatMarch31,2021isasunder:-



2 Dr.RashmiSaluja Member3 Mr.ChiragJain Member4 Mr.ShalabhGarg Member5 Mr.SiddharthDineshMehta1 Member



(ii) Meetings and attendance during the year DuringtheyearendedMarch31,2021two (2)meetingsoftheCommitteewereheld:July06,2020and

December18,2020. TheattendancesofMembersatthemeetingsoftheCommitteeheldduringtheyearareasfollows:-

S. No. Name of the Member/Chairperson No. of Meetings attended1 Mr.MalayKumarSinha 2/22 Dr.RashmiSaluja 2/23 Mr.SiddharthDineshMehta1 1/24 Mr.ChiragJain 2/25 Mr.ShalabhGarg 2/2


D. POLICIES ON APPOINTMENT & REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL AND

OTHER EMPLOYEES

The Nomination and Remuneration Committee (“NRC”) has determined the criteria to identify the Directors andKeyManagerialPersonnel (KMP) in accordancewith the criteria laid down, andhas recommended to theBoardfollowingpoliciesrelatingtotheappointmentandremunerationfortheDirectors,KeyManagerialPersonnelandotheremployeeswhichwereapprovedbytheBoard:

1. EmployeeRemunerationPolicy

2. Director’sFit&ProperPolicy

3. Director’sAppointment&RemunerationPolicy

4. KMP’sAppointment&RemunerationPolicy

Appointment

NRC determines the criteria of appointment to the Board and is vested with the authority to identify candidatesforappointment to theBoardofDirectors. Inevaluating thesuitabilityofaperson forappointment / continuing toholdappointmentasaDirector, theNRCtakes intoaccountapart fromothers,Boarddiversity,person’seligibility,qualification,expertise,trackrecord,generalunderstandingofthebusiness,professionalethics,integrity,valuesandotherfitandpropercriteria’s.BasedonrecommendationoftheNRC,theBoardevaluatesthecandidate(s)anddecideontheselectionoftheappropriatemember.Incaseofre-appointmentofanyBoardmember,NRCbasisevaluationscoresoftheconcernedBoardmemberpursuanttoperformanceevaluation,recommendsitsdecisiontotheBoardtoextendorcontinuethetermofappointmentoftheBoardmember.

TheauthoritytoidentifyrightcandidatesforappointmentofKMP’sisvestedwiththeCEO/ExecutiveChairperson.TheCEO/ExecutiveChairpersonalongwithHRHeadidentifiescandidatesinternallyorexternallyandproposestoNRCforitsapprovalforappointmentalongwithproposedremuneration.TheremunerationproposedusedtobeconsistentwiththestrategyoftheCompanyandinlinewiththecomparablemarket&internalremunerationbenchmarks.

IncaseofCEO’sappointment&remuneration,NRCinitiatestheprocessofidentifyingtheCEO.Afteridentificationofthecandidate,NRCproposesthecandidaturetoBoardforitsapprovalforappointment.

Remuneration

The remuneration of Executive / Non-Executive Directors and KMPs is governed by the external competitiveenvironment, track record,potential, individualperformanceandperformanceof theCompanyaswellas industrystandards and decided by NRC in accordance of abovementioned policies. NRC conducts a review of directorcompensation on a periodic basis to ensure directors of the Company are compensated effectively in a manner

consistentwiththestrategyoftheCompanyandtofurtherensurethattheCompanywillbeabletoattract,retainandrewardthosewhocontributetothesuccessoftheCompany.CEO’sremunerationisdeterminedkeepinginviewtheindustrybenchmark&therelativeperformanceoftheCompanytotheindustryperformance.ItisproposedbyNRCandsubsequentlyapprovedbytheBoard.


(i) Remuneration of Executive Directors Remuneration ofExecutiveDirectors is decided by theBoard based on recommendation ofNRCwithin the

ceilingfixedbytheShareholdersandpermissibleundertheAct.RemunerationpaidtotheExecutiveDirectorsfortheyearendedMarch31,2021andthedisclosureaspertherequirementofScheduleVoftheActandSEBIListingRegulations,areasfollows:

(AmountinRs)Name and

Designation of the Director

Salary & Allowances

Guaranteed/Joining Bonus

Bonus Commission

payablePerquisite Retiral

BenefitsTotal Stock

Options

Granted

Dr.RashmiSaluja,ExecutiveChairperson

4,33,07,533/- 1,50,00,000/- 4,50,00,000/- - 83,26,044/- - 11,16,33,577/- 50,00,000

ThepaymentofperformancebonusasabovehasbeenmadepostevaluationofachievementsagainstthekeyperformanceindicatorsapprovedbytheNomination&RemunerationCommitteeandtheBoardofDirectorswhichinter-alia includerevivalofNBFCbusiness,raisingoffundsfortheCompanyandHealthInsurancebusiness,resolvingoutstandinglitigations,guidancetovariousbusinessescarriedoutthroughitssubsidiariestomaintaintheirgrowthtrajectories.

Dr. Rashmi Saluja has been appointed as ExecutiveChairperson of theCompany for a period of 3 (three)yearsfromthedateofappointmenti.e.February26,2020,whoisliabletoretirebyrotation.Theservicescanbeterminatedbyeitherpartybygiving90days’noticeinwriting.ThereisnoseparateprovisionforpaymentofseverancefeesasonMarch31,2021.

TheCompanyhasgranted50,00,000stockoptionstoDr.RashmiSaluja,ExecutiveChairperson,atanexercisepriceofRs.24.10/-pershareduringthefinancialyearunderthereview,thevestingperiodofwhichis2yearsandexercisableasperthetermsoftheReligareEnterprisesLimitedEmployeesStockOptionPlan2019.

(ii) Remuneration of Non-Executive Directors Non-ExecutiveDirectorsincludingIndependentDirectorsdonothaveanypecuniaryrelationshiportransactions

withtheCompany.TheyarepaidonlythesittingfeesforattendingthemeetingsoftheBoardofDirectorsandCommitteeswithin the limits as prescribed under theAct. IndependentDirectors are paid sitting fees ofRs.1,00,000/-permeetingforattendingBoard,Audit&GovernanceCommitteeandRiskManagementCommitteemeetings andNon –ExecutiveNon-IndependentDirectors are paid sitting fees ofRs. 25,000/- permeetingforattending theBoard,Audit&GovernanceCommitteeandRiskManagementCommitteemeetings.SittingfeesamountpaidtotheIndependentDirectorsfortheNomination&RemunerationCommittee,AssetLiabilityCommittee, Stakeholders Relationship Committee, RPT-Sub Committee, Corporate Social ResponsibilityCommittee, Investment,Borrowing&ShareAllotmentCommitteeandITStrategyCommitteemeetings isRs.20,000/-permeetingandtoNon-ExecutiveNon-IndependentDirectorsisRs.10,000/-permeeting.

DetailsofremunerationpaidtoNon-ExecutiveDirectorsduringFY2020-21andtheirshareholdingintheCompanyasat31stMarch2021areasfollows:

S.

No

Name of Director Sitting Fees

(Rs.)

Salary (Rs.)

Benefits or Bonuses

Stock

Options

Shareholding

(Number of Share)

1 Mr.MalayKumarSinha 17,40,000 Nil Nil Nil Nil2 Mr.SushilChandraTripathi1 15,00,000 Nil Nil Nil Nil3 Ms.VijayalakshmiRajaramIyer 16,00,000 Nil Nil Nil Nil4 Ms.SabinaVaisoha2 4,80,000 Nil Nil Nil Nil5 Mr.SiddharthDineshMehta 4,10,000 Nil Nil Nil Nil6 Mr.HamidAhmed3 1,00,000 Nil Nil Nil Nil7 Dr.VijayShankarMadan3 1,00,000 Nil Nil Nil Nil

1.Ceased to be Non-Executive Independent Director from the Board of the Company w.e.f. May. 19, 2021 due to

his sad demise after long battle against COVID-19;

2Resigned as Non-Executive Independent Director w.e.f. February 10, 2021;

3Appointed as Non-Executive Independent Director w.e.f. February 10, 2021.


NoneoftheIndependentDirectorsholdsanysharesorconvertible instruments i.e.whichareconvertible intoequitysharesoftheCompanyasonMarch31,2021.

Apartfromreceivingsittingfees,noNon-ExecutiveDirectorincludingIndependentDirectorsreceivedanyfixedcomponent&performancelinkedincentivesfromtheCompanyduringtheperiodunderreview.

Further,therewerenootherpecuniaryrelationshipsortransactionsoftheNon-ExecutiveDirectorsvis-à-vistheCompanyduringtheyearunderreviewotherthanthepaymentofsittingfeesforattendingmeetingsoftheBoardanditsCommittee.TheCompanyhasnotgrantedanystockoptionstoanyofitsNon-ExecutiveIndependentDirectors.

Employee Stock Options Schemes

Nomination and Remuneration Committee of the Board of Directors of the Company, inter-alia, administers andmonitorstheEmployees’StockOptionSchemesoftheCompanyinaccordancewiththeSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014(“SEBISBEBRegulations”).

DetailsasrequiredundertheSEBISBEBRegulations,forReligareEmployeesStockOptionScheme2010,ReligareEmployeesStockOptionScheme2012andReligareEmployeesStockOptionPlan2019 (ESOPSchemes)havebeenuploadedonthewebsiteoftheCompanyandcanbeaccessedthroughthefollowinglinkhttps://www.religare.com/Employee-Stock-Option-Schemes.aspx

Duringtheyearunderreview,theCommitteegranted11,500,000stockoptionsunderthe“ReligareEnterprisesLimitedEmployeesStockOptionPlan2019”andfurther2,500,000stockoptionsweregrantedafterthecloseoftheFY2021tillthedateofthisReport.

ThereisnomaterialchangeintheESOPschemesoftheCompanyduringtheyear.

E. ANNUAL PERFORMANCE EVALUATION

In terms of provisions of theAct andRegulation 17(10) readwith Regulation 25(4) of SEBI ListingRegulations,theBoard conducts an annual performance evaluation of its own performance, the performance of theDirectorsindividuallyaswellastheevaluationoftheworkingofitsCommitteesthroughquestionnairedesignedwithqualitativeparametersandfeedbackbasedonratings.

TheBoardhasadoptedBoardEvaluationPolicy(“Policy”)forcarryingouttheevaluationofBoardaswhole,theBoardCommitteesandindividualDirectorsincludingIndependentDirectors.ThePolicycoverstheperformanceevaluationcriteriaofall thedirectors including independentdirectors.Thecriteriacovered toconduct theevaluationprocessincludescontribution toandmonitoringofcorporategovernancepractices,knowledge&updateof relevantareas,participationinthelongtermstrategicplanningandfulfillmentofDirectors’obligationsandfiduciaryresponsibilities,including but not limited to, active/effective participation at theBoard andCommitteemeetings, representation ofshareholders’interestandenhancingshareholdersvalueetc.

PursuanttothePolicy,BoardhascarriedouttheannualperformanceevaluationoftheBoardaswhole,alltheBoardCommitteesandindividualDirectorsfortheFY2019-20inJuly2020andforFY2020-21inJune2021aspertheparametersprescribed in theevaluation formsprovided in thePolicy forevaluationofBoardaswhole, theBoardCommitteesandindividualDirectorswhichincludevariousaspectsofBoard’sfunctioning.

Further,IndependentDirectorshavealsocarriedouttheperformanceevaluationofBoardasawhole,Non-IndependentDirectorsandChairpersonoftheCompanyintheirmeetingheldonJune12,2020fortheFY2019-20andonJune22,2021fortheFY2020-21.

TheBoardofDirectorsexpressedtheirsatisfactionwiththePolicyandAnnualPerformanceEvaluationprocessandevaluationresults.


F. GENERAL BODY MEETINGS

(i) Annual General Meetings

DetailsoftheAnnualGeneralMeetingsheldinthelastthreeyears:

Year Date Day Time Venue Special Resolutions Passed

2017-2018 20.09.2018 Thursday 11.30A.M.

Sri Sathya Sai InternationalCentre, Pragati Vihar, LodhiRoad,NewDelhi-110003

*3 Special Resolutions werepassed

**3SpecialResolutionswerenotpassed

2018-2019 26.09.2019 Thursday 4.00P.M.

Sri Sathya Sai InternationalCentre, Pragati Vihar, LodhiRoad,NewDelhi-110003

There was no Special Resolution

proposedattheAGM

2019-2020 17.12.2020 Thursday 4.00P.M

Through Video Conferencing

/ OtherAudio Visual Means(VC/OAVM)

***2 Special Resolutions werepassed

****1SpecialResolutionwasnotpassed

*ResolutionspertainingtothefollowingmatterswerepassedasSpecialResolution:

• AppointmentofMr.SushilChandraTripathi(DIN00941922),asNon-ExecutiveIndependentDirectoroftheCompanyforatermof5consecutiveyears;

• AppointmentofMr.KrishnanSubramanian(DIN:08038047)asWholeTimeDirectoroftheCompanyforaperiodofthreeyears;

• DisclosureofbeneficialownershipofBayCapitalInvestmentsLimited.

**ResolutionspertainingtothefollowingmatterswereproposedtobepassedasSpecialResolutions:

• RaisingoffundsthroughissueofNon-ConvertibleDebenturesaggregatinguptoRs.500croreonprivateplacementbasis;

• RatificationandapprovalofremunerationpaidtoMr.SubramanianLakshminarayanan(DIN:02808698)asExecutiveChairmanoftheCompany;

• Ratificationandapprovalof remunerationpaid toMr.FrancisDanielLee (DIN:07870495)asExecutiveDirectoroftheCompany.

However,theabovementionedresolutionsfailedtoreceiverequisitemajorityandthereforecouldnotbepassed.

***ResolutionspertainingtothefollowingmatterswerepassedasSpecialResolutions:

• ApprovalofrevisionofremunerationofDr.RashmiSaluja(DIN:01715298),ExecutiveChairpersonoftheCompany;

• Approvalofsale,disposalandleasingofassetsexceeding20%oftheassetsofthematerialsubsidiary(ies)oftheCompany;

****ResolutionpertainingtothefollowingmatterwasproposedtobepassedasSpecialResolution:

• ApprovalofGrantofOptionsunderReligareEnterprisesLimitedEmployeeStockOptionPlan2019(“RELESOP2019/Scheme”)totheemployee(s)equivalenttoorexceeding1%ofthecurrentissuedsharecapitaloftheCompany;

However,theabovementionedresolutionfailedtoreceiverequisitemajorityandthereforecouldnotbepassed.

Asondateofthisreport,thereisnoproposalforpassingSpecialResolutionbyPostalBallot.


(ii) Extra-ordinary General Meeting

Duringthefinancialyear2020-21noExtra-OrdinaryGeneralMeetingwasheld.

(iii) Postal Ballot

Duringthefinancialyear2020-21,theCompanyhasconductedtwoPostalBallotsincompliancewithRegulation44ofSEBIListingRegulationsand inpursuanceofSection108 readwithSection110andotherapplicableprovisionsoftheActreadwithCompanies(ManagementandAdministration)Rules,2014:

Postal Ballot 1 Postal Ballot 2

1. Approval on appointment of Dr. Rashmi Saluja(DIN:01715298)asExecutiveChairpersonof theCompany. (Special Resolution)

2. Approval on Grant of Options under ReligareEnterprises Limited Employee Stock OptionPlan 2019 (“REL ESOP 2019 / Scheme”) to theemployee(s)equivalenttoorexceeding1%ofthecurrentissuedsharecapitaloftheCompany.(Special Resolution)

Approval of Re-classification of Promoters andPromotersGroupintoPublicshareholderscategory(Ordinary Resolution)

ResolutionswerepassedonMay28,2020and resultwasdeclaredonMay29,2020.

ResolutionwaspassedonJuly23,2020andresultwasdeclaredonJuly24,2020.

Persons responsible for conducting the postal ballot exercises:

Postal ballot No. 1: Dr.RashmiSaluja,ExecutiveChairperson, Mr.NitinAggarwal,GroupCFOandMs.ReenaJayara,CompanySecretaryoftheCompany,wereappointedaspersonsresponsibleforconductingpostalballotprocess ina fairand transparentmanner.Mr.AnkushAgarwal, (C.P.No.14486)Partner,M/s.MAKS&CO.,PracticingCompanySecretaries(FRN:P2018UP067700)wasappointedasScrutinizerforconductingthePostalBallot process and services of KFinTechnologies Private Limited (formerly known as Karvy Fintech Private

Limited)wereengagedasanAgencyforthepurposeofprovidinge-votingfacility.Mr.AnkushAgarwalconductedthepostalballot/e-votingprocessandsubmittedhisreporttotheChairperson.

AdetailedprocedurefollowedbytheCompanyforconductingthePostalBallotprocessisprovidedhereunder:

Procedure followed for postal ballot 1:

• TheCompany issued thePostalBallotNoticedatedApril 23,2020containingdraft resolutions togetherwiththeexplanatorystatementasrequiredunderSection102oftheActsettingoutmaterialfactsandthereasonsfortheSpecialResolutionsthroughemailtoalltheMembersoftheCompanywhosenamesappearontheRegisterofMembers/listofBeneficialOwnersasreceivedfromtheDepositories,NationalSecuritiesDepositoryLimited/CentralDepositoryServices(India)LimitedontheCut-OffDate i.e.Friday,April24,2020andwhohaveregisteredtheiremailaddressesinrespectofelectronicholdingswiththeDepositorythrough the concerned Depository Participants and in respect of physical holdings with the Company’s

RegistrarandShareTransferAgent,KFinTechnologiesPrivateLimitedforfacilitatinge-votingtoenabletheshareholderstocasttheirvoteselectronicallyinsteadofphysicalmodeduetoCOVID-19situationandintermsoftherelaxationsissuedbytheMCAvidevariouscirculars.FurtherpostalballotnoticewasalsomadeavailableonthewebsiteofKFintechandwassenttothestockexchangesandplacedonthewebsiteoftheCompanyonthefollowinglinkhttps://www.religare.com/Notices.aspx;

• E-votingwasallowedfromWednesday,April29,2020(9.00A.M.IST)toThursday,May28,2020(5.00P.M.IST)

• TheCompanyalsopublished thePostalBallotNotice in thenewspapers i.e.FinancialExpress (EnglishNewspaper)andJansatta(HindiNewspaper)declaringthedetailsandrequirementsasmandatedbytheActandRules.Further,thenewspaperpublicationsofthePostalBallotNoticewasalsoplacedattheCompany


websiteonthefollowinglinkhttps://www.religare.com/Newspaper-Advertisements.aspx.

• ThevotingrightswerereckonedonthepaidupvalueofthesharesregisteredinthenamesoftheMembers/BeneficialOwnerasonCut-offDate.

• TheresultsofthePostalBallotweredeclaredonMay29,2020anddisplayedonthenoticeboardattheregisteredofficeoftheCompany.Thedateofreceiptofapprovali.e.May28,2020oftherequisitemajorityofshareholdersbymeansofe-votinghasbeentakenasthedateofpassingoftheresolutions;

• The results of the postal ballotwere published in Financial Express (EnglishNewspaper) and Jansatta(HindiNewspaper)andwerealsoplacedatthewebsiteoftheCompanyonthefollowingpathhttps://www.religare.com/Stock-Exchange-announcements.aspxbesidesbeingcommunicatedtotheStockExchangesandRegistrarandShareTransferAgent.

Postal ballot No. 2:Dr.RashmiSaluja,ExecutiveChairperson, Mr.NitinAggarwal,GroupCFOandMs.ReenaJayara,CompanySecretaryoftheCompany,wereappointedaspersonsresponsibleforconductingpostalballotprocess ina fairand transparentmanner.Mr.AnkushAgarwal, (C.P.No.14486)Partner,M/s.MAKS&CO.,PracticingCompanySecretaries(FRN:P2018UP067700)wasappointedasScrutinizerforconductingthePostalBallot process and services of KFinTechnologies Private Limited (formerly known as Karvy Fintech Private

Limited)wereengagedasanAgencyforthepurposeofprovidinge-votingfacility.Mr.AnkushAgarwalconductedthepostalballot/e-votingprocessandsubmittedhisreporttotheChairperson.

AdetailedprocedurefollowedbytheCompanyforconductingthePostalBallotprocessisprovidedhereunder:

Procedure followed for postal ballot 2:

• TheCompany issued thePostalBallotNoticedatedJune17,2020containingdraft resolutions togetherwiththeexplanatorystatementasrequiredunderSection102oftheActsettingoutmaterialfactsandthereasonsfortheSpecialResolutionthroughemailtoalltheMembersoftheCompanywhosenamesappearontheRegisterofMembers/listofBeneficialOwnersasreceivedfromtheDepositories,NationalSecuritiesDepositoryLimited/CentralDepositoryServices(India)LimitedontheCut-OffDatei.e.Friday,June19,2020andwhohaveregisteredtheiremailaddressesinrespectofelectronicholdingswiththeDepositorythrough the concerned Depository Participants and in respect of physical holdings with the Company’s

RegistrarandShareTransferAgent,KFinTechnologiesPrivateLimitedforfacilitatinge-votingtoenabletheshareholderstocasttheirvoteselectronicallyinsteadofphysicalmodeduetoCOVID-19situationandintermsoftherelaxationsissuedbytheMCAvidevariouscirculars.FurtherpostalballotnoticewasalsomadeavailableonthewebsiteofKFintechandwassenttothestockexchangesandplacedonthewebsiteoftheCompanyonthefollowinglinkhttps://www.religare.com/Notices.aspx;

• E-votingwasallowedfromWednesday,June24,2020(9.00A.M.IST)toThursday,July23,2020(5.00P.M.IST).

• TheCompanyalsopublished thePostalBallotNotice in thenewspapers i.e.FinancialExpress (EnglishNewspaper)andJansatta(HindiNewspaper)declaringthedetailsandrequirementsasmandatedbytheActandRules.Further,thenewspaperpublicationsofthePostalBallotNoticewasalsoplacedattheCompanywebsiteonthefollowinglinkhttps://www.religare.com/Newspaper-Advertisements.aspx.

• ThevotingrightswerereckonedonthepaidupvalueofthesharesregisteredinthenamesoftheMembers/BeneficialOwnerasonCut-offDate

• TheresultsofthePostalBallotweredeclaredonJuly24,2020anddisplayedonthenoticeboardattheregisteredofficeoftheCompany.Thedateofreceiptofapprovali.e.July23,2020oftherequisitemajorityofshareholdersbymeansofe-votinghasbeentakenasthedateofpassingoftheresolution;

• The results of the postal ballotwere published in Financial Express (EnglishNewspaper) and Jansatta(HindiNewspaper)andwerealsoplacedatthewebsiteoftheCompanyonthefollowingpathhttps://www.religare.com/Stock-Exchange-announcements.aspx besidesbeingcommunicatedtotheStockExchangesandRegistrarandShareTransferAgent.


Details of Voting Pattern of Postal Ballot 1:

Afterscrutinizingallvotesreceived,thescrutinizerreportedasunder:

RESOLUTION NO. 1 - ApprovalonappointmentofDr.RashmiSaluja(DIN:01715298)asExecutiveChairpersonof the Company (Special Resolution) (Remote E-voting mode only)

Detailsofvotingthroughe-votingontheresolutionaregivenbelow:

VOTING THROUGH REMOTE E-VOTING:

Particulars Number of Valid Votes Percentage of total net valid

votes casted Postal Ballot E-votes Total

Assent NA 14,83,43,575 14,83,43,575 84.18

Dissent NA 2,78,76,055 2,78,76,055 15.82

Total NA 17,62,19,630 17,62,19,630 100

Note: 1 (One) Shareholder holding 5 (Five) Shares abstained from remote E-voting on the Resolution

AdetailedsummaryE-votesisgivenhereinasunder:

Particulars No of share-

holders

No. of the Shares Paid-up value of the Shares

(In Rs.)

% of Total Paid-up Capital

(Approx.)

(a)Totalvotesreceived 117 17,62,19,635 176,21,96,350 62.24

(b)Less:Abstained 1 5 50 Negligible

(c)NetValidVotes 116 17,62,19,630 176,21,96,300 62.24

(d)VoteswithAssent 93 14,83,43,575 148,34,35,750 52.39

(e)Voteswithdissent 26 2,78,76,055 27,87,60,550 9.85

RESOLUTION NO. 2 – ApprovalonGrantofOptionsunderReligareEnterprisesLimitedEmployeeStockOptionPlan2019(“RELESOP2019/Scheme”)totheemployee(s)equivalenttoorexceeding1%ofthecurrentissuedsharecapitaloftheCompany.(Special Resolution) (Remote E-voting mode only)

Detailsofvotingthroughe-votingisgivenbelow:


Particulars Number of Valid Votes Percentage of total net valid votes

castedPostal Ballot E-votes Total

Assent NA 14,82,37,986 14,82,37,986 84.12

Dissent NA 2,79,81,644 2,79,81,644 15.88

Total NA 17,62,19,630 17,62,19,630 100.00

Note: 1 (One) Shareholder holding 5 (Five) Shares abstained from remote E-voting on the Resolution.



Particulars

No of share-holders

No. of the Shares Paid-up value of the Shares

(In Rs.)


(Approx.)(a)Totalvotesreceived 117 17,62,19,635 176,21,96,350 62.24(b)Less:Abstained 1 5 50 Negligible(c)NetValidVotes 116 17,62,19,630 176,21,96,300 62.24(d)VoteswithAssent 88 14,82,37,986 148,23,79,860 52.36(e)Voteswithdissent 28 2,79,81,644 27,98,16,440 9.88

Details of Voting Pattern of Postal Ballot 2:

RESOLUTION NO. 1 - ApprovalofRe-classificationofPromotersandPromotersGroupintoPublicshareholderscategory (Ordinary Resolution) (Remote E-voting mode only)

Detailsofvotingthroughe-votingontheresolutionaregivenbelow:


Particulars Number of Valid Votes Percentage of total net valid votes

casted Postal Ballot E-votes Total

Assent NA 11,82,81,993 11,82,81,993 99.47Dissent NA 6,25,533 6,25,533 0.53Total NA 11,89,07,526 11,89,07,526 100

Note: 7 (Seven) Shareholders holding 1,28,23,587 (One Crore Twenty Eight Lakhs Twenty Three Thousand Five Hundred and Eighty Seven) Shares abstained from remote E-voting on the Resolution


Particulars No of share-

holders

No. of the Shares

Paid-up value of the Shares

(In Rs.)


(Approx.)(a)Totalvotesreceived 176 13,17,31,113 131,73,11,130 46.53(b)Less:Abstained 7 1,28,23,587 12,82,35,870 04.53(c)NetValidVotes 169 11,89,07,526 118,90,75,260 42.00(d)VoteswithAssent 148 11,82,81,993 118,28,19,930 41.78(e)Voteswithdissent 21 6,25,533 62,55,330 0.22

NoSpecialResolutionrequiringPostalBallotisbeingproposedtobeconductedasondateofthisReport.

(iv) Unclaimed Shares

PursuanttoRegulation39(4)readwithScheduleVIoftheSEBIListingRegulationsunclaimedsharesi.e.sharesissued pursuant to thePublic Issues but remaining unclaimed despite of the best efforts of theRegistrar toIssueortheCompany,suchsharesandanyothercorporatebenefitrelatedtothesesharesarerequiredtobetransferredtoaseparateDematSuspenseAccount.

Therefore, the Company opened a separate Demat SuspenseAccount in the name and style of “Religare

Enterprises Limited – IPO Suspense Account” and the shares lying unclaimed as on that date were transferred

totheabovesaidsuspenseaccountonJuly27,2009.


Thedetailsofsuchequitysharesason31stMarch2021areasfollows:

S. No. Description Number of Shares / Shareholders

1 Total number of Shareholders in the Suspense Account at the beginning of

the year

14Shareholders

2 TotalnumberofoutstandingequitysharesintheSuspenseAccountlyingatthe beginning of the year

490EquityShares

3 Number of Shareholders who approached the Company for transfer ofshares and to whom shares were transferred from Suspense Account during

the year

0

4 NumberofsharestransferredfromSuspenseAccounttoBeneficiaryAccountduring the year

0

5 Total number of Shareholders in the Suspense Account at the end of the

year

14Shareholders

6 TotalnumberofoutstandingequitysharesintheSuspenseAccountlyingatthe end of the year

490EquityShares

Further, thevotingrightsonthesesharesshall remainfrozentill therightfulownerofsuchsharesclaimstheshares.

G. DISCLOSURES

(i) Related Party Transactions

Allthecontract/arrangements/transactionsenteredintowithRelatedPartiesaspertheActandRegulation23oftheSEBIListingRegulationsduringtheFinancialYear2020-21wereinordinarycourseofbusinessandonanarm’slengthbasisanddonotattractprovisionsofSection188oftheAct.Further,therewasnomateriallysignificant relatedparty transactionwhich required shareholder’s approval andwas required to bedisclosedquarterlyalongwiththecompliancereportonCorporateGovernance.

Therequiredstatements/disclosureswithrespecttotherelatedpartytransactionsareplacedbeforetheAuditCommittee on regular basis. Suitable disclosures so required are in accordancewith the IndianAccountingStandards(Ind-AS)asnotifiedunderSection133oftheActhavebeenmadeinnotestotheFinancialStatements.

Further,theCompanyhasnotenteredintoanytransactionofmaterialnaturewithPromoters,PromoterGroup,theDirectorsor themanagement, theirsubsidiariesor relativesetc. thatmayhaveanypotentialconflictwiththeinterestoftheCompany.Therelatedpartytransactionsareenteredintobasedonconsiderationsofvariousbusinessexigencies, suchas synergy inoperations, and theCompany’s long termstrategy for investments,profitability,legalrequirements,liquidityandcapitalresourcesofsubsidiaries,associatesandgroupcompanies.

The Company has formulated a policy on materiality of Related Party Transaction and on dealing with Related

PartyTransactions.ThesaidPolicyisalsopostedonthewebsiteoftheCompany&canbeaccessedthroughthelinkhttps://www.religare.com/pdf/Related_party_Transaction_Policy_02042019.PDF

AspertheSEBIamendmentstoRegulation23ofSEBIListingRegulations,theCompanyhassubmittedareporton all related party transactions entered into by the Company on consolidated basis on half yearly periodicity as

pertheformatprescribedintherelevantaccountingstandardstoNSEandBSEwithin30daysofpublicationofthestandaloneandconsolidatedFinancialResults.ThesaidreporthasalsobeenpostedontheCompany’swebsite and can be accessed at https://www.religare.com/Stock-Exchange-announcements.aspx.


(ii) Disclosure of accounting treatment in preparation of Financial Statements

TheCompanyhasadoptedIndianAccountingStandard(Ind-AS)notifiedunderSection133oftheCompaniesAct,2013readwiththeCompanies(IndianAccountingStandard)Rules,2015fromApril01,2018witheffectivetransitiondateofApril01,2017.Accordingly, thefinancialstatements for thefinancialyearendedMarch31,2021togetherwiththecomparativereportingperiodhavebeenpreparedinaccordancewiththerecognitionandmeasurementprincipalsaslaiddowninInd-AS.

ThesignificantaccountingpolicieswhichareconsistentlyappliedhavebeensetoutintheNotestothefinancialstatements.

(iii) Management Discussion and Analysis Report

TheManagementDiscussionandAnalysisreportformspartoftheAnnualReport.

(iv) Details of non-compliance by the Company

NeitheranypenaltynoranystricturehasbeenimposedbySEBIoranyotherStatutoryAuthorityonanymatterrelatingtocapitalmarkets,duringthelastthreeyearsexceptasmentionedhereinbelow:

1. NSE&BSEvidetheircommunicationsdatedJune15,2018&June18,2018respectivelyleviedafineofRs.5,000/-plusapplicabletaxeseachfordelayedsubmissionoffinancialresultsfortheperiodendedMarch31,2018byoneday.InviewofthefactthatthemeetingoftheBoardofDirectorstoconsiderandapprovetheAuditedFinancialResultsfortheFY2017-18heldonMay30,2018commencedat10:30a.m.onMay30,2018andendedat2.30a.m.onThursday,May31,2018,theCompanyrequestedNSEandBSEtowaiveoffthefineimposedontheCompanybycondoningthemarginaldelayofapproximatelythreehoursinsubmissionoftheauditedannualfinancialsforFY18.

NSEvideitsletterdatedFebruary04,2019waivedoffthetotalfinewhilethereisnofurthercommunicationfromBSEontheresponsesubmittedbytheCompany.Further,therefundoffineofRs.5,000/-wascreditedtotheCompanyfromNSEonFebruary17,2021.

2. SEBIhasissuedanoticedatedJuly05,2018toshowcauseastowhyaninquiryshouldnotbeheldagainstit, in termsofRule4ofAdjudicationRules,1995readwithSection15-Iof theSEBIAct,1992andwhypenalty,ifany,shouldnotbeimposedonitundertheprovisionsofSection15A(b)oftheSEBIAct,1992fordelayinfilingofdisclosuresintermsofregulation7(2)(b)ofSEBIPITRegulations,2015w.r.t.dealinginsecuritiesoftheCompanybyMr.SunilGodhwani.

Inresponsetotheabove,theCompanysubmittedtheSettlementApplicationonAugust24,2018.

SEBIvideOrderdatedJanuary17,2019disposedofftheAdjudicationProceedinginitiatedvideaboveshowcausenotice.TheCompanyhaspaidRs.2Lakhsasconsentfeesforsame.

3. NSEandBSEvidetheirrespective letterdatedNovember01,2019andOctober31,2019, leviedafineofRs.1,45,000/-plus18%GSTfornon-complianceofRegulation17ofSEBIListingRegulationsi.e.nothavingminimum6DirectorsontheBoardoftheCompanyforaperiodof29daysduringthequarterendedSeptember30,2019.

In thematter, theCompanyvide its letterdatedNovember05,2019submittedclarification tobothNSEandBSEstating that theCompanyhadappointed3 newNon-ExecutiveNon-IndependentDirectors ontheBoardoftheCompanyduringtheperiodfromFebruary2018tillNovember2018whichweresubjecttotheapprovalfromReserveBankofIndia(RBI)undertheMasterDirections–CoreInvestmentCompanies(ReserveBank)Directions2016andrequestedthestockexchangestowaiveoffthefine.However,NSEadvisedtheCompanytomakepaymentsaspertheapplicableSEBICircularandalsomentionedthataseparate committeeof theNSEwill consider thematter ofwaiver of the fine imposed.Accordingly, theCompanydepositedthefinetoNSEonNovember13,2019.


In thematter,NSEvide its letter datedDecember 11, 2020waivedoff the fine leviedon theCompanyregardingnon-compliancewithRegulation17ofSEBIListingRegulationsandrefundedtheentirepenaltyamountofRs.1,45,000/-totheCompanyonFebruary17,2021.

Further,BSEalsovidecommunicationdatedMay19,2021informedthatafterconsideringthefactsofthecaseandthecompany’srepresentation,theyhavedecidedtowaivethefinesleviedinthematter.

4. WithreferencetotheCorporateGovernanceReportssubmittedbytheCompanyforthequarter/periodendedMarch31,2020,June30,2020andSeptember30,2020, thestockexchangesviz;NSE&BSEvidetheirrespectivelettersdatedJuly02,2020,August20,2020,November17,2020andJuly03,2020,August20,2020,November17,2020hadleviedafineofRs.70,000/-,Rs.1,82,000/-,Rs.1,28,000/-eachrespectivelyfornon-compliancerelatingtheConstitutionofAuditCommitteeasrequiredunderRegulation18(1)(b)ofSEBIListingRegulationssaying thatTwo thirdsof themembersofAuditCommitteearenotIndependent.

TheCompany submitted theapplication(s) forwaiver of fine imposedwithNSEalongwith thedetailedclarification/justificationonAuditCommitteeconstitutionoftheCompanyandalsodepositedthefineasadvisedtoNSE.

SimilarrepresentationsweremadetoBSEaswellvidevarioussubmissionsinthematter.

BSEvidecommunicationdatedMay19,2021informedthatthe justificationsubmittedbythecompany’srepresentation for waiver of fine was placed before the “Committee for Reviewing Representations forWaiverofFinesLeviedunderStandardOperatingProcedure(SOP)”.TheCompanyjustification/reasondoesnotfallunderanyofthecarve-outsjointlyformulatedbyBSEandNSEandnotedbySEBI,thereforetherequestforwaivercouldnotbeaccededto.TheCompanywasadvisedtodepositthefinesoutstanding.Accordingly,theCompanydepositedtheaforesaidfinestoBSEonMay26,2021.

ThefineswerealreadysubmittedwiththeNSEearlier.NSEalsovideletterdatedJune28,2021rejectedtherequestforwaiveroffinesinthematter.

5. InconnectionwiththeinvestigationoftheCompany/RELinitiatedbySEBIinFebruary2018,theCompanyand its subsidiary RFL have cooperated in the aforesaid investigation and have provided the requisiteinformation/documentsfromtimetotimeandmadenecessarysubmissionswithSEBI.SEBIvideitsOrderdatedNovember12,2020hasissueddirectionstoinitiateadjudicationproceedingsunderappropriatelegalprovisionsagainstcertainentitiesmentionedinthesaidOrder.Thereafter,theCompanyreceivedtheShowCauseNoticedatedNovember17,2020forallegedviolationofprovisionsofSection12A(a)(b)&(c)oftheSEBIAct,1992(“SEBIAct”)andRegulations3(b),3(c)&3(d),4(1),4(2)(f),and4(2)(r)of theSEBI(PFUTP)Regulations,2003aswellasclauses32and36oftheListingAgreement,Clause49(I)(C)(1)(a)&49(I)(C)(1)(d)oftheListingAgreement[postcirculardatedApril17,2014]readwithRegulation103ofListingRegulationsandSection21oftheSecuritiesContract(Regulation)Act,1956;Regulations4(1)(a),4(1)(b),4(1)(c),4(1)(d),4(1)(g),4(1)(h),4(1)(i),4(1)(j),30(1),and48ofListingRegulations.

RELwascalledupontoshowcauseastowhyappropriatedirections,asdeemedfit,underSections11B(1)and11(4)readwithsection11(1)ofSEBIActandSection12A(1)ofSCRAAct,1956shouldnotbeissuedagainstit.RELwasfurthercalledupontoshowcauseastowhyappropriatedirectionsforimposingpenaltyunderSections11(4A)and11B(2)readwithSection15HAand15HBofSEBIActandsection12A(2)readwithSection23EoftheSCRAAct,1956andSEBI(ProcedureforHoldingInquiryandImposingPenalties)Rules,1995andSecuritiesContract (Regulation) (Procedure forholding inquiryand imposingpenalties)Rules,2005shouldnotbeissuedagainstREL.REL&RFLhavejointlyfiledreplyandpartargumentshavealsobeenheardinthematter.

InthesaidShowCauseNotice,SEBIhasalsomentionedthatasettlementmechanismisprovidedundertheSEBI(SettlementProceedings)Regulations,2018.Further,RELandRFLhavefiledajointapplicationforsettlementwithSEBIinaccordancewithprovisionsofSEBI(SettlementProceedings)Regulations,2018onMarch31,2021whichispendingfordisposalasondate.


(v) Details of Compliance with mandatory requirements

TheCompanyhascompliedwithallmandatoryrequirementsofSEBIListingRegulationsexceptasmentionedelsewhereinthisreportandintheComplianceCertificateissuedbyM/sSanjayGrover&Associates,PracticingCompanySecretaries.

ComplianceCertificateissuedbyM/sSanjayGrover&Associates,PracticingCompanySecretariesisannexedtothisReport.

(vi) Details of Adoption of Non-Mandatory requirements

TheCompanyhasadoptedthenon-mandatoryrequirementsofRegulation27readwithPartEofScheduleIIoftheSEBIListingRegulationsinfollowingmanner.

i. The Board

TheChairpersonoftheCompanyisanExecutiveDirector.

ii. Shareholders’ Rights

ThequarterlyresultsoftheCompanyarepublishedinEnglishnewspaper(Mint/FinancialExpress,asperavailability)andaHindinewspaper(RashtriyaSahara/Jansatta,asperavailability),havingwidecirculationinDelhi.Further,thequarterlyresultsarealsopostedonthewebsiteoftheCompanyandcanbeaccessedon https://www.religare.com/Quarterly-Annual-Results.aspx..Inviewoftheforgoing,thehalfyearlyresultsoftheCompanyarenotsenttotheShareholdersindividually.ThecompletecopyoftheAnnualReportissenttotheshareholdersoftheCompany.Further,theCompanyalsopublishtheotherimportantnotices/information in English newspaper (Financial Express) and a Hindi newspaper (Jansatta), having widecirculationinDelhibesidesuploadingthesameonthewebsiteoftheCompany.

iii. Modified Opinion(s) in Audit Report

TheCompanybelievesinmaintainingitsaccountsinatransparentmannerandaimsatreceivingunqualifiedreportofauditorsonthefinancialstatementsoftheCompany.

However,theAuditorshavequalifiedtheirreportsinthefinancialyear2016-17,2017-18,2018-19,2019-20and2020-21.ManagementresponsesonthequalifiedopinionshavebeenprovidedintheDirectorsReportofrespectiveyears.

iv. Reporting of Internal Auditor

TheInternalAuditorsoftheCompanyreportsdirectlytotheAuditCommitteeoftheCompany.

(vii) Whistle-Blower Policy/ Vigil Mechanism

The Company promotes ethical behaviour in all its business activities and has put in place a mechanism in form

ofWhistleBlowerPolicy(“PolicyorMechanism”)fordirectorsandemployeestoreportconcernsaboutunethicalbehaviour,actualorsuspected fraudorviolationof theCompany’scodeofconductorethicspolicyandanyleak/suspectedleakofUnpublishedPriceSensitiveInformation.Policy isapplicabletoall theDirectorsof theCompany,permanent&contractualemployeesoftheCompanybasedinIndiaoroutside,employeesofotheragenciesdeployed for thecompany,contractors,vendors,suppliersoragencies (oranyof theiremployees),customersof theCompanyandanyotherpersonhavinganassociationwith theCompany.Mechanismalsoprovideforadequatesafeguardsagainstvictimizationofdirector(s)/employee(s)whoavailofthemechanismandalsoprovidefordirectaccesstotheChairpersonoftheAuditCommittee.ThedetailofestablishmentofsuchPolicy/MechanismisalsouploadedonthewebsiteoftheCompany&canbeaccessedthroughthefollowinglinkhttps://www.religare.com/pdf/Religare_Whistle_Blower_Policy_Feb10_2021.pdf.

It isherebyconfirmed thatduring theyearunder review,nopersonnelhasbeendeniedaccess to theAuditCommittee.


(viii) CEO/ CFO Certification

ThecertificatedulysignedbytheExecutiveChairpersonandGroupCFOconfirmingcomplianceofPartBofScheduleIIoftheSEBIListingRegulationswasplacedbeforetheBoardatitsmeetingandthesameisannexedandformspartofthisAnnualReport.

(ix) Code of Conduct

In compliance with Regulation 17 of the SEBI Listing Regulations, the Company has formulated andadoptedaCodeofConductapplicable to theBoardMembersaswellas theSeniorManagementPersonneland the same has been placed on the web-site of the Company i.e. https://www.religare.com/pdf/REL_CodeofConductforBoardMembers_May16.pdf and https://www.religare.com/pdf/Code_of_Conduct_for_Senior_Management_Personnel_02042019.pdfrespectively.

TheCodeofConductinter-aliaincludesthedutiesoftheIndependentDirectorsasprescribedundertheAct.AlltheBoardMembersandtheSeniorManagementPersonneloftheCompanyhaveaffirmedcompliancewiththeCodeofConductasonMarch31,2021exceptlateMr.SushilChandraTripathibecauseofhisprolongedill-healthandsaddemiseduetoCovid-19disease..

Adeclaration to thiseffect, duly signedbyExecutiveChairperson, isannexedand formspart of thisAnnualReport.

(x) Procedures for fair disclosure of Unpublished Price Sensitive Information and Prevention of Insider Trading

TheCompany has adopted theCode of Practices andProcedures for FairDisclosure ofUnpublishedPriceSensitiveInformation(“FairDisclosureCode”)andCodeofConductforPreventionofInsiderTrading(“InsiderCode”)withaviewtodealwithUnpublishedPriceSensitiveInformationandtradinginsecuritiesbyDirectors,employeesoftheCompany,DesignatedPersonsandConnectedPersons.TheCompanySecretaryisComplianceOfficerforthepurposeofInsiderCode.

Duringtheyear,theCompanyhasamendedtheexistingInsiderCodeandFairDisclosureCodeoftheCompanyfor incorporating the provisions / amendments introducedbySEBI vide notification dated July 17, 2020.Mr.MayurRanjanDwivedi,Director&Head-Strategy,M&AandInvestorRelations,istheChiefInvestorRelationsOfficerforthepurposeoftheFairDisclosureCode.BoththeFairPracticeCodeandInsiderCodehavebeenpostedon thewebsiteof theCompanyon the following linkhttps://www.religare.com/pdf/Code_of_Practices_and_Procedures_for_Fair_Disclosure_of_Price_Sensitive_15092020.pdf and https://www.religare.com/pdf/Code_of_Conduct_for_Prevention_of_Insider_Trading.pdf

(xi) Risk Management Framework

TheCompanyhasinplaceamechanismtoinformtheBoardmembersabouttheRiskassessmentandmitigationplansandperiodicalreviewsthroughRiskManagementCommitteetoensurethatcriticalrisksarecontrolledbythemanagement.Thedetailsof theRiskManagementCommitteeareprovidedelsewhere in thisReportanddetailsofRiskManagementFrameworkareprovidedinDirector’sReport.

(xii) Compliance with Corporate Governance Requirements

During the financial year 2020-21, the Company has complied with Corporate Governance requirementsspecifiedinRegulation17to27andclauses(b)to(i)ofSubregulation(2)ofRegulation46oftheSEBIListingRegulations except asmentioned in theComplianceCertificate issued byM/s SanjayGrover &Associates,PracticingCompanySecretariesorelsewherementionedinthisreport.

(xiii) Dividend Distribution Policy:

In pursuant to introduction ofRegulation 43A of theSEBI ListingRegulations, theCompany had adopted aDividendPolicyonOctober26,2016whichdefinesthefinancialparametersandfactorsthatwereconsideredfordeclarationandpaymentofdividendtoitsshareholders.Thedeclarationanddistributionofdividends,whetherinterimorfinal,willatalltimes,beinaccordancewiththeActandSEBIListingRegulations,suchotherapplicablelawsandArticleofAssociationoftheCompanyasamended.


TheDividendPolicyoftheCompanyispostedonthewebsiteoftheCompanyi.e.https://www.religare.com/pdf/Rel_Dividend_PolicyNov2016.pdf.TherehasbeennochangeinthesaidPolicyduringtheFinancialYearendedMarch31,2021.However,itmaypleasebenotedthattheCompanydoesnotfallinthelistoftopfivehundredlistedentitiesbasedonmarketcapitalizationasonMarch31,2021.Further,RBIvideitsletterdatedApril5,2019hasadvisedtheCompanytostoppayingdividendstillfurtherordersfromtheRBIandcontinuestobarredsoasperRBILetterdatedDecember19,2019.NofurtherorderhasbeenpassedbyRBIinthemattertillthedateofthisReport.

(xiv) Details of utilisation of fund raised through Preferential Allotment of convertible warrants

DuringtheyearendedMarch31,2021,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorconvertiblesecuritiesandhencenofundsarependingforutilisationasonMarch31,2021.

However,postMarch31,2021,theCompanyhasraisedfundsamountingtoRs.570cr.bymakingpreferentialallotmentof5,41,56,761equitysharesintermsofSEBI(IssueofCapitalandDisclosureRequirement)Regulations,2018onJuly14,2021atissuepriceofRs.105.25/-pershare(includingapremiumofRs.95.25pershare)intermsoftheapprovaloftheBoardofDirectorsandShareholdersoftheCompanyobtainedonJune08,2021andJuly03,2021respectively.

TheAuditCommitteeoftheCompanyreviewsthestatementofutilizationoffundsasandwhenrequired.

(xv) Business Responsibility Report (“BRR”)

Regulation34oftheSEBIListingRegulationsmandatestheinclusionoftheBusinessResponsibilityReportaspartoftheAnnualReportforthetop1000listedentitiesbasedonmarketcapitalizationasattheendofimmediatepreviousfinancialyear.

Accordingly,BusinessResponsibilityReportfortheFY2020-21oftheCompanyformspartofthisAnnualReport.

(xvi)Therewasnoinstanceduringfinancialyear2020-21whentheBoardhadnotacceptedanyrecommendationofanyCommitteeoftheBoard.

H. SUBSIDIARY COMPANIES

In termsofRegulation 16(1)(c) of theSEBI ListingRegulations,material subsidiaries are the subsidiarieswhoseincomeornetworthexceeds10%oftheconsolidatedincomeornetworthrespectively.Accordingly,foryearendedMarch 31, 2021,Religare Finvest Limited (on the basis of income as well as net worth), CareHealth InsuranceLimited(formerly known as Religare Health Insurance Company Limited)(on the basis of income as well as networth),Religare Housing Development Finance Corporation Limited (RHDFCL) (on basis of networth), Religare BrokingLimited(on basis of networth)andReligareCommoditiesLimited(on basis of networth)are‘materialnon-listedIndiansubsidiaries’asdefinedunderRegulation16(1)(c)oftheSEBIListingRegulations.

TheCompanyhasupdated thepolicy for determining ‘material’ subsidiaries in termsofSEBIListingRegulationsandsuchpolicyisuploadedontheCompany’swebsiteandcanbeaccessedthroughthefollowinglinkhttps://www.religare.com/pdf/Subsidaries_Policy.pdf

Asaholdingcompany,theperformanceofsubsidiariesismonitoredbythefollowingmeans:

• TheAuditcommittee/BoardoftheCompanyquarterlyreviewsthefinancialstatementsoftheunlistedsubsidiarycompanies,inparticulartheinvestmentsmadebythesecompanies.

• MinutesofBoardmeetingsoftheunlistedsubsidiarycompaniesareplacedbeforetheBoardmeetingsoftheCompanyperiodically.

• A statement containing all significant transactions and arrangements entered into by the unlisted subsidiarycompaniesisplacedattheBoardmeetingsoftheCompanyperiodically.

• SecretarialauditiscarriedoutforallmaterialunlistedIndiansubsidiariesoftheCompanybyCompanySecretaryinwholetimepractice.Further,theSecretarialAuditReportofallmaterialunlistedIndiansubsidiariesformspartoftheAnnualreport.


I. MEANS OF COMMUNICATION

InaccordancetoRegulation46ofSEBIListingRegulations, theCompanyhasmaintaineda functionalwebsiteatwww.religare.com.TheCompany’squarterly(un-audited),andannualfinancialresults(audited)aresubmittedtotheStockExchangesimmediatelyaftertheseareapprovedbytheBoardinaccordancewiththerequirementsoftheSEBIListingRegulations.TheAnnualReportoftheCompanyandthequarterly/annualfinancialresultsoftheCompanyarealsoplacedontheCompany’swebsiteandcanbeaccessedfromthefollowinglinkhttps://www.religare.com/annual-reports.aspx and https://www.religare.com/Quarterly-Annual-Results.aspx and can further be downloaded. Thesefinancialresultsaregenerallypublishedinoneoftheleadingnewspapersofcountryi.e.FinancialExpress/MintinEnglishandJansatta/RashtriyaSaharainHindi(asperavailabilityofpublications)andaredisplayedonthewebsiteof theCompany i.e.https://www.religare.com/Newspaper-Advertisements.aspx.Further, theCompanyalsopublishtheotherimportantnotices/informationinFinancialExpressEnglishnewspaperandJansattainHindinewspaper,havingwidecirculationinDelhibesidesuploadingthesameonthewebsiteoftheCompanyfromtimetotime.

OfficialnewsreleasesandofficialpressreleasesaresenttoNSEandBSEbeforesendingthesametomediaandarealsodisplayedontheCompany’swebsitei.e.https://www.religare.com/Stock-Exchange-announcements.aspx.

There is a separate dedicated section under ‘’Investors Relations” on the Company’s website i.e. www.religare.comwhichgivesinformationonunclaimeddividends,quarterlycompliancereports/communicationswiththeStockExchangesandotherrelevantinformationofinteresttotheinvestors/public.ThepresentationsmadetotheInvestorsareavailableonthewebsite.

All thecorporatecommunication to theStockExchangesviz.BSELimitedandNationalStockExchangeof IndiaLimitedarefiledelectronicallyonBSE’son-lineportali.e.BSEListingCentre.Likewise,thesaidinformationisalsofiledelectronicallywithNSEthroughNSE’sNSEElectronicApplicationProcessingSystem(NEAPS)portal.TheStockExchangefilingsarealsomadeavailableonthewebsiteoftheCompanyandcanbeaccessedathttps://www.religare.com/Stock-Exchange-announcements.aspx.

The Company has designated an e-mail ID called [email protected] exclusively for redressal ofShareholders/Investorscomplaints/grievances.ShareholdersmayalsocontactCompany’sRegistrarandTransferAgent,KFinTechnologiesPrivateLimited to reportanygrievance.Contactdetailsof theRTAareavailable in the“InvestorContact”sectionavailableathttps://www.religare.com/investor-contacts.aspx.

J. GENERAL SHAREHOLDERS INFORMATION

(i) Annual General Meeting

DuetoCOVID-19pandemicsituationandmandatorysocialdistancingnorms imposedbytheGovernmentofIndiaandStateGovernmentsasapreventivemeasuretocontainthespreadofcoronaviruscases/impactonthepublic,MinistryofCorporateAffairs(MCA)hastakenmeasurestoproviderelaxationtothecompaniestoovercomedifficultiesandensurevariouscompliancesinasmoothmanner.

In this regard,MinistryofCorporateAffairsvide itsGeneralCircularsNo.20/2020datedMay05,2020 readwithGeneralCircularNo.14/2020datedApril08,2020,GeneralCircularNo.17/2020datedApril13,2020,andGeneralCircularNo.02/2021datedJanuary13,2021hadallowedcompaniestoconducttheirAnnualGeneralMeetingthroughvideoconference/otheraudiovisual(VC/OAVM)meanstillDecember312021,withoutphysicalpresenceofshareholdersatacommonvenuesubjecttofulfilmentofcertainpre-requisiteconditions.

Accordingly,adheringtosocialdistancingnormsandrestrictionsplacedongatheringofpersonsandintermsoftheaboveMCACirculars,ithasbeendecidedbytheCompanytoholdits37thAnnualGeneralMeeting(AGM)throughVC/OAVMasperthedetailsmentionedhereunder:

Date : Wednesday,September29,2021 Time : 4.00P.M(IST)

(ii) Financial Calendar (tentative)

Thefinancialyearcoverstheperiodstartingfrom1stAprilandendingon31stMarch.


AdoptionofQuarterlyResults

For the Quarter ended on or before (actual & tentative for future quarters) June30,2021 August12,2021(SubjecttoLimitedReview) September30,2021 November14,2021(SubjecttoLimitedReview) December31,2021 February14,2022(SubjecttoLimitedReview) March31,2022 May30,2022(Audited)

(iii) Dividend Payment Date TheCompanyhasnotrecommended/paidanydividendfortheperiodunderreview.

(iv) Listing on Stock Exchanges

EquitySharesoftheCompanyarecurrentlylistedonthefollowingStockExchanges:I. BSE Limited (BSE)

Address:PhirozeJeejeebhoyTowers,DalalStreet,Mumbai400001;II. National Stock Exchange of India Limited (NSE) Address:“ExchangePlaza”C-1,BlockG,BandraKurlaComplex,Bandra(East),Mumbai400051 NationalSecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSL)are

thedepositoriesfortheequitysharesoftheCompany. TheAnnualListingFeesfortheyear2020-21and2021-22havebeenpaidbytheCompanytobothNSE

andBSEwheretheCompany’sequitysharesarelisted.TheequitysharesoftheCompanyhavenotbeensuspendedfromtradingontheStockExchangesorbyanyRegulatory/StatutoryAuthority.

Payment of Depository Fees AnnualCustody/Issuer fee for theyear2021-22hasbeen/ isbeingpaidby theCompanytoCDSLand

NSDL.

(v) Scrip Symbol / Code NSE RELIGARE BSE 532915 Corporate Identification Number (CIN) L74899DL1984PLC146935

(vi) Market Price Data InINR

Month Bombay Stock Exchange (BSE) National Stock Exchange (NSE)High Low Volume (Number

of Shares)High Low Volume (Number

of Shares)April2020 32.00 19.95 5,36,245 31.85 20.00 34,82,995May2020 25.40 21.05 3,18,642 25.60 21.00 21,92,706June2020 43.50 24.50 26,46,821 43.45 24.25 1,25,45,482July2020 43.20 33.50 25,12,241 43.00 33.95 1,11,05,861August2020 46.00 33.70 14,02,274 44.85 33.55 1,25,56,094September2020 50.55 36.95 13,93,313 50.55 37.30 1,80,79,468October2020 55.15 44.75 12,15,083 55.20 44.50 1,16,64,699November2020 67.30 47.10 17,61,688 67.35 49.15 1,94,96,601December2020 75.85 60.65 49,26,044 76.00 60.20 2,10,56,072January2021 72.65 60.70 1,86,12,053 72.75 60.45 92,70,967February2021 93.05 61.60 27,65,690 93.20 61.80 2,18,18,289March2021 102.65 80.55 39,21,143 102.70 77.55 2,99,79,171


(vii) Registrar & Transfer Agent (RTA) KFin Technologies Private Limited (KFINTECH)

(formerly known as Karvy Fintech Private Limited)

Address: SeleniumTowerB, Plot31-32,Gachibowli,FinancialDistrict, Nanakramguda,SerilingampallyMandalHyderabad-500032 Telephone:Tollfreenumber-1-800-309-4001 Email:[email protected] Website:https://www.kfintech.com

(viii) Share Transfer System TheCompanyhasappointedKFinTechnologiesPrivateLimited(formerlyknownasKarvyFintechPrivate

Limited)(“KFINTECH”)astheRegistrarandShareTransferAgent.NameofKarvyFintechPrivateLimitedchanged toKFinTechnologiesPrivate Limitedw.e.f.December 05, 2019.TheCompany’sEquity share


beingincompulsoryDematlist,aretransferablethroughthedepositorysystem.TheBoardhasdelegateditsauthorityforapprovingtransfer,transmissionandsoonoftheCompany’ssecuritiestotheStakeholdersRelationshipCommittee.ThesharetransferprocessisreviewedbythesaidCommittee.

Further,SEBIvideitscirculardated20thApril,2018,hasmandatedtosubmitthePANandBankAccountdetailsbyallshareholderstotheRegistrarandTransferAgentoftheCompany.Inthisregard,theCompany,through its Registrar and Transfer Agent has already sent three notices to the shareholders for submission

oftheirPANandBankAccountdetailsforregistration/updation.Furthermore,theRTAisrequiredtosubmittotheCompanyonquarterlybasissoftcopyoftheMembersdataatendofeachquarterofeveryfinancialyearandSEBIfurthermandatesthattheRTAandtheCompanyshallmaintainthesesrecordsonpermanentbasis.

SEBIhasamendedRegulation40ofSEBIListingRegulationsvideitscirculardatedJune08,2018whereinitwas intimatedthatexcept for transmissionor transpositionofsecurities, transferofsecuritiesshallnotbeprocessedunlessthesecuritiesareheldinthedematerializedformwithadepositorywitheffectfromDecember5,2018.SEBIfurtherextendedthedeadlinefortransferofsecuritiesonlyinDematModeeffectivefromApril01,2019.Therefore,SEBImandatestoholdsharesinDematformwithadepositoryforinvestorskeentotradethempostApril01,2019.ThereforetheshareholdersoftheCompanyarerequestedtogettheirphysicalsharesdematerialisedforanyfurthertransfers.

AspertheprovisionsoftheAct,facilityformakingnominationisavailableforMembersinrespectofsharesheld by them. Members holding shares in physical form may obtain nomination form, from the ShareDepartmentoftheCompanyorRegistraroftheCompany.MembersholdingsharesindematerializedformshouldcontacttheirDepositoryParticipants(DP)inthisregard.

TheCompanyhasobtainedhalf-yearlycertificateofcompliancerelatedtothesharetransferformalitiesfromaCompanySecretaryinpracticeasrequiredunderRegulation40(9)oftheSEBIListingRegulationsandfiledacopyofthecertificatesimultaneouslywiththeStockExchangesunderRegulation40(10)oftheSEBIListingRegulationsduringtheFY2020-21.

(ix) Shareholding Pattern as on March 31, 2021

Category No. of Shares held

Percentage of Shareholding (%)

(A) Shareholding of Promoter and Promoter Group1

1 Indian 7,66,754 0.302 Foreign 30,000 0.01

Total Shareholding of Promoter and Promoter Group 7,96,754 0.31

(B) Public Shareholding2

1 InstitutionsMutualFunds/Trusts 1,91,293 0.07AlternateInvestmentFunds 17,89,295 0.69QualifiedInstitutionalBuyer 11,02,660 0.43FinancialInstitutions/Banks 0 0.00ForeignPortfolioInvestors 4,26,89,277 16.46

2 Non-institutionsBodiesCorporate 9,09,17,753 35.05NBFC’s 10,535 0.00IndianPublicandOthers 12,19,16,335 47.00Total Public Shareholding 25,86,17,148 99.69

(C) Shares held by Custodians and against whichDepository Receipts have been issued

1 PromoterandPromoterGroup NIL NIL2 Public NIL NIL

TOTAL (A) + (B) + (C) 25,94,13,902 100.00


1Fordefinitionsof“Promoter”and“PromoterGroup”refertoRegulation2(w)ofSEBIListingRegulations. 2Fordefinitionof“PublicShareholding”,refertoRegulation2(y)oftheSEBIListingRegulations.

Re-classification of Promoters and Promoters Group:

TheCompanysubmittedtheapplicationforre-classificationofPromotersandPromotersGrouptothestockexchangeson July 31, 2020after obtainingapproval of shareholders of theCompany throughordinaryresolutionbymeansofPostalBallotonJuly23,2020,theresultsofwhichweresubmittedonJuly24,2020.

TheCompanyhasreceivedapprovalofboththestockexchangesviz.NationalStockExchangeofIndiaLimitedandBSELimitedonJune11,2021andJune12,2021respectivelyforre-classificationoffollowingPromoters&PromoterGroupintopubliccategory:

Promoters

1. MalvinderMohanSingh2. ShivinderMohanSinghPromoters Group

3. JapnaMalvinderSingh4. AditiShivinderSingh5. AbhishekSingh6. RHCFinancePrivateLimited7. RHCHoldingPrivateLimited8. PSTrust(heldinthenameofMalvinderMohanSingh&ShivinderMohanSingh)

Inthisregard,30,000sharesheld/acquiredbyNimritaParvinderSingh(whomtheCompanybelievedtobetheDaughterofMalvinderMohanSingh,oneoftheerstwhilePromoters)duringthequarterendedMarch31,2021wereincludedintheShareholdingPatternunderthecategoryofPromotersGrouponlytocomplywithCompany’sdisclosurerequirementsintermsoftheSEBIListingRegulationsandSEBI(IssueofCapitalandDisclosureRequirements)Regulations,2018(SEBI ICDR Regulations) since she was falling under

definitionofPromoterGroupprovidedintheSEBIICDRRegulations.

However, nowconsequent to theapproval ofRe-classificationofPromoters (MalvinderMohanSingh&ShivinderMohanSingh) intoPublicCategory,NimritaParvinderSingh is automatically out of PromoterGroup as defined in SEBI ICDR Regulations and hence is not being classified under the Promoters /PromotersGroupintheShareholdingPatternoftheCompanyw.e.f.June12,2021.

PursuanttotheRe-classificationofPromoters/PromotersGroup,theCompanyhasnowbecomea“Listed

entity with no Promoters”.

Voting Rights accrued on the Preference Share Capital

The Company has two types of Preference shares outstanding as on date comprising 15 lakh13.66%CumulativeNon-ConvertibleRedeemablePreferenceSharesofRs.10/-each issued in2008(2008PreferenceShares)and2.5crore0.01%Non-CumulativeNon-ConvertibleRedeemablePreferenceSharesofRs.10/-eachissuedin2016(2016PreferenceShares).

Duetonon-paymentofdividendbytheCompanycontinuouslyfortwoyearson2016PreferenceShares,theholderofthesesharesareentitledforvotingrightsofapprox.8.79%onthetotalvotingcapitaloftheCompanyasonMarch31,2021.

However,TheCompanyhasfiledthepetitionbeforetheHon’bleNationalCompanyLawTribunal,NewDelhiBenchonJune14,2019seekingrectificationofRegisterofMembersoftheCompanybycancellationof2016PreferenceSharesandanyotherappropriatereliefs,includinginterimreliefwithrespecttofreezingofvotingrightsanddividendrightsattachedtothesaid2016PreferenceShares.Thematterissubjudice.


The said application / petition were filed by the Company basis certain facts discovered by the newManagementrelatingtoirregularity/illegalityinissuanceofsaidPreferenceShares.TheCompanyhasalsomadeacomplaintwiththeEconomicOffencesWingoftheDelhiPoliceinMarch2019againstPromotersand others for various offences under the IndianPenalCode, 1860 including the offences of cheating,criminalbreachoftrust,criminalmisappropriation,forgery,forgeryforthepurposesofcheatingandcriminalconspiracyw.r.ttransactionsrelatingtoissuanceandredemptionofPreferenceSharesintheCompany.

List of Public Shareholders holding more than 1% shareholding of the Company as on March 31, 2021

Sr.

No.

Name of the shareholder No. of Shares held

Percentage of Shareholding

(%)

1 PuranAssociatesPrivateLimited 18,164,432 7.00

2 InvestmentOpportunitiesVPteLimited 17,638,579 6.80

3 ChandrakantaRockBuildersandDevelopersPrivateLimited

15,719,304 6.06

4 InternationalFinanceCorporation 12,818,331 4.94

5 QuickTradingandInvestmentAdvisorsLLP 12,000,671 4.62

6 DilipkumarLakhi 8,383,747 3.23

7 AshishKacholia 8,155,122 3.14

8 ChiragDilipkumarLakhi 7,855,321 3.03

9 LKPFinanceLimited 7,339,942 2.83

10 BengalFinanceandInvestmentPvt.Limited 6,500,000 2.51

11 MBFinmartPrivateLimited 5,586,136 2.15

12 HypnosFundLimited 5,500,000 2.12

13 NainaMaheshBuxani 6,386,584 2.46

14 PivotalEnterprisesPrivateLimited 5,000,000 1.93

15 MilkyInvestmentandTradingCompany 4,780,112 1.84

16 GirdharilalV.Lakhi 4,543,090 1.75

17 MukulMahavirPrasadAgrawal 5,455,014 2.10

18 SunderIyer 4,503,707 1.74

19 IndiaDiscoveryFundLimited 4,100,000 1.58

20 ManishLakhi 3,961,707 1.53

21 SingularityHoldingsLimited 3,851,000 1.46

22 CBGreenVenturesPteLimited 3,841,875 1.48

23 HuntInternationalInvestmentLLC 3,737,742 1.44

24 MaheshUdhavBuxani 3,408,441 1.31

TOTAL 178,292,086 68.73


(x) Distribution of Shareholding as on March 31, 2021

S No Category No. of Cases

% of Cases Shares % of Shares

1 1-5000 36,955 86.32 32,57,466 1.262 5001-10000 2,273 5.31 19,35,046 0.753 10001-20000 1,281 2.99 20,39,508 0.794 20001-30000 511 1.19 13,42,680 0.525 30001-40000 264 0.62 9,58,486 0.376 40001-50000 326 0.76 15,79,624 0.617 50001-100000 486 1.14 37,63,062 1.458 100001&Above 717 1.67 24,45,38,030 94.27 Total: 42813 100.00 259,413,902 100.00

(xi) Dematerialization of Shares and Liquidity

The Company’s Equity Shares are in compulsory demat segment and are available for trading underdematerialized form with both National Securities Depository Limited (NSDL) and Central DepositoryServices(India)Limited(CDSL).AsonMarch31,2021,259,404,331EquitySharesoftheCompany,forming99.99%ofthetotalissuedandpaidupEquityShareCapitaloftheCompany,wereindematerializedform.

The ISIN allotted to Equity Shares of the Company is INE621H01010(withNSDLandCDSL).(xii) Outstanding Global Depository Receipts (GDRs) / American Depository Receipts (ADRs) / Warrants

or any other Convertible instruments, conversion date and likely impact on equity

DetailsofoutstandingStockOptionsarebeinguploadedonthewebsiteoftheCompanyandsamecanbeaccessedthroughfollowingweblinkhttps://www.religare.com/Employee-Stock-Option-Schemes.aspx

Other thanabove, theCompanyhasnooutstandingADR/GDR,optionsor rights toconvertdebentures,loansorotherinstrumentsintotheEquitySharesasonMarch31,2021.

(xiii) Plant Locations: NotApplicable.(xiv) Commodity price risk or foreign exchange risk and hedging activities: TheCompanydoesnotdealinanycommodityriskorforeignexchangeorhedgingactivitiesandhenceis

notdirectlyexposedtoanycommoditypricerisk.

(xv) Transfer of unclaimed/unpaid amounts to the Investor Education and Protection Fund (IEPF) Pursuant to theprovisionsofSection124andSection125of theActandpursuant to theprovisionsof

InvestorEducationandProtectionFundAuthority (Accounting,Audit,TransferandRefund)Rules,2016,dividend,ifnotclaimedforaconsecutiveperiodof7yearsfromthedateoftransfertotheUnpaidDividendAccountoftheCompany,isliabletobetransferredtoInvestorEducationandProtectionFund(IEPF).ThereisnoamountwhichisrequiredtobetransferredbytheCompanytoIEPF.

(xvi) Address for Correspondence with the Companyi. Details of Compliance Officer Ms.ReenaJayara Company Secretary 1stFloor,PlotNo.A-3/4/5,PriusGlobalTower‘A’,Sector-125,Noida-201301 E-mail:[email protected]

ii. For Securities held in Physical form KFin Technologies Private Limited (Registrar & Share Transfer Agent) (formerly known as Karvy Fintech Private Limited)

Address: SeleniumTowerB, Plot31-32,Gachibowli,FinancialDistrict, Nanakramguda,SerilingampallyMandalHyderabad-500032 Telephone:Tollfreenumber-1-800-309-4001 Email:[email protected] Website:https://www.kfintech.com


iii. For Securities held in Demat form TotheInvestors’DepositoryParticipant(s)and/orKFinTechnologiesPrivateLimitediv. For retail investors

E-mail:[email protected] and / or [email protected]. For institutional investors’ / analysts’ queries E-mail:[email protected]

(xvii) Credit Rating and Change /Revision in Credit Rating of the Company during the Financial Year 2020-21

TheCompanydidnothaveanycreditratingduringtheFY2020-21.

(xviii) Disclosure under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Asper the requirementof theSexualHarassmentofWomenatWorkplace (Prevention,ProhibitionandRedressal)Act,2013andRulesmadethereunder,thedetailsofthecasesreportedduringtheFinancialYear2020-21arementionedhereunder:

Particulars Financial Year

2020-21

NumberofcasesinthebeginningoftheF.Y. Nil

NumberofcasesreportedduringtheF.Y. Nil

NumberofcasesdisposedduringtheF.Y. Nil

Numberofcasesremainingunresolved/pendingasattheendofF.Y. Nil

(xix) Certificate from Company Secretary in Practice for Non-disqualification of Directors Mr.AnkushAgarwalofM/s.MAKS&Co,PracticingCompanySecretaries,has issuedacertificateas

required under theSEBI ListingRegulations, confirming that noneof theDirectors on theBoard of theCompanyhasbeendebarredordisqualifiedfrombeingappointedorcontinuingasdirectorofcompaniesbytheSEBI/MinistryofCorporateAffairsoranysuchstatutoryauthority.ThesaidCertificateformspartofthisAnnualReport.

(xx) Total Fees for all Services paid by the Company and its Subsidiaries on consolidated basis to Statutory Auditors and all entities in the Network Firm/Network Entity of which the Statutory Auditor is a part

DuringtheyearunderreviewthetotalfeesforallservicespaidbytheCompanyanditssubsidiaries,onconsolidatedbasis,totheStatutoryAuditorsareasfollows:

Amount (Rs in Lakhs)

Particulars For the Year ended

March 31, 2021

For the Year ended

March31,2020

AsAuditor:

Audit Fees 134.77 118.19

TaxAuditFees 9.05 9.46

InotherCapacity:

Fees For Other Services

(Primarilyincludecertificationservices) 13.80 28.38

ForReimbursementofExpenses 4.73 21.35

Total 162.35 177.38


CEO /CFO CERTIFICATIONWe,RashmiSaluja,ExecutiveChairpersonandNitinAggarwal,GroupCFOofReligareEnterprisesLimited (the Company)herebycertifythat:

A. We,have reviewedfinancial statements and thecashflowstatement for theyearendedMarch31,2021andthattothebestofourknowledgeandbelief:

(1) these statements do not contain any materially untrue statement or omit anymaterialfactorcontainstatementsthatmightbemisleading;

(2) thesestatementstogetherpresentatrueandfairviewoftheCompany’saffairsand are in compliancewith existingaccounting standards, applicable lawsandregulations.

B. Thereare,tothebestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolativeoftheCompany’scodeofconduct.

C. We,acceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandthatwehaveevaluatedtheeffectivenessofinternalcontrolsystemsofthelistedentitypertainingtofinancialreportingandwehavedisclosedtotheauditorsandtheauditcommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.

D. WehaveindicatedtotheauditorsandtheAuditcommitteethat:

(1) therehasnotbeenanysignificantchangesininternalcontroloverfinancialreportingduringtheyearunderreference;

(2) therehasnotbeenanysignificantchangesinaccountingpoliciesduringtheyearunderreview;and

(3) therehasnotbeenanyinstancesofsignificantfraudofwhichwehadbecomeawareandtheinvolvementtherein,ifany,ofthemanagementoranemployeehavingasignificantroleintheCompany’s internalcontrolsystemoverfinancialreporting.

Sd/- Sd/-Place : NewDelhi Dr. Rashmi Saluja Nitin AggarwalDate : June22,2021 (ExecutiveChairperson) (GroupCFO)

DECLARATION BY EXECUTIVE CHAIRPERSON

ThisistocertifythattheCompanyhaslaiddownaCodeofConduct(theCode)forallBoardMembersandSeniorManagementPersonneloftheCompanyandacopyoftheCodeisputonthewebsiteoftheCompanyviz.www.religare.com

ItisfurthercertifiedthattheDirectorsandSeniorManagementhaveaffirmedtheircompliancewiththeCodefortheyearended31stMarch,2021exceptlateMr.SushilChandraTripathibecauseofhisprolongedill-healthandsaddemiseduetoCovid-19disease.

Place : NewDelhi Sd/-Date : June22,2021 Dr. Rashmi Saluja (ExecutiveChairperson)


CORPORATE GOVERNANCE CERTIFICATE

To

The Members


WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyReligare Enterprises Limited(“theCompany”),forthefinancialyearendedMarch31,2021,asstipulatedunderRegulations17to27andclauses(b)to(i)ofRegulation46(2)andParaC,DandEofScheduleVtotheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations”).

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityofthemanagementoftheCompany.Ourexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbytheCompanyforensuringthecomplianceoftheconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedunderRegulations17to27andclauses(b)to(i)ofRegulation46(2)andParaC,DandEofScheduleVtotheListingRegulationsexceptthat:

The Company was not in compliance with Regulation 18(1)(b) of Listing Regulations in respect of composition of Audit Committee

from February 26, 2020 till September 2, 2020.

The auditor adhered to best professional standards and practices as could be possible while carrying out audit during the

conditionsduetoCovid-19.TheCompanymadedueeffortstomakeavailabletherelevantrecordsanddocumentswhichwereverifiedthroughonlinemeanstoconductandcompletetheauditintheaforesaidconditions.

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

For Sanjay Grover & AssociatesCompany Secretaries

FirmRegistrationNo.:P2001DE052900

Sd/-Devesh Kumar Vasisht

Partner

CPNo.:13700August 12, 2021 FCSNO.8488New Delhi UDIN:F008488C000772141


CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(PursuanttoRegulation34(3)andScheduleVParaCclause(10)(i)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015)

To,The Members,


Regd.Office:1stFloor,P-14,45/90,P-Block,ConnaughtPlace,NewDelhi-110001

We have examined the relevant registers, records, forms, returns and disclosures received from theDirectors of ReligareEnterprises Limited, havingCIN L74899DL1984PLC146935 and having registered office at 1st Floor, P-14, 45/90,P-Block,ConnaughtPlace,NewDelhi–110001,India,(hereinafterreferredtoas‘the Company’),producedbeforeusbytheCompanyforthepurposeofissuingthisCertificate,inaccordancewithRegulation34(3)readwithScheduleVPara-CSubclause10(i)oftheSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.

Inouropinionandtothebestofourinformationandaccordingtotheverifications(includingDirectorsIdentificationNumber(DIN)statusattheportalwww.mca.gov.in)asconsiderednecessaryandexplanationsfurnishedtousbytheCompany&itsofficers,weherebycertifythatnoneoftheDirectorsontheBoardoftheCompanyasstatedbelowfortheFinancialYearendedon31stMarch,2021havebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofcompaniesbytheSecuritiesandExchangeBoardofIndia,MinistryofCorporateAffairs,oranysuchotherStatutoryAuthorityasapplicable.

S. No. Name of Director DIN Date of Appointment in Company1 Dr.RashmiSaluja 01715298 20/12/20182 Mr.SiddharthDineshMehta 02665407 30/07/20193 Mr.SushilChandraTripathi* 00941922 01/08/20184 Ms.VijayalakshmiRajaramIyer 05242960 08/05/20185 Mr.MalayKumarSinha 08140223 28/05/20186 Mr.HamidAhmed 09032137 10/02/20217 Dr.VijayShankarMadan 00806142 10/02/2021

* Ceased to be Non-Executive Independent Director from the Board of the Company w.e.f. May. 19, 2021 due to his sad demise

after long battle against COVID-19

EnsuringtheeligibilityfortheappointmentandcontinuityofeveryDirectorontheBoardistheresponsibilityofthemanagementof theCompany.Ourresponsibility is toexpressanopiniononthesebasedonourverification.Thiscertificate isneitheranassurance as to the future viability of theCompany nor of the efficiency or effectivenesswithwhich themanagement hasconductedtheaffairsoftheCompany.

For M/s. MAKS & Co.,Company Secretaries[FRN P2018UP067700]

Sd/-Ankush AgarwalPartner

MembershipNo:F9719CertificateofPracticeNo:14486

UDIN:F009719C00073979

Place: Noida,UPDate: August05,2021

CONSOLIDATED

FINANCIALS


Independent Auditor’s Report

TO THE MEMBERS OF RELIGARE ENTERPRISES LIMITED

Report on the Audit of the Consolidated Ind AS Financial Statements

Qualified Opinion

We have audited the accompanying Consolidated Ind AS financial statements of RELIGARE ENTERPRISES LIMITED (hereinafter referred toas “theHoldingCompanyor theCompany”), its subsidiaries (includingstep-downsubsidiaries) (theHoldingCompany and its subsidiaries together referred to as “theGroup”) and jointly controlled entity, refer Note (2.2) totheattachedconsolidated IndASfinancial statements),whichcomprises theConsolidatedBalanceSheetasatMarch31,2021, theConsolidatedStatement ofProfit andLoss (includingOtherComprehensive Income),ConsolidatedStatement ofChangesinEquityandtheConsolidatedStatementofCashFlowsfortheyearthenended,andnotestotheconsolidatedIndASfinancialstatements,includingasummaryofsignificantaccountingandotherexplanatoryinformation(hereinafterreferredtoas“consolidatedIndASfinancialstatements”).

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventousexceptfortheeffectsofthemattersasstatedinbasisofqualifiedopinionofourreportandbasedontheconsiderationofthereportsoftheotherauditorsonseparatefinancialstatementsofsuchsubsidiariesandjointlycontrolledentityaswereauditedbyotherauditors,theaforesaidconsolidatedIndASfinancialstatementsgivetheinformationrequiredbytheCompaniesAct2013(“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,oftheconsolidatedstateofaffairsof theGroupand jointlycontrolledentityasatMarch31,2021,ofconsolidated loss(includingOtherComprehensiveprofit),consolidatedchangesinequityandconsolidatedcashflowsfortheyearthenended.

Basis for Qualified Opinion

TheBasisofQualificationgiveninAuditorsReportofsubsidiarycompaniesarereproducedhereunder:

In case of Religare Finvest Limited (RFL) (a Subsidiary):

WedrawattentiontoNoteno.5.2totheconsolidatedIndASfinancialstatements(readwithourmodifiedreportdatedJuly24,2020fortheyearendedMarch31,2020ofRFL)inrelationtoadjustmentoffixeddepositsofRs.79,145lacs(excludingRs.2,703.39lacsinterestaccrued&duetillthedateoforiginalmaturityi.e.July20,2018)withandbytheLakshmiVilasBank(LVB)againsttheloansgiventoerstwhilepromotergroupcompaniesinthepreviousyearscontinuedtobeunderlitigationatHon’bleHighCourtofDelhifordeclarationandrecovery.

RFLhasalsofiledacriminalcomplaintbeforetheEOWandEOWhadregisteredFIRagainsttheaccusedpersons/entities.Also,theEnforcementDirectoratehadlodgedanECIRonthebasisoftheFIR.RFLhasfiledapplicationforsubstitutionofLVBwithDBSBankIndiaLimited(DBS)onwhichnoticewasissuedbytheHon’bleCourt.Pendingdisposalofthecase,weareunabletocommentonthestatusofrecoverabilityandclassificationofthereportedbalance.

In case of Religare Housing Development Finance Corporation Limited (RHDFCL) (a step-down Subsidiary):

WedrawattentiontoNote46(g)oftheconsolidatedIndASfinancialstatements,(readwithourmodifiedreportdated20thMay2019fortheyearendedMarch31,2019ofRHDFCL)oftheIndASfinancialstatementsinrelationtotransactionwithatrustnamely“RARC059(RHDFCHL)“(specialpurposevehicle)whereinduringFY2018-19GrossNPAofRs.3,038.13lakhsweresoldforavalueofRs.2,278.60lakhs&Trusthasissuedsecurityreceipts(SR)intheratioof85:15.AsinformedbyRHDFCL,basedonthelegalopinionobtaineditwasatruesale.ConsideringthatRHDFCLhasderecognisedNPAloanreceivablesandhasrecognizedsecurityreceiptsasinvestmentsinthebooksofaccounts.AsperIndAS-109,derecognitionoffinancialassetsshalltakeplaceonlyifsubstantialriskandrewardhasbeentransferred.However,inthereferredtransactionofsecurityreceipts,RHDFCLmayremainexposedtosubstantialriskofreturn.

HadtheseNPAloanreceivablesnotbeenderecognizedasonMarch31,2021,classificationofloansintoinvestmentswouldnothavechangedandprofitfortheyearendedMarch31,2021wouldhavedecreasedbyRs.420.45Lakhs.

WeconductedourauditinaccordancewiththeStandardsonAuditing(SAs)specifiedundersection143(10)oftheAct.OurresponsibilitiesunderthoseSAsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheconsolidatedIndASfinancialstatementssectionofour report.Weare independentof theGroupand jointlycontrolledentity inaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(the‘ICAI’)togetherwiththeethicalrequirementsthatarerelevant toourauditof theConsolidatedIndASfinancialstatementsunder theprovisionsof theActandtheRulesthereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheCodeofEthics.WebelievethattheauditevidenceobtainedbyusandtheauditevidenceobtainedbyotherauditorsintermsoftheirreportsreferredtointheOtherMatterssectionbelowissufficientandappropriatetoprovideabasisforourqualifiedopinionontheconsolidatedIndASfinancialstatements.



Material Uncertainty Related to Going Concern:

a. WedrawattentiontoNoteNo.45(VII),21.7and22AtotheconsolidatedIndASfinancialstatementswhichindicatesthatRFLhascontinuedtoincurlossesinthecurrentyear,whichhasresultedinerosionofitsNetWorth,NegativeNetOwnedFundandCapitalRiskAdjustedAdequacyRatio(CRAR)i.e.(78.27%)asonMarch31,2021.Besidesthis,RFLhasmadedefaultsinrepaymentofitsobligationtowardsitslendersandanamountofRs.329,602.94lacs(Rs.177,121.48lacsasonMarch31,2020)areoverdueasonMarch31,2021alongwithcontinuingrestrictionsimposedbytheReserveBankofIndia(theRBI)onRFLtocarryoutbusinessindicatetheexistenceofthematerialuncertaintythatmaycastsignificantdoubtontheRFL’sabilitytocontinueasagoingconcern.However,forthereasonsmorefullydescribedintheaforesaidnotes,theaccountsoftheRFLhavebeenpreparedonaGoingConcernbasis.

b. Wedrawattention toNoteNo.45 (IV) (a)of theconsolidated IndASfinancial statements, in respectofRCTL,whichindicatesthattheRCTL’sliabilitiesexceedtheunderlyingassetsduetocontinuedlossesandthuserosionofitsNetWorthasonMarch31,2021.Besidesthis,RCTLhasnobusinessplansasonthereportingdateindicatetheexistenceofthematerialuncertainty thatmaycastsignificantdoubton theRCTL’sability tocontinueasagoingconcern.However, forthereasonsmorefullydescribedintheaforesaidnoteincludingboardapprovalofschemeofamalgamationwithHoldingCompany,ReligareEnterprisesLimited(REL)andletterofcomfortofexcessliabilities,theaccountsofRCTLhavebeenpreparedasaGoingConcern.

Ouropinionisnotmodifiedinrespectofabovematters.

Emphasis of Matter

(i) WerefertoNoteno.2.2(C),45(b)and54(p)oftheconsolidatedIndASfinancialstatements,inrelationtonon-consolidationoffinancialsofReligareCapitalMarketsLimited(RCML)havingthenegativenet-worthofRs.61,971.95lakhsbasedonlastavailableauditedaccountsforthefinancialyearendedMarch31,2017,basedonmanagementassessmentofnon-existence of control through voting rights and existence of significant restrictive covenants onmajor decisionmakingatRCMLhavebeen imposedby theholderof thepreferenceshares.Further, there isacontingent liabilityamountingtoRs.4,077.50 lakhs in thebooksofRELtowardsuncalledcapitalonequitysharesofRCML.Wehavereliedonthemanagementrepresentation.

(ii) WedrawyourattentiontoNote2.1(iv)oftheStatement,whichdescribethemanagement’sassessmentoftheimpactoftheoutbreakofCoronavirus(COVID-19)pandemiconthebusinessofoperationsoftheGroup.

WedrawyourattentiontothefollowingmattersofthesubsidiaryCompanies:

In case of Religare Finvest Limited (RFL) (a Subsidiary Company):

(iii) WerefertomodifiedreportdatedJuly24,2020fortheyearendedMarch31,2020ofRFL,themanagementexpectsthattherewillnotbeanyobligationontheRFLoutofthefollowingmatters,whichwehavereliedupon:

a. Noteno.7.2andNote8oftheconsolidatedIndASfinancialstatementsrelatingtoloansgiventocertaincompaniesinearlieryearsappearinginCorporateLoanBook(CLBportfolio)aggregatingtoRs.203,670lacsasonMarch31,2021(whichwere fullyprovided for inearlieryears)and investment inNon-ConvertibleDebentures (NCDs)ofacorporateentityofRs.20,000lacs(whichisfullyImpairedasatMarch31,2021,outofwhichRs.17,797.55lacsimpairedinearlieryears).RFListakinglegalactionsforrecoveryofitsamounts.

b. Note45(VI)oftheconsolidatedIndASfinancialstatements,thatRFLisstillpursuingappropriatelegalremediestorecovertheamountsduefromStrategicCreditCapitalPrivateLimited(‘SCCPL’)andPerpetualCreditServicesPrivateLimited(‘Perpetual’)aggregatingtoRs.79,367.20Lacs(whichwasfullyprovidedforinearlieryears).

(iv) Note12.1of theconsolidated IndASfinancial statements,RFLcontinued to carryDeferredTaxAssetsamounting toRs.49,315.69LakhsasatMarch31,2021(Rs.49,315.69lakhsasofMarch31,2020)consideringtheavailabilityoffuturetaxableprofitagainstwhichthedeductibletemporarydifferencesandunusedtaxlossescanbeutilized.Wehavereliedonthemanagement’sassessment.



In case of Religare Comtrade Limited (RCTL) (a Subsidiary Company):

(v) ThenatureofoperationsoftheRCTLmayqualifyunderthedefinitionofNon-BankingFinanceCompany(i.eNBFC)inaccordancewithrequirementsofReserveBankofIndiaAct,1934andrelatedregulations.However,RCTLisnotrequiredtoberegisteredasNBFCbasedonlegalopinionobtainedbyit.

In case of Religare Advisors Limited (RAL) (a Step-down Subsidiary Company):

(vi) Noteno.54(h)oftheconsolidatedIndASfinancialstatements,withrespecttotheaccountsofRAL,astepdownsubsidiaryoftheHoldingCompanycontinuedtobepreparedonrealizablevaluebasisfortheyearendedMarch31,2021inviewofnocommercialoperationsforthelastfourpreviousfinancialyears.

In case of Religare Credit Advisors Private Limited (RCAL) (a Step-down Subsidiary Company):

(vii) Noteno.2.2(B)(5)oftheconsolidatedIndASfinancialstatements,theaccountsofRCALhasbeenpreparedonrealizablevaluebasisinthefinancialyear2020-21inviewofnocommercialoperationsinthisfinancialyear.

In case of Religare Business Solutions Limited (RBSL) (a Step-down Subsidiary Company):

(viii) Noteno.54(o)oftheconsolidatedIndASfinancialstatements,RBSLisintheprocessofmergerwithultimateHoldingCompanyandinviewofnocommercialoperations,theFinancialStatementfortheyearendedMarch31,2021havebeenpreparedonnotgoingconcernbasisandallassetsandliabilitieshavebeenstatedontheirnetrealizablevalue.

In case of Religare Insurance Limited (RIL) (a Step-down Subsidiary Company):

(ix) Noteno.2.2(B)oftheconsolidatedIndASfinancialstatements,RILwasincorporatedonJuly21,2016buthasnotyetcommencedanybusiness.ThemanagementofRILhasinformedusthatRILisproposedtobemergedintoitsHoldingCompanyi.e.RELandtheBoardofDirectorsofRILintheirmeetingheldonDecember18,2019approvedtheschemeofAmalgamationofRILwithRELsubjecttonecessaryapprovals.TheSchemeofAmalgamationhasbeenfiledwiththeNationalCompanyLawTribunal(NCLT)onOctober31,2020whichispendingapproval.RILhasaccordinglyadoptedgoingconcernbasisofaccounting.

In case of Care Health Insurance Limited (CHIL) (a Subsidiary Company):

(x) TheestimateofClaimsIncurredButNotReported(IBNR),ClaimsIncurredButNotEnoughReported(IBNER)andPremiumDeficiencyReserve(PDR)havebeencertifiedbytheCHIL’sAppointedActuary.TheAppointedActuaryhascertifiedtoCHIL that the assumptions used for suchestimation are appropriate andare in accordancewith the requirements ofrelevantregulationissuedbyIRDAIandActuarialPracticeStandardsissuedbyInstituteofActuariesofIndia.WehaverelieduponontheAppointedActuary’scertificateinthisregardforformingouropiniononthefinancialstatementsofCHIL.

OurOpinionisnotmodifiedforthemattersstatedinparagraphsabove.

Key Audit Matters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditoftheconsolidatedIndASfinancialstatementsofthecurrentperiod.ThesematterswereaddressedinthecontextofourauditoftheconsolidatedIndASfinancialstatements,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthattherearenokeyauditmatterstobecommunicatedinourreport.

KeyAuditmattersgiveninAuditors’Reportofsubsidiarycompanyisreproducedhereunder:



Religare Finvest Limited (“RFL”)

Key Audit Matter Auditor’s response

Impairment loss allowance of loans and advances (ReferNote7oftheConsolidatedIndASfinancialstatements)

Impairmentlossallowanceofloansandadvances(“Impairmentlossallowance”) isaKeyAuditMatteras theCompanyhassignificantcreditriskexposuretoalargenumberofcustomers.The value of loans and advances on the balance sheet issignificant and there is a high degree of complexity andjudgment involved for the Company in estimating individualand collective credit impairment provisions and write-offsagainst these loans. TheManagement exercises significantjudgmentindeterminingExpectedCreditLoss(ECL).

Themostsignificantareasare:

a. Segmentationofloanbook

b. CriteriaforLoanstaging

c. Calculationofprobabilityofdefault/Lossgivendefault

d. Availabilityandrealizabilityoftheunderlyingsecurity

ThereisalargeamountofthedatainputsrequiredbytheECLmodel.Thisincreasestheriskofcompletenessandaccuracyof thedatathathasbeenusedtocreateassumptions inthemodel. In some cases, data is unavailable and reasonablealternatives have been applied to allow calculations to beperformed.

Our audit procedures included:

● Evaluation of the appropriateness of the impairmentprinciplesbasedontherequirementsofIndAS109,ourbusinessunderstandingandindustrypractice.

● Understandingoftheinternalcontrolenvironmentrelatedtoimpairmentlossallowance.

● Assessing the internal controls over recognition and measurementofimpairmentlossallowance.

● Assessed the design and tested the operating effectivenessoftheselectedkeycontrolsimplementedbythe Company.

● Assessingthedesignandimplementationofkeyinternalfinancial controlsover loan impairmentprocessused tocalculatetheimpairmentcharge.

● Assessed the approach of the Company regardingdefinition of default, Probability of Default, Loss GivenDefault, Regulatory requirements and incorporation offorward-lookinginformationforthecalculationofECL.

For loansandadvanceswhichareassessed for impairmenton a portfolio basis we performed particularly the followingprocedures:● We tested the reliability of key data inputs and related

management controls;

● We checked the stage classification as at the balancesheetdateasperdefinitionofdefaultofthecompany;

● WevalidatedtheECLmodelandcalculation;● WehavealsocalculatedtheECLprovisionmanuallyfora

selected sample; and

● We have assessed the assumptions made by theCompany in making accelerated provision consideringforwardlookinginformation&regulatoryrequirements.

Forloansandadvanceswhicharewrittenoffduringtheyearunder audit, we read and understood themethodology andpolicy laid down and implemented by the Company in thisregardalongwithitscomplianceonsamplebasis.

Information Other than the consolidated Ind AS Financial Statements and Auditor’s Report Thereon

The Holding Company’s Board of Directors is responsible for the other information. The other information comprises theinformation included in the holding company’sAnnual Report particularly with respect to themanagement discussion andanalysis,board’sreportincludingannexurestoboard’sreport,businessresponsibilityreportandcorporategovernancereport,butdoesnot includetheconsolidatedIndASfinancialstatementsandourauditor’sreportthereon.TheOther informationisexpectedtobemadeavailabletousafterthedateofthisauditor’sreport.

OuropinionontheconsolidatedIndASfinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

InconnectionwithourauditoftheconsolidatedIndASfinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedabovewhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedIndASfinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

WhenwereadtheAnnualReport,ifweconcludethatthereisamaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargedwithgovernance.

Responsibilities of Management and Those Charged with Governance for Consolidated Ind AS Financial Statements

TheHoldingCompany’sBoardofDirectorsisresponsibleforthepreparationoftheseconsolidatedIndASfinancialstatements



intermsoftherequirementsoftheCompaniesAct,2013thatgiveatrueandfairviewoftheconsolidatedfinancialposition,consolidated financial performance (including other comprehensive income), consolidated cash flows and consolidatedstatementofchangesinequityoftheGroupandjointlycontrolledentityinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheIndianAccountingStandardsprescribedunderSection133oftheAct,readwithrelevantrulesissuedthereunder.TherespectiveBoardofDirectorsofthecompaniesincludedintheGroupandjointlycontrolledentity,areresponsibleformaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheGroupandjointlycontrolledentity,andforpreventinganddetectingfraudsandotherirregularities;theselectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;andthedesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationoftheconsolidatedIndASfinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror,whichhavebeenusedforthepurposeofpreparationoftheconsolidatedIndASfinancialstatementsbytheDirectorsoftheHoldingCompany,asaforesaid.

InpreparingtheconsolidatedIndASfinancialstatements,therespectiveBoardofDirectorsofthecompaniesincludedintheGroupandjointlycontrolledentity,areresponsibleforassessingtheabilityoftheGroupandjointlycontrolledentitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheGroupandjointlycontrolledentity,ortoceaseoperations,orhasnorealisticalternativebuttodoso.

The respectiveBoard ofDirectors of the companies included in theGroup and jointly controlled entity are responsible foroverseeingthefinancialreportingprocessoftheGroupandjointlycontrolledentity.

Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements

OurobjectivesaretoobtainreasonableassuranceaboutwhethertheConsolidatedIndASFinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisoftheseConsolidatedIndASfinancialstatements.

AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementof theConsolidatedIndASfinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingof internalfinancialcontrols relevant to theaudit inorder todesignauditprocedures thatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompanyanditssubsidiarieshasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluate theappropriatenessofaccountingpoliciesusedand thereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheGroup’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresintheConsolidatedIndASfinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.

• Evaluate theoverallpresentation, structureandcontentof theConsolidated IndASfinancial statements, including thedisclosures,andwhethertheConsolidatedIndASfinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheGroupand jointly controlledentity toexpressanopinionon the consolidated IndASfinancial statements.Weare



responsibleforthedirection,supervisionandperformanceoftheauditofthefinancialstatementsofsuchentitiesincludedintheconsolidatedIndASfinancialstatementsofwhichwearetheindependentauditors.FortheotherentitiesincludedintheconsolidatedIndASfinancialstatements,whichhavebeenauditedbyotherauditors,suchotherauditorsremainresponsibleforthedirection,supervisionandperformanceoftheauditscarriedoutbythem.Weremainsolelyresponsibleforourauditopinion.

MaterialityisthemagnitudeofmisstatementsintheConsolidatedIndASfinancialstatementsthat,individuallyorinaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsintheConsolidatedIndASfinancialstatements.

WecommunicatewiththosechargedwithgovernanceoftheHoldingCompanyandsuchotherentitiesincludedintheconsolidatedIndASfinancialstatementsofwhichwearetheindependentauditorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatement thatwehavecompliedwithrelevantethical requirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditoftheConsolidatedIndASfinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Other Matters

a) WedidnotauditthefinancialstatementsofthreesubsidiarycompanieswhosefinancialstatementreflecttotalassetsRs.303,575.76lakhsasatMarch31,2021,totalrevenueofRs.190,005.52lakhsandtotalnetprofitaftertaxofRs.10,073.76lakhsandtotalcomprehensiveIncomeofRs.12,502.71lakhsfortheyearendedMarch31,2021asconsideredintheconsolidatedIndASfinancialstatements.Thesefinancialstatementshavebeenauditedbyotherauditors,whosereporthasbeenfurnishedtousbytheManagementandouropinionontheconsolidatedIndASFinancialStatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesesubsidiarycompanies,isbasedsolelyonthereportoftheotherauditors.

b) WedidnotauditthefinancialstatementofonesubsidiarycompanyincorporatedoutsideIndia,whosefinancialstatementsreflectedtotalassetsofRs.59.03lakhsasatMarch31,2021,totalrevenueofNil,totalnetLossaftertaxofRs3.44lakhsandtotalcomprehensiveLossofRs0.73lakhsfortheyearendedonthatdate,asconsideredintheconsolidatedIndASFinancialStatements.ThisfinancialstatementisunauditedandhavebeenfurnishedtousbythemanagementandouropinionontheconsolidatedIndASfinancialstatements,insofarasitrelatestotheamountsanddisclosersincludedinrespectofthissubsidiaryareisbasedsolelyonsuchunauditedfinancialstatements.InouropinionandaccordingtotheinformationandexplanationsgiventousbytheManagement,thesefinancialstatementsarenotmaterialtotheGroup.

c) TheConsolidatedIndASFinancialstatementsincludesGroup’sjointlycontrolledentity’sshareofnetlossaftertaxofRs.8.39Lakhsandtotalcomprehensive lossofRs8.39 lakhsfor theyearendedMarch31,2021 inrespectofone jointlycontrolledentity,asconsidered in theconsolidated IndASfinancialstatements.Thesefinancialstatementshavebeenauditedbyotherauditors,whosereporthasbeenfurnishedtousbythemanagementandouropinionontheconsolidatedIndASfinancialstatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthisJointlycontrolledentityisbasedsolelyonthereportsoftheotherauditor.

Ouropinionon theconsolidated IndASfinancialstatements isnotmodified in respectof theabovematterswith respect torelianceontheworkdoneandthereportsoftheotherauditorsandfinancialstatementcertifiedbythemanagement.

Report on Other Legal and Regulatory Requirements

AsrequiredbySection143(3)oftheAct,basedonourauditandonconsiderationofthereportoftheotherauditorsonfinancialstatementsandtheotherfinancialinformationofsubsidiariesasreferredtoinotherMattersparagraph,wereport,totheextentapplicable,that:



a) Wehavesoughtandobtainedall the informationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditoftheaforesaidconsolidatedIndASfinancialstatements.

b) Inouropinion,properbooksofaccountasrequiredby lawrelatingtopreparationof theaforesaidconsolidatedIndASfinancialstatementshavebeenkeptsofarasitappearsfromourexaminationofthosebooksandthereportsoftheotherauditors.

c) TheConsolidatedBalanceSheet,theConsolidatedStatementofProfitandLoss(includingOtherComprehensiveIncome),theConsolidatedStatementofChangesinEquityandtheConsolidatedStatementofCashFlowdealtwithbythisReportareinagreementwiththerelevantbooksofaccountsandrecordsmaintainedforthepurposeofpreparationoftheconsolidatedIndASfinancialstatements.

d) Inouropinion,theaforesaidconsolidatedIndASfinancialstatementscomplywiththeIndASspecifiedunderSection133oftheAct.

e) Onthebasisof thewrittenrepresentationsreceived fromthedirectorsof theHoldingCompanyasonMarch31,2021takenonrecordbytheBoardofDirectorsoftheHoldingCompanyandthereportofstatutoryauditorsofitssubsidiariescompaniesincorporatedinIndiaandjointlycontrolledentities,noneofthedirectorsoftheGroupandjointlycontrolledentityaredisqualifiedasonMarch31,2021frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) WithrespecttotheadequacyoftheinternalfinancialcontrolswithreferencetofinancialstatementsoftheHoldingCompanyanditssubsidiarycompaniesincorporatedinIndiaandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportinAnnexure‘A’.

g) Withrespecttotheothermatterstobe includedintheAuditor’sReport inaccordancewiththerequirementsofsection197(16)oftheAct,asamended:

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theremunerationpaidbytheHoldingCompanyanditssubsidiariesincorporatedinIndia,toitsdirectorsduringtheyearisinaccordancewiththeprovisionsofsection197oftheAct.

h) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditor’s)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

i. The consolidated IndAS financial statements disclose impact of pending litigations as atMarch 31, 2021 on itsfinancialpositionoftheGroupandjointlycontrolledentity.

ii. TheGroup and jointly controlled entity havemadeprovision, as required under the applicable lawor accountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontractsincludinglongtermderivativecontracts.

iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheHoldingCompanyanditssubsidiariesandjointlycontrolledentityincorporatedinIndia.

ForS S KOTHARI MEHTA & COMPANY

Chartered Accountants

FirmReg.No.:000756N

Yogesh K. Gupta

PartnerMembershipNo.093214UDIN:21093214AAAADT2540

Place:NewDelhiDate:22thJune2021


Annexure A to Independent Auditor’s Report

“Annexure A” to the Independent Auditor’s Report of even date on the Consolidated Ind AS Financial Statements of

RELIGARE ENTERPRISES LIMITED

Report on the Internal Financial Controls with reference to financial Statement under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) as referred to in paragraph (f) of ‘Report on Other Legal and

Regulatory Requirements’

In conjunctionwithouraudit of theconsolidated IndASfinancial statementsofRELIGARE ENTERPRISES LIMITED (“theHoldingCompany”)asofMarch31,2021,wehaveauditedtheinternalfinancialcontrolswithreferencetofinancialstatementsofHoldingCompany,itssubsidiariesandjointlycontrolledentity,whichareincorporatedinIndiaasofthatdate.

Management’s Responsibility for Internal Financial Controls

TheBoardofDirectorsoftheHoldingCompany,itssubsidiariesandjointlycontrolledentitywhichareincorporatedinIndia,areresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontrolswithreferencetofinancialStatementcriteriaestablishedbytherespectivecompaniesconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(the‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrols thatwereoperatingeffectively forensuring theorderlyandefficientconductof itsbusiness, includingadherencetorespectivecompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheinternalfinancialcontrolswithreferencetoconsolidatedfinancialStatementbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)issuedbytheICAIandtheStandardsonAuditing,prescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrolswithreferencetoconsolidatedfinancialStatement.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolswithreferencetofinancialStatementwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ouraudit involvesperformingprocedurestoobtainauditevidenceabout theadequacyof the internalfinancialcontrolswithreference tofinancialStatementsand theiroperatingeffectiveness.Ourauditof internalfinancial controlswith reference tofinancialStatementsincludedobtaininganunderstandingofinternalfinancialcontrolswithreferencetofinancialStatements,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheinternalfinancialcontrolssystemwithreferencetofinancialStatementsoftheHoldingCompany,itssubsidiariesandjointlycontrolledentitywhichareincorporatedinIndia.

Meaning of Internal Financial Controls with reference to financial Statements

Acompany’s internal financial controlswith reference to financialStatements is a processdesigned to provide reasonableassurance regarding the reliabilityoffinancial reportingand thepreparationoffinancialstatements forexternalpurposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s internalfinancialcontrolswithreference tofinancialStatements includesthosepoliciesandprocedures that(1)pertain to themaintenanceofrecordsthat, inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsoftheCompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.



Inherent Limitations of Internal Financial Controls with reference to consolidated financial Statement

BecauseoftheinherentlimitationsofinternalfinancialcontrolswithreferencetofinancialStatements,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolswithreferencetofinancialStatementstofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolswithreferencetofinancialStatementsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,tothebestofourinformationandaccordingtotheexplanationgiventous,theHoldingCompany,itssubsidiariesand jointly controlled entitywhich are incorporated in India, havemaintained in allmaterial respects, an adequate internalfinancialcontrolswithreferencetofinancialstatementsandsuchinternalfinancialcontrolswithreferencetofinancialStatementswereoperatingeffectivelyasatMarch31,2021,basedon the internalcontrolswith reference to theconsolidatedfinancialstatementscriteriaestablishedbytheHoldingCompany,itssubsidiariesandjointlycontrolledentitywhichareincorporatedinIndiaconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.

ForS S KOTHARI MEHTA & COMPANY

Chartered Accountants

FirmReg.No.:000756N

Yogesh K. Gupta

PartnerMembershipNo.093214UDIN:21093214AAAADT2540

Place:NewDelhiDate:22thJune2021


Consolidated Balance Sheet as at March 31, 2021

(Amount in Rs. Lakh, unless otherwise stated)

Particulars Note

No.

As at

March 31, 2021

As at

March31,2020

ASSETS

Financial Assets

Cash and Cash Equivalents 4 25,064.66 37,240.19

BankBalanceOtherThanCashandCashEquivalents 5 126,826.87 108,840.38

Receivables

-TradeReceivables 6 19,227.79 9,380.06

Loans 7 245,221.48 310,519.10

Investments 8 318,993.58 202,305.92

OtherFinancialAssets 9 14,841.36 21,973.69

Non-Financial Assets

Inventories 10 49.94 46.54

CurrentTaxAssets(Net) 11A 27,640.75 28,267.42

DeferredTaxAssets(Net) 12A 55,761.56 51,959.19

Property,PlantandEquipment 13 6,989.58 12,522.75

Goodwill 14 972.04 972.04

IntangibleAssets 15 3,722.28 4,002.08

CapitalWork-in-Progress 16 - -

IntangibleAssetsUnderDevelopment 17 1,220.28 1,323.82

OtherNon-FinancialAssets 18 26,024.98 23,664.68

Total Assets 872,557.15 813,017.86

LIABILITIES AND EQUITY

LIABILITIES

Financial Liabilities

Payables

-TradePayables 19

(i)totaloutstandingduesofmicroenterprisesandsmallenterprises 99.70 2.07

(ii)totaloutstandingduesofcreditorsotherthanmicroenterprisesand small enterprises

32,317.42 28,690.82

-OtherPayables 20

(i)totaloutstandingduesofmicroenterprisesandsmallenterprises 108.92 83.27

(ii)totaloutstandingduesofcreditorsotherthanmicroenterprisesand small enterprises

13,492.34 16,882.82

Borrowings(OtherthanDebtSecurities) 21 432,840.88 479,156.55


Consolidated Balance Sheet as at March 31, 2021

Particulars Note

No.

As at

March 31, 2021

As at

March31,2020

SubordinatedLiabilities 22 56,135.09 56,474.70

OtherFinancialLiabilities 23 167,640.10 112,759.75

Non-Financial Liabilities

Provisions 24 1,345.14 2,299.31

CurrentTaxLiabilities(Net) 11B 512.52 -

DeferredTaxLiabilities(Net) 12B 26.55 -

OtherNon-FinancialLiabilities 25 138,256.33 97,238.95

Total Liabilities 842,774.99 793,588.24

EQUITY

Equity Share Capital 26 25,941.39 25,812.82OtherEquity 27 (30,650.03) (15,711.23)

Equity Attributable to Owners of the Company (4,708.64) 10,101.59

NonControllingInterest 28 34,490.80 9,328.03

Total Equity 29,782.16 19,429.62

Total Liabilities And Equity 872,557.15 813,017.86

Overview, Principles of Consolidation and Significant Accounting Policies

1to3

The notes are an integral part of these Consolidated Financial Statements

This is the Consolidated Balance Sheet referred to in our report of even date

For S S KOTHARI MEHTA & COMPANY For and on behalf of the Board of Directors

FirmRegistrationNo.000756NChartered Accountants

Sd/- Sd/- Sd/-YOGESH K. GUPTA Dr. RASHMI SALUJA HAMID AHMED

Partner ExecutiveChairperson DirectorMembership Number: 093214 DIN- 01715298 DIN-09032137

Sd/- Sd/- NITIN AGGARWAL REENA JAYARA

Group-CFO CompanySecretary Membership No. A19122

Place : New Delhi Place : New Delhi

Date : June 22, 2021 Date : June 22, 2021


ConsolidatedStatementofProfitandLossFor the year ended March 31, 2021


Particulars Note

No.

For the Year Ended

March 31, 2021

FortheYearEnded

March31,2020Income

RevenueFromOperations

Interest Income 29 53,767.91 63,432.29 DividendIncome - 5.22 FeeandCommissionIncome 30 701.84 3,404.82 NetGainonFairValueChanges 30A 35.08 - SaleofServices 31 20,484.63 16,807.03 OtherRevenueFromOperations 32 173,687.45 151,886.62 Total Revenue From Operations 248,676.91 235,535.98 OtherIncome 33 4,370.03 4,211.87 Total Income 253,046.94 239,747.85Expenses

FinanceCosts 34 72,492.30 84,926.11 FeeandCommissionExpenses 35 8,888.14 4,598.73 NetLossonFairValueChanges 36 - 137.50 ImpairmentandLossAllowancesonFinancialInstruments(Net) 37 9,443.26 37,423.69 ExpenseTowardsCapitalCommitment 37A - 894.85 EmployeeBenefitExpenses 38 58,554.66 53,451.01 DepreciationandAmortization 39 5,884.14 6,084.35 OtherExpenses 40 147,522.14 138,230.04 Total Expenses 302,784.64 325,746.28Profit / (Loss) Before Exceptional Items, Share in Profit / (Loss) of Joint Ventures and Tax

(49,737.70) (85,998.43)

Exceptional Items

ExpenseTowardsCapitalCommitment 54(b) - (17,000.00) (49,737.70) (102,998.43)Share in Profit / (Loss) of Joint Ventures 48 (8.41) (13.14)Profit / (Loss) Before Tax (49,746.11) (103,011.57)Income Tax Expense / (Credit): 41

CurrentTax 1,871.59 267.77TaxofEarlierYearsProvided/(WrittenBack) (60.13) 32.14

DeferredTax(Net) (3,775.82) 486.08Profit / (Loss) For The Period From Continuing Operations (47,781.75) (103,797.56)Profit / (Loss) For The Year (47,781.75) (103,797.56)Other Comprehensive Income

(A)ItemsthatwillnotbereclassifiedtoProfitorLoss

→RemeasurementGainor(Loss)onDefinedBenefitPlans 555.88 (861.94) IncomeTaxImpactonAboveItem 8.83 - →FairValueGain/(Loss)onEquityInstrumentsDesignatedasFVTOCI (87.11) 101.35 IncomeTaxImpactonAboveItem - - Subtotal (A) 459.94 (760.59)


ConsolidatedStatementofProfitandLossFor the year ended March 31, 2021

Particulars Note

No.

For the Year Ended

March 31, 2021

FortheYearEnded

March31,2020 (B)ItemsthatwillbereclassifiedtoProfitorLoss

→NetGain/(Loss)onDebtSecuritiesFVTOCI 2,406.21 2,152.57 IncomeTaxImpactonAboveItem - - →Exchangedifferencesontranslationoffinancialstatementsof

foreignoperations 2.71 (8.23)

IncomeTaxImpactonAboveItem - - Subtotal (B) 2,408.92 2,144.34Other Comprehensive Income (Net of Tax) (A + B) 2,868.86 1,383.75Total Comprehensive Income For The Year (44,912.89) (102,413.81)Profit/(Loss) for the year attributable to:

a)OwnersoftheCompany (50,846.13) (93,246.95) b)NonControllingInterest 28 3,064.38 (10,550.61) (47,781.75) (103,797.56)Other Comprehensive Income attributable to:

a)OwnersoftheCompany 2,157.07 1,190.58 b)NonControllingInterest 28 711.79 193.17 2,868.86 1,383.75

Total Comprehensive Income attributable to:

a)OwnersoftheCompany (48,689.06) (92,056.37) b)NonControllingInterest 28 3,776.17 (10,357.44) (44,912.89) (102,413.81)Earnings Per Equity Share (In Rs) (For Continuing Operations) 42

Basic(FacevalueofRs10each,fullypaidup) (19.65) (39.55) Diluted(FacevalueofRs10each,fullypaidup) (19.69) (39.62)Overview, Principles of Consolidation and Significant Accounting Policies

1to3


This is the Consolidated Statement of Profit and Loss referred to in our report of even date



Sd/- Sd/- Sd/-YOGESH K. GUPTA Dr. RASHMI SALUJA HAMID AHMED

Partner ExecutiveChairperson DirectorMembership Number: 093214 DIN- 01715298 DIN-09032137



Place : New Delhi Place : New Delhi



Statement of Consolidated Changes in Equity

For the year ended March 31, 2021(a)

Eq

uit

y S

hare

Cap

ital

Eq

uit

y s

hare

s o

f R

s 1

0 e

ach

issu

ed

, su

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bed

an

d f

ull

y p

aid

No

te N

o.

No

s.

Am

ou

nt

(R

s.

in L

ak

h)

At

Marc

h 3

1, 2019

2

16

,94

2,7

33

2

1,6

94

.27

Increase/(Decrease)DuringTheYear

2641,185,419

4,118.55

At

Marc

h 3

1, 2020

2

58

,12

8,1

52

2

5,8

12

.82

Increase/(Decrease)DuringTheYear

261,285,750

128.57

At

Marc

h 3

1, 2021

2

59

,41

3,9

02

2

5,9

41

.39

(b)

Oth

er

Eq

uit

y

(A

mo

un

t in

Rs

. L

ak

h, u

nle

ss

oth

erw

ise

sta

ted

)

Par

ticu

lars

Res

erve

s an

d S

urp

lus

Oth

er C

om

pre

hen

sive

Inco

me

Exchange Differences on translating the

financial statements of foreign subsidiaries

Reserve on Forfeiture of Share Warrant

Money Received against Share Warrants

Attributable to Owners of the Company

Non Controlling Interest

Total

Securities Premium Reserve

Capital Redemption Reserve

Capital Reserve arising out of

Composite Scheme of Arrangement

Capital Reserve on Consolidation

General reserve

Statutory Reserve

Short / (Excess) Payment for Shares in Subsidiaries Post Getting Control

Employee Stock Option Reserve

Impairment Reserve

Retained Earnings

Remeasurement Gain or (Loss) on

Defined Benefit Plans (Net of Tax)

Fair Value Gain / (Loss) on Equity Instruments Designated as FVTOCI

Net Gain / (Loss) on Debt Securities FVTOCI

As

at M

arch

31,

201

9 3

68,1

58.8

7 1

,123

.14

6,5

25.6

5 8

,882

.34

24,

988.

95

35,

575.

61

(3,2

61.5

6) 1

,254

.31

- (3

93,8

05.7

7) 1

8.63

3

1.66

(6

5.55

) 2

,638

.29

- 9

,546

.11

61,

610.

68

21,

918.

92

83,

529.

60

#Profit/(Loss)fortheYear

--

--

--

--

-(93,2

46.95

)-

--

--

-(93,2

46.95

) (1

0,55

0.61

)(103,79

7.56)

#On

accountofchangeinNC

I-

--

--

--

--

164.7

0-

--

--

-16

4.70

(164

.70)

-

#Transferto/fromRetain

edEarnin

gsandOther

Reserves

--

--

-84

.77

--

9,985.7

7(10,0

70.54

)-

--

-4,161.1

2(4,16

1.12)

- -

-

#On

Emplo

yeeStockO

ption

s-

--

--

--

2,049.1

3-

--

--

--

-2,049.1

3 2

57.4

7 2,306.6

0

#Se

curities

Premium

increaseduetoco

nversio

nof

Sharewa

rrantintoEquityShare

19,12

3.11

--

--

--

--

--

--

--

-19

,123.1

1 -

19,12

3.11

#MoneyReceiv

edagains

tShareW

arrants

--

--

--

--

--

--

--

-16

,154.9

816

,154.9

8 -

16,15

4.98

#Sh

arewa

rrantmoneyutilised

--

--

--

--

--

--

--

-(21,5

39.97

)(21,5

39.97

) -

(21,

539.

97)

#ProceedfromissuanceofsharestoNC

Ishare

hold

ers

--

--

--

--

--

--

--

--

- 1

,161

.45

1,161.4

5

#Impactof(purchase)/saleofNCIbytheCom

pany

--

--

--

--

--

--

--

--

- (3

,473

.58)

(3,47

3.58)

#Others

--

--

--

(1,23

1.58)

--

--

--

--

-(1,23

1.58)

- (1,23

1.58)

#OtherC

omprehensiv

eIncome

--

--

--

--

--

(792.25

)89

.90

1,915.2

5(8.23

)-

-1,204.6

717

9.08

1,383.7

5

As

at M

arch

31,

202

0 3

87,2

81.9

8 1

,123

.14

6,5

25.6

5 8

,882

.34

24,

988.

95

35,

660.

38

(4,4

93.1

4) 3

,303

.44

9,9

85.7

7 (4

96,9

58.5

6) (7

73.6

2) 1

21.5

6 1

,849

.70

2,6

30.0

6 4

,161

.12

- (1

5,71

1.23

) 9

,328

.03

(6,3

83.2

0)

#Profit/(Loss)fortheYear

--

--

--

--

-(50,8

46.13

)-

--

--

-(50,8

46.13

) 3

,064

.38

(47,7

81.75

)

#On

accountofchangeinNC

I-

--

--

--

--

17,84

4.19

--

--

--

17,84

4.19

(17,

844.

19)

-

#Transferto/fromRetain

edEarnin

gsandOther

Reserves

--

--

-1,440.0

6-

-6,289.2

0(7,72

9.26)

--

--

--

- -

-

#On

Emplo

yeeStockO

ption

s251.3

1-

--

--

-(1,10

3.63)

--

--

--

--

(852.32

) 4

67.0

1 (385.31

)


Statement of Consolidated Changes in Equity

For the year ended March 31, 2021

Par

ticu

lars

Res

erve

s an

d S

urp

lus

Oth

er C

om

pre

hen

sive

Inco

me

Exchange Differences on translating the

financial statements of foreign subsidiaries

Reserve on Forfeiture of Share Warrant

Money Received against Share Warrants

Attributable to Owners of the Company

Non Controlling Interest

Total

Securities Premium Reserve

Capital Redemption Reserve

Capital Reserve arising out of

Composite Scheme of Arrangement

Capital Reserve on Consolidation

General reserve

Statutory Reserve

Short / (Excess) Payment for Shares in Subsidiaries Post Getting Control

Employee Stock Option Reserve

Impairment Reserve

Retained Earnings

Remeasurement Gain or (Loss) on

Defined Benefit Plans (Net of Tax)

Fair Value Gain / (Loss) on Equity Instruments Designated as FVTOCI

Net Gain / (Loss) on Debt Securities FVTOCI

#Se

curities

Premium

increaseduetoco

nversio

nof

Sharewa

rrantintoEquityShare

--

--

--

--

--

--

--

--

--

-

#Sh

areinSe

curities

Premium

receive

donissuanceof

sharestoNCIinasu

bsidiary

16,78

8.86

--

--

--

--

--

--

--

- 1

6,78

8.86

-

16,78

8.86

#ProceedfromissuanceofsharestoNC

Ishare

hold

ers

--

--

--

--

--

--

--

--

- 1

8,73

3.31

18

,733.3

1

#Impactof(purchase)/saleofNCIbytheCom

pany

--

--

--

--

--

--

--

--

- 1

9,73

4.12

19

,734.1

2

#Others

--

--

--

265.8

8-

--

--

--

--

265

.88

- 26

5.88

#OtherC

omprehensiv

eIncome

--

--

--

--

--

622.2

4(86.5

2)1,322.2

92.71

--

1,8

60.7

2 1,008.1

42,868.8

6

As

at M

arch

31,

202

1 4

04,3

22.1

5 1

,123

.14

6,5

25.6

5 8

,882

.34

24,

988.

95

37,

100.

44

(4,2

27.2

6) 2

,199

.81

16,

274.

97

(537

,689

.76)

(151

.38)

35.

04

3,1

71.9

9 2

,632

.77

4,1

61.1

2 -

(30,

650.

03)

34,

490.

80

3,8

40.7

7

No

tes:

ReferNote27.1fornatureandpurposeofthedifferentreserves.

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Consolidated Cash Flow Statement



For the Year Ended

March 31, 2021

FortheYearEnded

March31,2020A. Cash Flow From Operating Activities:

Net Profit / (Loss) Before Tax (49,746.11) (103,011.57)Adjustmentsfor:

DepreciationandAmortisation 5,884.14 6,084.35InterestExpense 72,014.41 84,512.95Interest Income* (19,654.78) (15,477.05)DividendIncome - (5.22)Shareof(Profit)/LossofAssociatesandJointVentures 8.41 13.14(Profit)/LossonSellingofPPEandIntangibleAssetsUnderDevelopment(Net) (36.18) (84.13)(Profit)/LossonSellingofOtherInvestments/PremiumofInvestment(Net) (62.09) (1,035.92)RemeasurementGainor(Loss)onDefinedBenefitPlans 555.88 (861.94)EmployeeStockOptionExpenses/Reverse (636.65) 2,306.60BadDebts,BalancesandLoansWrittenOff 1,101.09 2,525.06ProvisionMade/(Reversed)AgainstLoans(Net) 7,572.83 4,280.00ProvisionMade/(Reversed)AgainstInvestmentsandInvestmentWrittenOff 2,202.80 5,260.48ProvisionMade/(Reversed)AgainstTradeReceivables (455.87) 115.74ProvisionMade/(Reversed)AgainstOthersFinancialAssets 300.67 115.40ProvisionMade/(Reversed)AgainstOthersNon-FinancialAssets 630.32 2,009.26ProvisionforGratuityandLeaveEncashment(writtenoff)/created (954.17) 784.41(Gain) / Loss on FinancialAssets Measured at Fair Value ThroughProfitorLoss(Net)

(35.08) 137.50

TranslationReserve 0.03 (0.16)Gain onRentConcession and Loss on termination /modification ofleases

4.43 -

ExpenseTowardsCapitalCommitments - 17,894.85ExpenseTowardsContingency 1,209.07 673.99AmortisationofExcessInterestSpread (268.62) 531.15Operating Profit Before Changes in Operating Assets and Liabilities

19,634.53 6,768.89

Adjustments for Changes in Operating Assets and Liabilities:

-(Increase)/DecreaseinTradeReceivables (9,391.86) 24,948.38-(Increase)/DecreaseinLoans 56,623.71 188,421.55-(Increase)/DecreaseinOtherFinancialAssets 9,195.54 (3,268.31)-(Increase)/DecreaseinInventories (3.40) (36.87)-(Increase)/DecreaseinOtherNon-FinancialAssets (2,990.62) 3,020.97-Increase/(Decrease)inTradeandOtherPayables 359.40 3,322.72-Increase/(Decrease)inOtherFinancialLiabilities 25,601.39 (1,472.22)-Increase/(Decrease)inOtherNon-FinancialLiabilities 41,017.40 17,443.80Cash Used/ generated in/ from operations before taxes 140,046.09 239,148.91-TaxesRefunded/(Paid)(Net) (681.10) 4,130.75Net Cash Generated / (Used) from / in Operating Activities# 139,364.99 243,279.66

B. Cash Flow From Investing Activities:

PurchaseofProperty,PlantandEquipmentsandOtherIntangibleAssets (1,973.46) (2,454.14)Proceeds from sale of Property, Plant and Equipments and OtherIntangibleAssets

96.89 198.08

IntangibleAssetsUnderDevelopmentandCapitalWorksinProcess 103.54 (37.82)ProceedsfromSaleofOtherInvestments 131,980.59 98,576.72PurchaseofOtherInvestments (248,463.19) (159,228.82)ChangeinBankBalancesotherthanCashandCashEquivalents (18,051.15) 3,896.64InterestReceived(Revenue) 17,624.18 15,470.55DividendReceived(includingdividendfromanassociate) - 5.22Net Cash Generated / (Used) from / in Investing Activities (118,682.60) (43,573.57)


Consolidated Cash Flow Statement


For the Year Ended

March 31, 2021

FortheYearEnded

March31,2020C. Cash Flow From Financing Activities:

ProceedsfromfreshissueofEquityShareCapital(includingsecuritiespremium)(Net)

379.89 16,155.00

Proceeds/ (Repayment) for Borrowings (Other than Debt Securities) (Net):

-TermLoans (50,135.44) (109,756.24)-LoanRepayableonDemand 3,420.38 (21,331.98)Proceeds/ (Repayment) for Subordinated Liabilities (Net):

-Debentures 106.04 106.71-TermLoans (445.65) (74.58)PrincipalPaymentofLeaseLiability (2,667.13) (2,846.88)PaymentforAcquiringtheSharesheldbyNon-ContrllingInterest - (4,705.15)ProceedsfromtheSharesissuedtoNon-ContrllingInterest 35,522.16 2,863.12ProceedsfromtheSharessoldtoNon-ContrllingInterest 20,000.00 -InterestPaidonLeaseLiability (826.80) (1,054.82)InterestPaidotherthanonLeaseLiability (23,804.63) (51,104.44)PaymentagainstCapitalCommitments (14,405.15) (2,594.85)Net Cash Generated / (Used) from / in Financing Activities (32,856.33) (174,344.11)Net Increase/(Decrease) in Cash & Cash Equivalents (A+B+C) (12,173.94) 25,361.98Add: Cash and Cash Equivalents at the beginning of the Year 37,240.19 11,872.85Add: Effect of Exchange difference on Translation of Foreign

Currency Cash & Cash Equivalents

(1.59) 5.36

Cash and Cash Equivalents at the end of the Year 25,064.66 37,240.19Cash and Cash Equivalents at the end of the Year Comprises of

(Refer Note 4)

CashinHand 1.40 4.03ChequesonHand 485.11 122.15StampPapersOnHand 18.97 25.21BalanceswithBanksinCurrentAccounts 24,457.64 36,892.80BalanceswithBanksinFixedDepositsAccounts 101.54 196.00Total 25,064.66 37,240.19

*InterestincomedoesnotincludeinterestincomefromlendingoperationsofRs34,113.13Lakh(March31,2020:Rs47,955.24Lakh).#NetCashusedinOperatingActivitiesincludesRs98.27Lakh(March31,2020:Rs39.62Lakh)spenttowardsCSRexpenditureduringthe

year(ReferNote40.2).Notes:a) TheCashFlowStatementhasbeenpreparedunderthe‘indirectmethod’assetoutinIndAS-7on‘StatementofCashFlows’.b) Figuresinbracketindicatecashoutgo/income.c) Previousyear’sfigureshavebeenregroupedandrearrangedwherevernecessarytoconformtothecurrentyearclassification.d) ForreconciliationofliabilitiesarisingfromfinancingactivitiesreferNote44A.The notes are an integral part of these Consolidated Financial Statements

This is the Consolidated Statement of Cash Flow referred to in our report of even date



Sd/- Sd/- Sd/-YOGESH K. GUPTA Dr. RASHMI SALUJA HAMID AHMEDPartner ExecutiveChairperson DirectorMembership Number: 093214 DIN- 01715298 DIN-09032137

Sd/- Sd/- NITIN AGGARWAL REENA JAYARA Group-CFO CompanySecretary Membership No. A19122Place : New Delhi Place : New Delhi



Notes Forming Part of the Consolidated Financial Statements


1. OVERVIEW

ReligareEnterprisesLimited(“REL”or“theCompany”)isaleadingemergingmarketsfinancialservicescompanyinIndia.REL isadiversifiedfinancial servicescompanywithpresence inallover Indiaoperating through itssubsidiaries.TheSubsidiaries,JointVenturesandAssociatesareprimarilyengagedinthebusinessofbrokinginsecuritiesandcommodities,lendingandinvestments,financialadvisoryservices,distributionofthirdpartyfinancialproducts,custodialanddepositoryoperations,andhealth insuranceservices to itsclients.RELwasoriginally incorporatedasaprivate limitedcompanyundertheCompaniesAct,1956onJanuary30,1984.TheCompanyislistedonNationalStockExchangeofIndiaLimited(“NSE”)andBSELimited(“BSE”).TheCompanyisregisteredwiththeReserveBankofIndiaasaNon-DepositTakingCoreInvestmentCompany(“CIC-ND”).(ReferDisclaimerbelow).

Morethan90%ofitstotalassetsareinvestedinlongterminvestmentsingroupcompanies.

TheCompanyhaschangeditsregisteredofficefrom2ndFloor,RajlokBuilding,24,NehruPlace,NewDelhi-110019toFirstFloor,P-14,45/90,P-Block,ConnaughtPlace,NewDelhi–110001w.e.f.May13,2020.

TheConsolidatedFinancialStatementscomprisetheCompanyanditssubsidiary,jointventuresandassociates(referredtocollectivelyas“theGroup”).(ReferNote54(f))

RBI Disclaimer:

(a) Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions

expressed by the company and for discharge of liability by the company.

(b) Neither is there any provision in law to keep, nor does the company keep any part of the deposits with the Reserve Bank

and by issuing the Certificate of Registration to the Company, the Reserve Bank neither accepts any responsibility nor guarantee for the payment of the public funds to any person/body corporate.

2. BASIS OF PREPARATION AND PRINCIPLES OF CONSOLIDATION

2.1 BASIS OF PREPARATION AND PRESENTATION

(i) Statement of Compliance

TheseconsolidatedfinancialstatementshavebeenpreparedandpresentedinaccordancewithIndianAccountingStandards(“IndAS”)notifiedunderSection133oftheCompaniesAct,2013(“theAct”)readwiththeCompanies(IndianAccountingStandards)Rules,2015andrelatedamendmentsasnotified fromtime to timeother relevantprovisionsoftheAct,2013,NBFCDirections,2016andCICDirections.

TheCompanyhasadoptedIndAS116effectiveApril1,2019,usingthemodifiedretrospectivemethod.FordetailpleasereferNote49.

(ii) Basis of Measurement

Theconsolidatedfinancialstatementshavebeenpreparedonahistoricalcostconventionandonanaccrualbasis,exceptforthefollowingmaterialitemswhichhavebeenmeasuredatfairvalueamount:

(a) Certainfinancialassetsandliabilities(includingderivativeinstruments);and

(b) Definedbenefitplanassets;

(iii) Functional and Presentation Currency

Items included in the financial statements of the Group are measured using the currency of the primaryeconomic environment in which the Group operates (“the functional currency”). The financial statementsare presented in Indian National Rupee (“INR” or “Rs”), which is the Group’s functional and presentationcurrency. All amounts have been rounded to Lakh up to two decimals, unless otherwise indicated. Duetoroundingoff,thenumberspresentedthroughoutthedocumentmaynotadduppreciselytothetotalsandpercentagesmaynotpreciselyreflecttheabsolutefigures.

(iv) Use of Judgements and Estimates

Inpreparationof theconsolidatedfinancial statements in conformitywith IndAS requiresmanagement tomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,thedisclosuresofcontingentliabilitiesandcontingentassetsasatthedateoffinancialstatements,incomeandexpensesduringtheperiod.Actualresultsmaydifferfromtheseestimates.Estimatesandunderlyingassumptionsarereviewedonanon-goingbasis.Revisionstoestimatesarerecognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.




Themanagementbelievesthattheestimatesusedinpreparationoffinancialstatementsareprudentandreasonable.Informationaboutestimatesandcriticaljudgmentsmadeinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountsrecognizedintheconsolidatedfinancialstatementsareasfollows:

→ Useful Lives of Property, Plant and Equipment and Intangible Assets:

Property,plantandequipment/intangibleassetsaredepreciated/amortisedovertheirestimatedusefullives,aftertakingintoaccountestimatedresidualvalue.Managementreviewstheestimatedusefullivesandresidualvaluesoftheassetsannuallyinordertodeterminetheamountofdepreciation/amortisationtoberecordedduring any reporting period. The useful lives and residual values are based on the Company’s historicalexperiencewithsimilarassetsand take intoaccountanticipated technologicalchanges.Thedepreciation /amortisationforfutureperiodsisrevisediftherearesignificantchangesfrompreviousestimates.

→ Impairment Testing of Non-Financial Assets:

Impairmentexistswhentherecoverableamountoftheassetorthecashgeneratingunittowhichthesepertainislessthanthecarryingvalue.Therecoverableamountoftheassetorthecashgeneratingunitsishigherofvalue-in-useandfairvaluelesscostofdisposal.Thecalculationofvalueinuseofacashgeneratingunitinvolvesuseofsignificantestimatesandassumptionswhichincludesturnover,growthratesandnetmarginsusedtocalculateprojectedfuturecashflows,risk-adjusteddiscountrate,futureeconomicandmarketconditions.

→ Provisions and Other Contingent Liabilities:

The Group operates in a regulatory and legal environment that, by nature, has a heightened element oflitigationriskinherenttoitsoperations.Asaresult,itisinvolvedinvariouslitigation,arbitrationandregulatoryinvestigationsandproceedingsintheordinarycourseoftheGroup’sbusinesses.

When theGroup can reliablymeasure the outflowof economic benefits in relation to a specific case andconsiderssuchoutflowstobeprobable,theGrouprecordsaprovisionagainstthecase.Wheretheprobabilityofoutflowisconsideredtoberemote,orprobable,butareliableestimatecannotbemade,acontingentliabilityisdisclosed.

Giventhesubjectivityanduncertaintyofdeterminingtheprobabilityandamountoflosses,theGrouptakesintoaccountanumberoffactorsincludinglegaladvice,thestageofthematterandhistoricalevidencefromsimilarincidents.Significantjudgementisrequiredtoconcludeontheseestimates.

→ Defined Benefit Plans and Compensated Absences:

Thecostof thedefinedbenefitplans,compensatedabsencesand thepresentvalueof thedefinedbenefitobligations are based on actuarial valuation using the projected unit creditmethod.An actuarial valuationinvolvesmakingvariousassumptionsthatmaydifferfromactualdevelopmentsinthefuture.Theseincludethedeterminationofthediscountrate,futuresalaryincreasesandmortalityrates.Duetothecomplexitiesinvolvedinthevaluationanditslong-termnature,adefinedbenefitobligationishighlysensitivetochangesintheseassumptions.Allassumptionsarereviewedateachreportingdate.

→ Income Taxes and Deferred Taxes:

IncomeTax:ThemajortaxjurisdictionsfortheGroupisIndia.Significantjudgmentsareinvolvedindeterminingtheprovisionforincometaxesincludingjudgmentonwhethertaxpositionsareprobableofbeingsustainedintaxassessments.Ataxassessmentcaninvolvecomplexissues,whichcanonlyberesolvedoverextendedtimeperiods.

DeferredTax:Deferredtaxisrecordedontemporarydifferencesbetweenthetaxbasesofassetsandliabilitiesand their carryingamounts, at the rates that havebeenenactedor substantively enactedat the reportingdate.Theultimaterealizationofdeferredtaxassetsisdependentuponthegenerationoffuturetaxableprofitsduringtheperiodsinwhichthosetemporarydifferencesandtaxlosscarry-forwardsbecomedeductible.TheCompanyconsiders theexpected reversalofdeferred tax liabilitiesandprojected future taxable income inmaking this assessment.Theamount of the deferred tax assets considered realizable, however, could bereducedintheneartermifestimatesoffuturetaxableincomeduringthecarry-forwardperiodarereduced.

The extent to which the Holding Company can control the timing of reversal of deferred tax liability onundistributedprofitsofitssubsidiariesrequiresjudgement.FurtherdetailsofthedeferredtaxesisdisclosedatNote12.




→ Impairment of Financial Asset / Expected Credit Losses (“ECL”) on Financial Assets:

The measurement of impairment losses across all categories of financial assets requires judgement, inparticular,theestimationoftheamountandtimingoffuturecashflowsandcollateralvalueswhendeterminingimpairmentlossesandtheassessmentofasignificantincreaseincreditriskincludingGroup’sinternalcredit.Theseestimatesaredrivenbyanumberoffactors,changesinwhichcanresultindifferentlevelsofallowances.

The Group’s ECL calculations are outputs of complex models with a number of underlying assumptionsregardingthechoiceofvariableinputsandtheirinterdependencies.PleasealsoreferNote3(k).

→ Fair Value Measurement of Financial Instruments:

Whenthefairvaluesoffinancialassetsandfinancialliabilitiesrecordedinthebalancesheetcannotbederivedfromactivemarkets,theyaredeterminedusingavarietyofvaluationtechniquesthatincludetheuseofvaluationmodels.Theinputstothesemodelsaretakenfromobservablemarketswherepossible,butwherethisisnotfeasible,estimationisrequiredinestablishingfairvalues.Judgementsandestimatesincludeconsiderationsof liquidityandmodelinputsrelatedtoitemssuchascreditrisk(bothownandcounterparty),fundingvalueadjustments,correlationandvolatility.ForfurtherdetailsaboutdeterminationoffairvaluepleasereferNotes3(l)and46.

→ Business Model Assessment:

Classificationandmeasurementoffinancialassetsdependsontheresultsofthe‘solelypaymentsofprincipalandinterest(“SPPI”)’andthe‘businessmodel’ tests(ReferNote3(k)).TheGroupdeterminesthebusinessmodelata level that reflectshowGroupsoffinancialassetsaremanaged together toachieveaparticularbusinessobjective.Thisassessment includes judgement reflectingall relevantevidence includinghow theperformanceoftheassetsisevaluatedandtheirperformancemeasured,therisksthataffecttheperformanceoftheassetsandhowthesearemanagedandhowthemanagersoftheassetsarecompensated.TheGroupmonitorsfinancialassetsmeasuredatamortisedcostorfairvaluethroughothercomprehensiveincomethatarederecognisedpriortotheirmaturitytounderstandthereasonfortheirdisposalandwhetherthereasonsareconsistentwiththeobjectiveofthebusinessforwhichtheassetwasheld.MonitoringispartoftheGroup’scontinuous assessment of whether the businessmodel for which the remaining financial assets are heldcontinuestobeappropriateandifitisnotappropriatewhethertherehasbeenachangeinbusinessmodelandsoaprospectivechangetotheclassificationofthoseassets.

→ Business combination:

Inaccountingforbusinesscombinations,judgmentisrequiredinidentifyingwhetheranidentifiableintangibleasset is to be recorded separately fromgoodwill.Additionally, estimating the acquisition date fair value ofthe identifiableassets (includinguseful lifeestimates)and liabilitiesacquired,andcontingentconsiderationassumedinvolvesmanagementjudgment.

Thesemeasurementsarebasedoninformationavailableattheacquisitiondateandarebasedonexpectationsandassumptionsthathavebeendeemedreasonablebymanagement.Changesinthesejudgments,estimates,andassumptionscanmateriallyaffecttheresultsofoperations.

→ Share Based Payments:

Thegroupcompaniesmeasure thecostofequity-settled transactionswithemployeesusingBlack-ScholesModelorothermethodtodeterminethefairvalueoftheliabilityincurredonthegrantdate.Estimatingfairvalueforshare-basedpaymenttransactionsrequiresdeterminationofthemostappropriatevaluationmodel,whichisdependentonthetermsandconditionsofthegrant.

Thisestimatealsorequiresdeterminationofthemostappropriateinputstothevaluationmodelincludingtheexpectedlifeoftheshareoption,volatilityanddividendyieldandmakingassumptionsaboutthem.

Theassumptionsandmodelsusedforestimatingfairvalueforshare-basedpaymenttransactionsaredisclosedinNote50.

→ Lease:

Calculationofleasedassetsandliabilitiesrequirestheuseofbothestimationandjudgement.ThedeterminationoftheleasetermforeachleaseinvolvestheCompanyassessinganyextensionandterminationoptions,theenforceabilityofsuchoptions,andjudgingwhetheritisreasonablycertainthattheywillbeexercised.Several




of theCompany’s leases contain such clauses. For each lease, a conclusionwas reached on the overalllikelihoodoftheoptionbeingexercised.

Inaddition,theidentificationofanappropriatediscountratetouseinthecalculationoftheleaseliabilityinvolvesbothestimationand judgement.Where the lease’s implicit rate isnot readilydeterminable,an incrementalborrowingratemustbecalculatedbytheCompany.

TheCompany reassesses theseestimatesand judgements ifasignificanteventorasignificantchange incircumstancesoccurs.

→ Uncertainty relating to the global health pandemic on COVID-19: The‘SevereAcuteRespiratorySyndromeCoronavirus2(SARS-CoV-2)’,generallyknownasCOVID-19isan

evolvinghumantragedydeclaredaglobalpandemicbytheWorldHealthOrganisationonMarch11,2020.Thispandemicdisruptedthesocial,economicandfinancialstructuresoftheentireworld.InIndia,fromMarch25,2020toMay31,2020,thecentralgovernmentdeclaredanationallockdown,restrictingthemovementoftheentirepopulationofthecountryasapreventivemeasureagainstthespreadofCOVID-19duringwhichonlydefinedessentialserviceswereoperatingwithlimitedcapacity.COVID-19israpidlyspreadinginthecountrywithsecondphaseonprogresssincelateFebruary,2021andbymidofApril,2021thepeakcaseswere3timesofthepeakcasesinthepreviousphase.Thelockdownisbeingliftedinaphasedmanner.However,there remainsahigh level of uncertaintyabout thedurationof the lockdownand the time required for lifeandbusinessoperationstonormalise.TheextenttowhichtheCOVID-19pandemicwill impacttheGroup’sbusinessandfinancial results including theexpectedcredit lossonfinancialassets isdependenton futuredevelopments,whicharehighlyuncertain.

In assessing the recoverability of receivables including loans granted, trade receivables, contract assets,investmentsandotherfinancialassetsanditsnon–financialassetsincludingpropertyplantandequipment,investment properties, right-of-use assets, goodwill, intangible assets and other assets, theCompany hasconsideredinternalandexternalinformationuptothedateofapprovalofthesefinancialstatementsincludingcredit reports and economic forecasts. Based on the current indicators of future economic conditions, theCompanyexpectstorecoverthecarryingamountoftheseassets.

BasedonthecurrentassessmentofthepotentialimpactoftheCOVID-19,includingthecurrent“secondwave”,ontheCompany,managementisoftheviewthattheCompanydoesnotanticipateanymaterialuncertaintieswhichaffectsitsliquiditypositionandalsoabilitytocontinueasagoingconcern.

TheimpactofCOVID-19remainsuncertainandmaybedifferentfromwhathavebeenestimatedasofthedateofapprovaloftheseconsolidatedfinancialstatementsandtheCompanywillcontinuetocloselymonitoranymaterialchangestofutureeconomicconditions.

RELisadiversifiedfinancialservicescompanyoperatingthroughitssubsidiaries.BusinessspecificuncertainityandimpactduetoCOVID-19areasunder:

Non-BankingFinancialServices(includingHousingFinance)

InaccordancewiththeRBIguidelinesrelatingtoCOVID-19RegulatoryPackagedatedMarch27,2020,April17,2020andMay23,2020,theNon-BankingFinancialandHousingFinancecompaniesoftheGrouphavegrantedamoratoriumofuptosixmonths,onpaymentofallinstallmentsfallingduebetweenMarch1,2020andAugust31,2020(‘MoratoriumPeriod’)onalltermloans,toalleligibleborrowersclassifiedasStandard,evenifoverdue,asonFebruary29,2020inaccordancewiththerespectivecompany’sBoardapprovedpolicy.Theinstallmentsincludeprincipaland/orinterestcomponents,bulletrepaymentsandequatedmonthlyinstallments.Therepaymentscheduleforsuchloansasalsotheresidualtenor,havebeenshiftedacrosstheboardbysixmonthsafterthemoratoriumperiod.Interestshallcontinuetoaccrue,atcontractualrate,ontheoutstandingportionofthetermloansduringthemoratoriumperiod.ThesecompanieshavealsograntedExGratiapaymentofdifferencebetweencompound interestandsimple interest for sixmoths (fromMarch1,2020 toAugust31,2020)toborrowersinspecifiedloanaccount.TheseGroupcompaniesgrantedex-gratiapaymentsofRs181.68LakhtospecifiedloanaccountswhichhasbeensubsequentlyclaimedfromtheGovernmentofIndia,asreimbursementduringthecurrentFinancialYear2020-21.

Forallsuchaccountswherethemoratoriumisgranted,theassetclassificationshallremianstandstillduringthemoratoriumperiod(i.e.thenumberofdayspast-dueshallexcludethemoratoriumperiodforthepurposesofassetclassificationundertheprudentialnormsonIncomeRecognition,AssetClassificationandProvisioning(“IRACP”)).




ReversalofExcessInterest/PenalInterest:

InlinewiththeHon’bleSupremeCourtofIndia’sjudgmentinthematterofSmallScaleIndustrialManufacturersAssociationvsUOI&Ors.andotherconnectedmatterspronouncedonMarch23,2021,theReserveBankof India (“RBI”), vide its circular RBI/2021-22/17 DOR.STR.REC.4/21.04.048/2021-22 datedApril 7, 2021mandatedalllendinginstitutionstoputinplaceaBoard-approvedpolicytorefund/adjustthe‘interestoninterest’chargedtotheborrowersduringthemoratoriumperiod,i.e.March1,2020toAugust31,2020inconformitywiththesaidjudgement.Thereliefofrefund/adjustmentwasapplicabletoallborrowers,irrespectiveofwhethermoratoriumhadbeenfullyorpartiallyavailed,ornotavailed,intermsoftheRBImoratoriumcirculars.

Further,inordertoensurethatthesaidjudgementisimplementeduniformlyinletterandspiritbyalllendinginstitutions, RBI prescribed that methodology for calculation of the amount to be refunded / adjusted fordifferentfacilitiesshallbefinalisedbytheIndianBanksAssociation(“IBA”)inconsultationwithotherindustryparticipants/bodies,whichshallbeadoptedbyalllendinginstitutions.Accordingly,IBAprescribedtheuniformmethodologytobeadoptedbylendinginstitutionsforrefundofinterestoninterest/compoundinterest/penalinterest.IntermsoftheRBIcircularandthemethodologyprescribedbyIBA,

#ReligareFinvestLimited(“RFL”)isrequiredtorefund/adjustanestimatedsumofRs876.05Lakh(outofwhichRFL’sshareisRs838.50Lakh)totheeligibleborrowers;and

#ReligareHousingDevelopmentFinanceCorporationLimitedisrequiredtorefund/adjustanestimatedsumofRs66.93Lakhtotheeligibleborrowers.

Thesaidamountwillberefunded/adjustedininstallmentsduefromrespectiveborrowersinFinancialYear2021-22.

ShareandCommodityBroking

Thestockexchangeswerepermitted to functionnormally,aspartofessentialservices,during thenationallockdown and correspondingly the broking services and other functions of the Company have remainedoperationalevenduring theCOVID-19 lockdown.Thebrokingcompaniesof theGrouphavechangedtheiroperatingmodelinlinewiththeregulatoryguidelinesduringlockdownbyenablingWorkFromHome(“WFH”)for dealers, operations and other functions by setting up of trading terminals& other applications to keepoperating from our data center via secured VPN access to authorized employees. Employees were alsofacilitated toWFHandenabled throughsecuredremoteaccess toensurebusinesscontinuitywithminimaldisruption.Themanagementofthebrokingcompaniesdoesn’tforeseeanymaterialimpactduetoCOVID-19onthefinancialassetsfortheyearsendedMarch31,2021andMarch31,2020.

HealthInsurance

In accordance with IRDAI Assets Liability and Solvency Margin Regulations, 2016, Premium DeficiencyReserve(“PDR”)istobemaintainedatinsurerlevel,whileacompanyneedstocalculatePDRatsegmentallevel. However, considering that theCOVID-19 is rapidly spreading in the country,AppointedActuary hasadvisedtobuildaPDRasatMarch31,2021ofRs13,587.83Lakh(March31,2020:Rs2,445.62Lakh)inCareHealthInsuranceLimited(formerlyknownasReligareHealthInsuranceCompanyLimited)(“CHIL”),aheathinsurancecompanyinthegroup,whichisalsoinlinewiththeCHIL’saccountingpolicyonPDR.

TheAppointedActuaryhasestimatedthisamountforliveswhichareexposedtoriskasonMarch31,2021undervariousindemnitypoliciesoftheCHIL.ForestimationofPDRvariousstudiespublishedacrosscountriesand India were referred to assume certain proportion of population will get affected, which will result incertainnumberof hospitalizationafter taking theeffect of effort takenby variousgovernmentagenciesoncontainment,limitationofmedicalinfrastructureetc.DueweightagewasalsogiventoownexperienceoftheCHILforCOVID-19claims.TheseassumptionswereusedtoprojectnumberofclaimsfortheCHILfortheriskexposureasofMarch,2021.AverageSeveritywasestimated,afterconsideringCOVID-19claimsexperienceoftheCHIL.ThisledtoanestimateoftotalexpectedclaimincurredfortheCHILpertainingtoCOVID-19.TheAppointedActuaryfurthervariedthevariousassumptionstocreatescenariosandselectedoneoftheprobablescenariotoestimatetheexpectedtotalclaim,whichwasconsideredasgrossPDR.Furthernettogrossfactor(calculatedbasedonactualdata)wasappliedtoestimatethenetPDR.

(v) TheGrouppresentsitsbalancesheetinorderofliquidity.Ananalysisregardingrecoveryorsettlementwithin12monthsafterthereportingdate(current)andmorethan12monthsafterthereportingdate(non–current)ispresentedinNote43.




vi) Impairment Reserve

Impairment reserve, created by the non banking financials companies of the Group, as stipulated by theReserveBankofIndia(“RBI”)(ReferNote27.1(x)),isrolleduptotheconsolidatedfinancialsaftereliminationtheinter-companiestransactions.

(vii) Recent Pronouncements

OnMarch24,2021,theMinistryofCorporateAffairs(“MCA”)throughanotification,amendedScheduleIIIoftheCompaniesAct,2013.TheamendmentsreviseDivisionI,IIandIIIofScheduleIIIandareapplicablefromApril1,2021.KeyamendmentsrelatingtoDivisionIIIwhichrelatetocompanieswhosefinancialstatementsarerequiredtocomplywithCompanies(IndianAccountingStandards)Rules2015are:

Balance Sheet:

→ Certainadditionaldisclosures in thestatementofchanges inequitysuchaschanges inequitysharecapitalduetopriorperioderrorsandrestatedbalancesatthebeginningofthecurrentreportingperiod.

→ Specifiedformatfordisclosureofshareholdingofpromoters.

→ Specifiedformatforageingscheduleoftradereceivables,tradepayables,capitalwork-in-progressandintangibleassetunderdevelopment.

→ Ifacompanyhasnotused funds for thespecificpurpose forwhich itwasborrowed frombanksandfinancialinstitutions,thendisclosureofdetailsofwhereithasbeenused.

→ Specificdisclosureunder‘additionalregulatoryrequirement’suchascompliancewithapprovedschemesofarrangements,compliancewithnumberoflayersofcompanies,titledeedsofimmovablepropertynotheldinnameofcompany,loansandadvancestopromoters,directors,keymanagerialpersonnel(KMP)andrelatedparties,detailsofbenamipropertyheldetc.

Statement of profit and loss:→ Additional disclosures relating to Corporate Social Responsibility (“CSR”), undisclosed income and

cryptoorvirtualcurrencyspecifiedunderthehead‘additional information’ inthenotesformingpartofconsolidatedfinancialstatements.

2.2 PRINCIPLES OF CONSOLIDATION

A. TheconsolidatedfinancialstatementsrelatetotheCompanyanditssubsidiarycompanies,associatesandjointventures.Theconsolidatedfinancialstatementshavebeenpreparedonthefollowingbasis:

(i) TheCompanydeterminesthebasisofcontrolinlinewiththerequirementsofIndAS-110,‘ConsolidatedFinancialStatements’.SubsidiariesandcontrolledTrustsareentitiescontrolledbytheGroup.

TheGroupcontrolsanentitywhentheparenthaspowerovertheentity,itisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerovertheentity.

(ii) Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedateonwhichcontrolcommencesuntilthedateonwhichcontrolceases.TheGroupre-assesseswhetherornotitcontrolsanentityiffactsandcircumstancesindicatethattherearechangesincontrol.

(iii) ThefinancialstatementsoftheCompanyanditssubsidiariesarecombinedonalinebylinebasisbyaddingtogetherlikeitemsofassets,liabilities,equity,incomesandexpenses,aftereliminatingintra-groupbalancesandintra-grouptransactionsinfull.

(iv) Incaseof foreignsubsidiarieshavea functionalcurrencyother than INR,revenue itemsareconsolidatedat theaveragerateprevailingduringtheyear.Allassetsandliabilitiesareconvertedatratesprevailingatthereportingdate.Anyexchangedifferencearisingonconsolidationisrecognisedinthe‘ForeignCurrencyTranslationReserve(“FCTR”)’.Whenaforeignsubsidiaryisdisposedof,therelevantamountrecognizedinFCTRistransferredtotheConsolidatedStatementofProfitorLossaspartoftheprofitorlossondisposal.

(v) Theconsolidatedfinancialstatementsarepreparedbyadoptinguniformaccountingpolicies for like transactionsandotherevents insimilarcircumstancesandarepresented, to theextentpossible, in thesamemanneras theCompany’sseparatefinancialstatements.

(vi) FinancialstatementofsubsidiariesusedforthepurposeofConsolidationaredrawnuptothesamereportingdateasthatoftheCompany.




(vii) Thedifferencebetween theproceeds fromdisposalof investment insubsidiariesand thecarryingamountof itsassetslessliabilitiesasonthedateofdisposalisrecognisedintheConsolidatedStatementofProfitandLossbeingtheprofitorlossondisposalofinvestmentinsubsidiary.

(viii) Non-controllinginterestsinthenetassets(excludinggoodwill)ofconsolidatedsubsidiariesareidentifiedseparatelyfromtheCompany’sequity.Theinterestofnon-controllingshareholdersmaybeinitiallymeasuredeitheratfairvalueoratthenon-controllinginterest’sproportionateshareofthefairvalueoftheacquiree’sidentifiablenetassets.Thechoiceofmeasurementbasisismadeonanacquisitiontoacquisitionbasis.Subsequenttoacquisition,thecarryingamountofnocontrollinginterestistheamountofthoseinterestsatinitialrecognitionplusthenon-controllinginterest’sshareofsubsequentchangesinequity.Totalcomprehensiveincomeisattributedtonon-controllinginterestsevenifitresultsinthenon-controllinginteresthavingadeficitbalance.

(ix) Equityaccountedinvesteesareentitiesinrespectofwhich,theCompanyhassignificantinfluence,butnotcontrol,over the financial and operating policies. Generally, associates and joint venture companies come under thiscategory.Investmentsinsuchentitiesareaccountedforusingtheequitymethod(equityaccountedinvestees)andareinitiallyrecognizedatcost.Thecarryingamountofinvestmentisincreased/decreasedtorecognizedinvestorsshareofprofitorlossoftheinvesteeaftertheacquisitiondateposteliminatingunrealizedprofitsandlossesresultingfrom transactionsbetween theCompanyand its equity accountedentities to theextent of its share, through itsConsolidatedStatementofProfitandLoss,totheextentsuchchangeisattributabletotheequityaccountedentities’StatementofProfitandLossandthroughitsreservesforthebalancebasedonavailableinformation.

B. The Subsidiaries, Joint Venture and Associate considered in the Consolidated Financial Statements are as under:

Name of the Entity

% of equity shareholdings Country of

Incorporation

/ Place of Business

As at

March 31, 2021

As at

March31,2020

(a) Subsidiaries / Sub-SubsidiariesReligareFinvestLimited1 100.00% 100.00% India

ReligareCommoditiesLimited(subsidiaryofReligareBrokingLimited) 100.00% 100.00% India

Religare Housing Development Finance Corporation Limited (subsidiary ofReligareFinvestLimited)

87.50% 87.50% India

CareHealth Insurance Limited (formerly known asReligareHealth InsuranceCompanyLimited)2

70.71% 88.95% India

ReligareComtradeLimited(Companyholds73.066%andReligareCommoditiesLimitedholds26.934%)3

100.00% 100.00% India

ReligareGlobalAssetManagementInc.,USA4 100.00% 100.00% USA

ReligareBrokingLimited 100.00% 100.00% India

ReligareInsuranceLimited 100.00% 100.00% India

Religare Advisors Limited (formerly known as Religare Wealth ManagementLimited)(subsidiaryofReligareBrokingLimited)(ReferNote54(h))

100.00% 100.00% India

Religare Credit Advisor Private Limited [formerly known as Religare CreditAdvisorsLLP)5

99.99% 99.99% India

Religare Business Solutions Limited (subsidiary of Religare Broking Limited)(ReferNote54(o))

100.00% 100.00% India

(b) Joint Ventures

IBOF Investment Management Private Limited (formerly known QuadriaInvestmentManagementPrivateLimited)

50.00% 50.00% India

Note: Also refer Point (C) below.

1OnFebruary11,2020,theCompany,enteredintoSharePurchaseAgreements(“SPA”)foracquisitionof3,76,41,204equitysharesofReligareFInvestLimited(“RFL”),asubsidiaryoftheCompany,constituting14.36%shareholdingofRFLfromTwoprivateequity investorsviz.ResurgencePE InvestmentsLimited (formerly knownasAvigoPE InvestmentsLimited)(“Resurgence”)andNYLIMJacobBallas IndiaFundIII,LLC(“JacobBallas”)(together“Investors”).Further,a




ConsentTermAgreementhadbeenenteredamongstthepartieswherebythepartieshadagreedtoamicablysettlealltheexistingdisputesinitiatedbytheInvestorsagainsttheCompanyandRFLinaccordancewiththetermssetouttherein.

Accordingly,intermsoftheSPA,the14.36%stakeofRFLwasacquiredfromtheInvestorsandRFLbecameawhollyownedsubsidiaryoftheCompanyw.e.f.February28,2020.

2DuringtheyearendtheCompanyhasdivestedpartofitsinvestmentinCareHealthInsuranceLimited(formerlyknownasReligareHealthInsuranceCompanyLimited)(“CHIL”),asubsidiaryoftheCompanyonJune02,2020foraconsiderationofRs20,000LakhtoTrishikharVenturesLLP,asubsidiaryofKedaaraCapitalFundIILLP(jointlyreferredas“Kedaara”).ThetotalinvestmentmadebyKedaaratoacquiresharesofCHILisRs56,731LakhwhichcomprisesofprimarycapitalinfusionofRs30,000LakhinCHILandRs26,731LakhforthepurchaseofCHILsharesfromexistingshareholdersofCHIL,includingpurchaseof6.39%stakefromtheCompanyagainstaconsiderationofRs20,000Lakh.TheCompany,asonMarch31,2021,has70.714%shareholdinginCHILonapaidupequitycapitalbasis.

3 ReligareComtrade Limited, awholly owned sub-subsidiary of theCompany has become a direct subsidiary of theCompany pursuant to conversion of CCDs into equity w.e.f December 31, 2018. Pursuant to conversion, ReligareEnterprisesLimiteddirectlyholds73.066%shareholdinginReligareComtradeLimited.

4TheBoardofDirectorsoftheerstwhileholdingcompanyRGAMInvestmentAdvisersPrivateLimited(“RGAMIAPL”)atitsmeetingheldonMay25,2016,hasgivenitsconsenttoliquidatetheReligareGlobalAssetManagementInc.,USA(“RGAMInc”).RGAMIAPLhasmergedwiththeCompany.TheCompanyisevaluatingvariousoptionsincludingvoluntarywindingupofRGAMInc,subject tocompliancewith theprovisionsof the lawsapplicable to it in theUnitedStatesofAmerica.

5TheReligareCreditAdvisorPrivateLimited(“RCAL”)waspreviouslyintoinvestmentmanagementandthemanagementhastakenadecisiontonottocarryonanycommercialoperationsfromApril1,2021.Themanagementdoesnotforeseetocommenceanybusiness.SinceRCALisnotworking,goingconcernassumptiondoesnotapplytoit.AccordinglythefinancialstatementsofRCALhavenotbeenpreparedunderthegoingconcernassumptionandallassetsandliabilitieshavebeenstatedattheirnetrealizablevalues.

Note-1:OnDecember18,2019,theBoardofDirectorsoftheCompanyapproved,subjecttorequisiteapprovals,thedraftSchemeofAmalgamation(“Scheme”)thatisdesignedtosimplifytheGroupcorporatestructure.IntermsoftheScheme,fourdirect/indirectwhollyownedsubsidiariesoftheCompanynamely,ReligareComtradeLimited,ReligareInsuranceLimited,ReligareAdvisorsLimitedandReligareBusinessSolutionsLimitedwillmergewith/intotheCompanysubjecttotermsandconditionsasprovidedintheScheme.TheSchemeshallbesubmittedwiththeHon’bleNCLTinduecourseoftime.

Further,theearlierSchemeapprovedbytheBoardonMay23,2019waswithdrawnaccordingly.

Note-2:BoardofDirectorsofReligareBrokingLimited(“RBL”)andReligareCommoditiesLimited(“RCL”),intheirBoardMeetingheldonMarch08,2019hadapproved“SchemeofMerger”tomergeRCLinto/withRBL.TheMergerwasplannedwithanobjectivetointegratesecuritiestradingandcommoditytradingservicesasprovidedbyRBLandRCLrespectivelyunderoneentityi.e.RBL.However,lateronRBLhasmadeapplicationswithCommodityExchangesforobtainingnewlicenseswithrespecttocommoditybrokingservices.Hence,theBoardofDirectorsofRBLandRCLattheirmeetingsheldonMay13,2019,reviewedthematteranddecidedtowithdrawthe“SchemeofMerger”ofRCLinto/withRBL.Therefore,the“SchemeofMerger”ofRCLwith/intoRBLstandswithdrawnw.e.f.May13,2019.

RBL,beingasecuritiesandcommoditiesbrokingbusinessentityacquired, forbettersynergy,onSeptember07,2019commoditiesbrokingbusinessofits100%subsidiary,RCL,acommoditiesbrokingbusinessentity,asa‘slumpsale’(asdefinedasperSection2(42C)oftheIncomeTaxAct,1961)asperagreementdatedAugust07,2019.

C. Subsidiariesareentitiescontrolledbytheotherentity.AsperIndAS-110,‘ConsolidatedFinancialStatements’anentitycontrolsotherentitywhen:

(i) theparenthaspowerovertheotherentity;

(ii) itisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeotherentity;and

(iii) ithastheabilitytoaffectthosereturnsthroughitspowerovertheotherentity.

AsperIndAS-111,‘JointArrangements’,whenalltheparties,oragroupoftheparties,consideredcollectively,areabletodirecttheactivitiesthatsignificantlyaffectthereturnsofthearrangement(i.e.therelevantactivities),thepartiescontrolthearrangementcollectively.Afterconcludingthatalltheparties,oragroupoftheparties,controlthearrangementcollectively,anentityshallassesswhetherithasjointcontrolofthearrangement.Jointcontrolexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiesthatcollectivelycontrolthearrangement.




TheCompanyalthoughholds100%equitysharescapitalinRCML,howeverinthepresentscenariocontrollingthroughvotingrightsisnottherewiththeCompany.Besidethis,thetripartiteagreemententeredinto,infinancialyear2011-12,betweenREL,ReligareCapitalMarketsLimited(“RCML”)andRHCHoldingPrivateLimited(“RHCPL”),apromotergroupcompany(applicationwithSEBIfordelistingofpromotersispendingsinceJanuary16,2019)forprovidingfinancialsupporttoRCMLbyRHCPLimposedseverelongtermrestrictionsandsignificantrestrictivecovenantsonmajordecisionmakingatRCMLbytheholderofthepreferenceshares.Accordinglyinviewoftheabove,thefinancialstatementsofRCMLanditssubsidiarieshavebeenexcludedfromtheconsolidatedfinancialstatementsoftheCompanyw.e.f.October01,2011,inaccordancewithapplicableaccountingstandards.TheCompanyhasalreadyprovidedfullyfortheentireinvestmentmadebyitintoRCMLinpreviousyears.ThenetworthofRCMLasperlastauditedfinancialstatementasonMarch31,2017wasRs.(61,971.95)Lakh.

FollowingisgiventhelistoftheRCMLgroupcompanies.

Name of the Entity*

% of equity shareholdings Country of Incorporation /

Place of BusinessAs at

March 31, 2021As at

March31,2020

ReligareCapitalMarketsLimited 100.00% 100.00% India

ReligareCapitalMarketsInternational(Mauritius)Limited 100.00% 100.00% Mauritius

ReligareCapitalMarketsCorporateFinancePte.Limited** 100.00% 100.00% Singapore

ReligareCapitalMarkets(Europe)Limited**^ 100.00% 100.00% United Kingdom

ReligareCapitalMarkets(UK)Limited* 100.00% 100.00% United Kingdom

ReligareCapitalMarketsInc.** 100.00% 100.00% USA

ToblerUKLimited** 100.00% 100.00% United Kingdom

KyteManagementLimited("KML")** 100.00% 100.00% BVI

Religare Capital Markets (Hong Kong) Limited** (subsidiary of KyteManagementLimited)

100.00% 100.00% HongKong

Religare Capital Markets (Singapore) Pte. Limited** (subsidiary ofReligareCapitalMarkets(HongKong)Limited)

100.00% 100.00% Singapore

Bartleet Religare Securities (Private) Limited@ **(formerly known asBartleetMalloryStockBrokers(Private)Limited)

50.00% 50.00% SriLanka

BartleetAssetManagement (Private )Limited@ **(subsidiaryofBartleetReligareSecurities(Private)Limited)

50.00% 50.00% SriLanka

StrategicResearchLimited@**(subsidiaryofBartleetReligareSecurities(Private)Limited)

50.00% 50.00% SriLanka

Bartleet Wealth Management (Private) Limited (Formerly known asReligare Bartleet Capital Markets (Private) Limited)@** (subsidiary ofBartleetReligareSecurities(Private)Limited)

50.00% 50.00% SriLanka

*AlsoreferNote54(p)**Subsidiary/Sub-subsidiaryofReligareCapitalMarketsInternational(Mauritius)Limited.@Boardcontrolledsubsidiary.^InprocessofLiquidation.

3. SIGNIFICANT ACCOUNTING POLICIES

(a) PROPERTY, PLANT AND EQUIPTMENT (“PPE”)

Freeholdlandsarecarriedathistoricalcost.Otheritemsofproperty,plantandequipmentaremeasuredathistoricalcost,lessaccumulateddepreciationandaccumulatedimpairmentlosses,ifany.Costcomprisesthepurchasepriceandanyattributablecostofbringingtheassettoitslocationandworkingconditionforitsintendeduse,includingrelevantborrowingcostsandanyexpectedcostsofdecommissioning.




Ifsignificantpartsofan itemofPPEhavedifferentuseful lives, then theyareaccounted forasseparate items(majorcomponents)ofPPE.

Subsequentcostsare included in thePPE’scarryingvalueor recognisedasseparateassetonlywhen, it isprobablethattheeconomicbenefitsassociatedwiththeitemwillflowtotheCompany/Groupinfutureperiodsandthecostoftheitemcanbemeasuredreliably.Expenditure,incurredafterthePPEhavebeenputintooperations,suchasrepairsandmaintenanceexpensesarechargedtotheStatementofProfitandLossduringtheperiodinwhichtheyareincurred.

An itemofPPE is de-recognisedupondisposal orwhenno future economic benefits are expected to arise from thecontinueduseoftheassets.Anygainorloss,arisingonthedisposalorretirementofanitemofPPE,isdeterminedasthedifferencebetweenthesalesproceedsandthecarryingamountoftheassetandisrecognisedinStatementofProfitandLoss.

Capitalwork-in-progressincludescostofproperty,plantandequipmentunderinstallation/underdevelopmentasatthebalancesheetdate.Advancespaidtowardstheacquisitionofproperty,plantandequipmentoutstandingateachbalancesheetdateisclassifiedascapitaladvancesunder‘othernon-financialassets’.

(b) DEPRECIATION

Depreciationisthesystematicallocationofthedepreciableamountofanassetoveritsusefullife.Depreciableamountforassets is thecostof anasset, orotheramount substituted for cost, less itsestimated residual value.Land isnotdepreciated.

Depreciationontangiblefixedassetshasbeenprovidedonthestraight-linemethodaspertheusefullifeprescribedinScheduleIItotheCompaniesAct,2013ortheratesbasedontheusefullifeoftheassetasestimatedbytheManagementtakingintoaccountthenatureoftheasset,theestimatedusageoftheasset,theoperatingconditionsoftheasset,pasthistoryofreplacement,anticipatedtechnologicalchanges,manufacturerswarrantiesandmaintenancesupport,etc.whichhasasignificantimpactontheusefullifeofanasset.Theestimatedusefullivesare,asfollows:

Asset Description

Useful life and rates specified in Schedule II of Companies Act, 2013

Useful life and rates considered by

the Group

Useful Life of

Asset (In year)

Depreciation

Rate (%)

Useful Life of

Asset (In year)

Depreciation

Rate (%)

OfficeEquipments 5 20% 2to5 20%to50%ServerandNetworks 6 16.67% 5to6 16.67%to20%Laptop,Desktopetc. 3 33.33% 3 33.33%ElectricalInstallation&Equipments 10 10% 5to10 10%to20%FurnitureandFixtures 10 10% 5to10 10%to20%Car 8 12.50% 5to8 12.5%to20%Bike 10 10.00% 6to10 10%to16.67%Right-of-UseAssets* LeasePeriod LeasePeriodLeaseholdImprovement** LeasePeriod LeasePeriod

*Company’Right-of-UseAssetsmainlyconsistofofficepremises,motorvehiclesandofficeequiptmentsandareamortizedovertheleaseperiod.

**LeaseholdImprovementsareamortizedovertheleaseperiod,whichcorrespondswiththeusefullivesoftheassets.

IndividualassetscostinguptoRs5,000arefullydepreciatedintheyearinwhichtheyareacquired.

Depreciationisprovidedforonapro-ratabasisontheassetsacquired,soldordisposedoffduringtheyear.

UsefullifeofthepartofPPEwhichissignificanttothetotalcostofPPE,hasbeenseparatelyassessedanddepreciationhasbeenprovidedaccordingly.

Theestimatedusefullives,residualvaluesandthedepreciationmethodarereviewedattheendofeachreportingperiod,withtheeffectofanychangesinestimateaccountedforonaprospectivebasis.




(c) INTANGIBLE ASSETS

IntangibleassetsthatareacquiredbytheGrouparemeasuredatcost.Subsequenttoinitialrecognition,theassetsaremeasuredatcost,lessaccumulatedamortisationandaccumulatedimpairmentlosses,ifany.

Subsequentexpendituresarecapitalizedonlywhentheyincreasethefutureeconomicbenefitsembodiedinthespecificassettowhichtheyrelate.

Anitemofintangibleassetisderecognisedwhennofutureeconomicbenefitareexpectedtoarisefromthecontinueduseoftheassetorupondisposal.AnygainorlossondisposalofanitemofintangibleassetsisrecognisedintheStatementofProfitandLoss.

ComputersoftwarewhichisnotanIntegralpartoftherelatedhardwareisclassifiedasanintangibleassetandisbeingamortisedovertheestimatedusefullife.TheestimatedusefullivesofIntangibleassetsare5years.

(d) AMORTISATION

Intangible assetswith a finite useful life are amortised on a straight line basis over their estimated useful lives. Theamortisationperiodarereviewedatleastateachfinancialyearend.Iftheexpectedusefullifeoftheassetissignificantlydifferentfrompreviousestimates,theamortizationperiodischangedaccordingly.

(e) GOODWILL

Goodwillisinitiallymeasuredatcost,beingtheexcessoftheaggregateoftheconsiderationtransferredandtheamountrecognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired andliabilitiesassumed.

Goodwillisnotamortisedbutitistestedforimpairmentannually,ormorefrequentlyifeventsorchangesincircumstancesindicatethatitmightbeimpairedandisarrivedatcostlessaccumulatedimpairmentlosses.

Impairment

Cashgeneratingunitstowhichgoodwill isallocatedaretestedfor impairmentannuallyateachbalancesheetdate,ormorefrequentlywhenthereisanindicationthattheunitmaybeimpaired.Iftherecoverableamountofthecashgeneratingunitislessthanthecarryingamountoftheunit,theimpairmentlossisallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothatunitandthentotheotherassetsoftheunitprorataonthebasisofcarryingamountofeachassetintheunit.Goodwillimpairmentlossrecognizedisnotreversedinsubsequentperiod.

Disposed of

Wheregoodwillhasbeenallocatedtoacash-generatingunitandpartoftheoperationwithinthatunitisdisposedof,thegoodwillassociatedwith thedisposedoperation is included in thecarryingamountof theoperationwhendeterminingthegainorlossondisposal.Goodwilldisposedinthesecircumstancesismeasuredbasedontherelativevaluesofthedisposedoperationandtheportionofthecash-generatingunitretained.

(f) EARNINGS PER SHARE (“EPS”)

Thebasicearningspershareiscomputedbydividingthenetprofit/lossattributabletotheequityshareholdersfortheyearbytheweightedaveragenumberofequitysharesoutstandingduringthereportingyear.Dilutedearningspersharereflectthepotentialdilutionthatcouldoccurifsecuritiesorothercontractstoissueequityshareswereexercisedorconvertedduringtheyear.Dilutedearningspershareiscomputedbydividingthenetprofitaftertaxbytheweightedaveragenumberofequitysharesanddilutivepotentialequitysharesoutstandingduringtheyear.Inconsideringwhetherpotentialequitysharesaredilutiveoranti-dilutive,eachissueorseriesofpotentialequitysharesisconsideredseparatelyratherthaninaggregate.

Incomputingdilutiveearningspershare,onlypotentialequitysharesthataredilutiveareconsidered.

(g) TAXES ON INCOME

Current Tax

(i) Theincometaxexpenseorcreditfortheyearisthetaxpayableonthecurrentyear’staxableincomeinaccordancewith theapplicable income tax rates for each jurisdictionadjustedby changes in deferred taxassets / liabilitiesattributabletotemporarydifferencesandtounusedtaxlosses

(ii) Thetaxratesandtaxlawsusedtocomputeamountarethosethatareenacted,orsubstantivelyenacted,bythe




reportingdateinthecountrieswheretheGroupoperatesandgeneratestaxableincome.Managementperiodicallyevaluatespositionstakeninthetaxreturnswithrespecttosituationsinwhichapplicabletaxregulationsaresubjecttointerpretationandestablishesprovisionswhereappropriate.

(iii) Currentincometaxrelatingtoitemsrecognisedoutsideprofitorlossisrecognisedoutsideprofitorloss(eitherinothercomprehensiveincomeorinequity).CurrenttaxitemsarerecognisedincorrelationtotheunderlyingtransactioneitherinOCIordirectlyinequity.

(iv) Current taxassetsandcurrent tax liabilitiesareoffsetwhere theentityhasa legallyenforceable right tosetofftherecognisedamounts;andintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.

Currenttaxforcurrentandpriorperiodsshall,totheextentunpaid,berecognisedasaliability.Iftheamountalreadypaidinrespectofcurrentandpriorperiodsexceedstheamountdueforthoseperiods,theexcessshallberecognisedasanasset.

Deferred Tax

(v) Deferredtaxisprovidedontemporarydifferencesatthereportingdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.

(vi) Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,exceptdeferredtaxliabilityarisesfrom:>> Theinitialrecognitionofgoodwill;or>> Theinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetime

ofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss);or>> Thetemporarydifferencesbetweenthecarryingamountandtaxbasesoninvestmentsinsubsidiaries,branches

andassociates,andinterestsinjointarrangementswheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifference;anditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

(vii) Adeferredtaxassetshallberecognisedforalldeductibletemporarydifferencestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilised,exceptdeferredtaxliabilityarisesfrom:>> Theinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombination;andatthetime

ofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss);or >> Thetemporarydifferencesbetweenthecarryingamountandtaxbasesoninvestmentsinsubsidiaries,branches

andassociates,andinterestsinjointarrangementswhereitisnotprobablethatthetemporarydifferencewillreverseintheforeseeablefuture;andtaxableprofitwillbeavailableagainstwhichthetemporarydifferencecanbeutilised.

Adeferredtaxassetshallberecognisedforthecarryforwardofunusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichtheunusedtaxlossesandunusedtaxcreditscanbeutilised.

(viii) Deferredtaxassetsandliabilitiesshallbemeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.

(ix) Deferredtaxrelatingto itemsrecognisedoutsideprofitor lossisrecognisedoutsideprofitor loss(either inothercomprehensiveincomeorinequity).DeferredtaxitemsarerecognisedincorrelationtotheunderlyingtransactioneitherinOCIordirectlyinequity.

(x) Deferredtaxassetsanddeferredtax liabilitiesareoffset ifa legallyenforceablerightexists tosetoffcurrent taxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxationauthority.

(xi) Thehousingfinancegroupcompaycontinuestocreatethedeferredtaxliabilityon‘SpecialReserve’createdandmaintainedundersection36(1)(viii)oftheIncomeTaxAct,1961.

(xii) MinimumAlternateTax(“MAT”)credit is recognisedasanassetonlywhenand to theextent there isconvincingevidencethatthecompanywillpaynormalincometaxduringthespecifiedperiod.SuchassetisreviewedateachBalanceSheetdateandthecarryingamountoftheMATcreditassetiswrittendowntotheextentthereisnolongeraconvincingevidencetotheeffectthattheGroupcompanieswillpaynormalincometaxduringthespecifiedperiod.




Direct Tax Contingencies

Thegroupcompanieshasongoingdisputeswithincometaxauthoritiesrelatingtotaxtreatmentofcertainitems.Thedisputesrelatetotaxtreatmentofcertainexpensesclaimedasdeductions,computationoreligibilityoftaxincentivesorallowances,andcharacterisationoffeesforservicesreceived.

TheGrouphascontingentliabilityinrespectofdemandsfromdirecttaxauthoritiesinIndia,asreportedinNote-45.

Thegroupcompanyperiodicallyreceivesnoticesandinquiriesfromincometaxauthoritiesrelatedtothecompanies’operationsinthejurisdictionsitoperatesin.Therespectivecompanyhasevaluatedthesenoticesandinquiriesandhasconcludedthatanyconsequentincometaxclaimsordemandsbytheincometaxauthoritieswillnotsucceedonultimateresolutionandaccordinglynoprovisionisconsiderednecessary.

(h) REPOSSESSED ASSETS HELD FOR SALE

Assets acquired in satisfaction of debts are disclosed in the balance sheet at outstanding principal loan amount ormarketvalue(aspervaluationreports)whicheverislower.Incasethemarketvalueofassetsacquiredislowerthantheoutstandingprincipalloanamount,differenceischargedtotheStatementofProfitandLoss.Incasethemarketvalueofassetsacquiredcannotbedetermined,assetsarerecognisedatanominalvalue.

Theoutstandingoverdueinterest,otherchargesandinterestfromthedateofsettlementtillthedisposalofsuchassetsareaccountedonrealizationbasis.Anymoneyrealizedoverandabovetheprincipaloutstandingineitherofthesecategoriessuchasinterestorotherchargesetc.arebookedundertherespectiveheadsoftheStatementofProfitandLoss.Further,ifondisposaloftheseassets,thesaleproceedsarehigherthantheloanamount(includingoutstandingoverdueinterest,otherchargesandinterestfromthedateofsettlementtillthedisposalofsuchassets),thentheGrouprefundstheexcessamounttothecustomers,unlessagreedotherwiseatthetimeofacquiringassetsinsatisfactionofdebtswiththecustomers.

(i) INVENTORIES

Inventoriesarevaluedatthelowerofcostandnetrealisablevalue.

(j) LEASES

TheCompanyhasappliedIndAS116,‘Leases’usingthemodifiedretrospectiveapproachandthereforethecomparativeinformationhasnotbeenrestatedandcontinuestobereportedundererstwhileIndAS17.FortransitionaladjustmentspleasereferNote49.

Policy applicable from April 1, 2019

Atinceptionofacontract,theCompanyassesseswhetheracontract is,orcontainsalease.Acontract is,orcontainsa lease if thecontract conveys the right to control theuseofan identifiedasset foraperiodof time inexchange forconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedasset,theCompanyusesthedefinitionofaleaseinIndAS116.

(i) Company As a lessee:

Atcommencementoronmodificationofacontract thatcontainsa leasecomponent, theCompanyallocates theconsiderationinthecontracttoeachleasecomponentonthebasisofitsrelativestandaloneprices.However,forleasesofproperty,theCompanyhaselectednottoseparatenon–leasecomponentsandaccountfortheleaseandnon–leasecomponentsasasingleleasecomponent.

TheCompanyrecognizesaright–of–useassetandaleaseliabilityattheleasecommencementdate.Theright-of–useassetisinitiallymeasuredatcost,whichcomprisestheinitialamountoftheleaseliabilityadjustedforanyleasepaymentsmadeatorbeforethecommencementdateplusanyinitialdirectcostsincurredandanestimateofcoststodismantleandremovetheunderlyingassetortorestoretheunderlyingassetorthesiteonwhichitislocated,lessanyleaseincentivesreceived.

Theright-of–useassetissubsequentlydepreciatedusingthestraight–linemethodfromthecommencementdatetotheendoftheleaseterm,unlesstheleasetransfersownershipoftheunderlyingassettotheCompanybytheendoftheleasetermorthecostoftheright–of–useassetreflectsthattheCompanywillexerciseapurchaseoption.Inthatcasetheright–of–useassetwillbedepreciatedovertheusefullifeoftheunderlyingasset,whichisdeterminedonthesamebasisasthoseofpropertyandequipment.Inaddition,theright–of–useassetisperiodicallyreducedbyimpairmentlosses,ifany,andadjustedforcertainremeasurementsoftheleaseliability.




Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthecommencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadilydetermined,theCompany’sincrementalborrowingrateasthediscountrate.

TheCompanydeterminesitsincrementalborrowingratebyobtaininginterestratesfromvariousexternalfinancingsourcesandmakescertainadjustmentstoreflectthetermsoftheleaseandtypeoftheassetleased.

Leasepaymentincludedinthemeasurementofleaseliabilitycomprisethefollowing:

#Fixedpayments,includingin–substancefixedpayments;

#Variableleasepaymentsthatdependonanindexorarate,initiallymeasuredusingtheindexorrateasatthecommencement date;

#Amountsexpectedtobepayableunderaresidualvalueguarantee;and

#TheexercisepriceunderapurchaseoptionthattheCompanyisreasonablycertaintoexercise,leasepaymentsinanoptionalrenewalperiodiftheCompanyisreasonablycertaintoexerciseanextensionoption,andpenaltiesforearlyterminationofaleaseunlesstheCompanyisreasonablycertainnottoterminateearly.

Theleaseliabilityismeasuredatamortizedcostusingtheeffectiveinterestmethod.Itisremeasuredwhenthereisachangeinfutureleasepaymentsarisingfromachangeinanindexorrate,ifthereisachangeintheCompany’sestimate of the amount expected to be payable under a residual value guarantee, if theCompany changes itsassessment of whether it will exercise a purchase, extension or termination option or if there is a revised in –substancefixedleasepayment.

Whentheleaseliabilityisremeasuredinthisway,acorrespondingadjustmentismadetothecarryingamountoftheright–of–useasset,orisrecordedinprofitorlossifthecarryingamountoftheright–of–useassethasbeenreducedtozero.

TheCompanypresentsright–of–useassetsthatdonotmeetthedefinitionofinvestmentpropertyin‘Property,PlantandEquipment’andleaseliabilitiesunderthehead‘OtherFinancialLiabilities’.

Short–termleasesandleasesoflowvalueassets

TheCompanyhaselectednottorecognizeright–of–useassetsandleaseliabilitiesforleasesoflow–valueassetsandshort–termleases.TheCompanyrecognizestheleasepaymentsassociatedwiththeseleasesasanexpenseonastraight–linebasisovertheleaseterm.

(ii) Company As a lessor:

A lessor is an entity that provides the right to use an underlying asset for a period of time in exchange for aconsideration.TheCompany,incases,whereitisalessor,classifyeachofitsleasesaseitherafinanceleaseoranoperatinglease.Aleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltotheownershipofanunderlyingasset.Aleaseisclassifiedasanoperatingleaseifitdoesnottransfersubstantiallyalltherisksandrewardsincidentaltotheownershipofanunderlyingasset.

FinanceLease

Atthecommencementdateofthelease,theCompanyrecognizesassetsheldunderafinanceleaseinitsbalancesheet andpresent themasa receivableat anamount equal to thenet investment in the lease.Thereafter, theCompanyrecognizesfinanceincomeovertheleaseterm,basedonapatternreflectingaconstantperiodicrateofreturnonthelessor’snetinvestmentinthelease.

OperatingLease

TheCompanyrecognizesleasepaymentsfromoperatingleasesasincomeeitheronastraight-linebassoranothersystematicbasisifthatsystematicbasisismorerepresentativeofthepatterninwhichbenefitfromtheuseoftheunderlyingassetisdiminished.

(k) FINANCIAL INSTRUMENTS

Afinancial instrument isanycontract thatgives rise toafinancialassetofoneentityandafinancial liabilityorequityinstrumentofanotherentity.




(i) Initial recognition and measurement

Afinancialassetorafinancialliabilityisrecognisedinitsbalancesheetwhenthecompanybecomespartytothecontractualprovisionsoftheinstrument.

Financialassetsandfinancialliabilitiesareinitiallymeasuredatfairvalue,exceptfortradereceivables.Transactioncosts,thataredirectlyattributabletotheacquisitionorissueoffinancialassetsandfinancialliabilities(otherthanfinancialassetsandfinancial liabilitiesatfairvaluethroughprofitor loss),areaddedtoordeductedfromthefairvalueofthefinancialassetsorfinancialliabilities,asappropriate,oninitialrecognition.Transactioncosts,directlyattributabletotheacquisitionoffinancialassetsorfinancialliabilitiesatfairvaluethroughprofitorloss,arerecognisedimmediatelyintheStatementofProfitandLoss.

Regularway purchase and sale of financial assets are recoganised at trade date (i.e. the datewhen an entitycommitstopurchaseorsellanasset).Regularwaypurchaseorsaleisapurchaseorsaleofafinancialassetunderacontractwhosetermsrequiredeliveryof theassetwithin the timeframeestablishedgenerallybyregulationorconventioninthemarketplaceconcerned.

Trade receivables, donot contain a significant financing component in accordancewith IndAS115, are initiallymeasuredattheirtransactionprice.

When the transactionpriceof thefinancial instrumentdiffers from the fair valueatoriginationand the fair valueisevidencedbyaquotedprice inanactivemarketor foran identicalassetor liabilityor isbasedonavaluationtechniqueusingonly inputsobservable inmarket transactions, theGrouprecognises thedifferencebetween thetransactionpriceandfairvalueinnetgainonfairvaluechanges.Inthosecaseswherefairvalueisbasedonmodelsforwhichsomeoftheinputsarenotobservable,thedifferencebetweenthetransactionpriceandthefairvalueisdeferredandisonlyrecognisedintheStatementofProfitandLosswhentheinputsbecomeobservable,orwhentheinstrumentisderecognised.

(ii) Classification and Subsequent Measurement

(A) Financial Assets

(A)(1)DebtInstruments

TheGroupclassifiesdebtinstrumentsbasedtheirsubsequentmeasurementsthatdependsonthegroup’sbusinessmodelformanagingthefinancialassetsandthecontractualcashflowcharacteristicsofthefinancialasset.TherearethreemeasurementcategoriesintowhichtheGroupclassifiesitsdebtinstruments:

• Amortised Cost:Assetismeasuredatamortisedcostifbothofthefollowingconditionsaremet:

(i) thefinancialassetisheldwithinabusinessmodelwhose,objectiveistoholdfinancialassetsinordertocollectcontractualcashflows,and

(ii) thecontractual termsof thefinancialassetgive riseonspecifieddates tocashflows, thataresolelypaymentsofprincipalandinterest(“SPPI”)ontheprincipalamountoutstanding.

• Fair Value Through Other Comprehensive Income (“FVTOCI”):AssetismeasuredatFVTOCIifbothofthefollowingconditionsaremet:

(i) the financial asset is held within a business model, whose objective is achieved by both collectingcontractualcashflowsandsellingfinancialassets,and

(ii) thecontractual termsof thefinancialassetgive riseonspecifieddates tocashflows, thataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.

• Fair Value Through Profit or Loss (“FVTPL”):AssetismeasuredatFVTPLunlessitismeasuredatamortisedcostoratFVTOCI.

(A)(2)Equity Instruments

Allequityinvestmentsaremeasuredatfairvalue.Equityinstruments,whichareheldfortrading,areclassifiedasatFVTPL.Forequityinstrumentsotherthanheldfortrading,theCompanyhasnotexercisedirrevocableoptiontorecogniseinothercomprehensiveincomesubsequentchangesinthefairvalue.

(A)(3)Derivatives

Derivativesrecordedatfairvaluethroughprofitorloss.




Impairment of Financial Assets / Expected Credit Losses (“ECL”)

TheGroupappliestheexpectedcreditlossmodelforrecognizingimpairmentlossonfinancialassetsmeasuredatamortisedcost,debtinstruments,tradereceivablesandotherfinancialassets.ExpectedCreditLoss(“ECL”)isthedifferencebetweenthecontractualcashflowsandthecashflowsthattheentityexpectstoreceive,discountedusingtheeffectiveinterestrate.

# Simplified Approach

TheGroup follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables. TheapplicationofsimplifiedapproachdoesnotrequiretheGrouptotrackchangesincreditrisk.Rather,itrecognisesimpairmentlossallowancebasedonlifetimeECLsateachreportingdate,rightfromitsinitialrecognition.TheGroupusesaprovisionmatrixtodetermineimpairmentlossallowanceonportfolioofitstradereceivables.Theprovisionmatrixisbasedonitshistoricallyobserveddefaultratesovertheexpectedlifeofthetradereceivablesandisadjustedforforward-lookingestimates.Ateveryreportingdate,thehistoricalobserveddefaultratesareupdatedforchangesintheforward-lookingestimates.

# Stages Approach

Forrecognitionofimpairmentlossonotherfinancialassetsandriskexposure,theGroupdeterminesthatwhetherthere has been a significant increase in the credit risk since initial recognition. If credit risk has not increasedsignificantly,12-MonthsECL(“12mECL”)isusedtoprovideforimpairmentloss.However,ifcreditriskisincreasedsignificantly,LifeTimeECL(“LTECL”)isused.If,inasubsequentperiod,creditqualityoftheinstrumentimprovessuchthatthereisnolongerasignificantincreaseincreditrisksinceinitialrecognition,theGroupreverttorecognisingimpairmentlossallowancebasedon12-monthsECL.

Tomitigateitscreditrisksonfinancialassets,theGroupseekstousecollateral,wherepossible.Thecollateralcomesinvariousforms,suchascash,securities, lettersofcredit/guarantees,realestate,receivables, inventories,othernon-financialassetsandcreditenhancementssuchasnettingagreements.Collateral,unlessrepossessed,isnotrecordedontheGroup’sbalancesheet.However,thefairvalueofcollateralaffectsthecalculationofECLs.

Tomitigateitscreditrisksonfinancialassets,theRHDFCseekstousecollateral(HousingProperty),wherepossible.However, the fair value of collateral affects the calculation of ECLs. It is generally assessed, at aminimum, atinceptionandre-assessedonaannualbasisforcreditimpairedfinancialassets.

Totheextentpossible,theRHDFCusesactivemarketdataandvalueassessedbycertifiedthirdpartyvaluersforvaluingfinancialassetsheldascollateral.

TheGrouphasestablishedapolicytoperformanassessment,attheendofeachreportingperiod,ofwhetherafinancial instrument’scredit riskhas increasedsignificantlysince initial recognition,byconsidering thechange intheriskofdefaultoccurringovertheremaininglifeofthefinancialinstrument.TheGroupdoestheassessmentofsignificant increase incredit riskataborrower level. Ifaborrowerhasvariousfacilitieshavingdifferentpastduestatus,thenthehighestdayspastdue(“DPD”)isconsideredtobeapplicableforallthefacilitiesofthatborrower.

The Group calculates ECL based on total loans receivable (including accrued interest) which are divided intosegmentsbasedupontheindustryinwhichthecustomerisoperating.

ThemechanicsoftheECLcalculationsareoutlinedbelowandthekeyelementsare,asfollows:

PD-TheProbabilityofDefault(“PD”)isanestimateofthelikelihoodofdefaultoveragiventimehorizon.

EAD -TheExposureatDefault (“EAD”) is anestimateof theexposure at a reporting date, taking into accountrepaymentsofprincipalandinterest,whetherscheduledbycontractorotherwiseandaccruedinterestfrommissedrepayments.TheEADissumtotalofoutstandingprincipalandaccruedinterest,ifany,onthereportingdate.

LGD-TheLossGivenDefault(“LGD”)isanestimateofthelossarisingincasewhereadefaultoccursatagiventime.Itisbasedonthedifferencebetweenthecontractualcashflowsdueandthosethatthelenderwouldexpecttoreceive,includingfromtherealisationofanycollateral.ItisusuallyexpressedasapercentageoftheEAD.

ThemaximumperiodforwhichthecreditlossesaredeterminedisthecontractuallifeofafinancialinstrumentunlesstheCompanyhasthelegalrighttocallitearlier.

Basedontheaboveprocess,theGroupcategorisesitsloansintoStage1,Stage2,Stage3,asdescribedbelow:

Stage 1:The12mECLrepresentsexpectedcreditlossfromdefaulteventsonafinancialinstrumentthatarepossiblewithin the12months from the reportingdate.Theseexpected12monthsdefaultprobabilitiesareapplied to the




ExposureatDefaults(“EAD”)andmultipliedbytheexpectedLossGivenDefaults(“LGD”)anddiscountedbyanapproximationtotheReteofInterest(“ROI”)asatreportingdate.

Stage 2:Whenaloanhasshownasignificantincreaseincreditrisksinceorigination,theGrouprecordsanallowancefortheLTECL.Themechanismissimilartothatexplainedabove,buttheProbabilityofDefault(“PD”)andLGDareestimatedoverthelifetimeoftheinstrument.TheexpectedcashshortfallsarediscountedbyanapproximationtotheROIasatreportingdate.

Stage 3:Forloansconsideredcreditimpaired,theGrouprecognisesthelifetimeexpectedcreditlossesfortheseloans.ThemethodissimilartothatforStage2.

PurchasedorOriginatedCreditImpaired(“POCI”):ThenewlyrecognisedloansareclassifiedasStage1forECLmeasurementpurposes,unlessthenewloanisdeemedtobePOCI.ForPOCIfinancialassets,theCompanyonlyrecognisesthecumulativechangesinLTECLsinceinitialrecognitioninthelossallowance.

POCIassetsarefinancialassetsthatarecreditimpairedoninitialrecognition.POCIassetsarerecordedatfairvalueatoriginalrecognitionandinterestincomeissubsequentlyrecognisedbasedonacredit-adjustedEIR.ECLsareonlyrecognisedorreleasedtotheextentthatthereisasubsequentchangeintheexpectedcreditlosses.

AspercircularRBI/2020-21/73/DOR.FIN.HFC.CC.No.120/03.10.136/2020-21datedFebruary17th,2021,HFCarerequiredtofollowtheextantdirectiononPrudentialNorms,includingonassetsclassification,provisioningetc.issuedbytheRBI/NHB.However,provisionforimpairmentonloanassetscalculatedthroughapplicationofECLModelislessthanasprovisioncalculatedasperRBI/NHBPrudentialnorms,sotheRHDFChasconsideredprovisionasperRBI/NHBPrudentialnormsinthefinancialstatements.

InitsECLmodels,theGroupcompaniesrelyonabroadrangeofforwardlookinginformationaseconomicinputs,suchas:GDPgrowth.TheinputsandmodelsusedforcalculatingECLsmaynotalwayscaptureallcharacteristicsofthemarketatthedateofthefinancialstatements.Toreflectthis,qualitativeadjustmentsoroverlaysareoccasionallymadeastemporaryadjustmentswhensuchdifferencesaresignificantlymaterial.

Write-offs

TheGroupdirectlyreducesthegrosscarryingamountofafinancialassetwhenithasnoreasonableexpectationsofrecoveringafinancialassetinitsentiretyoraportionthereof.Awrite-offconstitutesaderecognitionevent.

AnysubsequentrecoveriesarecreditedintheStatementofProfitandLoss.

(B) Financial Liabilities and Equity

Debt and equity instruments, issued by theCompany, are classified as either financial liabilities or as equity inaccordancewith thesubstanceof thecontractualarrangementsand thedefinitionsofafinancial liabilityandanequityinstrument.

(B)(1) Equity

AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.EquityinstrumentsissuedbytheCompanyarerecognisedattheproceedsreceived,netofdirectissuecosts.

(B)(2) Financial Liabilities

TheGroup’sfinancialliabilitiesincludetradeandotherpayables,loansandborrowingsincludingbankoverdraftsandfinancialguaranteecontracts.

Themeasurementoffinancialliabilitiesdependsontheirclassification,asdescribedbelow:

(B)(2)(i)FinancialLiabilitiesatFVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated uponinitial recognition as at FVTPL. Financial liabilities are classified as held for trading, if they are incurred for thepurposeofrepurchasinginthenearterm.ThiscategoryalsoincludesderivativefinancialinstrumentsenteredintobytheCompanythatarenotdesignatedashedginginstrumentsinhedgerelationshipsasdefinedbyIndAS109.Separatedembeddedderivativesarealsoclassifiedasheld for trading,unless theyaredesignatedaseffectivehedginginstruments.

Financial liabilities, designated upon initial recognition at FVTPL, are designated as such at the initial date ofrecognition,andonlyifthecriteriainIndAS109aresatisfied.




(B)(2)(ii)LoansandBorrowings

Afterinitialrecognition,interest-bearingloansandborrowingsaresubsequentlymeasuredatamortisedcostusingtheEffectiveInterestRate(“EIR”)method.GainsandlossesarerecognisedintheStatementofProfitandLosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortisationprocess.

AmortisedcostiscalculatedbytakingintoaccountanydiscountorpremiumonacquisitionandfeesorcoststhatareanintegralpartoftheEIR.TheEIRamortisationisincludedasfinancecostsintheStatementofProfitandLoss.

Preferencesharesthatarecompulsorilyredeemableonaspecificdate,areclassifiedasliabilities.ThedividendonthatpreferencesharesarerecoganisedintheStatementofProfitandLossasfinancecost.

(B)(2)(iii)Financialguaranteesandundrawnloancommitments

Financialguaranteesare initially recognised in thefinancialstatementsat fairvalue,being thepremium/deemedpremiumreceived.Thepremium/deemedpremiumisrecognisedinthestatementofprofitandlossonastraightlinebasisoverthelifeoftheguarantee.

Subsequenttoinitialrecognition,theGroup’sliabilityundereachguaranteeismeasuredatthehigheroftheECLonguaranteeandamountinitiallyrecognisedlesscumulativeamortisationrecognisedintheStatementofProfitandLoss.

Thenominalcontractualvalueofundrawnloancommitments,wheretheloanagreedtobeprovidedisonmarketterms,arereportedascontingentliabilitiesinthefinancialstatements.

(iii) Derecognition

(A) Financial Assets

Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofagroupofsimilarfinancialassets) isderecognisedwhen:

#Therightstoreceivecashflowsfromthefinancialassethaveexpired,or

#Itretainstherightstothecashflows,buthasassumedanobligationtopaythereceivedcashflowsinfullwithoutmaterialdelaytoathirdpartyundera‘pass–through’arrangement;andeither(a)Grouphastransferredsubstantiallyalltherisksandrewardsoftheassetor(b)theGrouphasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.

WhentheGrouphasneithertransferrednorretainedsubstantiallyalltherisksandrewardsandhasretainedcontrolof the asset, the asset continues to be recognised only to the extent of theGroup’s continuing involvement, inwhichcase,theGroupalsorecognisesanassociatedliability.ThetransferredassetandtheassociatedliabilityaremeasuredonabasisthatreflectstherightsandobligationsthattheGrouphasretained.

ContinuinginvolvementthattakestheformofaguaranteeoverthetransferredassetismeasuredattheloweroftheoriginalcarryingamountoftheassetandthemaximumamountofconsiderationtheGroupcouldberequiredtopay.

If continuing involvement takes the formofawrittenorpurchasedoption (orboth)on the transferredasset, thecontinuinginvolvementismeasuredatthevaluetheGroupwouldberequiredtopayuponrepurchase.Inthecaseofawrittenputoptiononanassetthatismeasuredatfairvalue,theextentoftheentity’scontinuinginvolvementislimitedtothelowerofthefairvalueofthetransferredassetandtheoptionexerciseprice.

(B) Financial Liabilities

Financialliabilitiesarederecognizedwhentheseareextinguished,thatiswhentheobligationisdischarged,cancelledorhasexpired.Whereanexistingfinancial liability is replacedbyanother fromthesame lenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandtherecognitionofanewliability.ThedifferencebetweenthecarryingvalueoftheoriginalfinancialliabilityandtheconsiderationpaidisrecognisedintheStatementofProfitandLoss.

(iv) Reclassification of Financial Instruments

TheGroupdoesnotreclassifyitsfinancialassetssubsequenttotheirinitialrecognition,apartfromtheexceptionalcircumstancesinwhichtheGroupacquires,disposesof,orterminatesabusinessline.Financialliabilitiesareneverreclassified.




(v) Offsetting Financial Instruments

Financial assets and financial liabilities are generally reported gross in the balance sheet. Financial assets andfinancialliabilitiesareoffsetandthenetamountpresentedinthebalancesheetwherethereisalegallyenforceablerighttosetofftheamountsandthereisintentiontosettlethemonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

(vi) Effective Interest Rate Method

UnderIndAS109interestincomeandexpensesarerecordedusingtheEffectiveInterestRate(“EIR”)methodforall financial instrumentsmeasuredatamortisedcost,debt instrumentmeasuredatFVOCIanddebt instrumentsdesignatedatFVTPL.TheEIRistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialinstrumentor,whenappropriate,ashorterperiod,tothenetcarryingamountofthefinancialasset.

TheEIR(andtherefore,theamortisedcostoftheassetorliabilities)iscalculatedbytakingintoaccountanydiscountorpremiumonacquisition,feesandcoststhatareanintegralpartoftheEIR.TheGrouprecognisesinterestincomeandexpensesusingarateofreturnthatrepresentsthebestestimateofaconstantrateofreturnovertheexpectedlifeoftheloan.Hence,itrecognisestheeffectofpotentiallydifferentinterestrateschargedatvariousstages,andothercharacteristicsoftheproductlifecycle(includingprepayments,penaltyinterestandcharges).

Ifexpectationsregardingthecashflowsonthefinancialassetorliabilitiesarerevisedforreasonsotherthancreditrisk,theadjustmentisbookedasapositiveornegativeadjustmenttothecarryingamountoftheassetinthebalancesheetwithanincreaseorreductionininterestincome/expense.TheadjustmentissubsequentlyamortisedthroughInterestincome/expenseinthestatementofprofitandloss.

FormoreinformationonfinancialinstrumentspleasereferNote46.

(l) DETERMINATION OF FAIR VALUE

Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeither:

► Intheprincipalmarketfortheassetorliability,or

► Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.

TheprincipalorthemostadvantageousmarketmustbeaccessiblebytheGroup.

Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest.

Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.

TheGroupusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,maximisingtheuseofrelevantobservableinputsandminimisingtheuseofunobservableinputs.

Allassetsandliabilities(forwhichfairvalueismeasuredordisclosedinthefinancialstatements)arecategorisedwithinthefairvaluehierarchy,describedasfollows,basedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole:

Level1—Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsorliabilities.

Level2—Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisdirectlyorindirectlyobservable

Level 3— Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement isunobservable.

Forassetsandliabilitiesthatarerecognisedinthefinancialstatementsonarecurringbasis,theGroupdetermineswhethertransfershaveoccurredbetweenlevelsinthehierarchybyre-assessingcategorisation(basedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole)attheendofeachreportingperiod.

TheGroupestimatesthevalueofitsowncreditfrommarketobservabledata,suchassecondarypricesforitstradeddebtandthecreditspreadoncreditdefaultswapsandtradeddebtsonitself.




The Group evaluates the levelling at each reporting period on an instrument-by-instrument basis and reclassifiesinstrumentswhennecessarybasedonthefactsattheendofthereportingperiod.ReferNote46.

(m) REVENUE RECOGNITION

RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitwillflowtotheCompanyandtherevenuecanbereliablymeasured.

(i) Insurance Premium Income:Premiumwrittenincludingreinstatementpremiumisrecognizedasincomeoverthecontractperiodorperiodofrisk,whicheverisappropriate,onagrossbasis,netofgoodsandservicetax.However,incaseofgovernmentscheme/policy,thepremiumisrecognizedtotheextentofcertaintyofitsrealization.Anysubsequentrevisiontopremiumasandwhentheyoccurarerecognizedovertheremainingperiodofriskorcontractperiod,asapplicable.Adjustments topremiumarisingoncancellationofpoliciesare recognized in theperiod inwhich it iscancelled.TheNetPremiumWritten isadjusted /nettedofby theamountofmovementofUnearnedPremiumReservetoarriveatthenetpremiumearned.

Insurancepremiumoncedingoftheriskisrecognisedintheperiodinwhichtheriskcommencesinaccordancewithreinsurancearrangementswiththereinsurers.Anysubsequentrevisiontopremiumcededisrecognisedintheperiodofsuchrevision.Adjustmenttoreinsurancepremiumarisingoncancellationofpoliciesisrecognizedintheperiodinwhichtheyarecancelled.

(ii) Income From Reinsurance Ceded:Commission on reinsurance ceded is adjusted/netted off from commissionexpenseintheperiodofcedingtherisk.

ProfitCommissionunder reinsurance treaties,wherever applicable, is recognizedas income in the yearof finaldeterminationofprofitsandcombinedwithcommissiononreinsuranceceded.

(iii) Dividend Income: ItisrecognisedwhentheCompany’srighttoreceivethepaymenthasbeenestablished.

(iv) Interest Income: Interestincomeonfinancialinstrumentsarerecordedusingtheeffectiveinterestrate(“EIR”)tothegrosscarryingamountoffinancialassetsotherthancredit-impairedassets.EIRistheratethatexactlydiscountstheestimatedfuturecashpaymentsorreceiptsthroughtheexpectedlifeofthefinancialinstrumenttothegrosscarryingamountofthefinancialasset.

Whenafinancialassetbecomescredit-impairedinterestincomeiscalculatedbyapplyingtheEIRtothenetamortisedcostofthefinancialassetsubjecttoavailabilityofsecurityandmanagementestimateregardingrecoverability.Ifthefinancialassetscuresandisnolongercredit-impaired,theCompanyrevertstocalculatinginterestincomeonagrossbasis.

InterestincomeisrecognisedintheconsolidatedstatementofprofitandlossforFVTOCIdebtinstruments.OtherchangesinfairvalueofFVTOCIfinancialassetsarerecognisedinothercomprehensiveincome.Whentheinvestmentisdisposedof, thecumulativegainor losspreviouslyaccumulated in reserves is transferred to theconsolidatedstatementofprofitandloss.

InterestincomeisrecognisedintheconsolidatedstatementofprofitandlossforFVTPLdebtinstruments.

(v) Net Gain / Loss on Fair value Changes: Anydifferencesbetweenthefairvaluesoffinancialassetsclassifiedasfairvaluethroughtheprofitorloss,heldbytheCompanyonthebalancesheetdateisrecognisedasanunrealisedgain/loss.Incasesthereisanetgainintheaggregate,thesameisrecognisedasincomeandifthereisanetlossthesameisdisclosedasexpenses.

(vi) Broking Income: Revenuefrombrokingactivitiesareaccountedonthetradedateoftransaction.

(vii) Interest Income From Delayed Payments: DelayedPaymentCharge is recognisedona timeproportionbasistaking intoaccount theamountoutstandingand the rateapplicable,where there isnouncertainty regarding therealisation.

(viii) Income from depository operation exceptforAnnualMaintenanceCharges(“AMC”)isaccountedforonaccrualbasis.AMCarerecognisedontimebasisovertheperiodofcontract.

(ix) Income from direct assignment: Gains arising out of direct assignment transactions comprise the differencebetweentheinterestontheloanportfolioandtheapplicablerateatwhichthedirectassignmentisenteredintowiththeassignee,alsoknownastherightofexcessinterestspread(EIS).ThefutureEISbasisthescheduledcashflowsonexecutionofthetransaction,discountedattheapplicablerateenteredintowiththeassigneeisrecordedupfrontinthestatementofprofitandloss.EISevaluatedandadjustedforECLandexpectedprepayment.




(x) Other Income

- Chargesrecoverablefromcustomersarerecogniseduponreceiptofthesame.

- Interestincomeonfixeddepositandbondsarerecognisedontimeproportionbasis.

- Incomefrommutualfundinvestmentisrecogniseduponreceiptofthesame.

- Incomefrombrokerageisrecognizedonaccrualbasiswhenthecompanysatisfiestheperformanceobligation.

- Profit/Loss earned on sale of Investment is recognised on trade date basis, net of expenses.The cost ofInvestmentiscomputedbasedonweightedaveragebasis.

- IncomefromTradingofBullion/AgriCommoditiesisrecognizedonaccrualbasis.

- IncomefromTradinginDerivativeTransactionsisrecognizedonaccrualbasis.

- Revenue from E-Governance Services [ Except Digital Signature Certificate (DSC) with and without USBtoken]isrecognizedatpointintimewhenacknowledgementisissuedbytheBranch.SalesofDSCTokenwithorwithoutUSBarerecognisedontransferofsignificantrisksandrewardsofownershiptothebuyerasperthetermsofcontract,andnouncertaintyexistsregardingtheamountofconsiderationthatwillbederivedfromsalesofDSC.

- Revenue fromNationalPensionSystem (“NPS”) towards initial subscriber registration, contribution uploadchargesandothertransactionchargesarebookedonreceiptbasis.

- Insuranceagencyincomeonfirstyearpremiumofinsurancepoliciesisrecognised,whenaninsurancepolicysold by the Company is accepted by the principal insurance company. Renewal commission on policy isaccountedforonreceiptonrenewalpremiumbytheprincipalinsurancecompany.

(xi) RevenueexcludesGoodsandServiceTax(“GST”),ServiceTax,ValueAddedTax(“VAT”)andSecuritiesTransactionTax(“STT”),asapplicable.

(n) UNEARNED PREMIUM RESERVE (“UPR”) / UNEXPIRED RISK RESERVE (“URR”)

UnearnedPremiumReserverepresentsthatpartofthenetwritteninsurancepremium(i.e.premium,netofreinsuranceceded)whichisattributableto,andsetasideforsubsequentriskstobebornebytheCompanyundercontractualobligationsoncontractperiodbasisorriskperiodbasis,whicheverisappropriate,andiscreatedat50%ofthenetwrittenpremiumofprecedingtwelvemonthsasattheBalanceSheetdate.

(o) CLAIMS (IN INSURANCE BUSINESS)

Claimsarerecognizedasandwhenreported.ClaimsarerecordedintheRevenueAccount,netofclaimsrecoverablefromreinsurers/co-insurerstotheextentthereisareasonablecertaintyofrealization.Theseestimatesareprogressivelyrevalued on the availability of further information. Estimated liability in respect of claims is provided for, based onthe intimations receivedup to theyearend, information / estimatesprovidedby the insured / surveyors /ThirdPartyAdministrators(TPA)andjudgmentbasedonthepastexperienceandotherapplicablelawsandpractices.

ClaimsIncurredbutnotreported(IBNR)representthatamountofclaimsthatmayhavebeenincurredpriortotheendofthecurrentaccountingyearbuthavenotbeenreportedorclaimed.TheIBNRprovisionalsoincludesprovision, ifany,requiredforclaimsIncurredbutnotenoughreported(IBNER).IBNRandIBNERliabilitiesareprovidedbasedonactuarialprinciplesandcertifiedannuallyby theAppointedActuaryof theCompany.Themethodologyandassumptionson thebasisofwhichthe liabilityhasbeendeterminedhasalsobeencertifiedbytheAppointedActuarytobeappropriate, inaccordancewithguidelinesandnormsissuedbytheInstituteofActuariesofIndiaandinconcurrencewiththeIRDA.

Furtherclaims incurredalso includespecificclaimssettlementcostssuchassurvey / legal fees /TPA feesandotherdirectlyattributablecosts.

(p) IMPAIRMENT OF NON-FINANCIAL ASSETS

TheCompanyassesses,ateachreportingdate,usingexternalandinternalsources,whetherthereisanindicationthatanon-financialassetmaybeimpairedandalsowhetherthereisanindicationofreversalofimpairmentlossrecognisedinthepreviousperiod(s).Ifanyindicationexists,orwhenannualimpairmenttestingforanassetisrequired,theCompanydeterminestherecoverableamountandimpairmentlossisrecognisedwhenthecarryingvalueofanassetexceedsitsrecoverableamount.




Therecoverableamountisdetermined:

- inthecaseofanindividualasset,atthehigheroftheasset’sfairvaluelesscostofsellandvalueinuse;and

- inthecaseofcashgeneratingunit(agroupofassetsthatgeneratesidentified,independentcashflows)atthehigherofthecashgeneratingunit’sfairvaluelesscosttosellandvalueinuse.

Inassessingvalueinuse,estimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethateffectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictothatasset.Indeterminingfairvaluelesscostsofdisposal,recentmarkettransactionsaretakenintoaccount.Ifnosuchtransactionscanbeidentified,anappropriatevaluationmodelisused.Thesecalculationsarecorroboratedbyvaluationmultiples,quotedsharepricesforpubliclytradedcompaniesorotheravailablefairvalueindicators.

Animpairmentlossforanassetisreversed,ifandonlyif,thereversalcanberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognized,thecarryingamountofanassetisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofanyaccumulatedamortizationordepreciation)hadnoimpairmentlossbeingrecognizedfortheassetinprioryear(s).

(q) CASH AND CASH EQUIVALENTS

Cashandcashequivalentinthebalancesheetcomprisecashatbanks,cashonhandandshort-termdepositswithanoriginalmaturityofthreemonthsorless,whicharesubjecttoaninsignificantriskofchangesinvalue.

Forthepurposesofthecashflowstatement,wherebankoverdraftswhicharerepayableondemandformanintegralpartoftheGroupcompanies’cashmanagement,bankoverdraftsareincludedasacomponentofcashandcashequivalents.Intheconsolidatedbalancesheet,bankoverdraftsarepresentedunderborrowings.

(r) BUSINESS COMBINATION

Businesscombinationsareaccountedforusingtheacquisitionaccountingmethodasatthedateoftheacquisition,whichisthedateatwhichcontrolistransferredtotheCompany.Theconsiderationtransferredintheacquisitionandtheidentifiableassetsacquiredandliabilitiesassumedarerecognisedatfairvaluesontheiracquisitiondate.Goodwillisinitiallymeasuredatcost,beingtheexcessoftheaggregateoftheconsiderationtransferredandtheamountrecognisedfornon-controllinginterests,andanypreviousinterestheld,overthenetidentifiableassetsacquiredandliabilitiesassumed.TheCompanyrecognisesanynon-controllinginterestintheacquiredentityonanacquisition-by-acquisitionbasiseitheratfairvalueoratthenon-controllinginterest’sproportionateshareoftheacquiredentity’snetidentifiableassets.Considerationtransferreddoesnotincludeamountsrelatedtosettlementofpre-existingrelationships.SuchamountsarerecognisedintheStatementofProfitandLoss.

Transactioncostsareexpensedasincurred,otherthanthoseincurredinrelationtotheissueofdebtorequitysecurities.

Anycontingentconsiderationpayableismeasuredatfairvalueattheacquisitiondate.SubsequentchangesinthefairvalueofcontingentconsiderationarerecognisedintheStatementofProfitandLoss.

(s) FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION

(i) Transactions and balances

Initial recognition:Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactions.

Conversion:Monetaryassetsandliabilitiesdenominatedinforeigncurrency,whichareoutstandingasatthereportingdate,aretranslatedatthereportingdateattheclosingexchangerateandtheresultantexchangedifferencesarerecognisedintheStatementofProfitandLoss.

Non-monetaryassetsandliabilitiesdenominatedinforeigncurrencyandmeasuredathistoricalcostaretranslatedattheexchangerateprevalentatthedateofrecognition.

(ii) Foreign operations

Forthepurposeofpresentingconsolidatedfinancialstatements,theassetsandliabilitiesoftheCompany’sforeignoperationsthathaveafunctionalcurrencyotherthanIndianrupeesaretranslatedintoIndianrupeesusingexchangeratesprevailingatthereportingdate.Incomeandexpenseitemsaretranslatedattheaverageexchangeratesfortheperiod.




Exchangedifferencesarising, ifany,arerecognisedinothercomprehensiveincomeandheldinforeigncurrencytranslationreserve(“FCTR”),acomponentofequity,excepttotheextentthatthetranslationdifferenceisallocatedtonon-controlling interest.Whena foreignoperation isdisposedof, the relevantamount recognised inFCTR istransferredtotheconsolidatedstatementofprofitandlossaspartoftheprofitorlossondisposal.Goodwillandfairvalueadjustmentsarisingontheacquisitionofaforeignoperationaretreatedasassetsandliabilitiesoftheforeignoperationandtranslatedattheexchangerateprevailingatthereportingdate.

(t) RETIREMENT AND OTHER EMPLOYEE BENEFITS

Short Term Employee Benefits

Allemployeebenefitspayablewhollywithintwelvemonthsofrenderingtheserviceareclassifiedasshort-termemployeebenefits.Thesebenefitsincludesalariesandwages,performanceincentivesandshorttermcompensatedabsencessuchaspaidannual leave.Theundiscountedamountofshort-termemployeebenefitsexpected tobepaid inexchangefortheservicesrenderedbyemployeesisrecognisedasanexpenseduringtheyear.Benefitssuchassalariesandwages,etc.andtheexpectedcostofthebonus/ex-gratiaarerecognisedintheyearinwhichtheemployeesrendertherelatedservice.

Compensated Absences / Leave Encashment

Compensatedabsencesaccruingtoemployeesandwhichcanbecarriedtofutureperiodsbutwheretherearerestrictiononavailamentorencashmentorwheretheavailamentorencashmentisnotexpectedtooccurwhollywithinnexttwelvemonths,theliabilityonaccountofbenefitsisdeterminedactuariallyusingtheprojectedunitcreditmethod.

Post Employment Employee Benefits

(i) DefinedContributionSchemes

Retirementbenefitintheformofprovidentfundisadefinedcontributionscheme.TheGrouphasnoobligation,otherthanthecontributionpayabletotheprovidentfund.TheGrouprecognisescontributionpayabletotheprovidentfundschemeasanexpense,whenanemployeerenderstherelatedservice.Ifthecontributionpayabletotheschemeforservicereceivedbeforethebalancesheetdateexceedsthecontributionalreadypaid,thedeficitpayabletothescheme is recognisedasa liability after deducting the contributionalreadypaid. If the contributionalreadypaidexceedsthecontributiondueforservicesreceivedbeforethebalancesheetdate,thenexcessisrecognisedasanasset.

(ii) DefinedBenefitSchemes

TheGroupcompaniesoperatedefinedbenefitgratuityplaninIndia,whichrequirescontributionstobemadetoaseparatelyadministeredfund.

Thecostofprovidingbenefitsunderthedefinedbenefitplanisdeterminedusingtheprojectedunitcreditmethod.

Remeasurements,comprisingofactuarialgainsandlosses,theeffectoftheassetceiling,excludingamountsincludedinnetinterestonthenetdefinedbenefitliabilityandthereturnonplanassets(excludingamountsincludedinnetinterestonthenetdefinedbenefitliability),arerecognisedimmediatelyinthebalancesheetwithacorrespondingdebitorcredittoretainedearningsthroughOtherComprehensiveIncome(“OCI”)intheyearinwhichtheyoccur.Remeasurementsarenotreclassifiedtoprofitorlossinsubsequentperiods.

Pastservicecostsarerecognisedinprofitorlossontheearlierof:

► Thedateoftheplanamendmentorcurtailment,and

► ThedatethattheGrouprecognisesrelatedrestructuringcosts

Netinterestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityorasset.TheGrouprecognises the following changes in the net defined benefit obligation as an expense in the Standalonestatementofprofitandloss:

► Servicecostscomprisingcurrentservicecosts,past-servicecosts,gainsandlossesoncurtailmentsandnon-routine settlements; and

► Netinterestexpenseorincome




Other Employee Benefits

Compensated Absences

TheemployeesoftheGroupareentitledleavebenefitsasperthepolicyoftheCompany.Theliabilityforcompensatedabsencesisaccruedbasedontheactuarialvaluationasatthebalancesheetdateconductedbyanindependentactuary.Thenetpresentvalueof theGroupcompanies’obligationsaredeterminedbasedon theProjectedUnitCreditMethodattheendofeachyear.

Actuarialgainsorlossesarisingonaccountofactuarialreportsarerecognizedintheothercomprehensiveincome(“OCI”)intheyearinwhichtheyarise.

Theundiscountedamountofshort-termemployeebenefitsexpectedtobepaidinexchangeforservicesrenderedbyanemployeeisrecognizedduringtheperiodwhentheemployeerenderstheservice.

Share Based Payments

Employees of theCompany receive remuneration in the form of share-based payments in consideration of theservicesrendered.Undertheequitysettledsharebasedpayment,thefairvalueonthegrantdateoftheawardsgiventoemployeesisrecognisedas‘employeebenefitexpenses’withacorrespondingincreaseinequityoverthevestingperiod.ThefairvalueoftheoptionsatthegrantdateiscalculatedbyanindependentvaluerbasisBlackScholesmodel.At theendofeachreportingperiod,apart fromthenonmarketvestingcondition, theexpense isreviewedandadjustedtoreflectchangestothelevelofoptionsexpectedtovest.Whentheoptionsareexercised,theCompanyissuesfreshequityshares.

Forcash-settledsharebasedpayments,thefairvalueoftheamountpayabletoemployeesisrecognisedas‘employeebenefitexpenses’withacorrespondingincreaseinliabilities,overtheperiodofnonmarketvestingconditionsgettingfulfilled.Theliabilityisremeasuredateachreportingperiodupto,andincludingthesettlementdate,withchangesinfairvaluerecognisedinemployeebenefitsexpenses.

(u) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethattheGroupwillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.

Iftheeffectofthetimevalueofmoneyismaterial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflowstonetpresentvalueusinganappropriatepre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

Apresentobligationthatarisesfrompastevents,whereitiseithernotprobablethatanoutflowofresourceswillberequiredtosettleorareliableestimateoftheamountcannotbemade,isdisclosedasacontingentliability.Contingentliabilitiesarealsodisclosedwhenthereisapossibleobligationarisingfrompastevents,theexistenceofwhichwillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheGroup.

ClaimsagainsttheGroup,wherethepossibilityofanyoutflowofresourcesinsettlementisremote,arenotdisclosedascontingentliabilities.

Contingentassetsarenotrecognisedinthefinancialstatementssincethismayresultintherecognitionofincomethatmayneverberealised.However,whentherealisationofincomeisvirtuallycertain,thentherelatedassetisnotacontingentassetandisrecognised.

(v) DIVIDENDS ON ORDINARY SHARES

TheGrouprecognisesaliabilitytomakecashornon-cashdistributionstoequitysharesholderswhenthedistributionisauthorisedandthedistributionisnolongeratthediscretionoftheGroup.AsperthecorporatelawsinIndia,adistributionisauthorisedwhenitisapprovedbytheshareholders.Acorrespondingamountisrecogniseddirectlyinequity.

Non-cash distributions aremeasured at the fair value of the assets to be distributedwith fair value re-measurementrecogniseddirectlyinequity.

Upondistributionofnon-cashassets,anydifferencebetweenthecarryingamountoftheliabilityandthecarryingamountoftheassetsdistributedisrecognisedinthestatementofprofitandloss.




(w) NON-CURRENT ASSETS HELD FOR SALE AND DISPOSAL COMPANY

TheGroupclassifiesnon-currentassetsanddisposalgroupasheldforsale/distributiontoownersiftheircarryingamountswillberecoveredprincipallythroughasale/distributionratherthanthroughcontinuinguse.Actionsrequiredtocompletethesale/distributionshouldindicatethatitisunlikelythatsignificantchangestothesale/distributionwillbemadeorthatthedecisiontosell/distributewillbewithdrawn.Managementmustbecommittedtothesale/distributionexpectedwithinoneyearfromthedateofclassification.

For thesepurposes,sale transactions includeexchangesofnon-currentassets forothernon-currentassetswhen theexchangehascommercialsubstance.Thecriteriaforheldforsale/distributionclassificationisregardedmetonlywhentheassetsordisposalgroupisavailableforimmediatesale/distributioninitspresentcondition,subjectonlytotermsthatareusualandcustomaryforsales/distributionofsuchassets(ordisposalgroup),itssale/distributionishighlyprobable;anditwillgenuinelybesold,notabandoned.TheGrouptreatssale/distributionoftheassetordisposalgrouptobehighlyprobablewhen:

- Theappropriatelevelofmanagementiscommittedtoaplantoselltheasset(ordisposalgroup),

- Anactiveprogrammetolocateabuyerandcompletetheplanhasbeeninitiated(ifapplicable),

- Theasset(ordisposalgroup)isbeingactivelymarketedforsaleatapricethatisreasonableinrelationtoitscurrentfairvalue,

- Thesaleisexpectedtoqualifyforrecognitionasacompletedsalewithinoneyearfromthedateofclassification,and

- Actionsrequiredtocompletetheplanindicatethatitisunlikelythatsignificantchangestotheplanwillbemadeorthattheplanwillbewithdrawn.

Adisposalgroupqualifiesasdiscontinuedoperationifitisacomponentofanentitythateitherhasbeendisposedof,orisclassifiedasheldforsale,and:

- Representsaseparatemajorlineofbusinessorgeographicalareaofoperations,

- Ispartofasinglecoordinatedplantodisposeofaseparatemajorlineofbusinessorgeographicalareaofoperations

or

- Isasubsidiaryacquiredexclusivelywithaviewtoresale

Discontinuedoperationsareexcludedfromtheresultsofcontinuingoperationsandarepresentedasasingleamountasprofitorlossaftertaxfromdiscontinuedoperationsinthestatementofprofitandloss.

All other notes to the financial statements mainly include amounts for continuing operations, unless otherwisementioned.

Non-currentassetsheldforsale/fordistributiontoownersanddisposalgroupsaremeasuredattheloweroftheircarryingamountandthefairvalue(asonthedatewhensuchclassified)lesscoststosell/distribute.Assetsandliabilitiesclassifiedasheldforsale/distributionarepresentedseparatelyinthebalancesheet.

Property, plant and equipment and intangible assets once classified as held for sale/ distribution to owners are notdepreciatedoramortised.




(Amount in Rs. Lakh, unless otherwise stated)4. Cash and Cash Equivalents

Particulars As at

March 31, 2021 As at

March31,2020CashOnHand 1.40 4.03BalancesWithBanks

In Current Accounts* 24,457.64 36,892.80InFixedDepositsWithMaturityOfLessThan3Months 101.54 196.00

ChequesOnHand 485.11 122.15StampPapersOnHand 18.97 25.21 Total 25,064.66 37,240.19

*TheBalanceswithbanks IncludesRs3,860.63Lakh (March31,2020:Rs8,328.61Lakh)appearing incurrentbankaccountsareinClientBankAccounts.

5. Bank Balances (Other than Cash and Cash Equivalent)

Particulars As at


March31,2020

BalancesWithBanksInCurrentAccounts^ - 8,764.18

EarmarkedBalancesWithBanks 100.53 100.84

Fixeddepositwithmaturityformorethan3months(ReferNote5.1) 47,581.57 20,830.59

Other(ReferNote5.2) 79,144.77 79,144.77

Total 126,826.87 108,840.38

^Durngthepreviousyear,thisamountislyingwithStateBankofIndia(“SBI”)towardstheshareofunsecuredlendersoftheReligareFinvestLimited,asubsidiaryoftheCompany,whichhasbeenkeptbyitintheformofbanker’schequeasonMarch31,2020.

5.1 Details of Fixed Deposits kept as security*

Particulars As at


March31,2020

(a)MarginmoneyorsecurityagainstGuarantee

-PledgedwithBanksforGuaranteesTaken 10,953.28 10,875.77

-PledgewithBanksforOverdraftandotherFacility 1,219.84 1,644.24

(b)MarginmoneyorsecurityagainstotherCommitment

-SecuritywithTaxAuthorities/forLicense 2.63 12.43

-PledgewithSecuritiesExchangesasMargin 35,189.67 7,411.80

-SubmittedtoStockExchangeforarbitrationcases# 27.75 27.75

-Others 51.20 41.60

Total 47,444.37 20,013.59

*includesFixeddepositaccountswithmaturityformorethan12months(ReferNote9).

#TheseFixedDepositReceipts(FDR’s)areplacedwiththeexchangesinrelationtolostarbitrationcasesearlierfiledbytheclientsagainsttheReligareBorkingLimited(“RBL”).TheseFDR’s,havingexchangelienmarked,arebeingheldbytheexchangeassecurity/depositandwillbereleasedbytheExchangeseithertotheRBL(tradingmember)ortotheclientdependinguponthefinaloutcomeofthelegalcase.




5.2 ReligareFinvestLimited(“RFL”),asubsidiaryoftheCompany,hadfiledasuitforrecoveryofamountsmisappropriatedbytheLakshmiVilasBank(“LVB”)placedasFixedDeposits(“FDs”)with itonMay31,2018beforetheHon’bleDelhiHighCourt.LVBhassoughttodelaytheadjudicationoftheinterimreliefsandthesuitforrecoverysoughtbyRFLbyfilingmultipleapplications,allofwhichhavebeenkeptinabeyancebytheHon’bleCourttillsuchtimetheRFL’sapplicationsfor interim reliefs is disposedof.StrategicCreditCapitalPrivateLimitedandParticipationFinancehavealso filedanapplicationtobeimpleadedinthematter,whichareyettobeadjudicateduponbytheHon’bleCourt.Earlier,theHon’bleHighCourtwaspleasedtoreserveorderontheinterimapplicationfiledbytheRFLOrder39Rule1and2ofCPCseekingstatusquoorderquatheFDsonApril12,2019.

Thereafter,theRFLhasfiledapplicationforamendmentofpleadingsonwhichnoticeisissuedtoLVBandLVBhasfiledreplytothesame.OrderonInterimApplicationunderisreservedbytheHon’bleCourt.Further,SBIhasfiledapplicationforImpeadmentinthesaidSuit.RFLthereafterfiledapplicationtobringSEBIorderdatedSeptember11,2019onrecord.RFLhasalsoplacedonrecord,theFIRlodgedbyitagainstLVB&Ors.

RFLfiledanearlyhearingapplicationonaccountoftheprecariousfinancialpositionofLVBanditsproposedmergerwithClixCapitalServicesPrivateLimitedwhichwasallowedbytheHon’bleCourtwithearlyhearingdateasDecember1,2020however,beforethedateofhearingRFLcametoknowabouttheamalgamationofLVBwithDBSBankbyRBIbasiswhichRFLfiledanotherapplicationforsubstitutionofLVBwithDBSBankonwhichnoticewas issuedbytheHon’bleCourt.DBSBankhasfiledareplyonRFL’ssubstitutionapplicationandthereafterRFLhasalsofileditsrejoinder.TheCourthasdirectedthatallthependingapplicationsbetakenuptogether.TheHon’bleCourtfurtherdirectedthattheapplicationforsubstitutionofDefendant,i.e.DBSBankIndiaLimitedinplaceofLakshmiVilasBankwillbetakenupfirstonAugust4,2021.

RFLhasalsofiledacriminalcomplaintonMay15,2019beforetheEconomicOffenceWing(“EOW”)whichhasbeenmarkedtotheinvestigationofficer(“IO”).TheEOWhasregisteredFIRagainsttheaccusedpersons/entitiesonSeptember23,2019.The IOhasalsoconductedcustodial investigationofMr.ShivinderMohanSinghandMr.MalvinderMohanSingh.TheEOWhasfileditschargesheetbeforetheLd.CMM,SaketonMarch23,2020,cognizanceonwhichistakenbytheCourt.EOWfurtherarrestedtwoex-employeesofLVBnameleyPradeepKumarandA.K.Verma.ThesupplementarychargesheethasalsobeenfiledbytheIOandthematterislistedforfurtherproceedingsonJune23,2021.Also,theEnforcementDirectoratehaslodgedanECIRonthebasisoftheFIR.


6. Trade Receivables

Particulars As at


March31,2020

Secured,consideredgood* 14,509.71 7,432.42

Unsecured,consideredgood** 4,723.85 1,947.65

Credit impaired 3,454.21 3,915.85

22,687.77 13,295.91

Less:Allowanceforlifetimeexpectedcreditloss 3,459.98 3,915.85

Total 19,227.79 9,380.06

IncludesRs0.87Lakh(March31,2020:Rs0.77Lakh)duefromrelatedparties.FordetailreferNote51.

*IncludesasonMarch31,2021Rs1,986.53Lakh(March31,2020:Rs.366.19Lakh)receivablefromstockexchangesonaccountoftradesexecutedbyclientsofReligareBrokingLimitedonlasttradingdayofthefinancialyearandsettledinsubsequentyearasperthesettlementcycles.

**ReferNote54(k)





6.1 Themovementintheallowanceforlifetimeexpectedcreditlossisgivenbelow:

Particulars As at


March31,2020

Balanceatthebeginningoftheyear (3,915.85) (3,800.11)

Additionsduringtheyear(net) 455.87 (115.74)

Purchasedororiginatedcredit-impaired - -

Balance at the end of the year (3,459.98) (3,915.85)

7. Loans

Particulars As at


March31,2020 Valued at Amortised Cost

(A) Nature of Loans

-TermLoans 521,841.23 579,566.03 Total (A) - Gross 521,841.23 579,566.03Less:ImpairmentLossAllowance 276,619.75 269,046.93 Total (A) - Net 245,221.48 310,519.10 (B) Security of Loans

-SecuredbyTangibleAssets 353,452.43 353,452.43-Unsecured 168,388.80 226,113.60 Total (B) - Gross 521,841.23 579,566.03Less:ImpairmentLossAllowance 276,619.75 269,046.93 Total (B) - Net 245,221.48 310,519.10 (C) (I) Loans in India

-PublicSector - --Others(i)PublicLimited 62,641.47 69,879.37(ii)PrivateLimited 290,192.22 305,462.33(iii)Proprietorship 40,525.15 47,856.79(iv)Trust/Society 45,635.58 51,822.29(v)Partnership 33,635.31 39,360.34(vi)Individual 13,569.60 14,976.06(vii)Others 35,641.90 50,208.83 Total (C) (I) - Gross 521,841.23 579,566.03Less:ImpairmentLossAllowance 276,619.75 269,046.93 Total (C) (I) - Net 245,221.48 310,519.10 (C) (II) Loans outside India

-PublicSector - --Others - - Total (C) (II) - Gross - -Less:ImpairmentLossAllowance - - Total (C) (II) - Net - - Total (C) (I) and (C) (II) - Net 245,221.48 310,519.10

7.1 SecuredLoansgivenbytheGroupnon-bankingfinanceandhousingfinancecompaniesaresecuredbyproperty,plant&equipment,vehicles,receivables,equitablemortgageofproperties,tradablelisted/unlistedsecuritiesheldbytheGroupcompaniesintheirdepositoryaccountsorbywayofpledgeofsharesheldinthedepositoryaccountoftheclientsforwhichPowerofAttorneysareheldbytheGroupcompanies;orbydirectpledgeofsharesbytheclient infavoroftheGroupcompanies.




7.2 ReligareFinvestLimited(“RFL”),asubsidiaryoftheCompanyhasanexposureofRs203,670LakhasperfinancialsasatMarch31,2021towardstheCorporateLoanBook(“CLB”).ReserveBankofIndia(“RBI”)hasraisedconcernsinthepastaboutthecreditworthinessoftheborrowers,creditappraisalandloansanctioningmechanismfollowedbyRFLinrespectof thisbook.Themanagementhas reviewed theportfolioand thefinancial reportsof theborrowers todetermine therecoverabilityofthesaidloans.Basedonthematuritydatesoftheloans,recoverystepsinstitutedandthefinancialreportsoftheborrowers,RFLhas,onaprudentbasis,madefullprovisionofRs203,670LakhasatMarch31,2021againstthisportfolio.

A law firm of repute was appointed to undertake a detailed diligence on this CLB and the said diligence has beencompleted.InsolvencyproceedingshavebeeninitiatedbeforetheNationalCompanyLawTribunal(“NCLT”),DelhiandKolkataagainsttheborrowersformingapartoftheCLB.TheInsolvencyPetitionsfiledbeforetheNCLT,NewDelhiwerelistedonMarch27,2019foraddressingargumentsfortheadmissionofpetitions.ArgumentswereheardatlengthonthesaiddateandtheHon’bleNCLTwaspleasedtoreserveitsorderandrequestedthecounselsforallthepartiestofiletheirwrittensubmissions.However,theproceedingsatNCLTarestayedbySupremeCourtvideorderdatedApril5,2019.RFLfiledaninterventionapplicationbeforetheSupremeCourtwhichhasbeenallowed.ApplicationforvacationofstayorderdatedApril5,2019hasbeenheardbytheHon’bleCourt.TheHon’bleCourtafterhearingallthepartieshasreservedtheorder.

Whereas, the InsolvencyPetition titledas “ReligareFinvestLimitedvs.BharatRoadNetworkLimited”filedbefore theHon’bleNCLT,KolkatahasbeensettledandRFLhasreceivedtheclaimamountclaimedunderthepetition.

BasedontheduediligencereportandtherepliesfiledbytheborrowersbeforetheHon’bleNCLT,RFLhasalsofiledacriminalcomplaintbeforetheEconomicOffenceWing(“EOW”),Delhi,onwhichaF.I.R.No.50/2019hasbeenregistered.TheZonalOfficeofEnforcementDirectorate (“ED”)has lodgedanenforcement caseunder thePreventionofMoneyLaunderingActbearingECIRno.5of2019onthebasisofsaidFIR.TheEOWarrestedfiveaccusedpersons,whereasEDhasarrestedthreeaccusedpersons.EOWandEDhavefileditschargesheetagainsttheaccusedpersons.EOWhasfurtherarrestedthreemorepersonsintheaforesaidinvestigation.ThesupplementarychargesheethasalsobeenfiledbytheInvestigatingOfficer(“IO”).TheaccusedpersonchargesheetedinthesupplementalChargeSheetincludessixteenentitiesandthreeindividuals.AspertheargumentsoftheIO,EOWhasalreadytracedandestablishedthesiphoningoffundsamountingtoRs126,096Lakh.

7.3 Duringtheyear,ReligareHousingDevelopmentFinanceCorporationLimited(“RHDFCL”),asubsidiaryoftheCompanyhasreceivedRs.1,227.43Lakh(March31,2020:Rs601.59Lakh)against586(March31,2020:303)customerstowardsinterestsubsidyandRs12.26Lakh(March31,2020:Rs3.90Lakh)towardsprocessingfee[Rs11.34Lakh(March31,2020:Rs3.51Lakh)credited inRHDFCL’sbankaccountandRs0.92Lakh(March31,2020:Rs0.39Lakh)creditedinTDS/26AS]underPradhanMantriAwasYojana(“PMAY”)–CreditLinkedSubsidyScheme(“CLSS”)fromNationalHousingBank(“NHB”).Outofthis,Rs98.49Lakh(March31,2020:Rs36.05Lakh)towardsinterestsubsidyandRs0.89Lakh(March31,2020:Rs0.22Lakh)towardsprocessingfeehasbeenrefundedbacktoNHBduetoreasonssuchasforeclosure,non-performingassets,etc.FurtherduringthecurrentyearrefundsfortwocustomersweremadetoNHBduetoreasonsuchas,NPAandconstructionnotcompletedwithin3years,refundamountwasRs3.22Lakhandforboththecasessubsidywerereceivedduringthefinancialyear2019-20.

7.4 TheCompanyhasfiledapetitionundersection7ofInsolvencyandBankruptcyCode,2016againstANRSecuritiesPrivateLimitedonOctober9,2018forrecoveryofoutstandingloanamountofRs8,139.66Lakh.Theargumentswereheard,howevertheorderreservedbyHon’bleNCLTontheadmissionofpetitionhasbeenstayedbytheHon’bleSupremeCourtvideorderdatedApril5,2019.TheCompanyfiledanapplicationforinterventionwhichwasallowedbytheSupremeCourt.ArgumentsonapplicationforvacationofstayorderhasbeenheardbytheSupremeCourtandthematterisreservedfororder.

7.5 TheCompanyhasfiledapetitionundersection7ofInsolvencyandBankruptcyCode,2016againstLigareAviationLimitedonJanurary18,2021forrecoveryofoutstandingloanamountofRs587.27Lakh.

7.6 ReligareComtradeLimited(“RCTL”),asubsidiaryoftheCompanyissuedademandnoticedatedJuly10,2020toRHCHoldingPrivateLimited(“RHC”)forpaymentofanoutstandingloanamountofRs14,001.42Lakh(Rs9,830LakhloanandRs4,171.42LakhinterestuptoJuly,2020).RHChasnotrespondedtothesaiddemand.RCTLareintheprocessofinitiatingappropriatelegalactionforrecoveryofduesfromRHC.

ConsideringtherecoverabilityofthesaidintercorporateloanRCTLhasmade100%provision.Further,consideringtheremotepossibilityofrealisabilityoftheincome,nointerestincomehavebeenrecognisedonsaiddoubtfulintercorporateloan.




7.7 Religare Comtrade Limited (“RCTL”), a subsidiary of the Company has filed an application under the Insolvency &BankruptcyCode,2016before theHon’bleNationalCompanyLawTribunal,NewDelhi (“NCLT”)onOctober9,2018,to initiate insolvency proceedings against the below named Borrowers / Corporate Debtors claiming therein, a totaloutstandingamountofRs2,916.03Lakh(IncludesinterestuptoAugust,2018).Themattersaresub-judice.

Name of the Party Amount of Claim filed Remarks

BlueLineFinancePrivateLimited 435.17 Arguments heard, order reservedby the NCLT on the admission ofinsolvencypetitionhasbeenstayedby theHon’bleSupremeCourtvideinterimorderdatedApril5,2019.

DecentFinancialServicesPrivateLimited 42.07

BestHealthcarePrivateLimited 2,438.79

Total 2,916.03

7.8 Credit Quality of Assets

ThetablesbelowshowthecreditqualityandthemaximumexposuretocreditriskbasedontheCompany’sinternalcreditratingsystemandyear-endstageclassification.Theamountspresentedaregrossofimpairmentallowances.


Internal Rating Grade As at March 31, 2021

Stage 1 Stage 2 Stage 3 Total

Standard 160,337.12 26,300.96 250.00 186,888.08

Sub-Standard - - 26,809.61 26,809.61

Doubtful - - 307,891.84 307,891.84

Loss - - 251.70 251.70

Total 160,337.12 26,300.96 335,203.15 521,841.23

InternalRatingGradeAsatMarch31,2020

Stage1 Stage2 Stage3 Total

Standard 218,641.60 41,476.05 250.00 260,367.65

Sub-Standard - - 23,919.68 23,919.68

Doubtful - - 295,038.07 295,038.07

Loss - - 240.63 240.63

Total 218,641.60 41,476.05 319,448.38 579,566.03

7.9 Analysis of changes in the gross carrying amount as follows:

Particulars Year Ended March 31, 2021


Gross Carrying Amount Opening Balance 220,436.59 41,476.05 317,653.39 579,566.03

NewAssetsOriginatedorPurchased* 4,372.15 716.47 1,159.69 6,248.31

AssetsDerecognisedorRepaid(excludingwriteoffs) (52,222.07) (3,149.37) (8,161.97) (63,533.41)

Transfersto/(from)Stage1 14,576.32 (11,522.05) (3,054.27) -

Transfersto/(from)Stage2 (17,169.21) 17,639.71 (470.50) -

Transfersto/(from)Stage3 (7,861.67) (18,859.85) 26,721.52 -

Amountswrittenoff - - (462.50) (462.50)

Less:ContingeneciesReservesonstandardasset - - 22.80 22.80

Gross Carrying Amount Closing Balance 162,132.11 26,300.96 333,408.16 521,841.23





ParticularsYearEndedMarch31,2020


GrossCarryingAmountOpeningBalance 327,021.12 65,966.41 377,339.16 770,326.69

NewAssetsOriginatedorPurchased* 5,686.13 99.20 0.06 5,785.39

AssetsDerecognisedorRepaid(excludingwriteoffs) (99,008.75) (16,060.62) (52,923.31) (167,992.68)

Transfersto/(from)Stage1 17,407.39 (12,623.46) (4,783.93) -

Transfersto/(from)Stage2 (17,086.24) 18,429.91 (1,343.67) (0.00)

Transfersto/(from)Stage3 (13,582.40) (14,294.47) 27,876.87 -

Amountswrittenoff (0.66) (40.92) (28,511.79) (28,553.37)

GrossCarryingAmountClosingBalance 220,436.59 41,476.05 317,653.39 579,566.03

*IncludesRestructuredCases

7.10 Reconciliation of ECL balance :

Particulars Year Ended March 31, 2021


ECL - Opening Balance 2,994.96 2,243.05 263,808.92 269,046.93

New Assets Originated or Purchased* 3,065.38 769.93 7,207.58 11,042.89

Assets Derecognised or Repaid (excluding write offs) (1,125.80) (274.08) (1,915.75) (3,315.63)

Transfers to / (from) Stage 1 1,314.56 (603.26) (711.30) -

Transfers to / (from) Stage 2 (442.13) 505.82 (63.69) -

Transfers to / (from) Stage 3 (252.85) (1,006.65) 1,259.50 -

Amounts Written off - - (154.44) (154.44)

ECL - Closing Balance 5,554.12 1,634.81 269,430.82 276,619.75

ParticularsYearEndedMarch31,2020


ECL-OpeningBalance 2,270.53 293.70 262,202.69 264,766.92

NewAssetsOriginatedorPurchased* 1,966.59 1,946.61 19,898.30 23,811.50

AssetsDerecognisedorRepaid(excludingwriteoffs) (1,863.16) (104.72) (8,315.01) (10,282.89)

Transfersto/(from)Stage1 754.93 (49.94) (704.99) -

Transfersto/(from)Stage2 (68.22) 260.17 (191.95) -

Transfersto/(from)Stage3 (65.71) (102.77) 168.48 -

AmountsWrittenoff - - (9,248.60) (9,248.60)

ECL-ClosingBalance 2,994.96 2,243.05 263,808.92 269,046.93

*IncludesRestructuredCases





8. Investments

Particulars As at

March 31, 2021

As at

March31,2020(A) Investments Measured at Amortised Cost

-GovernmentSecurities 116,143.17 60,453.85-DebtSecurities 32,816.36 32,983.89-JointVentures-UsingEquityMethod

-EquityInstruments(FullyPaid-up)

IBOFInvestmentManagementPrivateLimited 13.96 22.37-PreferenceShares(FullyPaid-up)-Others 40.95 40.95-Others 0.36 0.36

(B) Investments Measured at Fair Value Through Profit or Loss

-MutualFunds 17,738.23 10,781.54-AlternativeInvestmentFunds(“AIF”)/VentureCapitalFunds 638.91 723.00-Others(RARC059(RHDFCHL)Trust)(ReferNote46(g)) 1,793.01 1,795.15

(C) Investments Measured at Fair Value Through Other Comprehensive

Income

-EquityInstruments(FullyPaid-up) 921.09 989.16-OtherApproved(byIRDA)Securities 168,928.85 112,354.16

Total - Gross (A + B + C) 339,034.89 220,144.43(i)InvestmentsoutsideIndia - -(ii)InvestmentsinIndia 339,034.89 220,144.43Total (D) 339,034.89 220,144.43Less:AllowanceforImpairmentLoss(E)(ReferNote8.1) 20,041.31 17,838.51Total - Net [ (A + B + C) - (E) ] 318,993.58 202,305.92

8.1 Breakup of the provision for diminution in value of long term investments is as under:

Particulars As at


March31,2020DebtSecurities* 20,000.00 17,797.56

PreferenceShares 40.95 40.95

Others 0.36 -

Total 20,041.31 17,838.51

*ReligareFinvestLimited(“RFL”),asubsidiaryoftheCompanyhassubscribedtoNon-ConvertibleDebentures(“NCD”)ofacorporateentityofRs20,000LakhinDecember,2016[ImpairmentofRs20,000LakhhasbeenmadetillMarch31,2021(Rs17,797.56LakhtillMarch31,2020)].DuetodefaultinmakingrepaymentofNCDtotheRFL,ithasfiledthecaseagainstthepartyunderInsolvencyandBankruptcyCode(“IBC”)beforetheHon’bleNCLT,Kolkata,whoissuedliquidationorder.However,aspertheliquidatortherearenorealizableassetsorpropertiesavailable.Therefore,theliquidatorhasfileddissolutionapplication.Thecompanyisintheprocessofchallengingthesaiddissolutionapplication.RFLhasalsofiledacriminalcomplaintbeforetheEOW,Delhi.TheEOWhasregisteredanFIRonJuly3,2020bearingno.64/20.Thematterisunderinvestigation.RFLhaslearntthatEnforcementDirectoratehasalsolodgedanECIRNO.36of2020datedSeptember29,2020againsttheaccusedpersons/entitiesonthebasisofthesaidFIR.

Thestatutoryauditor’sreportforthefinancialyearsendedMarch31,2017toMarch31,2020weremodifiedwithrespecttoadequacyofprovisionandanyadditionalfinancial/legalimplications.RFLhasrecognizedECL/impairmentinrespectofitsentireexposureinrespectofCLBportfolioandNCDasatMarch31,2021.Accordingly,nofurtheradversefinancialimplicationsareexpectedontheCompany.





9. Other Financial Assets

Particulars As at

March 31, 2021

As at

March31,2020SecurityDeposits

-WithStockExchanges 489.75 535.75-WithOthers 1,792.92 1,616.50

Less:LossAllowanceAgainstSecurityDeposits (543.03) (534.67)InterestAccrued(ReferNote9.1) 11,402.35 9,371.75

Less:LossAllowanceAgainstInterestAccrued (474.87) (474.87)OtherBankbalances

-FixedDepositAccount(ReferNote5.1) 118.90 54.24ExcessInterestSpread 1,155.73 1,086.70

Less:LossAllowanceAgainstExcessInterestSpread (120.46) (106.08)RecoverableforSupportServices(ReferNote9.2) 388.85 390.09

Less:LossAllowanceAgainstRecoverableforSupportServices (372.13) (268.74)StaffAdvances* 32.66 1,535.24

Less:LossAllowanceAgainstStaffAdvances (0.11) -MarginwithExchanges 817.59 8,641.25

Less:LossAllowanceAgainstMarginwithExchanges (30.67) (30.67)MarginwithCustodian 1.00 1.00Others** 1,175.79 974.68

Less:LossAllowanceAgainstOthers (992.91) (818.48) Total 14,841.36 21,973.69

* IncludedNIL(March31,2020:Rs1,499.99Lakh)advancegivenby theCompany to theemployeesofCareHealthInsuranceLimited(formerlyknownasReligareHealthInsuranceCompanyLimited)(“CHIL”)forbuyingsharesofCHILthroughexercisingsharesoptionsgrantedandvestedtothemunderESOPschemeofCHIL.

**ItincludestheamountsofRs299.93LakhwhichweredebitedbytheexchangedirectlyfromExchangeDuesAccountorSettlementBankAccountinrelationtolostInvestorGrievances(“IG”)/arbitrationcasesfiledbytheclientsofReligareBrokingLiminted(“RBL”),awhollyownedsubsidiaryoftheCompany.RBLhasalreadyfiledcases/appealschallengingtheimpugnedorder/award.FixedDeposits(“FDs”)aremadebytheexchangeagainstthesaidamountdebited/withholdandretainsthesameassecurityordepositinrelationtolostIG/arbitrationcases.AstheseFDsarenotinthecontroloftheRBL,theseFDsandinterestthereonarenotrecognizedinthebooksofaccountsoftheRBL.TheamountisreleasedbytheexchangestotheclientsortotheRBLdependinguponthefinaloutcomeofthelegalcase/appeals.Asamatterofprudence,provisionsagainstthesewithheld/debitedamountsbytheexchangehasbeenmade.

9.1 InterestAccrued includes interest on fixed depositswith LakshmiVilasBank (“LVB”) amounting toRs 2,703.40 Lakh(March31,2020:Rs2,703.40Lakh).AlsoReferNote5.2.

10. Inventories

Particulars As at


March31,2020

Closing Stock of

-DigitalSignatureCertificate("DSC")andUSBTokens 49.94 46.54

Total 49.94 46.54

(Refer Note 3(i))





11. (A) Current Tax Assets (Net)

Particulars As at

March 31, 2021

As at

March31,2020

AdvanceIncomeTaxandTaxDeductedatSource(Net)* 27,640.75 28,267.42

Total 27,640.75 28,267.42

*It includesRs.17,886.86Lakh (March31,2020 -Rs.2,746.13Lakh)paidunderprotest to income taxauthorities inReligareFinvestLimitedandReligareBrokingLimited.

(B) Current Tax Liabilities (Net)

Particulars As at

March 31, 2021

As at

March31,2020

ProvisionforIncomeTax(Net) 512.52 -

Total 512.52 -

12. (A) Deferred Tax Assets (Net)

Particulars As at

March 31, 2021

As at

March31,2020The balance comprises temporary differences attributable to:

(A) Deferred Tax Assets

ExpectedCreditLossesAllowance 50,045.94 50,617.28ProvisionforEmployeeBenefits 538.55 117.64CarryForwardLosses 832.68 1,010.94Property,PlantandEquipment 393.13 668.18MATCreditEntitlement - 171.59OtherProvisions(includingUnexpiredRiskReserve) 3,924.47 -Others 66.62 182.04 Total (A) 55,801.39 52,767.67 (B) Deferred Tax Liabilities

DeductionUnderSection36(1)(viii)ofIncomeTaxAct,1961 - 764.09Others 39.83 44.39 Total (B) 39.83 808.48 Total Net (A-B) 55,761.56 51,959.19

(ReferNote41)

(B) Deferred Tax Liabilities (Net)

Particulars As at

March 31, 2021

As at

March31,2020 The balance comprises temporary differences attributable to:

(A) Deferred Tax Liabilities

DeductionUnderSection36(1)(viii)ofIncomeTaxAct,1961 662.20 -Others 8.78 - Total (A) 670.98 -




Particulars As at

March 31, 2021

As at

March31,2020 (B) Deferred Tax Assets

ExpectedCreditLossesAllowance 621.29 -ProvisionforEmployeeBenefits 12.36 -Property,PlantandEquipment 10.78 - Total (B) 644.43 - Total Net (A-B) 26.55 -

(ReferNote41)(Amount in Rs. Lakh, unless otherwise stated)

(C) The movement on the deferred tax account is as follows:

Particulars For the year ended

March 31, 2021

FortheyearendedMarch31,2020

At the beginning of the year 51,959.19 52,393.00Credit/(charge)intheConsolidatedStatementofProfitandLoss(Net)(FordetailreferNote41(a))

3,947.41 (398.26)

MATCreditEntitlementCreated/(Reversed)intheConsolidatedStatementofProfitandLoss(Net)

(171.59) (87.82)

MATCreditSet-offAgainstTaxLiability - 52.27 At the end of the year 55,735.01 51,959.19

12.1Asamatterofprudence,ReligareFinvestLimited(“RFL”),asubsidiaryoftheCompanyrestrictedthecreationofadditionalDeferredTaxAsset(“DTA”)andkepttheDTA(net)atRs49,315.69Lakh,initsbooks.Hence,DTAofRs49,315.69LakhhavebeenconsideredonMarch31,2021,initsseparatefinancialstatementsconsideringtheavailabilityoffuturetaxableprofitagainstwhichthedeductibletemporarydifferencesandunusedtaxlossescanbeutilised.




Pro

pert

y, P

lan

t an

d E

qu

ipm

en

t

(A

mo

un

t in

Rs

. L

ak

h,

un

les

s o

the

rwis

e s

tate

d)

C

urr

en

t Y

ear

Pa

rtic

ula

rs

Gro

ss

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rry

ing

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lue

D

ep

rec

iati

on

N

et

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ing

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lue

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ce

as

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20

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ar

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etio

ns /

Ad

jus

tme

nts

for

the

Ye

ar

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Ba

lan

ce

as

at

Ap

ril

1,

20

20

De

pre

cia

tio

n

for

the

ye

ar

Del

etio

ns /

Ad

jus

tme

nts

for

the

ye

ar

Ba

lan

ce

as

at

Ma

rch

31

, 2

02

1

Ba

lan

ce

as

at

Ma

rch

31

, 2

02

1

(a)

Ow

ne

d A

ss

ets

Land

26.96

--

26.96

--

--

26.96

LeaseholdImprovem

ents

517.29

8.04

29.10

496.23

222.01

120.62

26.06

316.57

179.66

OfficeEquipments

1,004.71

183.51

91.99

1,096.23

615.57

196.72

82.47

729.82

366.41

DataProcessingMachines

4,267.21

535.37

79.81

4,722.77

2,242.73

773.96

70.62

2,946.07

1,776.70

FurnituresandFixtures

267.28

7.29

18.42

256.15

217.76

18.37

12.46

223.67

32.48

Vehicle

s432.29

-118.33

313.96

174.92

56.08

85.64

145.36

168.60

Su

b T

ota

l (a

) 6

,51

5.7

4

73

4.2

1

33

7.6

5

6,9

12

.30

3

,47

2.9

9

1,1

65

.75

2

77

.25

4

,36

1.4

9

2,5

50

.81

(b)

Le

as

ed

As

se

ts

Right-of-U

seAssets*:

•Bu

ildings/OfficePremise

s11,464.84

2,159.80

5,575.72

8,048.92

2,930.85

2,778.30

1,620.34

4,088.81

3,960.11

•Da

taProcessingMachines

1,362.41

11.36

136.44

1,237.33

438.31

410.99

72.49

776.81

460.52

•Ve

hicle

s93.36

6.58

9.66

90.28

71.45

10.36

9.67

72.14

18.14

Su

b T

ota

l (b

) 1

2,9

20

.61

2

,17

7.7

4

5,7

21

.82

9

,37

6.5

3

3,4

40

.61

3

,19

9.6

5

1,7

02

.50

4

,93

7.7

6

4,4

38

.77

To

tal

(a+

b)

19

,43

6.3

5

2,9

11.9

5

6,0

59

.47

1

6,2

88

.83

6

,91

3.6

0

4,3

65

.40

1

,97

9.7

5

9,2

99

.25

6

,98

9.5

8

P

revio

us

Yea

r

Particulars

GrossCarryingValue

Deprecia

tion

NetCarrying

Value

Balanceas

atApril1

,2019

Ad

diti

on

on

accountof

Tra

nsi

tion

to

In

d

AS116-Ap

ril1,

2019

Ad

diti

on

s

du

rin

g t

he

yea

r

Deletions/

Adjustments

fortheyear

Balance

as

at

March31,

2020

Balanceasat

April1,2019

Depreciation

fortheyear

Deletions/

Adjustments

fortheyear

Balanceasat

March31,

2020

Balanceasat

March31,

2020

(a)O

wnedAssets

Land

26.96

--

-26.96

--

--

26.96

LeaseholdImprovem

ents

262.89

-269.80

15.40

517.29

115.44

121.14

14.57

222.01

295.28

OfficeEquipments

815.10

-211.76

22.15

1,004.71

400.69

230.47

15.59

615.57

389.14

DataProcessingMachines

3,445.63

-935.33

113.75

4,267.21

1,507.54

830.67

95.48

2,242.73

2,024.48

FurnituresandFixtures

260.56

-17.07

10.35

267.28

162.33

60.05

4.62

217.76

49.52

Vehicle

s390.04

-165.49

123.24

432.29

194.44

59.45

78.97

174.92

257.37

SubTotal(a)

5,201.18

-1,599.45

284.89

6,515.74

2,380.44

1,301.78

209.23

3,472.99

3,042.75

(b)LeasedAssets

Right-of-U

seAssets*:

•Buildings/OfficePremise

s-

8,776.61

2,712.15

23.92

11,464.84

-2,930.85

-2,930.85

8,533.99

•DataProcessin

gMachines

-1,362.41

--

1,362.41

-438.31

-438.31

924.10

•Vehicles

143.11

-11.90

61.65

93.36

106.68

19.11

54.34

71.45

21.91

SubTotal(b)

143.11

10,139.02

2,724.05

85.57

12,920.61

106.68

3,388.27

54.34

3,440.61

9,480.00

Total(a+b)

5,344.29

10,139.02

4,323.50

370.46

19,436.35

2,487.12

4,690.05

263.57

6,913.60

12,522.75

*R

efe

r N

ote

49



For the year ended March 31, 2021(A

mo

un

t in

Rs

. L

ak

h,

un

les

s o

the

rwis

e s

tate

d)

13.1Partoflandismortgagedassecurityfordebentureholders.

13.2TherearenoadjustmentstoProperty,P

lantandEquipmentonaccountofb

orrowingcostsandexchangedifferences.ThereisnorevaluationofProperty,P

lantand

Equipmentduringtheyear.

13.3Lossesarisingfromth

eretirem

ento

f,andgainsorlossesarisingfromdisposaloftangibleassetswhicharecarriedatcosto

rrevaluedamountarerecognisedinth

eConsolidatedStatementofP

rofitandLoss.

13.4ThetitledeedsinrespectoflandareinthenameoftheCom

pany/subsidiarycom

pany.

14.

Go

od

will

C

urr

en

t Y

ear P

art

icu

lars

Gro

ss

Ca

rry

ing

Va

lue

A

mo

rtis

ati

on

Ne

t C

arr

yin

g

Va

lue

Ba

lan

ce

as

at

Ap

ril

1,

20

20

Ad

dit

ion

s

du

rin

g

the

Ye

ar

Del

etio

ns /

Ad

jus

tme

nts

for

the

Ye

ar

Ba

lan

ce

as

at

Ma

rch

31

, 2

02

1

Ba

lan

ce

as

at

Ap

ril

1,

20

20

Im

pa

irm

en

t

du

rin

g t

he

Ye

ar

Del

etio

ns /

Ad

jus

tme

nts

for

the

ye

ar

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Go

od

wil

l (o

n C

on

so

lid

ati

on

) 1

,89

9.0

0

-

-

1,8

99

.00

9

26

.96

-

-

9

26

.96

9

72

.04

To

tal

1,8

99

.00

-

-

1

,89

9.0

0

92

6.9

6

-

-

92

6.9

6

97

2.0

4

PreviousYear Pa

rticulars

GrossCarryingValue

Am

ort

isa

tion

NetC

arrying

Value

Balanceasat

April1,2019

Ad

diti

on

s

du

rin

g t

he

Year

Deletions/

Adjustments

fortheYear

Balanceasat

March31,2020

Balanceasat

April1,2019

Im

pa

irm

en

t

du

rin

g t

he

Year

Deletions/

Adjustmentsfor

the

ye

ar

Balanceas

atMarch31,

2020

Balanceas

atMarch31,

2020

Goodw

ill(onCo

nsolidation)

1,899.00

--

1,899.00

926.96

--

926.96

972.04

To

tal

1,899.00

--

1,899.00

926.96

--

926.96

972.04

14.1F

orthepurposeofimpairm

enttesting,goodw

illisallocatedtoaCashGeneratingUnits(“CGU”)representingthelowestlevelw

ithintheG

roupat

whichgoodw

illismonitoredforinternalm

anagem

entpurposes,andwhichisnothigherthantheCom

pany’soperatingsegm

ent.Goodw

illistestedfor

impairm

entatleastannuallyinaccordancewiththeCom

pany’sprocedurefordeterminingtherecoverablevalueofeachCGU.

Therecoverableam

ountoftheCGUisdeterminedonthebasisof‘FairV

alue’Less‘CostofD

isposal’(“FV

LCD”).TheFVLC

DoftheCGUisdetermined

basedonthemarketcapitalisationapproach,usingtheturnoverandearningsmultiplesderivedfrom

observablemarketdata.Thefairvaluemeasurement

iscategorisedasalevel2fairvaluebasedontheinputsinthevaluationtechniquesused.

Basedontheabovetesting,noimpairm

entw

asidentifiedasatMarch31,2021and2020,astherecoverablevalueoftheCGUsexceededthecarrying

value.Further,n

oneofth

eCGU’ste

stedfo

rimpairm

enta

satM

arch31,2021and2020wereatriskofim

pairm

ent.Ananalysisofthecalculation’s

sensitivitytoachangeinthekeyparameters(turnoverandearningsmultiples),didnotidentifyanyprobablescenarioswheretheCGU’sre

coverable

amountwouldfallbelowitscarryingamount.




mo

un

t in

Rs

. L

ak

h,

un

les

s o

the

rwis

e s

tate

d)

15.

Inta

ng

ible

As

sets

C

urr

en

t Y

ear

Pa

rtic

ula

rs

Gro

ss

Ca

rry

ing

Va

lue

A

mo

rtis

ati

on

N

et

Ca

rry

ing

Va

lue

Ba

lan

ce

as

at

Ap

ril

1,

20

20

Ad

dit

ion

s

du

rin

g t

he

Ye

ar

Del

etio

ns /

Ad

jus

tme

nts

for

the

Ye

ar

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Ba

lan

ce

as

at

Ap

ril

1,

20

20

Am

ort

isa

tio

n

for

the

ye

ar

Del

etio

ns /

Ad

jus

tme

nts

for

the

ye

ar

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Co

mp

ute

r S

oft

wa

res

8,2

97

.84

1

,23

9.2

5

0.0

9

9,5

37

.00

4

,29

5.7

6

1,5

18

.74

(

0.2

2)

5,8

14

.72

3

,72

2.2

8

To

tal

8,2

97

.84

1

,23

9.2

5

0.0

9

9,5

37

.00

4

,29

5.7

6

1,5

18

.74

(

0.2

2)

5,8

14

.72

3

,72

2.2

8

PreviousYear Pa

rticulars

GrossCarryingValue

Am

ort

isa

tion

NetCarrying

Value

Balanceasat

April1,2019

Ad

diti

on

s d

urin

g

the

ye

ar

Deletions/

Adjustments

fortheyear

Balanceasat

March31,

2020

Balanceasat

April1,2019

Am

ort

isa

tion

fortheyear

Deletions/

Adjustments

fortheyear

Balanceasat

March31,2020

Balanceasat

March31,

2020

ComputerS

oftwares

7,353.95

954.94

11.05

8,297.84

2,905.45

1,394.30

3.99

4,295.76

4,002.08

To

tal

7,353.95

954.94

11.05

8,297.84

2,905.45

1,394.30

3.99

4,295.76

4,002.08

15.1T

herearenoadjustmentsto

IntangibleAssetsonaccountofb

orrowingcostsandexchangedifferences.ThereisnorevaluationofIn

tangibleAssets

duringtheyear.

15.2T

heGroupdoesnothaveanyinternallygeneratedintangibleassets.

15.3Lossesarisingfromtheretirem

entof,andgainsorlossesarisingfromdisposalofintangibleassetswhicharecarriedatcostorrevaluedam

ountare

recognisedintheStatementofP

rofitandLoss.

16.

Cap

ital W

ork

In

Pro

gre

ss

C

urr

en

t Y

ear

Pa

rtic

ula

rs

Gro

ss

Ca

rry

ing

Va

lue

A

mo

rtis

ati

on

N

et

Ca

rry

ing

Va

lue

Ba

lan

ce

as

at

Ap

ril

1,

20

20

Ad

dit

ion

s

du

rin

g t

he

Ye

ar

Del

etio

ns /

Ad

jus

tme

nts

for

the

Ye

ar

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Ba

lan

ce

as

at

Ap

ril

1,

20

20

Am

ort

isa

tio

n

for

the

ye

ar

Del

etio

ns /

Ad

jus

tme

nts

for

the

ye

ar

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Ba

lan

ce

as

at

Ma

rch

31

,

20

21

Le

as

eh

old

Pre

mis

es

-

-

-

-

-

-

-

-

-

To

tal

-

-

-

-

-

-

-

-

-




mo

un

t in

Rs

. L

ak

h,

un

les

s o

the

rwis

e s

tate

d)

PreviousYear Pa

rticulars

GrossCarryingValue

Am

ort

isa

tion

NetCarrying

Value

Balanceasat

April1,2019

Ad

diti

on

s d

urin

g

the

ye

ar

Deletions/

Adjustments

fortheyear

Balanceasat

March31,

2020

Balanceasat

April1,2019

Am

ort

isa

tion

fortheyear

Deletions/

Adjustments

fortheyear

Balanceasat

March31,2020

Balanceasat

March31,

2020

LeaseholdPrem

ises

67.50

139.72

207.22

--

--

--

To

tal

67.50

139.72

207.22

--

--

--

17

Inta

ng

ible

Assets

Un

der

Develo

pm

en

ts

C

urr

en

t Y

ear

Pa

rtic

ula

rs

Gro

ss

Ca

rry

ing

Va

lue

A

mo

rtis

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18. Other Non Financial Assets

Particulars As at

March 31, 2021

As at

March31,2020BalanceWithTaxAuthorities 7,862.00 4,352.64BalanceWithProvidentFundAuthority 21.46 21.46PrepaidExpenses 2,096.36 1,573.86DepositsPaidUnderProtest 585.59 129.67AdvancestoRelatedParties(forservices) 1,326.50 1,326.50

Less:LossAllowanceAgainstAdvancestoRelatedParties (1,326.50) (1,326.50)ArtWorks 1.78 1.78 Capital Advances 6.76 -RepossesedAssetsHeldForSale(ReferNote18.1) 17,844.66 20,171.21

Less:LossAllowanceAgainstAssetsHeldForSale (3,845.95) (3,189.39) Stamp papers on hand 3.79 -Others 1,560.02 741.18

Less:LossAllowanceAgainstOthers (111.49) (137.73) Total 26,024.98 23,664.68

18.1 (i) PursuanttotheArrangement,thatwasdesignedtosimplifytheGroupcorporatestructure,tookplaceinthefinancialyear 2017-18, the Land&Building of Rs 363.97 Lakh transferred from erstwhile subsidiary company “ReligareSecuritiesLimited”(RSL).Thetitleoftheacquiredassetisinthenameoferstwhilecompanyviz.ReligareSecuritiesLimited.

(ii) Duringthepreviousfinancialyear,theReligareBrokingLimited(“RBL”)createdallowancesforimpairmentlossesontheunitsofIndiaBuiltOutFundheldbytheRBLasassetsacquiredinsatisfactionofdebtontheNetAssetValue(NAV)ofRs878.61LakhbasedonunauditedfinancialstatementasonMarch31,2020providedbytheComputerAgemanagementServicesLimited(CAMS).

OnMarch16,2021IBOFInvestmentManagementPrivateLimitedhasredeemedthebalanceunitsforanaggregateconsiderationofRs3.40Lakh(OutstandingvalueofRs14.60Lakh)asthefullandfinaldistributionandwinduptheaffairsofthefund.TheRBLhasrecognisedthelossofRs11.19LakhonredemptionoftheIBOFunitsintheStatementofProfitandLossandreversedtheallowancesforimpairmentcreatedintheFinancialsYear2019-20.

NoadvancesareduefromdirectorsorotherofficeroftheCompanyeitherseverallyorjointlywithanyotherperson.Noranyadvancesaredue fromfirmoranyprivatecompanies respectively inwhichanydirector isapartner,adirectororamemberotherthanstatedabove.

(iii) During the year ended March 31, 2021, the Religare Finvest Limited (“RFL”) has sold the assets acquired insatisfactionofdebtsattotalconsiderationofRs.2,394.00Lakh.TheprincipalamountoutstandinginrespectofthisdebtwasRs.2,232.61LakhandtheexcessofRs.230.66Lakhwasbookedtowardsoutstandingoverdueinterest,otherchargesandinterestfromthedateofsettlementtillthedisposalofasset(asapplicable)andtheshortfallof Rs.69.27LakhwasbookedasLossonsaleofAssetsacquiredinsatisfactionofdebts.Duringtheyear,theRFLdidnotacquireanyimmovablepropertyinsatisfactionofdebts.





19. Trade Payables

Particulars As at

March 31, 2021

As at

March31,2020

(i)Totaloutstandingduesofmicroenterprisesandsmallenterprises* 99.70 2.07

(ii)Totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises

32,317.42 28,690.82

Total 32,417.12 28,692.89*Refernote54(a)

20. Other Payables

Particulars As at

March 31, 2021

As at

March31,2020

(i)totaloutstandingduesofmicroenterprisesandsmallenterprises* 108.92 83.27

(ii)totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises

13,492.34 16,882.82

Total 13,601.26 16,966.09

*Refernote54(a)

21. Borrowings (Other than Debt Securities)

Particulars As at

March 31, 2020

As at

March31,2019Current

Borrowings Measured at Amortised Cost

(a) Secured

-TermLoans

(i)FromBanks(ReferNote21.1) 341,122.63 387,305.37(ii)FromOtherParties(ReferNote21.2) 24,799.71 28,002.41

-LoansRepayableonDemand(i)FromBanks(ReferNote21.3) 58,698.20 55,252.49(ii)FromOtherParties - -

Sub-Total (a) 424,620.54 470,560.27(b) Unsecured

-TermLoans

(i)FromBanks(ReferNote21.4) - 750.00(ii)FromOtherParties - -

-LiabilityComponentofCompoundFinancialInstruments (ReferNote21.5) 8,220.34 7,820.95

-LoansRepayableonDemand(i)FromBanks - -(ii)FromOtherParties(ReferNote21.6) - 25.33

Sub-Total (b) 8,220.34 8,596.28Total (a+b) 432,840.88 479,156.55BorrowingsinIndia 432,840.88 479,156.55BorrowingsoutsideIndia - -Total 432,840.88 479,156.55





21.1 Secured Term Loans From Banks

Repayment TermSanctioned

Tenure

As at

March 31, 2021

As at

March31,2020

Annually

Over60Months 252,640.22 285,490.37

37to60Months 11,610.86 12,506.70

13to36Months - -

0to12Months - -

Semi Annually

Over60Months 3,776.73 5,347.35

37to60Months 1,152.13 1,158.00

13to36Months 463.96 484.00

0to12Months - -

Quarterly

Over60Months 46,116.85 49,351.72

37to60Months 25,357.96 32,183.85

13to36Months - -

0to12Months - -

Monthly

Over60Months 3.92 24.74

37to60Months - 8.64

13to36Months - -

0to12Months - 750.00

Total 341,122.63 387,305.37

AllsecuredtermloansfrombanksasonMarch31,2021andMarch31,2020aresecuredagainst“floatingfirstchargeonparipassubasisonallthepresentandfuturestandardbusinessreceivablesandcurrentassetsintheformofcashandcashequivalent”oftherespectivesubsidiarycompanies.

Thepricingoftheaboveloansavailedfrombanksareattherateofinterestrespectivebank’sbaserate/MCLRplusamarginupto3.35%(March31,2020:upto3.55%).

21.2 Secured Term Loans From Others Parties

Repayment TermSanctioned

Tenure

As at

March 31, 2021

As at

March31,2020

Quarterly

Over60Months 24,751.46 20,459.41

37to60Months 48.25 7,543.00

13to36Months - -

0to12Months - -Total 24,799.71 28,002.41

AlltheaboveSecuredtermloansfromothersasonMarch31,2021andMarch31,2020aresecuredagainst“FloatingFirstchargeonPariPassubasisonallthepresentandfuturestandardbusinessreceivablesandCurrentAssetsintheformofCashandCashEquivalentoftheCompany”.

Thepricingoftheaboveloansavailedattherateofrespectivelender’sPLRlessamarginupto2.20%(March31,2020:upto1.90%).





21.3 Secured Loans Repayable on Demand From Banks

Nature of Security Interest Rate As at

March 31, 2021

As at

March31,2020Floating First charge on pari passu basison all present and future standard businessreceivables and Current Assets in the formofCashandCashEquivalentofasubsidiarycompany.

RespectiveBank’sBaseRate /MCLR plus amargin 0.25% to2.00%(March31,2020:0.25%to2.00%).

58,698.20 55,252.49

21.4 PricingforshorttermloanfrombanksisatMarginalCostofFundsbasedLendingRatei.e.MCLR.21.5 Liability Component of Compound Financial Instruments

Redeemablepreferencesharesaccountedasafinancial liabilitymeasured initiallyat the fair valueandsubsequentlyatamortizedcostwiththeinterestaccretionatEffectiveInterestRate(“EIR”)basedontheIRRcalculatedontheyieldthereon.

13.66% Cumulative Redeemable Preference Shares

ThefacevalueofeachsharesisRs10.TheshareshallhavevotingrightsapplicabletothepreferenceshareundertheCompaniesAct,2013.Eachpreferenceshareholderhasright to receive inpriority toequityshareholders,preferencedividendoncumulativebasisat theratenotexceeding13.66%perfinancialyear.Theaggregatesharesallottedwere50,000,000atRs100(includingpremiumofRs90pershare)ofwhichtheCompanyhadalreadyredeemed25,000,000shares at premium in prior years.The above shareswere redeemable at an amount ofRs 4,190.28 Lakh (includingpremiumnotexceedingRs269.36pershare)onOctober31,2018.(AlsoreferNote45(a)(II))

0.01% Non Convertible Non Cumulative Redeemable Preference Shares

ThefacevalueofeachshareisRs10.TheshareshallhavevotingrightsapplicabletothepreferenceshareundertheCompaniesAct, 2013.Eachpreference share holder has right to receive in priority to equity shareholder, preferencedividendonnoncumulativebasisattheratenotexceeding0.01%perfinancialyear.Thesharesallottedwere25,000,000inonetrancheonAugust30,2016.Theabovesharesareredeemableatanamount(includingpremium)notexceedingRs16.851pershareonAugust30,2021.ThecarryingvalueofpreferenceshareasonMarch31,2021isRs4,030.06Lakh(March31,2020:Rs3,630.67Lakh).(AlsoreferNote45(a)(II))

21.6 Pricing for Unsecured Loans Repayable on Demand From Other Parties

S.

No.Pricing of Loans

As at

March 31, 2021

As at

March31,2020

1 9% - 25.33

Total - 25.33

21.7 Thereisnodefaultasonthebalancesheetdateinrepaymentofaboveloansandinterestthereon,exceptinReligareFinvestLimited(“RFL”),asubsidaryoftheCompany.InRFLtherearefollowingdefaultasonthebalancesheetdate(i.e.March31,2021)inrepaymentofloansandinterest:

Nature of

BorrowingsName of Lender

Period of delay (as at March 31, 2021)

Principal

Overdue1-182 days

Above 182

days

Interest Overdue

(Interest / Additional /

Penal)

1-182 daysAbove

182 days

Total

Overdue

as at 31 st

March 2021

TermLoan&CashCredit

BankofBaroda 36,610.00 11,250.00 25,360.00 3,505.32 2,903.14 602.18 40,115.32

TermLoan,WCDL&Cash Credit

BankofIndia 29,146.79 - 29,146.79 8,914.19 3,388.37 5,525.82 38,060.98

TermLoan BankofMaharashtra 4,443.07 1,000.00 3,443.07 6,472.46 2,047.97 4,424.49 10,915.53

TermLoan CanaraBank 13,855.04 10,703.04 3,152.00 10,569.18 3,254.59 7,314.60 24,424.22

TermLoan CentralBankofIndia 17,584.34 - 17,584.34 4,894.19 1,317.75 3,576.44 22,478.53




Nature of



Principal

Overdue1-182 days

Above 182

days

Interest Overdue


Penal)

1-182 daysAbove

182 days

Total

Overdue

as at 31 st

March 2021

TermLoan FederalBankLimited 463.96 - 463.96 226.54 46.30 180.24 690.50

TermLoan ICICIBank - - - 5,813.13 1,605.74 4,207.39 5,813.13

TermLoan&CashCredit

IDBIBankLimited 16,134.03 2,500.00 13,634.03 4,087.90 1,308.89 2,779.01 20,221.93

TermLoan KarnatakaBank 1,705.92 1,000.00 705.92 1,006.26 327.52 678.74 2,712.18

TermLoan KarurVysyaBank 1,918.83 1,250.00 668.83 512.89 150.45 362.44 2,431.72

TermLoan Punjab&SindBank 3,986.63 3,200.00 786.63 2,669.31 714.24 1,955.07 6,655.94

TermLoan&CashCredit

PunjabNationalBank

38,214.36 1,500.00 36,714.36 6,095.69 2,394.31 3,701.38 44,310.05

TermLoan SIDBI 17,291.37 7,750.00 9,541.37 5,382.50 1,618.82 3,763.68 22,673.87

TermLoan SouthIndianBank 1,501.74 1,500.00 1.74 867.41 361.22 506.19 2,369.15

TermLoan StateBankofIndia 29,019.44 937.50 28,081.94 4,601.60 3,122.15 1,479.45 33,621.04

TermLoan UcoBank 17,030.89 15,999.55 1,031.34 4,645.37 2,689.82 1,955.55 21,676.26

TermLoan UnionBankofIndia 21,163.53 6,937.50 14,226.03 9,269.06 3,643.73 5,625.33 30,432.59

Total 250,069.94 65,527.59 184,542.35 79,533.00 30,895.01 48,638.00 329,602.94

(AlsoReferNote22A)

Nature of



Principal

Overdue1-183 days

Above 183

days

Interest Overdue


Penal)

1-183 daysAbove

183 days

Total

Overdue as

at March 31,

2020

TermLoan AndhraBank 6,783.53 4,687.50 2,096.03 - - - 6,783.53

TermLoan&CashCredit

BankofBaroda 19,054.88 10,840.47 8,214.41 1,343.57 1,343.57 - 20,398.45

TermLoan,WCDL&Cash Credit

BankofIndia 21,707.31 - 21,707.31 3,149.25 3,120.39 28.86 24,856.56

TermLoan BankOfMaharashtra 1,683.18 384.97 1,298.21 2,517.55 1,919.61 597.94 4,200.73

TermLoan CentralBankofIndia 5,730.66 5,730.66 - 2,302.43 1,856.76 445.67 8,033.09

TermLoan CorporationBank 4,333.87 4,333.87 - 368.97 368.97 - 4,702.84

TermLoan FederalBankLimited 483.87 - 483.87 135.60 109.33 26.27 619.47

TermLoan ICICIBank - - - 2,592.83 1,924.88 667.95 2,592.83

TermLoan&CashCredit

IDBIBankLimited 11,134.03 2,500.00 8,634.03 1,937.06 1,561.52 375.54 13,071.09

TermLoan KarnatakaBank 1,062.04 441.59 620.45 388.10 367.86 20.24 1,450.14

TermLoan KarurVysyaBank 998.25 842.00 156.25 218.48 171.07 47.41 1,216.73

TermLoan OrientalBankofCommerce

3,232.36 - 3,232.36 1,590.67 1,264.86 325.81 4,823.03

TermLoan Punjab&SindBank 1,959.35 1,959.35 - 1,262.26 1,072.06 190.20 3,221.61

TermLoan&CashCredit

PunjabNationalBank

24,677.00 - 24,677.00 2,788.45 2,246.90 541.55 27,465.45

TermLoan SIDBI 5,248.54 4,700.29 548.25 2,130.30 2,130.30 - 7,378.84

TermLoan SouthIndianBank 982.26 982.26 - 155.95 155.95 - 1,138.21

TermLoan StateBankofIndia 17,652.99 7,324.59 10,328.40 1,760.60 1,760.60 - 19,413.59

TermLoan SyndicateBank 8,090.04 6,533.04 1,557.00 4,702.28 3,686.60 1,015.68 12,792.32

TermLoan UCOBank 4,000.00 4,000.00 - 651.46 651.46 - 4,651.46

TermLoan UnionBankofindia 2,973.98 - 2,973.98 2,296.52 1,758.82 537.70 5,270.50

TermLoan UnitedBankofIndia 2,821.60 1,884.10 937.50 219.41 176.42 42.99 3,041.01

Total 144,609.74 57,144.69 87,465.05 32,511.74 27,647.93 4,863.81 177,121.48

21.8 Noneoftheabovetermloanshavebeenguaranteedbytheanydirectorofthegroupcompanies.





22. Subordinated Liabilities

Particulars As at

March 31, 2021

As at

March31,2020

Subordinated Liabilities Measured at Amortised Cost

Unsecured

-TermLoanFromBank(ReferNote22.1) 34,274.18 34,719.83

-Debentures(ReferNote22.2) 21,860.91 21,754.87

Total 56,135.09 56,474.70

SubordinatedLiabilitiesinIndia 56,135.09 56,474.70

SubordinatedLiabilitiesoutsideIndia - -

Total 56,135.09 56,474.70

Aboveunsecuredtermloan(s)frombanksanddebenturesaresubordinatedinnatureandqualifyforinclusioninTierIIcapitalfundforthecomputationofCapitaltoRiskAssetsRatio(“CRAR”)oftheNBFCsubsidiarycompany.SubordinatedLiabilitiesoutstandingarenetofprepaidexpenses.

22.1 Subordinated Liabilities - Unsecured Term Loans From Banks

Repayment Term Sanctioned Tenure As at

March 31, 2021

As at

March31,2020

Bullet

Over60Months 34,274.18 34,719.83

37to60Months - -

13to36Months - -

0to12Months - -

Total 34,274.18 34,719.83

ThepricingoftheaboveloansavailedareattherateofrespectiveBank’sBaseRateplusamarginupto1.65%to2.75%(March31,2020:1.65%to2.75%).

22.2 Subordinated Liabilities - Privately Placed Unsecured Redeemable Non-Convertible Debentures

S.

No.Coupon Rate

As at

March 31, 2021

As at

March 31, 2020

Date of

Allotment

Redemption

Due On

1 10.68%(ReferNote22.4(b)) 9,936.77 9,970.46 30-Sep-15 30-Apr-21

2 12.20% 4,968.39 4,901.30 12-Oct-12 12-Oct-22

3 12.20% 4,173.45 4,111.67 21-Jan-13 21-Jan-23

4 12.00% 794.94 786.93 25-Feb-13 25-Feb-23

5 12.05% 1,987.36 1,984.51 28-Mar-13 28-Mar-23

Total 21,860.91 21,754.87

22.3 NoneoftheabovetermloanshavebeenguaranteedbydirectorsoftheanyGroupcompany.

22.4 (a) ThereisnodefaultasonthebalancesheetdateinrepaymentofabovetermloansandinterestthereonexceptinReligareFinvestLimited,asubsidiaryoftheCompany(“RFL”).InRFLtherearedefaultasontheBalanceSheetdate(i.e.March31,2021)inrepaymentofloansandinterestunderTermLoanfromBanks(ReferNote21.7).




(b) RFL borrowed funds fromAxis Bank Limited through issuance of Unsecured Rated Listed Redeemable Non-ConvertibleSubordinatedDebenturesofSeriesLIII(53)(“NCDs”)issuedonprivateplacementbasisofRs1,000,000eachforcashatparforuptoRs10,000LakhandallottedonSeptember30,2015.TheDebenturescarriedacouponrateof10.68%p.a.whichwaspayableannually.RFL,yearonyear,honoreditscontractualobligationbymakingannualpaymentsoftheinterestdueontheDebenturestoAxisBank,withoutdefault,ashasbeendetailedbelow:

S. No. Due Date Date of Payment Amount (Rs in Lakh)

1 30-Sep-16 30-Sep-16 1,068

2 30-Sep-17 30-Sep-17 1,068

3 30-Sep-18 30-Sep-18 1,068

4 30-Sep-19 30-Sep-19 1,068

5 30-Sep-20 30-Sep-20 1,068

Thematurity of these NCDs was due onApril 30, 2021 however on thematurity date, due to significantALMmismatches,RFLwasnotinapositiontopayandconsequently,hasnotpaidthetotaloutstandingofRs10,620LakhcomprisingofprincipalofRs10,000LakhandinterestofRs620Lakh.

RFLhasservicedpriorintimationofexpecteddefaulttoAxisBankLimitedvideletterdatedApril13,2021andotherrequisite disclosure to the stockexchangesasper theapplicablenormswasalsodone.AxisBankLimitedhasadvisedthatRFLmustabidebythetermsandconditionsgoverningtheunderlyingdebentureandmakegoodthepayment.IntheeventofanyfailureonpartoftheRFLtocomplywiththerequisition,theBankreservestherighttoexplorealllegalremediesavailabletosecureitsinterest.

Subsequenttoduedate,therequisitedisclosure/intimationofdefaulttoallstockexchanges,debenturetrustee,ratingagency,etc.wasdonebyRFL.Duetotheaforesaiddefault,IndiaRatinghasdowngradedtheratingonLowerTier-2debtfromINDCtoINDD.AxisTrusteehasintimatedvidetheirletterdatedMay3,2021thattheyareintheprocesstonominateanomineedirector,representingthedebentureholders,ontheBoardofRFL.

22A Debt Restructuring Plan (“DRP”) of Religare Finvest Limited

Religare Finvest Limited (“RFL”) is facing significant asset liabilitymismatches as a a result ofmisappropriation andembezzlementofcompany’sfundsunderthecontroloferstwhilepromoters.Themisappropriationhappenedbywayofcorporateloanbook,StrategicCreditCapitalPrivateLimited(“SCCPL”)relatedexposure,loanstoZeeGroup,investmentinOSPLandfixeddepositswithLakshmiVilasBank(“LVB”)etc.RFLhasmadeaprovision/writtenofftheseamountsexceptitsfixeddepositswithLVB(NowDBSBankIndiaLimited)asaresultofwhichithassufferedhugelossesandtherequiredOwnedFunds,CRARetc.haveturnednegative.DuringtheyearendedMarch31,2020,RFLproposeditsDebtRestructuringPlan(“DRP”)tothelenderswiththecut-offdateofApril1,2019intermsofReserveBankofIndia(“RBI”)circular onPrudential Framework forResolution ofStressedAssets dated June 7, 2019 to realign its debtwith cashflows.ThesaidDRPwasapprovedbytherequisitemajorityoflendersandthepaymentstolenderswerebeingmadeinaccordancewiththeproposedDRP.However,RBIdidnotaccedetotherequestofTCGasinvestorinRFLinthemonthofMarch,2020.Thereafter,RFLmadeafurtherpaymentofRs83,708.26LakhtoitslendersinMarch,2020.

RFLhasproposeditsrevisedDRPalongwiththeCompany,continuingasitspromoter/investorandhasmadeapaymentofRs41,510Lakh to its lendersduring theyear (excludingRs8,764Lakh lyingwithStateBankof IndiaasatMarch31, 2020).RFLhas receiveda letter dated June3, 2021 fromStateBankof India stating that theproposal is underconsiderationonmerit(withRELasashareholder)andwillbeconsideredifitisincomplianceofRBIcirculardatedJune7,2019subjecttonecessaryinternalapprovalsbyallConsortiumLenders.RFLalongwiththeCompanyisworkingtowardsitsrevivalandremovalofCorrectiveActionPlanbyRBI(ReferNote45(VIII)).Accordingly,thefinancialstatementsofRFLhavebeenpreparedongoingconcernbasis.





23. Other Financial Liabilities

Particulars As at

March 31, 2021

As at

March31,2020

InterestAccruedandDue - 17.39

InterestAccruedbutnotDue 80,473.73 33,472.75

UnclaimedDebentureRefundandInterestThereon 100.51 112.63

UnclaimedAmountofPolicyHolders - 229.39

BookOverdraft 0.01 15.78

SecurityDeposits(IncludingMarginforVehicles) 2,799.83 2,795.00

DebtServiceReserve("DSR")andOtherAccounts 524.08 613.14

MarginDepositsFromClients 22,151.37 10,907.82

CreditorsforExpenses/ExpensesPayable^ 8,186.57 5,252.65

PayableForAssignmentandSecuritisationTransactions 2,042.00 1,613.70

ClaimsOutstanding(InsuranceBusiness) 38,388.08 26,255.21

MarginforVehicle 16.98 16.98

LeaseLiability 5,052.76 9,557.04

LiabilitytowardsCapitalCommitment/Settlement* 894.85 15,300.00

FinancialLiabilityTowardsContingency** 1,209.07 673.99

OtherLiabilities 5,800.26 5,926.28

Total 167,640.10 112,759.75^TheamountalsoincludesbalanceofMicroandSmallEnterprisesofRs.35.89Lakh(March31,2020:Rs60.36Lakh).AlsoreferNoteno52(a).*Duringthepreviousyears,twononresidentshareholdersofReligareFinvestLimited(RFL),asubsidiaryoftheCompany,hadexercisedtheirrightofputoptionrequiringtheCompanytoacquiretheirshareholdinginRFLandhadfiledpetitionsinDelhiHighCourtforseekingvariousreliefs.Accordingly,acontingentliabilityofRs.Nil(previousyearRs.84,182.34Lakh)wasdisclosed.OnFebruary11,2020,theCompany,enteredintoSharePurchaseAgreements(“SPA”)foracquisitionof37,641,204equitysharesofRFLconstituting14.36%shareholdingofRFLfromthesaidnonresidentshareholders.Further,ConsentTermAgreementshadbeenenteredamongst theparties toamicably settleall theexistingdisputesinitiatedby thesaidnonresidentshareholdersagainst theCompanyandRFL.TheCompanydepositedasumofRs.894.85Lakhwith theCourt inaccordancewith the termssetout therein.TheCompanyobtain thepermissionof thecompetentgovernmentauthoritytotransfertheSettlementAmount.TheprocesstotransferthissettlementamountaspertermsofSPAhasbeeninitiated.Accordingly, in termsof theSPA,14.36%stakeofRFLwasacquired foraconsiderationofRs.4,705LakhandRFLbecameawhollyownedsubsidiaryoftheCompanyonFebruary28,2020.Forpreviousyear’samountpleasereferNote54(b).**ReferNote45(a)(II)

24. Provisions

Particulars As at

March 31, 2021

As at

March31,2020

Provision for Employee Benefits

-Gratuity 215.93 1,284.49

-LeaveEncashment 1,129.21 1,014.82

Total 1,345.14 2,299.31





25. Other Non Financial Liabilities

Particulars As at

March 31, 2021

As at

March31,2020StatutoryDuePayable 11,981.90 8,175.36

AdvancesFromCustomers/Clients 3,681.66 3,184.01

UnexpiredRiskReserve("URR")* (Including'PremiumDeficiencyReserve'Rs13,587.82Lakh(March31,2020:Rs2,445.62Lakh)

107,515.61 71,237.44

OtherLiabilities 1,405.42 1,408.20

UnallocatedPremium 7,932.70 7,102.66

PremiumsReceivedinAdvance 5,719.86 6,111.77

Others 19.18 19.51

Total 138,256.33 97,238.95

*UnexpiredRiskReserverepresentsthatpartofthenetwrittenpremium(i.e.premium,netofreinsuranceceded)whichisattributableto,andsetasideforsubsequentriskstobebornebytheCompanyundercontractualobligationsoncontractperiodbasis.

Particulars As at

March 31, 2021

As at

March31,2020

OpeningBalance 71,237.44 57,034.87

Less:-Amountutilizedduringtheyear 71,237.44 57,034.87

Add:-Provisionmadeduringtheyear 107,515.61 71,237.44

Closing Balance 107,515.61 71,237.44

26. Equity Share Capital

Particulars As at

March 31, 2021

As at

March31,2020Authorized Capital

654,450,000(March31,2020:654,450,000) EquitySharesofRs10each

65,445.00 65,445.00

Total 65,445.00 65,445.00

Issued, subscribed and paid up

259,413,902(March31,2020:258,128,152) EquitySharesofRs10eachfullypaidup

25,941.39 25,812.82

Total 25,941.39 25,812.82

26.1 Reconciliation of the shares outstanding at the beginning and at the end of reporting period

Particulars

As at

March 31, 2021

As at

March31,2020

Number Amount Number Amount

Equity Shares of 10 each Fully Paid Up

Balanceasatthebeginningoftheyear 258,128,152 25,812.82 216,942,733 21,694.27

Add:Sharesissuedduringtheyear 1,285,750 128.57 41,185,419 4,118.55

Balance as at the end of the year 259,413,902 25,941.39 258,128,152 25,812.82





26.2 The rights, preferences and restrictions attaching to equity shares including restrictions on the distribution of

dividends and the repayment of capital is as under:

TheCompanyhasonlyoneclassofequityshareshavingafacevalueofRs10pershare.Eachshareholderisentitledtoonevotepershareheld.Dividend,ifany,declaredispayableinIndianRupees.Thedividendproposed,ifany,bytheBoardof theDirectors issubject totheapprovalof theshareholders intheensuingAnnualGeneralMeetingexcept incaseofInterimDividend.IntheeventoftheliquidationoftheCompany,theholderoftheequityshareswillbeentitledtoreceiveanyoftheremainingassetsoftheCompany,afterdistributionofallpreferentialamounts.Thedistributionwillbeinproportionofthenumberoftheequitysharesheldbytheequityshareholders.

ReserveBankof India(“RBI”),vide letterdatedApril05,2019,hasadvised theCompany tostoppayingdividends tillfurtherorder. In relation to theSupervisoryConcerns issuedby theRBI to theCompany inDecember,2019w.r.t theInspectionasatMarch31,2019carriedunderSection45NoftheReserveBankofIndiaAct,theCompanyhassuitablysubmittedthecompliance.TheCompanycontinuestobebarredfromdeclaringdividendsaspersaidRBIletterissuedinDecember,2019.

26.3 Detailsoftheshareholdersholdingmorethan5%oftheaggregatesharesintheCompany:

Name of the Shareholder

As at

March 31, 2021

As at

March31,2020

No. of

Shares held

% of

Holding

No.ofShares held

%ofHolding

Equity Shares

(i)PuranAssociatesPrivateLimited 18,164,432 7.00 18,164,432 7.04(ii)ChandrakantarockBuildersAndDevelopersPrivateLimited 15,719,304 6.06 - -(iii)ResilientIndiaGrowthFund - - 17,638,579 6.83(iv)InvestmentOpportunitiesVPte.Limited 17,638,579 6.80 - -(v) Win Sure Trade Invest Private Limited, Rock Builders And

Developers Private Limited (on behalf of ChandrakantaEnterprise)

- - 14,659,304 5.68

26.4 Therearenosecuritiesthatareconvertibleintoequity/preferencesharesotherthanemployeestockoptionsissuedbytheCompany.

26.5 DuringtheperiodoffiveyearsimmediatelyprecedingtheBalanceSheetDate,theCompanyhasnot:(a) allottedanyshareasfullypaiduppursuanttocontractwithoutpaymentbeingreceivedincash;(b) allottedanyshareasfullypaidupbywayofbonusshares;and(c) boughtbackanyshare.

26.6 NosharewasforfeitedbytheCompanyduringtheyear.26.7 PreferenceShareCapital

Particulars As at

March 31, 2021

As at

March31,2020

Authorized Capital

162,000,000(March31,2020:162,000,000) RedeemablePreferenceSharesofRs10each 16,200.00 16,200.00

Total 16,200.00 16,200.00 (Also refer Note 21.5)

26.8 Subsequenttothebalancesheetdate,theBoardofDirectorsoftheCompanyatitsmeetingheldonJune08,2021hasapproved,subjecttotheapprovaloftheshareholdersandotherrequisiteapprovals,raisingoffundsthroughpreferentialissueofequitysharesbyissuingupto54,156,761(FiveCroreFortyOneLakhFiftySixThousandSevenHundredSixtyOne)equitysharesoftheCompanyatanissuepriceofRs105.25pershare(includingpremiumofRs95.25pershare)aggregatinguptoRs57,000Lakhonapreferentialbasis.TheExtraordinaryGeneralMeeting (“EGM”) forapprovalofshareholdersinthematterisscheduledtobeheldonJuly03,2021.





27. Other Equity

ParticularsAs at

March 31, 2021

As at

March31,2020(A) Securities Premium Reserve

OpeningBalance 387,281.98 368,158.87 Add:Securitiespremiumcreditedonshareissue 17,040.17 19,123.11 Closing Balance 404,322.15 387,281.98

(B) Capital Redemption Reserve

OpeningBalance 1,123.14 1,123.14 Closing Balance 1,123.14 1,123.14

(C) Capital Reserve arising out of Composite Scheme of Arrangement


(D) Capital Reserve on Consolidation


(E) General Reserve


(F) Statutory Reserve

OpeningBalance 35,660.38 35,575.61 Add:Transferfromretainedearnings(NetofNCI) 1,440.06 84.77 Closing Balance 37,100.44 35,660.38

(G) Short / (Excess) Payment for Shares in Subsidiaries Post Getting Control

OpeningBalance (4,493.14) (3,261.56) Add:Changesduringtheyear 265.88 (1,231.58) Closing Balance (4,227.26) (4,493.14)

(H) Employee Stock Option Reserve

OpeningBalance 3,303.44 1,254.31 Add:Changesduringtheyear (1,103.63) 2,049.13 Closing Balance 2,199.81 3,303.44(I) Foreign Currency Translation Reserve

OpeningBalance 2,630.06 2,638.29 Add/(Less):Changesduringtheyear 2.71 (8.23) Closing Balance 2,632.77 2,630.06

(J) Money Received Against Share Warrants

OpeningBalance - 9,546.11 AmountReceivedDuringtheyear - 16,154.98 Less:TransfertoReserveonForfeitureofShareWarrant - (4,161.12) Less:UtilisedtowardEquitySharesAllotments - (21,539.97) Closing Balance - -




ParticularsAs at

March 31, 2021

As at

March31,2020

(K) Reserve on Forfeiture of Share Warrant

OpeningBalance 4,161.12 -

Add:Changesduringtheyear - 4,161.12

Closing Balance 4,161.12 4,161.12

(L) Impairment Reserve

OpeningBalance 9,985.77 -

Add:Changesduringtheyear 6,289.20 9,985.77

Closing Balance 16,274.97 9,985.77

(M) Surplus / (Deficit) in the Statement of Profit and Loss

OpeningBalance (496,958.56) (393,805.77)

Add:NetProfit/(Loss)ForTheYear (50,846.13) (93,246.95)

Add/(Less):AdjustmentduetochangeinNCI 17,844.19 164.70

Less:TransfertoImpairmentReserve (6,289.20) (9,985.77)

(536,249.70) (496,873.79)

Less:Appropriations

TransfertoStatutoryReserve(NetofNCI) (1,440.06) (84.77)

(I) Total Profit / (Loss) (537,689.76) (496,958.56)

Other Comprehensive Income (“OCI”)

OpeningBalance 1,197.64 (15.26)

Add/(Less):MovementinOCIduringtheyear

●RemeasurementGainor(Loss)onDefinedBenefitPlans(NetofTax) 547.05 (861.94)

●FairValueGain/(Loss)onEquityInstrumentsDesignatedasFVTOCI (87.11) 101.35

●NetGain/(Loss)onDebtSecuritiesFVTOCI 2,406.21 2,152.57

Add/(Less):ShareofNCIandAdjustmentduetochangeinNCI (1,008.14) (179.08)

(II) Total OCI 3,055.65 1,197.64

Total Comprehensive Income (I + II) (534,634.11) (495,760.92)

Total Other Equity (30,650.03) (15,711.23)

27.1 The Description of the nature and purpose of each reserve within other equity are as follows:

(i) Securities Premium Reserve

Securitiespremium reserve iscreditedwhensharesare issuedatpremium. It isutilised inaccordancewith theprovisionsoftheAct,toissuebonusshares,toprovideforpremiumonredemptionofsharesordebentures,write-offequityrelatedexpenseslikeunderwritingcosts,etc.

(ii) Capital Redemption Reserve (“CRR”)

CapitalRedemptionReserveare thereservemainlycreatedonbuybackof theequitysharesby fewsubsidiarycompaniesinpast.CRRcannotbeusedtopaythedividends.

(iii) Capital Reserve arising out of Composite Scheme of Arrangement

InpastsomesubsidiarycompanieswasmergedwiththeCompany.ThedifferencebetweentheamountsrecordedasinvestmentsoftheCompanyandtheamountofsharecapitalandsharepremiumofamalgamatingsubsidiarycompaniesarereportedas“CapitalReservearisingoutofCompositeSchemeofArrangement”.




(iv) Capital Reserve on Consolidation

Thisreservescreatedduringbusinesscombinationforthegainonbargainpurchase.(v) General Reserve

Itisafreereservewhichiscreatedby(1) appropriationfromprofitsofthecurrentyearand/orundistributedprofitsofpreviousyears,beforedeclaration

ofdividenddulycomplyingwithanyregulationsinthisregard;and(2) transferfromthebalancesintheotherreservesthatarenomorerequired.

(vi) Statutory Reserve

NBFCcompaniesoftheGroupneedtotransferapartofprofittothisreserveasperPrudentialNormsofRBI/NHB.(vii) Short / (Excess) Payment for Shares in Subsidiaries Post Getting Control Itreportstheexcessamountpaid,overfacevalueoftheshares,bytheCompanytoacquiretheequitysharesofits

subsidiaryfromthenon-controllinginterestshareholders.(viii) Employee Stock Option Reserve

Thedifferencebetweenfairvalueandexercisepriceoftheequitysettledsharebasedpaymenttransactionswithemployees is recognised inStatement of Profit and Losswith corresponding credit toEmployeeStockOptionsReserve.

(ix) Foreign Currency Translation Reserve

ForeignCurrencyTranslationReserverepresents theexchangeratevariationonthereportingdate inrespectofSubsidiary(ies)oftheCompany,beingnon-integralforeignoperation.

(x) Impairment Reserve

InNBFCs/ARCs,ifimpairmentallowance(i.e.expectedcreditloss),ontheloanbooks,underIndAS109islowerthantheprovisioningrequiredunderprudentialnormsonIncomeRecognition,AssetClassificationandProvisioning(“IRACP”),anamountequeltothatdifferenceisappropriatedfromtheirnetprofitorlossaftertaxtothisreserve.It ismandatedbytheReserveBankofIndia(“RBI”),videitsCircularNo.RBI/2019-20/170DOR(NBFC).CC.PD.No.109/22.10.106/2019-20datedMarch13,2020.

Thebalanceinthe‘ImpairmentReserve’shallnotbereckonedforregulatorycapital.Further,nowithdrawalsshallbepermittedfromthisreservewithoutpriorpermissionfromtheDepartmentofSupervision,RBI.(ReferNote2.1(vi))




8

No

n C

on

tro

llin

g In

tere

st

(Am

ou

nt

in R

s.

La

kh

, u

nle

ss

oth

erw

ise

sta

ted

)

Thefollowingtablesummarisesthefinancialinformationrelatingtosubsidiariesthathavenoncontrollinginterests:

Pa

rtic

ula

rs

To

tal

Re

lig

are

He

alt

h I

ns

ura

nc

e

Co

mp

an

y L

imit

ed

Re

lig

are

Fin

ve

st

Lim

ite

d*

Re

lig

are

Ho

us

ing

De

ve

lop

me

nt

Fin

an

ce

Co

rpo

rati

on

Lim

ite

d

As a

t

Marc

h 3

1, 2

021

As a

t

Marc

h 3

1, 2020

As a

t

Marc

h 3

1, 2021

As a

t

Marc

h 3

1, 2020

As a

t

Marc

h 3

1, 2021

As a

t

Marc

h 3

1, 2020

As a

t

Marc

h 3

1, 2021

As a

t

Marc

h 3

1, 2020

CountryofIncorporation/P

laceofB

usiness

In

dia

Ind

iaIn

dia

ProportionofNonControllin

gInterest(%

)29.29%

11.05%

--

12.50%

12.50%

(A)

Ba

lan

ce

Sh

ee

t

FinancialAssets

333,946.95

255,219.13

285,263.78

193,691.54

--

48,683.16

61,527.59

Non-financia

lAssets

19,286.73

12,779.65

18,311.76

11,639.08

--

974.96

1,140.57

FinancialLiabilities

(89,833.31)

(93,934.89)

(61,434.72)

(51,644.68)

--

(28,398.59)

(42,290.21)

Non-FinancialLiabilities

(133,537.46)

(92,494.87)

(133,373.75)

(92,297.76)

--

(163.71)

(197.11)

Ne

t A

ss

ets

12

9,8

62

.90

8

1,5

69

.02

1

08

,76

7.0

8

61

,38

8.1

8

-

-

21

,09

5.8

3

20

,18

0.8

4

Sh

are

Ap

pli

ca

tio

n M

on

ey

fro

m N

CI

-

22

.53

-

2

2.5

3

-

-

-

-

Ca

rry

ing

Am

ou

nt

of

No

n C

on

tro

llin

g

Inte

res

t 3

4,4

90

.80

9

,32

8.0

3

31

,85

3.8

2

6,8

05

.42

-

-

2

,63

6.9

8

2,5

22

.60

Pa

rtic

ula

rs

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

21

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

20

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

21

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

20

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

21

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

20

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

21

Fo

r th

e

Ye

ar

En

de

d

Ma

rch

31

,

20

20

(B) S

tate

men

t of P

rofit

and

Los

s

To

tal

Inc

om

e198,696.10

218,854.46

190,444.79

165,392.01

-43,278.72

8,251.31

10,183.73

Profit/(Loss)ForTheYear

10,985.99

(82,410.70)

10,074.48

6,733.96

-(89,676.22)

911.51

531.56

OtherCom

prehensiv

eIncome(NetofTax)

2,432.46

1,660.08

2,428.95

1,885.66

-(181.15)

3.52

(44.43)

Tota

l C

om

pre

hen

siv

e In

co

me F

or

Th

e Y

ear

13

,41

8.4

5

(8

0,7

50

.61

) 1

2,5

03

.43

8

,61

9.6

2

-

(8

9,8

57

.37

) 9

15

.03

4

87

.13

Att

rib

uta

ble

to

No

n C

on

tro

llin

g I

nte

res

ts:

Profit/(Loss)ForTheYear

3,064.38

(10,550.61)

2,950.44

744.05

-(11,396.00)

113.94

101.34

OtherCom

prehensiv

eIncome(NetofTax)

711.79

193.17

711.35

208.35

-(18.27)

0.44

3.09

To

tal C

om

pre

he

ns

ive

In

co

me

Fo

r T

he

Ye

ar

3,7

76

.17

(

10

,35

7.4

4)

3,6

61

.79

9

52

.40

-

(

11,4

14

.27

) 1

14

.38

1

04

.43

(C)

Ca

sh

F

low

S

tate

me

nt

(Sta

nd

alo

ne

Co

mp

an

ies

)

NetC

ashGenerated/(Used)from

/in

OperatingActivitie

s54,183.36

187,235.45

38,629.93

34,530.85

-139,622.12

15,553.43

13,082.48

NetC


/in

Inve

stin

g A

ctiv

itie

s(73,855.70)

(60,298.90)

(72,212.72)

(39,635.58)

-(23,554.12)

(1,642.98)

2,890.80

NetC


/in

FinancingActivitie

s18,462.10

(113,214.09)

32,561.14

4,558.77

-(100,421.51)

(14,099.04)

(17,351.35)

Net I

ncre

ase

/ (De

crea

se) i

n Ca

sh a

nd

Ca

sh

Eq

uiv

ale

nts

(1

,21

0.2

4)

13

,72

2.4

6

(1

,02

1.6

5)

(5

45

.96

) -

1

5,6

46

.49

(

18

8.5

9)

(1

,37

8.0

7)

(D)

Div

ide

nd

P

aid

to

N

on

C

on

tro

llin

g

Inte

res

t-

--

--

--

-

*14.36%stakeofR

eligareFinvestLimited(“R

FL”)wa

sacquiredfromtheNo

n-Co

ntrollin

gInvestorsandRF

Lbecameawh

ollyow

nedsubsidiaryoftheCom

panyw.e.f.February28,2020.




(Amount in Rs. Lakh, unless otherwise stated)29. Interest Income (Revenue From Operations)*

Particulars For the Year Ended

March 31, 2021

FortheYearEnded

March31,2020

IncomeFromLendingActivities 34,113.13 47,955.24

InterestIncomeonFixedDepositswithBanks 1,986.15 1,691.35

InterestIncomeonDelayedPayments/ChargesforDelayedPayments 1,150.99 2,381.76

Interest Income on Investments 16,517.64 11,403.94

Total 53,767.91 63,432.29

*Breakup of Interest Income:


March 31, 2021

FortheYearEnded

March31,2020

(A) On Financial Assets Measured at Amortised Cost

IncomeFromLendingActivities 34,113.13 47,955.24

InterestIncomeonFixedDepositswithBanks 1,969.77 1,638.28

Interest Income on Delayed Payments / Charges for DelayedPayments 1,150.99 2,381.76

Interest Income on Investments 5,377.57 144.57

Subtotal (A) 42,611.46 52,119.85

(B) On Financial Assets Measured at Fair Value Through Profit and Loss (“FVTPL”)

IncomeFromLendingActivities - -

InterestIncomeonFixedDepositswithBanks 16.38 53.07

InterestIncomeonDelayedPayments/ChargesforDelayedPayments - -

Interest Income on Investments 453.15 55.92

Subtotal (B) 469.53 108.99

(C) On Financial Assets Measured at Fair Value Through OCI

(“FVTOCI”)

IncomeFromLendingActivities - -

InterestIncomeonFixedDepositswithBanks - -

Interest Income on Delayed Payments / Charges for DelayedPayments - -

Interest Income on Investments 10,686.92 11,203.45

Subtotal (C) 10,686.92 11,203.45

Total (A+B+C) 53,767.91 63,432.29





30. Fee and Commission Income


March 31, 2021

FortheYearEnded

March31,2020

CommissionIncomeFromReinsurance(Net) - 2,217.01

OtherCommissionIncome 701.84 1,187.81

Total 701.84 3,404.82

30A Net Gain on Fair Value Changes


March 31, 2021

FortheYearEnded

March31,2020

NetGainonFairValueChanges(ReferNotes30A.1and36.1) 35.08 -

Total 35.08 -

30A.1 Gain / (Loss) on Fair Value Changes#


March 31, 2021

FortheYearEnded

March31,2020

(A) Net Gain / (Loss) on Financial Instruments at Fair Value Through Profit or Loss

(i)OnTradingPortfolio

-Investments 35.08 --Others - -(ii)OnFinancialInstrumentsDesignatedatFairValueThroughProfitorLoss

- -

(B) Others - -Total Net Gain on Fair Value Changes (A+B) (C) 35.08 -(D) Fair Value Changes

-Realised 74.77 --Unrealised (39.69) -Total (D) 35.08 -

#Fairvaluechangesinthisscheduleareotherthanthosearisingonaccountofaccruedinterestincome/expense.

31. Revenue From Sale of Services


March 31, 2021

FortheYearEnded

March31,2020

IncomeFromBrokingOperations^ 20,484.63 16,795.63

IncomeFromAdvisoryServices - 11.40

Total 20,484.63 16,807.03

^NetofStampDutyExpenseRs193.69Lakh(March31,2020:Rs728.50Lakh)andExchangeTransactionFeesRs1,171.24Lakh(March31,2020:Rs892.33Lakh).





32. Other Revenue From Operations


March 31, 2021

FortheYearEnded

March31,2020

IncomeFromInsurancePremium (NetofPremiumonRe-insuranceceded) 172,946.95 150,779.11

ProfitonSale/RedemptionofInvestments(Net) 446.15 509.88

GainonRentConcession(ReferNote49) 102.10 -

OtherIncome 192.25 597.63

Total 173,687.45 151,886.62

33. Other Income


March 31, 2021

FortheYearEnded

March31,2020

BalancesWrittenBack(Net) 306.18 185.30

IncomeFromSupportServices 0.55 67.20

InterestIncomeFromFixedDepositsWithBanks* 7.46 21.93

ProfitonDerecognitionofProperty,PlantandEquipment(Net) 36.18 84.13

ProfitonSale/RedemptionofInvestments(Net) 15.06 526.04

InterestIncomeFromInvestments(ReferNote33.1) 546.02 582.86

InterestIncomeonOthers 2,039.64 1,662.67

IncometowardsARCtransation(Net) 423.22 549.73

MiscellaneousIncome 995.72 532.01

Total 4,370.03 4,211.87

*OnFinancialAssetsmeasuredatAmortisedCost.

33.1 Interest Income From Investments (Other Income)


March 31, 2021

FortheYearEnded

March31,2020

(A)OnFinancialAssetsMeasuredatAmortisedCost 546.02 503.38

(B)OnFinancialAssetsMeasuredatFairValueThroughProfitandLoss("FVTPL") - 79.48

(C)OnFinancialAssetsMeasuredatFairValueThroughOCI("FVTOCI") - -

Total 546.02 582.86





34. Finance Costs


March 31, 2021

FortheYearEnded

March31,2020

Intereston:

Borrowings 62,958.00 76,172.68SubordinatedLiabilities 7,668.20 6,679.21LiabilityPortionofPreferenceShares 399.39 359.82ClientMargins 135.08 190.43LeaseLiabilities 826.80 1,054.82Others 4.23 22.39

LoanReviewCharges 22.71 33.60BankGuaranteeCommissionandOtherCharges 477.89 413.16Total 72,492.30 84,926.11Note:TheentirefinancecostsareonthefinancialliabilitiesmeasuredatAmortisedCost.

35. Fee and Commission Expenses


March 31, 2021

FortheYearEnded

March31,2020

CommissionExpenseOnReinsurance(Net) 2,538.73 -

CommissionandBrokerageExpenses 6,349.41 4,598.73

Total 8,888.14 4,598.73

36. Net Loss on Fair Value Changes


March 31, 2021

FortheYearEnded

March31,2020

NetLossonFairValueChanges(ReferNotes36.1and30A.1) - 137.50

Total - 137.50

36.1 Gain / (Loss) on Fair Value Changes#


March 31, 2021

FortheYearEnded

March31,2020(A) Net Gain / (Loss) on Financial Instruments at Fair Value

Through Profit or Loss

(i)OnTradingPortfolio

-Investments - (137.50)-Others - -

(ii)OnFinancialInstrumentsDesignatedatFairValueThroughProfitorLoss - -

(B) Others - -Total Net Gain on Fair Value Changes (A+B) (C) - (137.50)(D) Fair Value Changes

-Realised - --Unrealised - (137.50)

Total (D) - (137.50)#Fairvaluechangesinthisscheduleareotherthanthosearisingonaccountofaccruedinterestincome/expense.





37. Impairment and Loss Allowances on Financial Instruments (Net)


March 31, 2021

FortheYearEnded

March31,2020

Impairment and Loss Allowances on Financial Instruments

Measured at Amortised Cost (Net)

-Loans 7,572.83 4,280.00

-Investments 2,202.81 4,792.85

-TradeReceivables (455.87) 115.74

-OthersFinancialAssets 300.67 115.40

LossonsaleofNPAsaletoARC - 26,274.93

BadDebtsandLoansandBalancesWrittenOff 1,101.09 2,525.06

InvestmentWrittenOff - 467.62

RecoveryofFinancialAssetsWrittenOff (1,278.27) (1,147.91)

Total 9,443.26 37,423.69

37A Expense Toward Capital Commitment / Settlement


March 31, 2021

FortheYearEnded

March31,2020

ExpenseTowardCapitalCommitment/Settlement* - 894.85

Total - 894.85

*ReferfootnoteofNote23.38. Employee Benefit Expenses


March 31, 2021

FortheYearEnded

March31,2020

Salaries,AllowancesandBonus 52,307.10 45,999.18

ContributiontoProvidentandOtherFunds 2,911.80 2,930.37

ShareBasedPaymentstoEmployees 1,148.86 2,303.42

GratuityandCompensatedAbsencesExpenses 839.36 780.89

StaffWelfareExpenses 1,257.35 1,143.80

TrainingandRecruitmentExpenses 90.19 293.35

Total 58,554.66 53,451.01

39. Depreciation and Amortization


March 31, 2021

FortheYearEnded

March31,2020

Depreciation(ReferNote13) 4,365.40 4,690.05

Amortization(ReferNote15) 1,518.74 1,394.30

Total 5,884.14 6,084.35





40. Other Expenses


March 31, 2021

For the Year Ended

March31,2020Rent,RatesandTaxes 829.28 993.42RepairsandMaintenance 1,097.32 1,204.95CommunicationExpenses 1,856.13 1,094.64PrintingandStationery 502.96 724.66AdvertisementandBusinessPromotion 12,795.15 12,409.42Directors’Fees,AllowancesandOtherExpenses 126.40 160.70PaymenttoAuditors(ReferNote40.1) 162.35 177.38LegalandProfessionalExpenses 13,961.00 14,386.02Insurance 150.01 64.38SupportServicesFees 84.46 15.55LossonAccountofErrorTrades(Net) 7.78 3.97DigitizationExpenses 98.12 169.83PostageandCourier 84.42 816.22OfficeExpenses 859.48 1,486.83MembershipandSubscriptionExpenses 612.57 345.81Custodial and Stamp Charges 980.59 702.89Transaction Charges 372.28 270.38Travel and Conveyance 490.32 3,255.48ElectricityandWaterExpenses 484.54 634.15FilingandRegistrationFees 17.63 19.68BankCharges 807.19 604.96FinesandPenalties 2.34 7.73Storage and Warehouse Charges 103.05 117.70ProvisionAgainstNon-FinancialAssetsMade/(Reversed) 630.32 2,009.26PremiumDeficiencyReserve 11,142.21 2,445.62SoftwareExpenses 602.51 768.53GoodsandServicesTaxExpense 880.39 1,085.82RatingExpenses 47.86 54.66LossonSaleofAssetsAcquiredinSatisfactionofDebts(Net) 94.16 64.32AmortisationofExcessInterestSpread(“EIS”) (268.62) 531.15ClaimsandOtherBenefits 95,381.63 89,194.47CorporateSocialResponsibilityExpenses(ReferNote40.2) 98.27 39.62Lossonforeigncurrencytransaction(Net) 100.94 56.49ExpenseTowardsContingency(ReferNoteNo.45(a)(II)) 535.07 673.99Premium/(Amortisation)ofInvestment(Net) 399.12 -TrainingExpenses 727.01 1,103.93MiscellaneousExpenses 665.90 535.43 Total 147,522.14 138,230.04





40.1 Payment to Auditors


March 31, 2021

FortheYearEnded

March31,2020

AsAuditor:

AuditFees 134.77 122.19TaxAuditFees 9.05 9.46

InotherCapacity:

FeesForOtherServices 13.80 24.38ForReimbursementofExpenses 4.73 21.35Total 162.35 177.38

40.2 Corporate Social Responsibility (“CSR”) Expenses

(a) GrossamountrequiredtobespentbythegroupcompaniesduringthecurrentyearisRs98.19Lakh(March31,2020:Rs67.84Lakh).

(b) Amountspentduring FY 2020-21

Particulars In cash Yet to be

paid in cash

(i) Construction/acquisition of any asset - -

(ii) On purposes other than (i) above 98.27 -

FY2019-20

Particulars In cash Yettobe

paid in cash

(i)Construction/acquisitionofanyasset - -(ii)Onpurposesotherthan(i)above 39.62 -

(c) RelatedpartytransactionsduringtheyearinrelationtoCSRexpenditureisRsNil(March31,2020:Nil)(d) TheCompanyhasnotcreatedanyprovisiontowardsCSRexpenditureduringtheyear.Accordingly,themovement

inprovisionduringtheyearisRsNil.(e) During the year RCTL, a subsidairy of the Company was carrying a provision of Rs 18.73 Lakh as unspent

CSRprovisionofpreviousFinancialYears (2015-16and2017-18).On the recommendationofCorporateSocialResponsibilityCommittee,theBoardofRCTL,videresolutionbycirculationdatedJanuary14,2021,hasapprovedutilizationofentireunspentCSRprovisionofRs18.73LakhontheProject-AdoptingSchool.

41. Income Tax Expense

a) Income Tax Recognised in Profit and Loss


March 31, 2021

FortheYearEnded

March31,2020# Current Tax Expense

CurrentTaxonProfitsfortheYear 1,871.59 267.77TaxforEarlierYears(Net) (60.13) 32.14 1,811.46 299.91Current Tax Expense booked in Other Comprehensive

Income ( "OCI")

-Remeasurementofthedefinedbenefitplans 8.83 -# Deferred Tax Expense

MAT Credit Entitlement (Created) / Reversed 171.59 87.82





March 31, 2021

FortheYearEnded

March31,2020Origination and Reversal of Temporary Differences

(Incremental)/DecrementalDeferredTaxAssetsonAccountof:

ExpectedCreditLossesAllowance (49.95) (54.36)ProvisionforEmployeeBenefits (433.27) 68.51CarryForwardLosses 178.26 (174.17)

Property,PlantandEquipments 264.27 380.61

OtherProvisions(includingUnexpiredRiskReserve) (3,924.47) -

Others 115.42 94.22

Incremental/(Decremental)DeferredTaxLiabilityonAccountof:

OtherDisallowances/DeductionUnderIncomeTax (97.67) 83.45

(3,775.82) 486.08

Total Income Tax Expenses Recognised in Profit and Loss (1,964.36) 785.99

(ReferNote12)(Amount in Rs. Lakh, unless otherwise stated)

b) Deferred Tax Related to Items Recognised in OCI During the Year


March 31, 2021

FortheYearEnded

March31,2020

Deferred Tax Expense

RemeasurementonDefinedBenefitPlans - -

Deferred Tax Related to Items Recognised in OCI During the

Year - -

c) The income tax expenses for the year can be reconciled to the accounting profit as follows:


March 31, 2021

FortheYearEnded

March31,2020

ProfitBeforeTax(A) (49,746.11) (103,011.57)

Computed Tax Expense Based on Applicable Tax Rates to

Group Companies (B) 4,100.88 2,045.88

Tax Effect of :

ExpensesDisallowedforTaxPurpose 1,905.37 2,883.91

DeductionClaimed/ExpensesAllowedforTaxPurpose (567.09) (2,249.78)

LossesSetoff (3,606.85) (2,367.08)

AdjustmentofprofitaccordingtoIRDAregulations 39.28 (42.42)

Incometaxesrelatedtoprioryears (60.13) 32.14

Others(Net) - (2.74)

Current Tax Provision (C) 1,811.46 299.91

Deferred Tax Provision (Refer Note 41(a) above) (D) (3,775.82) 486.08

Tax Expenses recognised in Statement of Profit and Loss (C + D) (E)

(1,964.36) 785.99





42. Earnings Per Share (“EPS”)


March 31, 2021

FortheYearEnded

March31,2020

Profit/(Loss)attributabletoequityholders(RsinLakh) (50,846.13) (93,246.95)

Dilutedeffectofthesubsidarycompanies(RsinLakh) (93.78) (163.14)

DilutedProfit/(Loss)attributabletoequityholders(RsinLakh) (50,939.91) (93,410.09)

WeightedaveragenumberofEquitySharesusedforcalculatingBasicEPS(Nos) 258,733,196 235,764,730

Effectofdilutiveequivalentshareoptions(Nos) - -

TotalweightedaveragenumberofEquitySharesusedforcalculatingDilutedEPS(Nos) 258,733,196 235,764,730

BasicEarningsPerShare(Rs) (19.65) (39.55)

DilutedEarningsPerShare(Rs) (19.69) (39.62)

FaceValuePerEquityShare(Rs) 10.00 10.00

43. Maturity Analysis of Assets and Liabilities

Thetablebelowshowsananalysisofassetsandliabilitiesanalysedaccordingtowhentheyareexpectedtoberecoveredorsettled.

Particulars

As at March 31, 2021 AsatMarch31,2020 Within

12 months

After

12 months Total

Within

12monthsAfter

12months Total

ASSETS

Financial Assets

Cash and Cash Equivalents 25,064.66 - 25,064.66 37,240.19 - 37,240.19

BankBalanceOtherThanAbove 125,009.04 1,817.83 126,826.87 108,834.88 5.50 108,840.38

Receivables

-TradeReceivables 19,097.26 130.53 19,227.79 6,746.56 2,633.50 9,380.06

Loans 84,269.19 160,952.29 245,221.48 79,972.39 230,546.71 310,519.10

Investments 78,562.67 240,430.91 318,993.58 42,879.59 159,426.33 202,305.92

OtherFinancialAssets 7,284.73 7,556.63 14,841.36 15,577.42 6,396.27 21,973.69

Non-financial Assets

Inventories 49.94 - 49.94 46.54 - 46.54

CurrentTaxAssets(Net) 23,481.33 4,159.42 27,640.75 23,042.05 5,225.37 28,267.42

DeferredTaxAssets(Net) - 55,761.56 55,761.56 - 51,959.19 51,959.19

Property,PlantandEquipments - 6,989.58 6,989.58 - 12,522.75 12,522.75

Goodwill - 972.04 972.04 - 972.04 972.04

OtherIntangibleAssets - 3,722.28 3,722.28 - 4,002.08 4,002.08

IntangibleAssetsUnderDevelopment - 1,220.28 1,220.28 - 1,323.82 1,323.82

OtherNon-FinancialAssets 24,875.39 1,149.59 26,024.98 22,814.98 849.70 23,664.68

Total Assets 387,694.21 484,862.94 872,557.15 337,154.60 475,863.26 813,017.86




Particulars

As at March 31, 2021 AsatMarch31,2020 Within

12 months

After

12 months Total

Within

12monthsAfter

12months Total

LIABILITIES


Payables

-TradePayables

(i)totaloutstandingduesofmicroenterprises and small enterprises

99.70 - 99.70 2.07 - 2.07

(ii)totaloutstandingduesofcreditors other than micro

enterprises and small enterprises

32,021.42 296.00 32,317.42 27,945.67 745.15 28,690.82

-OtherPayables

(i)totaloutstandingduesofmicroenterprises and small enterprises

108.92 - 108.92 83.27 - 83.27

(ii)totaloutstandingduesofcreditors other than micro

enterprises and small enterprises

13,492.34 - 13,492.34 16,882.82 - 16,882.82

Borrowings(OtherthanDebtSecurities)

343,578.02 89,262.86 432,840.88 275,873.48 203,283.07 479,156.55

SubordinatedLiabilities 34,921.36 21,213.73 56,135.09 - 56,474.70 56,474.70

OtherFinancialLiabilities 164,216.59 3,423.51 167,640.10 93,330.22 19,429.53 112,759.75

Non-Financial Liabilities

CurrentTaxLiabilities(Net) 512.52 - 512.52 - - -

Provisions 742.38 602.76 1,345.14 1,764.38 534.93 2,299.31

DeferredTaxLiabilities(Net) - 26.55 26.55 - - -

OtherNon-FinancialLiabilities 138,255.83 0.50 138,256.33 97,238.45 0.50 97,238.95

Total Liabilities 727,949.08 114,825.91 842,774.99 513,120.36 280,467.88 793,588.24

Net (340,254.87) 370,037.03 29,782.16 (175,965.76) 195,395.38 19,429.62

Withregardtoloansandadvancestocustomers,theGroupusesthesamebasisofexpectedrepaymentbehaviourasusedforestimatingtheEIR.Issueddebtreflectthecontractualcouponamortisations.

Wherethereisbreachofamaterialprovisionofalongtermloanarrangementonorbeforetheendofthereportingperiodwiththeeffectthatliabilitybecomespayableondemandonthereportingdate,theGroupdoesnotclassifytheliabilityascurrent,ifthelenderagreed,afterthereportingperiodandbeforetheapprovaloftheFinancialStatementsforissue,nottodemandpaymentasaconsequenceofbreach.




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sid

iari

es

-92.34%

(9,328.03)

-11.31%

10,550.61

-16.22%

(193.17)

-11.25%

10,357.44

Jo

int

Ven

ture

s (

Investm

en

t as p

er

eq

uit

y

meth

od

) -

Ind

ian

--

-

IBOFInvestmentM

anagem

entP

rivate

Limited

0.22%

22.38

0.01%

(13.14)

0.00%

-0.01%

(13.14)

Net

Go

od

will o

n C

on

so

lid

ati

on

(A

ll o

n

sta

nd

alo

ne c

om

pan

ies r

ep

ort

ed

ab

ove)

9.62%

972.04

0.00%

-0.00%

-0.00%

-

Inte

rco

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an

y e

lim

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on

an

d o

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co

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ate

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dju

stm

en

ts-2242.76%

(226,554.17)

-12.80%

11,940.13

-0.69%

(8.23)

-12.96%

11,931.90

To

tal

100.0

0%

10,1

01.5

9

100.0

0%

(93,2

46.9

5)

100.0

0%

1,1

90.5

8

100.0

0%

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56.3

7)





44A Changes in liabilities arising from financing activities ThechangesintheCompany’sliabilitiesarisingfromfinancingactivitiescanbeclassifiedasfollows:

Particulars As at

March 31, 2021

As at

March31,2020As at

March31,20191) Borrowings(OtherthanDebtSecurities) 432,840.88 479,156.55 615,212.442) SubordinatedLiabilities 56,135.09 56,474.70 56,442.573) LeaseLiability 5,052.76 9,557.04 50.944) InterestPayables 80,473.73 33,490.14 1,496.27

Total 574,502.46 578,678.43 673,202.22

Particulars Borrowings

(Other than Debt

Securities)

Subordinated

Liabilities

Lease

Liability

Interest

payable

thereon

Total

As at March 31, 2019 615,212.44 56,442.57 50.94 1,496.27 673,202.22

CashFlows

Proceed/(Repayment)(Net) (131,088.23) 32.13 (3,901.70) - (134,957.80)InterestPaid - - - (51,104.44) (51,104.44)

Non-CashFlows

AdditionalLeaseLiability - - 12,352.98 - 12,352.98Interest Accrued 359.82 - 1,054.82 83,098.31 84,512.95BankOverdraftsReportedasCashandCashEquivalentsinCashFlowStatement

(5,327.48) - - - (5,327.48)

As at March 31, 2020 479,156.55 56,474.70 9,557.04 33,490.14 578,678.43

CashFlows

Proceed/(Repayment)(Net) (46,715.06) (339.61) (3,493.93) - (50,548.60)InterestPaid - - - (23,804.63) (23,804.63)

Non-CashFlows

AdditionalLeaseLiability - - (1,841.58) - (1,841.58)GainofRentConcession - - (102.10) - (102.10)LossonTermination/ModificationofLeases - - 106.53 - 106.53Interest Accrued 399.39 - 826.80 70,788.22 72,014.41

As at March 31, 2021 432,840.88 56,135.09 5,052.76 80,473.73 574,502.46

45. Contingent Liabilities and Commitments

(a) Contingent Liabilities

ParticularsAs at

March 31, 2021As at

March31,2020(a)ClaimsagainsttheGroupnotacknowledgedasdebts 892.47 1,311.81(b)GuaranteesA

-BankGuaranteesgivenbythebankersonbehalfoftheCompany/subsidiaries/jointventures

18,049.05 16,507.55

-OtherBankGuarantees 93.95 93.95(c)Othermoneyforwhichthecompanyiscontingentlyliable-DisputedIncomeTaxDemandsnotprovidedforB(ReferFootnoteXI) 61,309.51 35,234.64-DisputedValueAddedTax("VAT")andServiceTaxdemandnotprovidedforCD 1,498.29 1,412.70-DisputedProvidentFund("PF")demandnotprovidedforE 180.18 647.01-Underwritingcommitments/obligationsforshares/debentures/LetterofComfortF 10,184.48 11,246.92Total 92,207.93 66,454.58




Futurecashoutflowsinrespectofpoints(a)and(c)inabovetablearedeterminableonlyonreceiptofjudgments/decisionspendingwithvariousforums/authorities.TheGroupisoftheopinionthatabovedemandsorclaimsarenotsustainableandexpectstosucceedinitsappeals.ThemanagementbelievesthattheultimateoutcomeoftheseproceedingswillnothaveamaterialadverseeffectontheGroup’sfinancialpositionandresultsofoperations.

A(i)Certainguaranteeshavebeendisclosedatnetoutstandingvalueinsteadoffacevalue.

(ii)ItincludesfinancialandotherguaranteesissuedbythebanksforandonbehalfoftheReligareBrokingLimited(“RBL”),awhollyownedsubsidiaryoftheCompanytostockexchanges,clearingcorporationsandothers.Theseareissuedagainst50%to100%cashcollateralintheformofFixedDeposits.

(iii)TheCompanyhasgivencorporateguaranteetobankersonbehalfofasubsidiarycompanyReligareBrokingLimitedamountingtoRs19,000Lakh(March31,2021:Rs12,500Lakh)againstthefundbasedandnonfundbasedfacilities.AsonMarch31, 2021, theoutstanding fundbasedandnon fundbased facilities availedbyaforesaidsubsidiariesagainsttheCompany’sbankguaranteeamountstoRs10,000Lakh(March31,2020:Rs4,291Lakh).

B(i)InclusiveofRs141.04Lakh(March31,2020:Rs44.75Lakh)hasbeenadjustedwithtaxrefundsdueandademandofRsNil(March31,2020:Rs58.73Lakh)hasbeenpaidunderprotestinReligareHousingDevelopmentFinanceCorporationLimited,asubsidiaryoftheCompany.

(ii)OutofthisReligareFinvestLimited(“RFL”),asubsidiaryoftheCompany:(a)Rs17,186.12Lakh(March31,2020:Rs6,149.39Lakh)hasbeenadjustedwith tax refundsdue toRFL;and(b)AdemandofRs700.00Lakh(March31,2020:Rs700.00Lakh)hasbeenpaidinprotest.

(iii)AmountpaidunderprotestRs0.74Lakh(March31,2020:Rs0.74Lakh)byReligareCommoditiesLimited,awhollyownedsub-subsidiaryoftheCompany.

(iv)Includesdemandswhicharependingforadjudicationwithvariousincometaxauthoritiesi.e.ITAT,CIT(Appeal),CommissionerofIncomeTax,etc.

CExcludespenaltyofRs102.32Lakh(March31,2020:Rs102.32Lakh) leviedbytheCommissionerofCentralExciseinReligareBrokingLimited.ThesaidpenaltyiscontingentuponbasetaxdemandadjudicatedbytheTaxAuthority.CurrentlythematterispendingwithCESAT.

D(i)InRFLoutofthis,Rs33.41Lakh(March31,2020:Rs33.41Lakh)hasbeenpaidunderprotest.

(ii)ItisnetofbankguaranteesofRs13.85Lakh(March31,2020:Rs13.85Lakh)givenbyRFL.

EAmountpaidunderprotestRs21.46Lakh(March31,2020:Rs21.46Lakh)byReligareBrokingLimited(“RBL”),awhollyownedsubsidiaryoftheCompany.

FUnderwritingcommitments/obligationsforshares/debentures/LetterofComfortincludesfollowings:

(i) (a) DuringtheyearendedMarch31,2018,BartleetTranscapitalLimited(BTL),SrilankahasexercisetheirputoptionrighttorequireReligareCapitalMarketsInternational(Mauritius)Limited’s(RCMIML)(subsidiaryofReligareCapitalMarketsLimited(RCML),RCMLandtheCompanytoacquireshareholdingofBTLinBartleetReligareSecuritiesPrivateLimited,Srilanka(BRS)foraconsiderationofUSD10,497,422.98aspertheshareholders’agreementdatedSeptember15,2010betweenBartleetCompanyPvtLtd,BTL,BRSandtheCompany.TheCompany,videAssignmentAgreementdatedSeptember30,2010,assignedtherightsandobligationstoRCMLwhichfurtherassignedthesameto itssubsidiaryRCMIML,underAssignmentAgreementdatedSeptember30,2010andthusRCMIMLacquired50%stakeinBRS.

(b) Subsequently,RCMIMLandBTLenteredintoaSale&PurchaseAgreement(SSPA)datedDecember21,2017forsaleofitsentireshareholdinginBRStoBTLforUSD250,000alongwithaconditiontowithdrawthesaidputoptionnoticebyBTL,whichwerepartofthetermsandconditionsoftheSSPA.

(c) ThesaleofsharesasperSSPAcouldnotbecompletedasattheyear-enddateduetopendinglegalmattersagainstRCMIML.DuringtheFY2020-21BTLhassentaletterdatedMay26,2020,addressedtotheCompany,RCMLandRCMIML,allegingbreachofseveralrepresentations,covenantsandwarrantiesofthesaidSSPAresultingintobreachoftheSSPA.Ithasbeenallegedthatduetonon-completionofthetransaction inareasonabletimeof theexecutionofSSPAandbreachofSSPA,thesaidSSPAisconsideredasterminatedbyBTLandthereforeRELshouldcomplywithitsobligationsinrespectofthePutOptionNoticedatedJune23,2017,withimmediateeffect.




(d) RCMIMLandtheCompanyhavedeniedanybreachofShareholders’Agreementdated15September2010(SHA)orShareSaleandPurchaseAgreementdated21December2017(SSPA)andanyliabilitytowardsPutOptionNoticedatedJune23,2017.Thepartiesarediscussingthematterforanamicableresolution.

(e) TheestimatedvalueofexercisedputoptionasatMarch31,2021amountstoRs7,684.48Lakh(March31,2020:Rs7,913.59Lakh).

(ii) LetterofComfort issued tobanker,byasubsidiaryof theCompany, for loan takenby itssubsidiarycompany.OutstandingloanasonMarch31,2021Rs2,500Lakh(March31,2020:Rs3,333.33Lakh).

Notes:

(I) TheAuditCommitteeandtheBoardofDirectorsonDecember8,2016andDecember10,2016respectively,approvedthepaymentofBrandLicenseFeestoRHCHoldingPrivateLimited(“RHC”)forperiodof6yearseffectiveApril01,2016forusageofthe“Religare”trademark/brand.

During theyearendedMarch31,2018,RHCassigned the trademark “Religare”and its logo toElive InfotechPrivateLimited(“assignee”/“Elive”)andtherighttosell,assign,transferorencumberallorportionofitsrightsandobligationsforthetrademarkorotherrightsinsaidtrademarks.Further,ElivehaswaivedtherighttoreceivethebrandlicensefeefromRELanditssubsidiaries/affiliatestillthetimeinterestonloansavailedbythegroupcompaniesofEliveandRHCfromReligareFinvestLimitedisserviced.

InthesuittitledSCCPL&Anothervs.LVB&Othershavingno.CS(COMM)633/2018pendingbeforetheHon’bleDelhiHighCourt,SCCPLhadclaimedownershipof“Religare”brandbywayofanAssignmentDeedallegedlyexecutedinitsfavourbyRHCandElive.TheHon’bleDelhiHighCourtvideitsorderdateFebruary22,2018passedanordertomaintainstatusquoregardingthe“Religare”trademark.RHCandElivehavefiledanapplicationunderSection340CodeofCriminalProcedure(“CrPC”)againstSCCPLforwillfullyknowinganddeliberatelymakingfalsestatement,filingforgeddocuments.LoancoreServicingSolutionsLimitedhasfiledsubstitutiononbehalfofSCCPLbywayofassignmentdeed.SCCPLhasfiledapplicationsforamendmentofsuitandapplicationu/o391&2seekingstatusquoquatheinvestigationagency.Thematterislistedforargumentsonapplicationspendingdisposal.Thematterissub-juidice.

(II) TheCompany has not redeemed15 Lakh preference shares amounting toRs 4,190.28 Lakh due for redemption onOctober31,2018anddisputedtheliabilitystatingthetransactiontobeanillegaloneandfiledapolicecomplaintwithEOW.However,theCompanyhascreatedanadhocprovisionofRs1,209.07Lakh(Rs673.99LakhinFY2019-20andRs535.07Lakh inFY2020-21) towards thepotential interest liability fromtheredemptiondate tillMarch31,2021. InthematterofDaiichiSankyoCompanyLimitedvs.MalvinderMohanSingh&Others, theCompanyhasbeenmadeagarnisheewithregardstothesepreferenceshares.TheCompanyhasfiledaninterimapplicationdisputingitsliabilityasagarnishee.ThepreferencesharesstandtransferredintheaccountoftheCourtreceiver.TheDecreeHolderi.e.DaiichihasfiledanapplicationbysuppressingthefactthattheentireshareholdingofRHCHoldingsPrivateLimitedinM/sEliveInfotechPvt.Ltd.hadbeenpledgedinfavourofReligareFinvestLimited(RFL)asasecurityforvariousloanstogroupcompaniesofRHCHoldingsPrivateLimitedandobtainedastatusquoorderonthebrand“Religare”.RFLhasfiledanobjectionapplicationinthesaidproceedings.Thecaseissub-judice.

TheCompanyhasalsofiledapetitioninHon’bleNCLT,DelhiunderSection55&59oftheCompaniesAct,2013seekingrectificationofRegisterofMembersoftheCompanyw.r.t.250LakhpreferencesharesamountingtoRs4,030.06LakhasonMarch31,2021,issuedbytheCompanytoRHCFinancePrivateLimitedinAugust2016allegingthetransactiontobeafraudulentoneandsoughtcancellationofpreferencesharesalongwithstayonvotingrightsintheinterim.Thematterissub-judice.

(III) FortisHospitalsLimitedhasfiledasuitforrecoveryagainstRFL&othersbasistheSEBIOrderdatedOctober17,2018andconfirmatoryOrderMarch19,2019.FortisHospitalsLimited(“Plaintiff”)duringthelasthearingbeforetheCourtstatedthatitwouldnotpresstheinterimapplicationforthemomentandprayedforissuanceofnoticetoallthedefendants.TheHon’bleCourtafterhearingsubmissionsoftherespectivecounselsissuednoticetotheDefendantsincludingRFL.

SATvideorderdatedJanuary29,2020passedanorderquashingtheorderdatedOctober17,2018andMarch19,2019.TowhichRFLhasfiledapplicationforplacingonrecordadditionaldocuments.RFLhasalsofileditswrittenstatementandadmissiondenialaffidavit.RFLhasfurtherfiledapplicationunderOrder7Rule11ofCPCforrejectionofplaint,applicationseekingdismissalofsuitbeinginfructuousandreplytotheamendmentapplicationfiledbyPlaintiff.RFLhasalsofiledapplicationforplacingonrecord,theadditionaldocumentswhichtheHon;bleCourtpleasedtoallowonvideorderdatedMarch3,2021.




Futher,withregardstoRFL’sapplicationfordismissalofsuitandrejoinder,ifany.ThematterisnowlistedonJuly28,2021.

(IV) (a) TheCompanyhasgivenaLetterofComfort(“LoC”)datedMay15,2020toReligareComtradeLimited(“RCTL”),awhollyownedsubsidiaryoftheCompanysupersedingtheearlierLoCissuedintheFY2017-18toprovidefinancialsupport toRCTL for repaymentofall itsoutstandingdues including interest component thereon relating to InterCorporateLoansandNonConvertibleDebenturesissuedbyRCTL.FinancialliabilityofRCTLisRs10,968.90LakhasonMarch31,2021(March21,2020:Rs10,438.67Lakh).

(b) TheCompany has given LoC to theReligareAdvisors Limited (before known asReligareWealthManagementLimited)(“RAL”),awhollyownedsubsidiaryoftheCompany,toprovidefinancialsupportofRs250Lakhtomeetitsbusinessrequirement,whichwillbepaidbyRELasandwhenbusinessdemandscashfundsandsupportforrevivalofbusiness.

(V) Hon’bleSupremeCourthaspronouncedajudgmentinFebruary,2019issuingclarificationwithrespecttothedefinitionof “BasicWages’ for thepurposeofEmployeesProvidentFund contribution.Further petitionshavebeen filedby theConsortiumofOraganisationswith theHon’bleSupremeCourt seeking additional clarificationswhich are awaited. Inlightoftheabove,theGrouphasnotmadeanyprovisionofthesameinthefinancialstatements.However,appropriateaccountingtreatmentwillbegiveninitsensuingfinancialstatementsasandwhenclarificationisreceived.

(VI) StrategicCreditCapitalPrivateLimited(“SCCPL”)andParticipationFinance&Holdings(India)PrivateLimited(“PFH”)havefiledacommercialcivilsuitbeforeHon’bleDelhiHighCourtagainstLakshmiVilasBank(“LVB”),whereintheyhavearrayedtheRFLandotherentitiesasparty.

SCCPLandPFHareseekingvariousreliefsinthepetitionagainstLVBandamongstotherrelief,adirectionagainsttheRFL’sfixeddepositsplacedwithLVB. An interimorderdatedFebruary22,2018waspassed tomaintainstatusquoregarding the trademarkasdescribed in theScheduleof theDeedofAssignment.TheRFLhasalsofiledapplicationfor rejectionofplaintunderorder-VIIRule-11andapplicationundersection340CodeofCriminalProcedure (“CrPC”)againstSCCPLforfilingfabricatedindemnificationcumreleaseagreement.Thecasewaslistedfordisposalof interimapplications.Further,LoancorehasfiledsubstitutiononbehalfofSCCPLbywayofassignmentdeed.AnapplicationfiledbyLoancoreServicingSolutionsPrivateLimitedforsubstitutioninplaceofplaintiffscameupforhearingonMay14,2019butwerepostedalongwiththemainsuitalreadypostedforJuly16,2019.

Thereafter,SCCPLalsomovedanapplicationu/o39R-1/2ofCrPCseekinginjunctionagainstRFLandtheCompany,restrainingthemfromsellingRFLandRHDFCbusinesses.Thesaidapplicationhasbeendisposed-offintermsoforderdatedFebruary22,2018(issuedonAugust9,2019).LoancorehasfiledsubstitutionapplicationonbehalfofSCCPLbywayofassignmentdeed.RFLhasfileditsreplytothesubstitutionapplication.Thematter isnowlistedfordisposalofinterimapplicationsonAugust9,2021.

SCCPLandassociatecompanies(“Plaintiffs”)havefileditbeforetheDistrictCourt,Saketseekingreliefinteraliainthenature of specific performance of part of theSettlementAgreement entered into betweenRFL (“Defendant”) and thePlaintiffsinJuly,2017.ThePlaintiffsareseekingdischargeoftheirobligationsundertheAgreement.

RFLhasfiledapplicationsforthefollowing:

a. Rejectionofplaint.

b. Extensionoftimeforfilingwrittenstatement.

c. Forexaminationofdocumentsandseekingresponsestoquestions.

ThePlaintiffshavefiledrepliestotheapplicationsfiledbytheRFL.TheCourthasgivenlibertytoRFLtofilerejoinder,ifany.

ThePlaintiffshaverecentlyfiledtwoapplications:

1. seekinginjunctiveordersquatheinvestigatingagency(EOW)(underorder39rule1&2);and

2. applicationforamendmentofplaint(underorder6rule17CPC.)towhichRFLhasalreadyfileditsreply.

NextdateofhearingisAugust24,2021forconcludingargumentsonapplicationforamendment.

FIRagainstSCCPL

RFLhadfiledacomplaint for theoffencesofcheating,misappropriation, forgery,criminalbreachof trust,andcriminal




conspiracy againstSCCPLand its associate entities and individuals.The said complaint aroseout of an assignmenttransactionwhereinRFLhadassigned12loanstoSCCPLin2015againstwhichSCCPLissuedaStandbyLetterofCredit(”SBLC”)whichturnedouttobeforged.Besidestheassignmenttransaction,aloanwasalsogivenbyRFLtoanassociatecompanyofSCCPLandremainsunpaid.In2017,MohnishMakkarwhocontrolledSCCPLandassociateentitiesenteredintosettlementagreementwithRFLacknowledgingtheirjointliabilityofRs793CrorestowardsRFLwhichagainwasneverrepaid.ThesaidcomplainthadbeenregisteredasanFIRbytheEOWonDecember12,2020.

RFLhaslearntthatEDhasalsolodgedanECIRagainsttheaccusedpersons/entitiesonthebasisofthesaidFIR.

InsolvencyProceedingsAgainstSCCPL(Nishu)BeforeNCLT,DelhiandPerpetualCapitalandServicingPrivateLimited(“PCSPL”)beforetheNCLT,Mumbai

RFL has filed petitions under the Insolvency and Bankruptcy Code against the aforesaid entities in their respectivejurisdictions.NishuFinleasePrivateLimited(“NFPL”)enteredintoaloanagreementwiththeSCCPLonJuly21,2015(“LoanAgreement”)whereby theSCCPL had availed a loan facility ofRs 40Crores fromNFPL.RFL entered into asaleagreementwithNFPL(“SaleAgreement”)wherebyRFLpurchasedtheoutstandingloan,alongwiththeunderlyingsecuritiesandreceivables,givenbyNFPLtoSCCPLundertheLoanAgreementforapurchaseconsiderationofRs45Croresassuch,RFLinvokeditsrightunderClause24.1oftheLoanAgreementandterminatedtheLoanAgreementbyissuingaTerminationcumRecallNoticedatedJune24,2016.Bywayofthesaidnotice,RFLalsorecalledtheoutstandingloanamountalongwithaccruedinterestandothercharges,aggregatingtoRs45Crores.However,SCCPLfailedtopayRFL,theoutstandingdebtdueandpayableundertheLoanAgreement.

Similarly,PCSPLhadavailedaloanofRs225CroresonJune8,2015foratenureofthreeyearsagainstpledgeofsharesandoptionallyfullyconvertibledebenturesandconsequentlyenteredintoaLoanAgreementdatedJune20,2015(“LoanAgreement”).OnDecember30,2015,RFLsanctionedanadditionalamountofRs35CroresvidesanctionletterdatedDecember30,2015.Assuch,thetermloanamountwasincreasedfromRs225CrorestouptoRs260Crores.Pursuantthereto,atotalamountofRs228.75CroreswasdisbursedtoPCSPL.PCSPLdefaultedinmakingpaymentthatwasdueandpayableundertheLoanAgreement.Onaccountofthefailure,RFLissuedaLoanRecallNoticedatedJune24,2016.

Thepartiesthenenteredintodiscussionstosettlethepaymentoftheoutstandingdues.Pursuanttothediscussions,RFL,SCCPL,PCSPL,MohnishMakkarandothersenteredintoaSettlementAgreementdatedJuly1,2017forpaymentoftheoutstandingdebtdueandpayabletotheRFL.AllthepartiesjointlyacknowledgeditsliabilitytopaythetotaloutstandingamountofRs793CrorestowardsRFLintheSettlementAgreement.However,nopaymentwasmadebyanyofthepartiestoRFL.

TheinsolvencypetitionfiledbyRFLagainstSCCPLbeforetheNCLT,NewDelhiislistedonJuly9,2021,whereastheinsolvencypetitionfiledagainstPCSPLispostedforhearingbeforetheNCLT,MumbaionJuly28,2021.

Also,undertheinsolvencyproceedingsagainstPCSPL,thecorporatedebtorhasfiledatransferpetitionseekingtransferofcompanypetitionfromMumbaiBenchtothePrincipalBenchofDelhi,againstwhichRFLhasfileditsreplywhichispostedforhearingonJuly15,2021.

(VII) ReserveBankofIndia(“RBI”)videitsletterdatedJanuary18,2018hasadvisedRFLtoadheretoCorrectiveActionPlan(“CAP”)givenbyit.ThesaidCAP,interalia,prohibitsRFLfromexpansionofcredit/investmentportfoliootherinvestmentinGovernmentsecuritiesandadvicesRFLnottopaydividend.Inthisregard,theRFListakingthenecessarycorrectivemeasuresasadvisedbyRBIandwillseekremovalofCAPintheduecourse.TheCapitaltoRiskWeightedAssetsRatio(“CRAR”)oftheRFLasonMarch31,2021isbelowtheprescribedlimit.AlsoreferNote22A.

(VIII)LoancoreServicingSolutionsPrivateLimitedhasfiledSection9(ofIBCcode,2016)petitionagainsttheCompanyonthebasisofPenaltyFeeAgreementofRs12,500Lakh(approx.).Thesaidnoticerefertotheagreementallegedlyexecuted/signedbyex-chairmanoftheCompanywithLoancoreServicingSolutionsPrivateLimited.However,theCompanyhasnosuchagreementinitsrecordsandneitherithasbeenfoundinanyoftheminutesofBoardmeetingsanctioningtheexecutionofsaidagreement.TheCompanyhassubmitteditscertificateofregistrationasNBFCandsuitablereply.ThematterisbeingpursuedfordisposaltheCompanyisexpectedpositiveoutcome.

(IX) TheSecuritiesandExchangeBoardofIndia(“SEBI”)issuedanexparteorderdatedOctober17,2018andinterimorderdatedMarch19,2019(“Order”).TheOrderwasbasedontheforensicauditconductedbyMSAProbeConsultingPrivateLimited(“MSA”).TheexparteorderheldthattheRFLisliabletopayanamountofRs20,000LakhtoFortisHealthcareLimited(“FHL”)&FortisHospitalsLimited(“FHsL”)withoutevenascertainingwhethertheRFLwasin-factliabletopaythesaidamount.Thesaidorderinter-aliacontinuedthedebilitatingrestraintsagainsttheRFLbydirectingtheRFLtonotdisposeoralienateanyofitsassetsordivertfundsexceptforrepaymentoffunds.




OnApril23,2019,anappealwasfiledbeforeSecuritiesAppellateTribunal(“SAT”)againsttheorderdatedOctober17,2018andorderdatedMarch19,2019.Further,theSATonAugust22,2018recordedthat“wefindthatprimafacie,thereappearstobeacontradictionintheimpugnedorderdatedOctober17,2018andsubsequentorderpassedbytheWholeTimeMember(“WTM”)inanothermatterdatedMarch14,2019.

Afterhearingboththepartiesi.e.SEBIandRFL,theSATpassedanorderdatedJanuary29,2020quashingandsettingasidetheSEBIorderquaRFL.TheSAThasremittedthemattertoWTMofSEBIforpassingfreshorder,iftheysodesireaftergivinganopportunityofhearingtotheCompany.

SAThasfurtherdirectedtheRFLtomaintainitsassetsworthRs20.000LakhforaperiodofthreemonthsfromtheSAT’sorder.IftheWTMisunabletopasstheorderwithinaforesaidperiod,thislimitedrestraintorderthatSAThaspassedwillcometoanend.However,duetoCovid-19outbreak,theHon’bleSupremeCourthastakensuo-motocognizanceandexcludedthelockdownperiodfromthelimitationtillfurtherorders.

SEBIhaspassedanorderdatedNovember12,2020,whereSEBIbyvirtueofSection19readwithsections11and11BofSEBIAct,1992hasrevokedthedirectionsissuedvidetheorderdateMarch19,2019readwithorderdatedJune28,2019againstBestHealthcarePrivateLimited,FernHealthcarePrivateLimitedandModlandWearsPrivateLimitedandhasalsodisposedoftheongoingproceedingsundersection11/11BoftheSEBIAct,1992againstthem.SEBIfurtherhasdirectedthattheAdjudicatingOfficerappointedinthematterpursuanttothisordershallcarryouttheadjudicationproceedingsinanindependentmannerwithoutgettinginfluencedbythisorderofrevocation.

SEBI has recently issued a notice datedApril 9, 2021with respect toFortisHealthcare Limitedmatter,whereinRFLhasbeencalledupontoshowcauseastowhyaninquiryshouldnotbeimposedundersections15HAand15HBoftheSEBIAct,1992,within14daysfromthedateofthereceiptofthesaidnotice.RFLvideitsletterdatedApril23,2021hasrequestedSEBItograntpermissionforinspectionofreliedupondocumentsandalsoforsixweeksadditionaltimetofilereplyfromthedateofinspection.LearnedcounselofforRFLhasbeenaskedtofileadditionalwrittensubmissionbyJune25,2021.

TheSupremeCourt vide its order datedMarch 14, 2021, has restored its earlier order datedMarch 23, 2021whichhadextendedlimitationperiodandhasfurtherdirectedthattheperiodoflimitationprovidedunderanylaw,shallstandextendedtillfurtherorder.

(X) SEBIpassedanad-interimex-parteorderdatedMarch14,2019 (“Order”) in relationof theCompanywhich interaliaincludesinitiationofstepstorecalltheamountofRs231,509LakhgivendirectlyorindirectlyfromReligareFinvestLimited(“RFL”),asubsidiaryoftheCompany.Thenoticeeentities(exceptretheCompanyandRFL)havealsobeendirectednottodisposeoforalienateanyoftheassetsordivertanyfundsexceptformeetingbusinessoperationswithoutthepriorpermissionofSEBI.Further,SEBIhasalsodirectedtheerstwhilepromotersoftheCompany(Mr.ShivinderMohanSinghandMr.MalvinderMohanSingh)tonottoassociatethemselveswiththeaffairsoftheCompanyandRFL,inanymannerwhatsoever,tillfurtherdirections.

SEBIonSeptember11,2019passedaninterimorderinthematterwhereintheyhaverecordedthesubmissionsmadebyRFLforseekingreliefs.InthematterofLVB,SEBIhasrecordedthatprimafaciethefindingsofSEBIshallnotbeconstruedasaconclusivepronouncementofSEBIonthelegalityorotherwiseoftheadjustmentofFixedDepositsbyLVB.Further,SEBImentionedthatbothRFLandLVBmayindependentlypursueremediesavailableunderthelaw,inrespectofthedispute.

SEBIhaspassedanorderdatedNovember12,2020(“therecentorder”),whereSEBIbyvirtueofSection19readwithsections11and11BofSEBIAct,1992hasrevokedthedirectionsissuedinitsearlierorderdatedMarch14,2019readwithconfirmatoryorderdatedSeptember11,2019againsttheentitiesmentionedintherecentorder(“thesaidentities”)andhasalsodisposedofandsubstitutedtheongoingproceedingsundersection11/11BoftheSEBIAct,1992withtheadjudicationproceedingsagainstthesaidentities.SEBIhasfurtherdirectedthattheAdjudicatingOfficerappointedinthematterpursuanttotherecentordershallcarryouttheadjudicationproceedingsinanindependentmannerwithoutgettinginfluencedbythisorderofrevocation.

ThesaiddirectionshavebeenpassedwithoutprejudicetotherightsoftheCompanyandRFLtopursuetheremediesunderlawagainstthesaidentitiesinrespectoffundsdiversion.

Also,SEBIhasissuedtheshowcausenotice(“SCN”)datedNovember17,2020towhichRELandRFLhavejointlyfiledreplyandpartargumentshavealsobeenheardbytheWholeTimeDirectoronApril16,2021andthematterisnowlistedforfurtherhearning.NexthearingdateisyettobenotifiedbySEBI.

RELandRFLhavealsofiledajointapplicationforsettlement(withoutprejudice).Thematterhasbeenkeptforadjudicatingthesettlementapplication.




(XI) (a) In Religare Enterprises Limited (”REL”), assessment proceedings for the Assessment Year 2016-17 wasreferred for the special audit under section 142(2A) of the IncomeTaxAct, 1961 (“Act”) vide directions issuedby the Income Tax Department dated August 6, 2019. The Special Auditors had submitted audit reporton November 18, 2019 wherein they have proposed an aggregate addition of Rs 384.57 Crore (approx.)on various grounds and proposed disallowance of capital loss amounting to Rs 894.26 Crore (approx.). Thereafter, the incometaxdepartmenthas,vide itsdraftassessmentorderu/s144Cof theActdatedMarch19,2020,confirmedalltheadditionsofRs1,249.42Crores(approx.)(includingdisallowanceofcapitallossamountingtoRs894.26Crore)asproposedbythespecialauditors.AggrievedbydisallowancesmadebytheAO,theCompanyhasfiledobjectionsbeforetheDisputeResolutionPanel(“DRP”),NewDelhionJune26,2020.PostrepresentationofthegroundsbeforetheDRP,thebenchhaspassedtheorderonFebruary8,2021whereintheDRPhasnotgivenanyreliefexceptonthetwogroundsentailtheamountaggregatingtoRs7.17Crore(approx.).

Successively,thetaxdepartmenthaswithoutgivinganyopportunityofbeingheard,haspassedafinalassessmentorderonMarch31,2021,whereinithasconfirmedallthedisallowancesproposedinthedraftassessmentorder.Thesaiddisallowancealso includestheadditions/disallowancesonwhichreliefwasaccordedbytheDRPandfurtherconfirmedbytheTPOinrelationtotheTPaddition.ConsequentlyinthefinalassessmentordertheincometaxdepartmenthasmadeanaggregatedisallowanceamountingtoRs1,249.42Crore(includingthedisallowanceofcapitallossofRCMLpursuanttoreductionofsharecapitalaggregatingtoRs834Crore).Further,theincometaxdepartmenthasraisedademandaggregatingtoRs204.51Crore(includinginterestu/s234Band234CofRs76.42Crore)aftersettingoffadvancetaxandTDSforthesubjectyear.

Againsttheimpugnedorderpassedbytheincometaxdepartment,theCompanyhastakenfollowingactions

(i) with respect to themistakenapparent fromrecords in thefinalassessmentorder theCompanyhasfiledarectificationapplicationvide letterdatedApril12,2021.Postadjudicationof thesaidapplicationby the taxdepartment,thedemandshallreducefromRs204.51CrorestoRs200.54Crore.

(ii) TheCompanyhasfiledanappealbeforetheIncomeTaxAppellantTribunal(“ITAT”)againstthedisallowancesmadebytheincometaxdepartmentonApril19,2021,whichisyettobefixedforthehearing.

(iii) TheCompanyhadfiledstayapplicationbeforeITATforstayofdemandonApril19,2021.Thehearingforstayofdemandisyettobefixed.

(b) In REL, the assessment proceedings was initiated u/s 143(3) forAssessmentYear 2017-18 and thereafter theassessment was referred the Transfer Pricing Office (“TPO”) by the Assessing Officer. In the transfer pricingassessment,theTPOhasmadeadisallowanceofRs8.32Croreonaccountofcorporateguaranteeof150MUSDgivenbyRGAMInvestmentAdvisorsLimited(mergedwithRELw.e.f.April1,2016)toRGAMInc.(awhollyownedsubsidiary).

SubsequentlytheAssessingOfficerhaspassedadraftassessmentorderu/s144ConMarch31,2021proposingthedisallowancesaggregatingtoRs947.46CrorewhichincludesdisallowanceproposedbytheTPOamountingtoRs8.32CroreanddisallowanceofcapitallossofRs939.14Crore.

Againsttheaforesaidorderundersection144CoftheAct,theCompanyhasfileditsobjectionsbeforeHon’blebenchofDisputeResolutionPenal(“DRP”),NewDelhionApril29,2021.Sincethisisdraftassessmentorder,nodemandnoticeu/s156hasbeenissuedandnotaxliabilityispayablebytheCompany.


(b) Commitments

ParticularsAs at

March 31, 2021As at

March31,2020(a)Estimatedamountofcontractsremainingtobeexecutedandnotprovidedfor* 207.73 171.43(b)Othercommitments

-UndisbursedSanctionedLoans 2.30 39.67(c)UncalledLiabilityonShares^ 4,077.50 4,077.50Total 4,287.53 4,288.60

*NetofAdvances,ifany. ^UnpaidcapitalcallonequitysharesofReligareCapitalMarketsLimited




46. Financial Instruments (Amount in Rs. Lakh, unless otherwise stated)

(a) Financial Instruments by Category

Particulars

As at March 31, 2021 AsatMarch31,2020

FVTPL FVTOCI Amortised

Cost FVTPL FVTOCI Amortised

Cost

Financial Assets

Cash and Cash Equivalents - - 25,064.66 - - 37,240.19BankBalanceOtherThanAbove - - 126,826.87 - - 108,840.38Receivables

-TradeReceivables - - 19,227.79 - - 9,380.06Loans - - 245,221.48 - - 310,519.10Investments

-MutualFunds 17,738.23 - - 10,781.54 - --AlternativeInvestmentFunds(“AIF”)/VentureCapitalFunds

638.91 - - 723.00 - -

-GovernmentSecurities - - 116,143.17 - - 60,453.85-DebtSecurities - - 12,816.36 - - 15,186.33-EquityInstruments(FullyPaid-up) - 921.09 - - 989.16 --JointVentures-UsingEquityMethod - - 13.96 - - 22.37-OtherApproved(byIRDA)Securities - 168,928.85 - - 112,354.16 -- Others (‘RARC 059 (RHDFC HL)TRUST)

1,793.01 - - 1,795.15 - -

-Others - - - - - 0.36OtherFinancialAssets - - 14,841.36 - - 21,973.69Total Financial Assets 20,170.15 169,849.94 560,155.65 13,299.69 113,343.32 563,616.33Financial Liabilities

Payables

-TradePayables - - 32,417.12 - - 28,692.89-OtherPayables - - 13,601.26 - - 16,966.09Borrowings(OtherthanDebtSecurities)

- - 432,840.88 - - 479,156.55

SubordinatedLiabilities - - 56,135.09 - - 56,474.70OtherFinancialLiabilities - - 167,640.10 - - 112,759.75Total Financial Liabilities - - 702,634.45 - - 694,049.98

(b) Fair Valuation Measurement Hierarchy

Thetablebelowprovidesananalysisoffinancialinstrumentsthataremeasuredsubsequenttoinitialrecognitionatfairvalue.Thedifferentlevelshavebeendefinedasfollows:

Level1:Thislevelofhierarchyincludesfinancialassetsthataremeasuredbyreferencetoquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.Thiscategoryconsistsofquotedequityshares,quotedcorporatedebtinstrumentsandthemutualfundunitsvaluedusingtheclosingNetAssetValue(“NAV”).

Level2:This levelofhierarchy includesfinancialassetsand liabilities,measuredusing inputsother thanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.e;asprices)orindirectly(i.e;derivedfromprices).

Level3:This levelofhierarchy includesfinancialassetsand liabilitiesmeasuredusing inputs thatarenotbasedonobservablemarketdata(unobservableinputs).Fairvaluesaredeterminedinwholeorinpart,usingavaluationmodelbasedonassumptionsthatareneithersupportedbypricesfromobservablecurrentmarkettransactionsinthesameinstrumentnoraretheybasedonavailablemarketdata.

Thefollowingtablepresents fairvalueofhierarchyofassetsand liabilitiesmeasuredat fairvalueonarecurringbasis:





Financial assets and liabilities measured at fair value As at March 31, 2021

Level 1 Level 2 Level 3 Total

Financial Assets

InvestmentsatFVTPL

-MutualFunds 16,730.99 - - 16,730.99

-AlternativeInvestmentFunds(“AIF”)/VentureCapitalFunds

- - 1,646.16 1,646.16

-Others(‘RARC059(RHDFCHL)TRUST) - 1,793.01 - 1,793.01

InvestmentsatFVTOCI

-EquityInstruments(FullyPaid-up) 154.15 - 766.95 921.10

-OtherApproved(byIRDA)Securities - 168,928.83 - 168,928.83

Total Financial Assets 16,885.14 170,721.84 2,413.11 190,020.09

Financial Liabilities - - - -

Total Financial Liabilities - - - -

Therehasbeennotransfersbetweenlevel1,level2andlevel3fortheyearsendedMarch31,2021and2020.

Financial assets and liabilities measured at fair valueAsatMarch31,2020

Level1 Level2 Level3 Total

Financial Assets

InvestmentsatFVTPL

-MutualFunds 10,781.54 - - 10,781.54-AlternativeInvestmentFunds(“AIF”)/VentureCapitalFunds

- - 723.00 723.00

-Others(‘RARC059(RHDFCHL)TRUST) - 1,795.15 - 1,795.15InvestmentsatFVTOCI

-EquityInstruments(FullyPaid-up) 81.32 - 907.84 989.16-OtherApproved(byIRDA)Securities - 112,354.16 - 112,354.16Total Financial Assets 10,862.86 114,149.31 1,630.84 126,643.01Financial Liabilities - - - -Total Financial Liabilities - - - -

Therehasbeennotransfersbetweenlevel1,level2andlevel3fortheyearsendedMarch31,2020and2019.

(c) Movements in Level-3 Financial Instruments Measured at Fair Value

The following tableshows the reconciliationof theopeningandclosingamountsofLevel3financialassetsandliabilitiesmeasuredatfairvalue.TransfersfromLevel3toLevel2occurwhenthemarketforsomesecuritiesbecamemoreliquid,whicheliminatestheneedforthepreviouslyrequiredsignificantunobservablevaluationinputs.Sincethetransfer,theseinstrumentshavebeenvaluedusingvaluationmodelsincorporatingobservablemarket inputs.Transfers intoLevel3 reflectchanges inmarketconditionsasa resultofwhich instrumentsbecome less liquid.Therefore,theGrouprequiressignificantunobservableinputstocalculatetheirfairvalue.

Particulars

TotalAlternative

Investment Funds

Pass Through

CertificatesEquity

Instruments

March 31,

2021

March 31,

2020

March 31,

2021

March

31, 2020

March

31, 2021

March,

31 2020

March

31, 2021

March

31, 2020

Opening Balance 1,630.84 2,808.55 723.00 2,107.55 - - 907.84 701.00

Purchases 2,549.90 5,406.84 2,549.90 5,200.00 - - - 206.84Sales (1,694.21) (5,941.48) (1,553.32) (5,941.48) - - (140.89) -




Particulars

TotalAlternative

Investment Funds

Pass Through

CertificatesEquity

Instruments

March 31,

2021

March 31,

2020

March 31,

2021

March

31, 2020

March

31, 2021

March,

31 2020

March

31, 2021

March

31, 2020

LossofPrincipal (InvestmentWrittenOff)

- (495.47) - (495.47) - - - -

TransferintoLevel-3 - - - - - - - -TransferfromLevel-3 - - - - - - - -NetInterestIncome,NetTradingIncomeandOtherIncome

3.32 36.26 3.32 36.26 - - - -

OtherComprehensiveIncome - - - - - - - -Closing Balance 2,413.11 1,630.84 1,646.16 723.00 - - 766.95 907.84

Unrealised Gains and

(Losses) Related to Balances

Held at the End of the Year

(73.42) (147.60) (73.42) (147.60) - - - -

(d) Valuation Techniques

Debt Securities

TheGroupuses activemarket priceswhenavailable, or other observable inputs to estimate the correspondingfairvalue.Unitsheldinfundsaremeasuredbasedontheirpublishednetassetvalue(“NAV”),takingintoaccountredemptionand/orotherrestrictions.SuchinstrumentsaregenerallyLevel2.MunicipalbondsandbondsissuedbyfinancialinstitutionsaregenerallyLevel1andcorporatebondsaregenerallyLevel2.

Equity Instruments

EquityinstrumentsactivelytradedonpublicstockexchangeswithreadilyavailableactivepricesonaregularbasisareclassifiedasLevel1.Equity instruments innon-listedentities included investment inprivateequity fundsareinitiallyrecognisedattransactionpriceandre-measured(totheextentinformationisavailable)andvaluedonacase-by-caseandclassifiedasLevel3.

Non Current Assets and Liabilities Held for Sale

TheGroup’snon-currentassetsandliabilitiesheldforsalearemeasuredatfairvalueonnon-recurringbasis,withtheexceptionofthecertainfinancialinstrumentsthathavealreadybeenmeasuredatfairvalueonarecurringbasis.In itsnormalcourseofbusiness, theGroupdoesnotphysically repossesspropertiesorotherassets in its retailportfolio,butengagesexternalagentstorecoverfunds,generallyatauction,tosettleoutstandingdebt.Asaresultofthispractice,theresidentialpropertiesunderlegalrepossessionprocessarenotrecordedonthebalancesheetandtreatedasnon-currentassets/liabilitiesheldforsale.

(e) Thefollowingtableprovidesananalysisoffairvalueoffinancialinstrumentsthatarenotmeasuredatfairvalueonrecurringbasisbutmeasuredatamortisedcost.


Financial Assets and Liabilities Measured at

Amortised Cost

As at March 31, 2021

Carrying

Amount

Fair Value


Financial Assets

Cash and Cash Equivalents 25,064.66 - - 25,064.66 25,064.66

BankBalanceOtherThanAbove 126,826.87 - - 126,826.87 126,826.87

Receivables

-TradeReceivables 19,227.79 - - 19,227.79 19,227.79

Loans 245,221.48 - - 245,221.48 245,221.48

Investments 128,973.49 - - 128,973.49 128,973.49

OtherFinancialAssets 14,841.36 - - 14,841.36 14,841.36

Total 560,155.65 - - 560,155.65 560,155.65




Financial Assets and Liabilities Measured at

Amortised Cost


Carrying

Amount

Fair Value



Payables

-TradePayables 32,417.12 - - 32,417.12 32,417.12

-OtherPayables 13,601.26 - - 13,601.26 13,601.26

Borrowings(OtherthanDebtSecurities) 432,840.88 - - 432,840.88 432,840.88

SubordinatedLiabilities 56,135.09 - - 56,135.09 56,135.09

OtherFinancialLiabilities 167,640.10 - - 167,640.10 167,640.10

Total 702,634.45 - - 702,634.45 702,634.45

(Amount in Rs. lakhs, unless otherwise stated)

Financial assets and liabilities measured at

amortised cost

AsatMarch31,2020

Carrying

Amount

FairValue

Level1 Level2 Level3 Total

Financial Assets

Cash and Cash Equivalents 37,240.19 - - 37,240.19 37,240.19

BankBalanceOtherThanAbove 108,840.38 - - 108,840.38 108,840.38

Receivables

-TradeReceivables 9,380.06 - - 9,380.06 9,380.06

Loans 310,519.10 - - 310,519.10 310,519.10

Investments 75,662.91 - - 75,662.91 75,662.91

OtherFinancialAssets 21,973.69 - - 21,973.69 21,973.69

Total 563,616.33 - - 563,616.33 563,616.33

FinancialLiabilities

Payables

-TradePayables 28,692.89 - - 28,692.89 28,692.89

-OtherPayables 16,966.09 - - 16,966.09 16,966.09

Borrowings(OtherthanDebtSecurities) 479,156.55 - - 479,156.55 479,156.55

SubordinatedLiabilities 56,474.70 - - 56,474.70 56,474.70

OtherFinancialLiabilities 112,759.75 - - 112,759.75 112,759.75

Total 694,049.98 - - 694,049.98 694,049.98

(f) Valuation methodologies of financial instruments not measured at fair value

Beloware themethodologiesandassumptionsused todetermine fairvalues for theabovefinancial instrumentswhich are not recorded andmeasured at fair value in theGroup’s financial statements.These fair valueswerecalculatedfordisclosurepurposesonly.Thebelowmethodologiesandassumptionsrelateonlytotheinstrumentsintheabovetablesand,assuch,maydifferfromthetechniquesexplainedinPoint(c)above.




Short Term Financial Assets and Liabilities

Forfinancialassetsandfinancialliabilitiesthathaveashort-termmaturity(lessthantwelvemonths),thecarryingamounts,whicharenetofimpairment,areareasonableapproximationoftheirfairvalue.Suchinstrumentsinclude:cashandcashequivalents,tradereceivables,balancesotherthancashandcashequivalents,tradepayablesandotherliabilities.SuchamountshavebeenclassifiedasLevel3onthebasisthatnoadjustmentshavebeenmadetothebalancesinthebalancesheet.

(g) Duringthefinancialyear2018-19,theRHDFCLhasenteredintoatransactionwithRARC059(RHDFCHL)Trust(specialpurposevehicle)(“Trust”)whereinithassoldGrossNonPerformingAssets(“GNPA”)ofRs3,038.13LakhforavalueofRs2,278.60Lakh.ThetransactionhasbeencarriedoutincompliancewiththeapplicableReserveBankofIndia(“RBI”)normsforsecuritizationandtheTrusthasissuedSecurityReceipts(“SR”)intheratioof85:15i.e.ofRs1,936.81LakhtotheRHDFCLandRs341.79LakhtoRelianceARCLimited.ThetransactionisconcludedwithintheRBIpurviewandRHDFCLhasobtainedtruesaleopinionforconcludingthetransaction.

Accordingly, RHDFCL has derecognized the NPA loan receivables and has recognized security receipts asinvestmentsinthebooksofaccounts.RHDFCLshallrecognizeprofit/lossontheSRbasedontheevaluationbyindependentratingagencyasstipulatedunderRBIRegulations.

Under IndAS, theSR issuedby theTrustwould fulfill thecriteriaofafinancialassetandhasbeen recognizedaccordinglyinthebooks.ThevalueoftheaforesaidinvestmentsasonMarch31,2021isRs.1,793.01Lakh(March31,2020:Rs1,795.15Lakh).

47. Information about segments:

(i) TheGroup’soperatingsegmentsareestablishedonthebasisofthosecomponentsofthegroupthatareevaluatedregularlybytheExecutiveCommittee(the‘ChiefOperatingDecisionMaker’asdefinedinIndAS108-‘OperatingSegments’),indecidinghowtoallocateresourcesandinassessingperformance.Thesehavebeenidentifiedtakinginto account nature of products and services, the differing risks and returns and the internal business reportingsystems.

(ii) TheGroup’sprimarybusinesscomprisesof‘Brokinginsecuritiesandcommodities’,‘InterestonLoans’,FinancialAdvisoryServices’,‘E-Governance’andHealthInsurance.Thebusinesssegmentshavebeenidentifiedconsideringthenatureofservices,thedifferingrisksandreturns,theorganizationstructureandtheinternalfinancialreportingsystem.

(iii) AsperIndianAccountingStandard108-OperatingSegments,theCompanyhasreportedsegmentinformationonconsolidatedbasisincludingbusinessesconductedthroughitssubsidiaries.

(iv) Segmentrevenue,results,assetsand liabilitieshavebeenaccountedforonthebasisof their relationship to theoperatingactivitiesofthesegmentandamountsallocatedonareasonablebasis.

(v) Revenueandexpensesdirectlyattributabletosegmentsarereportedundereachreportablesegment.Expensesincurredonbehalfofothersegmentsandnotdirectlyidentifiabletoeachreportablesegmenthavebeenallocatedtoeachsegmentonthebasisofassociatedrevenuesofeachsegment.Allotherexpenseswhicharenotattributableorallocabletosegmentshavebeendisclosedasunallocableexpenses.

(vi) Assetsandliabilitiesthataredirectlyattributabletosegmentsaredisclosedundereachreportablesegment.Commonassets have been allocated to each segment on the basis of associated revenues of each segment. Commonliabilitieshavebeenallocatedtoeachsegmentonthebasisoftotalsegmentexpense.Allotherassetsandliabilitiesaredisclosedasunallocable.

If the segment result of a segment includes interest or dividend income, its segment assets include the relatedreceivables,loans,investments,orotherinterestordividendgeneratingassets.

If the segment result of a segment includes interest expense, its segment liabilities include the related interest-bearingliabilities.

(vii) Theaccountingpoliciesadoptedforsegmentreportingare inconformitywith theaccountingpoliciesadoptedbytheGroup companies.Revenue and expenses,which relate to theCompany as awhole and are not allocabletosegmentsonareasonablebasis,havebeen includedunder“Unallocatedexpenses/income”.SegmentAssetsandSegmentLiabilities representAssetsandLiabilities in respective segments. Investments, tax relatedassetsandotherassetsandliabilitiesthatcannotbeallocatedtoasegmentonreasonablebasishavebeendisclosedas“Unallocable”.

(viii) Inter-segmentrevenuehavebeenaccountedforbasedonthetransactionpriceagreedtobetweensegmentswhichisprimarilymarketbased.

(ix) Aspartofadditionalinformationreporting,revenuesareattributedtoGeographicareasbasedonthelocationofthesubsidiarycompanies.




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ear.

*Theam

ountofadditiontonon-currentassetsotherthanfinancialinstruments,deferredtaxassets,netdefinedbenefitassetsandrightarisingunder

insurancecontracts.





(b) Additional Information by Geographies for the year ended March 31, 2021 is as under:

AlthoughtheGroup’soperationsaremanagedbyproductarea,weprovideadditionalinformationbasedongeographies. Domestic OperationscompriseofactivitieshavingoperationsinIndia. Foreign OperationscompriseofactivitiesoutsideIndia.

Description For the Year Ended

March 31, 2021

FortheYearEnded

March31,2020

Revenue

Domesticoperations 253,046.76 239,747.85

ForeignOperations 0.18 -

Total 253,046.94 239,747.85

Carrying Amount of Segment Assets

Domesticoperations 872,498.12 812,953.82

ForeignOperations 59.03 64.04

Total 872,557.15 813,017.86

(c) Revenue from major customers

TheGroupisnotreliantonrevenuesfromtransactionswithanysingleexternalcustomeranddoesnotreceive10%ormoreofitsrevenuesfromtransactionswithanysingleexternalcustomer.

48. Details of individually immaterial joint ventures and associates


March 31, 2021

FortheYearEnded

March31,2020

Aggregatecarryingamountofitsinterestsinallindividuallyimmaterialjointventuresorassociates 13.96 22.37

AggregateamountofGroup’sshareof:

Profitor(loss)fromcontinuingoperations (8.41) (13.14)

Post-taxprofitorlossfromdiscontinuedoperations - -

Othercomprehensiveincome - -

Total comprehensive income (8.41) (13.14)


March 31, 2021

FortheYearEnded

March31,2020

Shareofprofit/(loss)fromjointventures (8.41) (13.14)

Shareofprofit/(loss)fromassociates - -

Total (8.41) (13.14)

49. Disclosure as per Ind AS 116 ‘Lease’ :

TheCompanyhasadoptedIndAS116effectiveApril1,2019,usingthemodifiedretrospectivemethod.TheCompanyhasappliedthestandardtoitsleaseswiththecumulativeimpactrecognisedonthedateofinitialapplication(April1,2019).Accordingly,previousperiodinformationhasnotbeenrestated.

Onadoption of IndAS-116, theCompany recognised lease liabilities in relation to leaseswhich hadpreviously beenclassifiedas‘operatingleases’undertheprinciplesofIndAS-17‘Leases’.Theseliabilitiesweremeasuredatthepresentvalueoftheremainingleasepayments,discountedusingthelessee’sincrementalborrowingrateasofApril1,2019.Theweightedaveragelessee’sincrementalborrowingrateappliedtotheleaseliabilitiesonApril1,2019wasrangingfrom8.80%to11%.




TheCompanyhasalsorecoganisedtheright-of-use(“ROU”)assetsequeltoanamountequaltotheleaseliability,adjustedbytheamountofanyprepaidoraccruedleasepaymentsrelatingtothatleaserecognisedinthebalancesheetimmediatelybeforethedateofinitialapplication.

Practical expedients applied

InapplyingIndAS-116forthefirsttime,theCompanyhasusedthefollowingpracticalexpedientspermittedbythestandard:

• theuseofasinglediscountratetoaportfolioofleaseswithreasonablysimilarcharacteristics;

• relianceonpreviousassessmentsonwhetherleasesareonerous;

• theaccountingforoperatingleaseswitharemainingleasetermoflessthan12monthsasatApril1,2019asshort-term leases;

• theexclusionofinitialdirectcostsforthemeasurementoftheright-of-useassetatthedateofinitialapplication;and

• theuseofhindsightindeterminingtheleasetermwherethecontractcontainsoptionstoextendorterminatethelease.

TheCompanyhasalsoelectednottoreassesswhetheracontractis,orcontains,aleaseatthedateofinitialapplication.Instead,forcontractsenteredintobeforethetransitiondate,thecompanyreliedonitsassessmentmadeapplyingIndAS-17fordeterminingwhetheranarrangementcontainsalease.

Initial application impact (on April 1. 2019)

Leases previously classified as operating leases

Inthestatementofprofitandlossforthecurrentyear,operatingleaseexpenseswhichwererecognisedasotherexpensesinpreviousperiodsisnowrecognisedasdepreciationexpensefortheright-of-useassetandfinancecostforinterestaccruedonleaseliability.Theadoptionofthisstandarddidnothaveanysignificantimpactontheprofitfortheyearandearningspershare.

TheadoptionofIndAS116affectedthefollowingitemsinthebalancesheetonApril1,2019,initialapplicationday:

Particulars Amount Rs in Lakh

•Right-of-useassetsincreased/(decreased)by 10,139.02

•Deferredtaxassetsincreased/(decreased)by -

•Prepaidexpensesincreased/(decreased)by (513.25)

•Accrualsforleaseincentivesincreased/(decreased)by -

•Leaseliabilities(increased)/decreasedby (9,628.93)

•LeaseEqualizationReserve(increased)/decreasedby 3.18

ReconciliationoftheoperatingleasecommitmentsdisclosedapplyingIndAS17asatMarch31,2019andleaseliabilitiesrecognisedinthebalancesheetatthedateofinitialapplication:

Particulars Amount Rs in Lakh

OperatingleasecommitmentsdisclosedasatMarch31,2019 5,455.52

Add:adjustmentsasaresultofadifferenttreatmentofextensionandterminationoptions 6,876.01

Less:Non-leasecomponents -

Less:Futureleasepaymentsonshort-termleases -

Less:Futureleasepaymentsonlow-valueleases -

Less:Discountusingthelessee’sincrementalborrowingrate 2,702.60

Lease liability recognised as at April 1, 2019 9,628.93




Leases previously classified as finance leases

• ThenetcarryingvalueofassetsprocuredunderthefinanceleaseofRs36.43Lakh(grosscarryingandaccumulateddepreciationvalueofRs143.11LakhandRs106.68Lakhrespectively)havebeenreclassifiedfromproperty,plantandequipmenttoright-of-useassets.

• TheobligationsunderfinanceleasesofRs50.94Lakh(non-currentandcurrentobligationunderfinanceleasesRs32.19LakhandRs18.75Lakhrespectively)havebeenreclassifiedtoleaseliabilities.

A single note disclosure for information about its leases:

AccountingPolicy:ReferNotes3(j).

Right-of-UseAssets:ReferNotes3(b)and13.

LeaseLiability:(Amount in Rs. Lakh, unless otherwise stated)

ParticularsAs At

March 31, 2021

As At

March31,2020

Current 2,743.22 3,353.69

Non-Current 2,309.54 6,203.35

Total 5,052.76 9,557.04

Amountsrecognisedinthe‘ProfitandLossStatement’:

ParticularsFor the Year Ended

March 31, 2021

FortheYearEndedMarch31,2020

Depreciationchargeofright-of-useassets(ReferNote13) 3,199.65 3,388.27

Add:InterestExpense(includedinFinanceCost) 826.80 1,054.82

Add: Expense relating to short-term leases and relating to lowvalueassetsthatarenotshownasshort-termleases(Reportedunder'OtherExpenses')

576.23 599.43

Less:GainonRentConcession(Covid-19relatedrentconcessions)^(Reportedunder'OtherRevenueFromOperations')

102.10 -

Total 4,500.58 5,042.52

^Covid-19RelatedRentConcessions

TheGrouphasappliedthepracticalexpedient,asprovidedintheIndAS116,Leases,toallCovid-19relatedrentconcessionsgetsonleasedbuildings/officepremisesthatmeettheconditionsinparagraph46BoftheIndAS116.

Asapracticalexpedient,alesseemayelectnottoassesswhetheraCovid-19relatedrentconcessionfromalessorisaleasemodification.AlesseethatmakesthiselectionaccountsforanychangeinleasepaymentsresultingfromtheCovid-19relatedrentconcessionthesamewayitwouldaccountforthechangeunderIndAS116,ifthechangewerenotaleasemodification.

ThegainonapplyingthepracticalexpedientofRs102.10Lakhhasbeenrecognizedas‘GainonRentConcession’under‘OtherRevenueFromOperations’intheProfitandLossStatement.





TotalCashoutflowduringtheyear:


March 31, 2021


•Paymentsfortheprincipalportionoftheleaseliability(FinancingActivities)

(2,667.13) (2,846.88)

•Paymentsfortheinterestportionoftheleaseliability(FinancingActivities)

(826.80) (1,054.82)

•Short-termleasepayments,paymentsforleasesoflow-valueassetsandvariableleasepaymentsnotincludedinthemeasurementoftheleaseliability(OperatingActivities)

(576.23) (566.01)

TheCompanyhascommitmentsundernon-cancellableleaseswhichfalldueasfollows:


March 31, 2021


Maturity Analysis – contractual undiscounted cash flows

Within1Year 2,619.76 3,698.15

1Yearto2Years 1,307.91 2,973.34

2Yearsto3Years 846.41 1,823.86

3Yearsto4Years 460.77 1,518.38

4Yearsto5Years 343.24 544.76

After5Years 371.77 809.59

Total undiscounted lease liabilities 5,949.86 11,368.08

Impactofdiscounting (897.10) (1,811.04)

Lease Liabilities included in the balance sheet 5,052.76 9,557.04

50. Share Based Payment

(A) Religare Enterprises Limited (“REL”)

TheBoardofDirectorsatitsmeetingheldonFebruary12,2019,approvedtheReligareEnterprisesLimitedEmployeeStockOptionPlan2019(“RELESOP2019/Scheme”)toissueandallotstockoptionsuptoamaximumof10%of expanded share capital of theCompany (after taking intoaccount anyother equityShares including throughconvertible instruments) for thepermanentemployeesanddirectorswhetherawhole-timedirectorornot (otherthanPromotersoftheCompany,IndependentDirectorsandDirectorsholdingdirectlyorindirectlymorethan10%oftheoutstandingEquitySharesoftheCompany)oftheCompanyanditspresentandfutureholdingcompanyandsubsidiary company(ies) in terms ofSecurities andExchangeBoard of India (ShareBasedEmployeeBenefits)Regulations,2014.Theshareholdersof theCompanyapprovedtheSchemevidetheirspecialresolutionpassedthroughpostalballotonMarch29,2019.

TheNominationandRemunerationCommitteeoftheCompanyhasapprovedthefollowinggrantstoselectseniorlevelexecutivesoftheCompanyinaccordancewiththeStockOptionScheme.





(i) Details of grants approved for employees of the Company, its subsidiary & parent in accordance with the

Stock Option Scheme:

To the employees of the Company

Grant dateExercise

price

Options

granted

Options

vested and

exercisable

Options

unvested

Options

exercised

Options

cancelled

Options

outstanding

01-Apr-19 29.43 8,750,000 60,000 862,500 252,500 7,575,000 1,175,00008-Aug-19 30.85 150,000 - 112,500 37,500 - 150,00009-Sep-19 31.35 650,000 162,500 487,500 - - 650,00001-Jun-20 24.10 5,000,000 - 5,000,000 - - 5,000,00027-Jul-20 39.55 3,570,000 - 3,570,000 - - 3,570,000Total 18,120,000 222,500 10,032,500 290,000 7,575,000 10,545,000

To the employees of the subsidiaries (including step down subsidiaries)

Grant dateExercise

price

Options

granted

Options

vested and

exercisable

Options

unvested

Options

exercised

Options

cancelled

Options

outstanding

01-Apr-19 29.43 6,375,000 264,250 1,126,250 858,250 4,126,250 2,248,75019-Jun-19 29.43 500,000 - 225,000 75,000 200,000 300,00008-Aug-19 30.85 450,000 112,500 325,000 12,500 - 450,00009-Sep-19 31.35 350,000 37,500 262,500 50,000 - 350,00027-Jul-20 39.55 2,930,000 - 2,830,000 100,000 2,830,000Total 10,605,000 414,250 4,768,750 995,750 4,426,250 6,178,750

(ii) Weighted average fair value of stock options granted during the year is as follows:

ParticularsPrevious Year (Scheme 2020) Current Year

Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 1 Tranche 2

Grantdate 01-Apr-19 19-Jun-19 08-Aug-19 09-Sep-19 01-Jun-20 27-Jul-20

No.ofoptionsgranted 15,400,000 500,000 600,000 1,000,000 5,000,000 6,500,000

Weightedaveragefairvalue(Rs.)

29.43 29.43 30.85 31.35 24.30 39.55

Following table depicts range of exercise prices and weighted average remaining contractual life

Total for all grantsNo. of

options

Range of

exercise

prices

(Rs.)

Weighted

average

exercise

price

(Rs.)

Weighted

average

remaining

contractual

life (years)

Outstandingatthebeginningoftheyear 9,075,000 29.43-31.35 - -Grantedduringtheyear 11,500,000 24.10-39.55 34.02 1.91Cancelled during the year 3,851,250 29.43 29.71 -Expiredduringtheyear - - - -Exercisedduringtheyear - - - -Outstandingattheendoftheyear 16,723,750 24.10-31.35 33.20 1.99Exercisableattheendoftheyear - - - -

Note:TheweightedaveragemarketpriceofequitysharesforoptionsexercisedduringtheyearisNil(previousyearNil).




(iii) Method used for accounting for share based payment plan

TheCompanyhasusedthefairvaluemethodtoaccountforthecompensationcostofstockoptionstoemployees.ThefairvalueofoptionsusedareestimatedonthedateofgrantusingtheBlack–ScholesModel.

Note:FortheyearendedMarch31,2021,theCompanyhasaccountedexpenseofRs35.87Lakhasemployeebenefit Expenses on the aforesaid employee stock option plan (March 31, 2020: Rs 15 Lakh). The balance inemployeestockoptionoutstandingaccountisRs.75.94LakhasofMarch31,2021(March31,2020:Rs.56.43).

(iv) Transactions during the year -

Duringtheyear,theCompanyhas:

(a) CreditedESOPreserveon:

i) Debiting to employee related cost byRs 30.18 Lakh (March 31, 2020:Rs 11.04 Lakh) beingESOPexpensesonitsownemployees;

ii) Debiting investment in subsidiaries byRs 1.53 Lakh (March 31, 2020:Rs 41.43 Lakh) beingESOPexpensesonitssubsidiariesemployees;

CreditedtoretainedearninganddebitedemployeerelatedcostbyRs4.78Lakh(March31,2020:Rs3.96Lakh)beingESOPsgrantedtotheemployeesoftheCompanybyitssubsidiary.

ThepartofESOPgrantedtoemployeesoftheitssubsidiariesstandcancelledduringtheyear.OnCancellationofESOP’stheamountofRs13.93LakhwastransferredfromESOPreserveA/ctoRetainedearning.

(b) TheCompanygranted50,00,000stockoptionsatagrantpriceofRs24.10pershareonJune01,2020and65,00,000stockoptionsatagrantpriceofRs39.55pershareonJuly27,2020under“ReligareEnterprisesLimitedEmployeesStockOptionPlan2019” (RELESOPScheme2019).TheCompanyallotted1,285,750EquitySharesoffacevalueofRs.10eachatexercisepriceofRs29.43eachpursuanttoexerciseofstockoptionsgrantedundertheRELESOPScheme2019.Pursuanttothesaidallotment,theissued,subscribedandpaidupequitycapitaloftheCompanystandsincreasedfromRs25,812.82Lakhdividedinto258,128,152equitysharesofRs.10eachtoRs25,941.40Lakhdividedinto259,413,902equitysharesofRs10each.

(B) Care Health Insurance Limited (“CHIL”)

Equity Settled Share Based Payment

Employee Stock Option Scheme 2010

SeriesDate of

grant

Number

Granted

Contractual

LifeVesting Conditions

Exercise

Price per

option

Estimated

fair value of

share granted

Series-I 29-Dec-10 1,856,250 4years 20%onexpiryof12monthsfromgrantdate

20%onexpiryof24monthsfromgrantdate



10 10

Series-II 14-Mar-11 12,368,750 4years

Series-III 5-Aug-11 1,300,000 4years





Employee Stock Option Scheme 2014

SeriesDate of

grant

Number

Granted

Contractual


Exercise

Price per

option

Estimated

fair value of

share granted

Series-I 28-Jul-14 9,575,000 3years




10 10

Series-II 27-Apr-15 7,780,000 3years

Series-III 4-Jul-15 1,983,500 3years

Series-IV 30-Sep-15 3,111,500 3years

Series-V 30-Nov-15 2,892,550 3years

Series-VI 2-Feb-16 2,224,080 3years

Series-VII 30-Mar-16 1,498,150 3years

Series-VIII 30-Jun-16 1,843,200 3years

Series-IX 3-Mar-17 633,600 3years

Series-X 31-Mar-17 861,120 3years

Series-XI 31-Jul-18 4,061,707 1year 100%onexpiryof12monthsfromgrantdate

Series-I-New 6-Nov-18 28,868,288 3years




21.85 21.85

Series-II-New 6-Nov-18 17,361,155 3years 10 21.85

Series-III-New 7-Feb-19 243,160 3years 10 26.1

Series-IV-New 28-Jun-19 584,584 3years 34.31 34.31

Series-V-New 19-Nov-19 2,311,376 3years 10 34.31

Series-VI-New 19-Nov-19 657,979 3years 34.31 34.31

Series-VII-New 14-Aug-20 7,397,825 3years 37.89 37.89

CEO Scheme 2014

SeriesDate of

grant

Number

Granted

Contractual


Exercise

Price per

option

Estimated

fair value

of share

granted

Category-1(inlieuofsurrenderofOptionsgranted under

2010Scheme)

28-Jul-14 2,000,000 1year 100%onexpiryof12monthsfromgrantdate

10 10Category-1 (newGrant) 28-Jul-14 2,285,714 3years




Category-2 28-Jul-14 1,331,250 1year 100%onexpiryof12monthsfromgrantdate

Category-3 28-Jul-14 7,500,000 31Mar’16




SeriesDate of

grant

Number

Granted

Contractual


Exercise

Price per

option

Estimated

fair value

of share

granted

Category-1 (newGrant) 27-Apr-15 1,714,286




10 10

Category-2 27-Apr-15 668,750 100%onexpiryof12months

fromgrantdateCategory-3 27-Apr-15 4,500,000 April27,2016

Category-1 (newGrant) 4-Jul-15 428,571




Category-2 4-Jul-15 - 100%onexpiryof12months

fromgrantdateCategory-3 4-Jul-15 857,143 July4,2016

Category-1 (newGrant) 30-Sep-15 428,571




Category-2 30-Sep-15 - 100%onexpiryof12months

fromgrantdateCategory-3 30-Sep-15 857,143 September30,2016

Category-1

(newGrant) 30-Nov-15 428,571




Category-2 30-Nov-15 - 100%onexpiryof12months

fromgrantdateCategory-3 30-Nov-15 857,143 November30,2016

Category-1 (newGrant) 2-Feb-16 428,571




Category-2 2-Feb-16 - 100%onexpiryof12months

fromgrantdateCategory-3 2-Feb-16 857,143 February2,2017

Category-1 (newGrant) 30-Mar-16 428,571







SeriesDate of

grant

Number

Granted

Contractual


Exercise

Price per

option

Estimated

fair value

of share

granted

Category-2 30-Mar-16 714,285 100%onexpiryof12months

fromgrantdate

10 10

Category-3 30-Mar-16 857,143 March30,2017

Category-1 (newGrant) 30-Jun-16 407,143




Category-2 30-Jun-16 - 100%onexpiryof12months

fromgrantdateCategory-3 30-Jun-16 814,286 June30,2017





Category-2 3-Mar-17 - 100%onexpiryof12months

fromgrantdateCategory-3 3-Mar-17 324,593 March30,2018





Category-2 31-Mar-17 271,529 100%onexpiryof12months

fromgrantdateCategory-3 31-Mar-17 490,291 March31,2018Category-1 (newGrant) 31-Jul-18 471,130


Category-2 31-Jul-18 157,043 100%onexpiryof12months

fromgrantdateCategory-3 31-Jul-18 942,259 July31,2019Series-I-New 6-Nov-18 13,224,900 3years 33%onexpiryof12months

fromgrantdate



21.85 21.85Series-II-New 6-Nov-18 15,561,816 3years 10 21.85Series-III-New 7-Feb-19 224,463 3years 10 26.1Series-IV-New 28-Jun-19 539,618 3years 34.31 34.31

Series-V-New 19-Nov-19 2,162,040 3years 34.31 34.31

Series-VI-New 13-Jul-20 3,509,002 November6,2021 37.89 37.89

Series-VII-New 13-Jul-20 7,015,898 1year 100%onexpiryof12monthsfromgrantdate 37.89 37.89

Series-VIII-New 13-Jul-20 16,633,239 3years 33.33%onexpiryof12monthsfromgrantdate

33.33%onexpiryof24monthsfromgrantdate

33.34%onexpiryof36monthsfromgrantdate

37.89 37.89

Series-IX-New 14-Aug-20 6,710,402 3years 37.89 37.89

Note1:Duringtheyear,valuationhasbeentakenatcomparablecompanymethod. Note2:Allthegrantsmentionedabovetobesettledinequityonly.




Scheme

Number

of Options

Outstanding

as on April 1,

2020

Issued

During the

year

Cancellation

of Options

due to

resignations

/ surrender 2020-21

Options

Exercised

2020-21

Number

of Options

outstanding

as on March

31, 2021

Exercisable

as at March

31, 2021

ESOP Scheme 2014

-Series-I 200,000 - - 200,000 - -

-Series-XI 4,061,707 - - 3,406,512 655,195 655,195

-Series-I-New 28,787,036 - 57,205 1,440,367 27,289,464 17,732,389

-Series-II-New 17,235,824 - 88,238 4,931,632 12,215,954 6,532,046

-Series-III-New 241,054 - 1,994 42,527 196,533 116,927

-Series-IV-New 581,232 - 3,158 8,444 569,630 184,540

-Series-V-New 2,311,376 - 13,247 111,364 2,186,765 655,866

-Series-VI-New 657,979 - 3,770 8,211 645,998 210,202

-Series-VII-New - 7,397,825 60,000 - 7,337,825 -

CEO Scheme 2014

-Series-II 6,775,100 - - 6,775,100 - -

-Series-III 1,285,714 - - 1,285,714 - -

-Series-IV 1,285,714 - - 1,285,714 - -

-Series-V 1,285,714 - - 1,285,714 - -

-Series-VI 1,285,714 - - 1,285,714 - -

-Series-VII 1,999,999 - - 1,999,999 - -

-Series-VIII 1,221,429 - - 1,221,429 - -

-Series-IX 486,890 - - 486,890 - -

-Series-X 1,006,965 - - 1,006,965 - -

-Series-XI 1,570,432 - - 1,570,432 - -

-Series-I-New 13,224,900 - 10,524,900 - 2,700,000 1,799,820

-Series-II-New 15,561,816 - - 4,872,419 10,689,397 5,501,088

-Series-III-New 224,463 - - - 224,463 149,627

-Series-IV-New 539,618 - - - 539,618 179,855

-Series-V-New 2,162,040 - - - 2,162,040 720,608

-Series-VI-New - 3,509,002 - - 3,509,002 -

-Series-VII-New - 7,015,898 - - 7,015,898 -

-Series-VIII-New - 16,633,239 - - 16,633,239 -

-Series-IX-New - 6,710,402 - - 6,710,402 -

Total 103,992,716 41,266,366 10,752,512 33,225,147 101,281,423 34,438,163

TheweightedaverageremainingcontractuallifeofoptionsoutstandingattheMarch31,2021is1.1years.Key Assumptions used to estimate the fair market value of options granted during the financial year 2020-21 are as below:

ComparablecompanymultiplesandComparabletransactionmultiplesmethodologyhavebeenusedforcomputingthefairvalueofequitysharesofthecompanyforthepurposeofcomputingcompensationcostofESOPs.




(C) Religare Finvest Limited (“RFL”)

(i) Details of grants approved for employees of the RFL, its subsidiary & parent in accordance with the Stock Option Scheme:

To the employees of the RFL

Grant dateExercise

price

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during

the year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised / Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on March

31, 2021

13-Aug-13 98.00 654,000 - - 654,000 - - 42,000 612,000

30-Sep-14 108.00 200,000 - - 200,000 - - - 200,000

Total 854,000 - - 854,000 - - 42,000 812,000

To the employees of the Subsidiary of RFL

Grant date Exercise

price

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during

the year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised / Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on

March 31,

2021

13-Aug-13 98.00 315,000 - - 315,000 - - - 315,000

30-Sep-14 108.00 60,000 - - 60,000 - - - 60,000

Total 375,000 - - 375,000 - - - 375,000

To the employees of the Parent of RFL

Grant date Exercise

price

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during

the year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised / Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on

March 31,

2021

30-Sep-14 108.00 160,000 - - 160,000 - - - 160,000

Total 160,000 - - 160,000 - - - 160,000

(ii) Details of grants approved in ESOP Scheme 2019 for employees of the RFL, its subsidiary & parent in accordance with the Stock Option Scheme:

To the employees of the RFL

Grant date Exercise

price

Number

of Options

outstanding

as on

April 01, 2019

Options

granted

during the

year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised

/ Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on

March 31,

2021

20-May-19 11.89 11,577,882 - (35,000) 838,750 10,704,132 - 8,527,882 3,015,000

19-Jun-19 11.89 400,000 - - 87,500 312,500 - 87,500 312,500

09-Sep-19 11.89 550,000 - - 181,500 368,500 - - 550,000

27-Jun-20 10.63 - 12,774,200 - - 12,774,200 - 792,500 11,981,700

Total 12,527,882 12,774,200 (35,000) 1,107,750 24,159,332 - 9,407,882 15,859,200




To the employees of the Subsidiary of RFL

Grant date Exercise

price

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during the

year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised / Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on

March 31,

2021

20-May-19 11.89 800,000 - 35,000 200,000 635,000 - 510,000 325,00007-Aug-19 11.89 250,000 - (250,000) - - - - -

Total 1,050,000 - (215,000) 200,000 635,000 - 510,000 325,000

To the employees of the Parent of RFL

Grant date Exercise

price

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during the

year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised

/ Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on

March 31,

2021

07-Aug-19 11.89 125,000 - 250,000 103,750 271,250 - - 375,00027-Jun-20 10.63 - 2,559,100 - - 2,559,100 - 203,500 2,355,600

Total 125,000 2,559,100 250,000 103,750 2,830,350 - 203,500 2,730,600

(iii) Weighted average fair value of stock options granted during the year is as follows:

Particulars

For the Year ended

March 31, 2021

For the Year ended

March 31, 2020

Number of Options

Granted during the

year

Weighted

average

fair value

Number of Options

Granted during the

year

Weighted average

fair value

Grant date

20-May-19 - - 13,727,882 11.89

19-Jun-19 - - 400,000 11.89

07-Aug-19 - - 575,000 11.89

09-Sep-19 - - 550,000 11.89

09-Sep-19 15,333,300 10.63 550,000 11.89



options

Range of

exercise

prices

Weighted

average

exercise price

Weighted

average

remaining

contractual life

(years)

Outstandingatthebeginningoftheyear 15,491,882 98-108

16.93 1.86

Grantedduringtheyear 15,333,300 10.63

Cancelled during the year 10,163,382 11.89to90

Expiredduringtheyear - -

Exercisedduringtheyear - -

Outstandingattheendoftheyear 20,261,800 10.63to108

Exercisableattheendoftheyear 2,758,500 98-108




(iv) Method used for accounting for share based payment plan


(v) Transactions during the year - Amount(RsinLakh)

Particulars

For the Year ended

March 31, 2021

FortheYearended

March31,2020

Number

of Options

outstanding

Amount

NumberofOptions

outstanding

Amount

Duringtheyear,theRFLhas:

CreditedESOPreserveon:

Debiting the employee related cost being ESOPexpensesonitsownemployees

16,671,200 - 13,381,882 -

Debiting investment in subsidiaries being ESOPexpensesonitssubsidiariesemployees

700,000 - 1,425,000 -

DebitingretainedearningsbeingESOPexpensesonits parents employees

2,890,600 - 285,000 -

Credited‘equity’&debitedemployeerelatedcostbeingESOPsgranted to theemployeesof theCompanybyits parent

3,926,250 (13.04) 6,165,000 37.03

Credited‘dividendincome’&debitedemployeerelatedcost being ESOPs granted to the employees of theCompanybyitssubsidiary

- - 1,199,950 -

(D) Religare Housing Development Finance Corporation Limited (“RHDFC”)

(i) RHDFCLEmployeeStockOptionScheme2019wasapprovedbytheBoardofDirectorsofthecompanyonFebruary06,2019andbyshareholdersofthecompanyonMarch05,2019.

To the employees of the RHDFC

Grant

date

Exercise

price

Rs.

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during the

year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised / Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on March

31, 2021

20-May-19 63.00 1,157,500 - (37,500) 289,375 830,625 - 250,000 870,000

07-Aug-19 63.00 100,000 - - - 100,000 - 100,000 -

23-Jun-20 61.04 - 1,421,800 - - 1,421,800 - - 1,421,800

04-Nov-20 61.04 - 978,700 - - 978,700 - - 978,700

Total 1,257,500 2,400,500 (37,500) 289,375 3,331,125 - 350,000 3,270,500




To the employees of the parent (Religare Finvest Limited)

Grant

date

Exercise

price

Rs.

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during the

year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised / Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on March

31, 2021

20-May-19 63.00 999,950 - - - 999,950 - 999,950 -

09-Nov-19 63.00 200,000 - - - 200,000 - 200,000 -

Total 1,199,950 - - - 1,199,950 - 1,199,950 -

To the employees of the ultimate parent (Religare Enterprises Limited)

Grant

date

Exercise

price

Rs.

Number

of Options

outstanding

as on

April 1, 2020

Options

granted

during the

year

Migrations

during the

year

Options

vested and

exercisable

Options

unvested

Options

Exercised / Expired

Options

cancelled

during the

year

Number

of Options

outstanding

as on March

31, 2021

23-Jun-20 61.04 - 240,400 - - 240,400 - 41,800 198,600

10-Sep-20 61.04 - 351,800 - - 351,800 - - 351,800

Total - 592,200 - - 592,200 - 41,800 550,400

(ii) Weighted average fair value of stock options granted during the year is as follows:

Grant Date

For the Year ended

March 31, 2021

FortheYearended

March31,2020

Number of Options

Granted during the

year

Weighted

average

fair value

NumberofOptionsGrantedduringtheyear

Weighted average

fairvalue

20-May-19 - 2,299,950 63.00

07-Aug-19 - 100,000 63.00

09-Nov-19 - 200,000 63.00

23-Jun-20 1,662,200 61.04 - -

10-Sep-20 351,800 61.04 - -

04-Nov-20 978,700 61.04 - -



options

Range of exercise

prices

Weighted

average

exercise price

Weighted

average

remaining

contractual life

(years)

Outstandingatthebeginningoftheyear 2,457,450 63.00 61.49 2.32

Grantedduringtheyear 2,992,700 61.04

Cancelled during the year 1,629,250 61.04to63.00

Expiredduringtheyear - -

Exercisedduringtheyear - -

Outstandingattheendoftheyear 3,820,900 61.04to63.00

Exercisableattheendoftheyear 289,375 63.00




(iii) Method used for accounting for share based payment plan

TheRHDFChasusedthefairvaluemethodtoaccountforthecompensationcostofstockoptionstoemployees.ThefairvalueofoptionsusedareestimatedonthedateofgrantusingtheBlack–ScholesModel.

(iv) Transactions during the year - Amount(RsinLakh)

Particulars

For the Year ended

March 31, 2021

FortheYearended

March31,2020Number

of Options

outstanding

Amount

NumberofOptions

outstanding

Amount

Duringtheyear,theRFLhas:


Debiting the employee related cost being ESOPexpensesonitsownemployees

3,270,500 - 1,257,500 -

DebitingretainedearningsbeingESOPexpensesonitsparents employees

550,400 - 1,199,950 -

Credited‘equity’&debitedemployeerelatedcostbeingESOPsgranted to theemployeesof theCompanybyits parent

700,000 - 1,425,000 -

Credited‘equity’&debitedemployeerelatedcostbeingESOPsgrantedtotheemployeesoftheCompanybyitsUltimate parent

740,000 (0.02) 360,000 2.76

(E) Religare Broking Limited (“RBL”)

TheBoardofDirectorsoftheRBLhaveapprovedthefollowinggrantsinaccordancewiththeStockOptionScheme(RBLESOP2019).

ThedetailsofgrantsapprovedforemployeesoftheRBLandparentinaccordancewiththeStockOptionScheme:

To the employees of the RBL

Grant dateExercise

price (Rs )

Opening

Balance as on

April 01, 2020

Options

granted

Options

vested and

exercisable

Options

unvested

Options

exercised

Options

cancelled

Options

outstanding

as on March

31, 2021

17-Apr-19 12.12 7,500,000 - 1,325,000 - - 2,200,000 5,300,0005-Aug-19 12.12 1,300,000 - 225,000 - - 400,000 900,0009-Aug-19 12.12 675,000 - 168,750 - - - 675,0009-Mar-20 12.12 375,000 - 123,750 - - - 375,00016-Mar-20 12.12 2,200,000 - 726,000 - - - 2,200,0009-Jun-20 12.12 - 450,000 - - - - 450,0007-Sep-20 10.23 - 4,000,000 - - - 400,000 3,600,0004-Feb-21 10.23 - 1,200,000 - - - 1,200,000

Total 12,050,000 5,650,000 2,568,500 - - 3,000,000 14,700,000

To the employees of the parent

Grant dateExercise

price (Rs )

Opening

Balance as on

April 01, 2020

Options

granted

Options

vested and

exercisable

Options

unvested

Options

exercised

Options

cancelled

Options

outstanding

as on March

31, 2021

17-Apr-19 12.12 3,000,000 - 750,000 - - - 3,000,000

7-Sep-20 10.23 - 1,585,000 - - 130,000 1,455,000

Total 3,000,000 1,585,000 750,000 - - 130,000 4,455,000




Particulars

ESOP Scheme 2019

As at

March 31, 2021

As at

March 31, 2020

DateofGrant Various Dates VariousDates

DateofBoardApproval March 08, 2019 March08,2019

DateofShareholder’sApproval April 02, 2019 April02,2019

NumberofOptionsGranted 7,235,000 18,450,000

MethodofSettlement Equity Settled Equity Settled

Vestingperiod 1 to 3 years 1to4years

Weighted average remaining contractual life (Vesting period)

Grantedbutnotvested 2.52 Years 3.23Years

Vestedbutnotexercised NA NA

Weightedaveragesharepriceatthedateofexerciseforstockoptionsexercisedduringtheyear

NA NA

Exerciseperiod 8 Years from the date

of Vesting

8YearsfromthedateofVesting

-VestingconditionsforESOPgrantedtoRBLemployeeson March09,2020

March16,2020

June09,2020

September07,2020-VestingconditionsforESOPgrantedtoHoldingCompanyemployees on

September07,2020

February04.2021

1) 25% vest after 1 year

from the date of grant

2) 37.5% vest after 2

years from the date of

grant

3) 37.5% vest after 3


grant

1)25%vestafter1yearfromthedateofgrant

2)25%vestafter2yearsfromthedateofgrant



-VestingconditionsforESOPgrantedtoRBLemployeeson April17,2019

August05,2019

August09,2019

-VestingconditionsforESOPgrantedtoHoldingCompanyemployees on

April17,2019

1) 33% vest after 1 year

from the date of grant

2) 33% vest after 2


grant

3) 34% vest after 3


grant

1)25%vestafter1yearfromthedateofgrant




WeightedAverageFairValueofoptions(grantedbutnotvested)as on grant date

11.27 11.83

RangeofRiskfreeinterestrate 5.48% 6.36%

Dividendyield 0% 0%

Expectedvolatility 33% 22%

Note:FortheYearMarch31,2021,theRBLhasaccountedexpenseofRs9.83LakhasemployeebenefitExpensesontheaforesaidemployeestockoptionplan(March31,2020:Rs14.76Lakh).ThebalanceinShareBasedPaymentReserveisRs14.85LakhasofMarch31,2021(March31,2020:Rs17.51Lakh).





TRANSACTIONS DURING THE YEAR ENDED MARCH 31, 2021

Duringtheyear,theRBLhas:


- DebitingtoemployeerelatedcostbyRs.9.16Lakh(March31,2020:Rs.Rs.13.55Lakh)beingESOPexpensesonitsownemployees;

- DebitingretainedearningsbyRs.5.69Lakh(March31,2020:Rs.3.96Lakh)beingESOPexpensesonitsparentsemployees:

- Credited‘equity’&debitedemployeerelatedcostbyRs.0.67Lakh(March31,2020:Rs.1.64)beingESOPsgrantedtotheemployeesoftheCompanybyitsparent.

50A Retirement Benefit Plan

(I) Religare Enterprises Limited (“REL”)

(i) Defined Contribution Plan

Contributiontowardprovidentfundplanforallemployeesismadetoregulatoryauthorities,wheretheCompanyhasnofurtherobligations.SuchbenefitsareclassifiedasDefinedContributionSchemeastheCompanydoesnotcarryanylegalorconstructiveobligationstopayfurthercontributionsapartfromthecontributionsmadeonmonthlybasiswhicharechargedtothestatementofProfitandLossaccountasincurred.TheamountchargedtoP&LaccountRs39.25LakhsduringtheFY2020-21(ForFY2019-20Rs53.82Lakhs).

(ii) Defined Benefits plan

TheCompanyhasadefinedbenefitgratuityplaninIndia(funded).TheCompany’sdefinedbenefitgratuityplanisafinalsalaryplanforIndiaemployees,whichrequirescontributionstobemadetoaseparatelyadministeredfund.ThegratuityplanisgovernedbythePaymentofGratuityAct,1972.Undertheact,employeewhohascompletedfiveyearsofserviceisentitledtospecificbenefit.Thelevelofbenefitsprovideddependsonthemember’slengthofserviceandsalaryatretirementage.ThefundhastheformofatrustanditisgovernedbytheBoardofTrustees,whichconsistsofanequalnumberofemployerandemployeerepresentatives.TheBoardofTrusteesisresponsiblefortheadministrationoftheplanassetsandforthedefinitionoftheinvestmentstrategy.

Eachyear, theBoardofTrustees reviews the levelof funding in the Indiagratuityplan.Sucha review includestheasset-liabilitymatchingstrategyand investment riskmanagementpolicy.This includesemploying theuseofannuitiesand longevityswapstomanagetherisks.TheBoardofTrusteesdecides itscontributionbasedon theresultsofthisannualreview.TheBoardofTrusteesaimtokeepannualcontributionsrelativelystableatalevelsuchthatnoplandeficits(basedonvaluationperformed)willarise.

The following tables summaries the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

(A) Changes in the defined benefit obligation and fair value of plan assets :

Gratuity

As on March 31, 2021 AsonMarch31,2020Defined benefits

obligation

Fair value

of plan

assets

Benefits liability

Definedbenefitsobligation

Fairvalueofplanassets

Benefitsliability

Gratuity cost charged to profit & loss

Present value ofDBO at the beginningoftheyear

67.13 - (67.13) 117.03 119.00 1.97

Service Cost 17.61 - (17.61) 17.74 - (17.74)Netinterestexpense 4.09 - (4.09) 5.97 - (5.97)Sub total included in profit & loss 21.70 - (21.70) 23.71 - (23.71)Benefitspaid (26.59) (26.59) - (65.83) (65.83) -




As on March 31, 2021 AsonMarch31,2020Defined benefits

obligation

Fair value

of plan

assets

Benefits liability



Benefitsliability

Remeasurement gains/(losses) in other comphrensive income

Returnonplanassets(excludingamountsincludedinnetinterestexpenses)

- - - - - -

Actuarial changesarising fromchangesin demographic assumptions

- - - - - -

Actuarial changesarising fromchangesinfinancialassumptions

(11.28) 11.28 (0.86) 0.86

Return on plan assets greater/(lesser)than discount rate

- 23.85 23.85 - (14.37) (14.37)

Experienceadjustments (6.56) - 6.56 31.88 - (31.88)SubtotalincludedinOCI - - - - - -Contributionsbyemployer - - - - - -Present value of DBO at the end of the

year

44.40 (2.74) (47.14) 105.93 38.80 (67.13)


Leave Encashment

As on March 31, 2021 AsonMarch31,2020

Defined benefits

obligation

Fair value

of plan

assets

Benefits liability



Benefitsliability

Leave Encashment cost charged to

profit & loss

Present value ofDBO at the beginningoftheyear

69.76 - (69.76) 68.85 - (68.85)

Service Cost 18.28 8.11 (10.17) 18.26 - (18.26)

Netinterestexpense 3.88 - (3.88) 3.91 - (3.91)

Sub total included in profit & loss 22.16 8.11 (14.05) 22.17 - (22.17)

Benefitspaid (12.39) - 12.39 (27.55) - 27.55

Remeasurement gains/(losses) in other comphrensive income

- - - -


- - - - - -

Actuarial changesarising fromchangesin demographic assumptions

- - - (0.31) - 0.31

Actuarial changesarising fromchangesinfinancialassumptions

(5.67) (5.67) - - - -

Experienceadjustments (2.44) (2.44) - 6.60 - (6.60)

SubtotalincludedinOCI - - - - - -

Contributionsbyemployer - - - - - -

Present value of DBO at the end of the

year

71.42 - (71.42) 69.76 - (69.76)





(B) Major Category of Plan asset as percentage of total plan asset

Investments quoted in active markets: Gratuity

March 31, 2021 March31,2020

Quotedequityinvestments - -

Manufacturingandconsumerproductssector - -

Telecom sector - -

Cash and cash equivalents - -

Unquotedinvestments: - -

BondsissuedbyIndiaGovernment - -

SchemeofInsurance-ConventionalProducts - -

SchemeofInsurance-ULIPProducts 100.00% 100.00%

Total 100.00% 100.00%

ThecurrentservicecostandnetinterestexpensefortheyearpertainingtoGratuityexpenseshavebeenrecognisedin “‘Gratuityandcompensatedabsencesexpenses”.The remeasurementsof thenetdefinedbenefit liabilityareincludedinStatementofProfitandLossandOtherComprehensiveIncomeinStatementofchangeinEquity.

(C) Expected payment for future years

Gratuity

March 31, 2021 March31,2020

Withinthenext12months(nextannualreportingperiod) 11.29 14.23

Between2and5years 34.33 70.23


Beyond10years - -

Total expected payments 161.33 182.74

(D) Changes in Fair Value of Plan Assets:

Gratuity

March 31, 2021 March31,2020

PlanAssetatthebeginningoftheYear 38.80 119.00

AssetAcquiredinBusinessCombination - -

ExpectedReturnonPlanAsset 1.56 6.11

RemeasurementGain/LossonPlanAssets 23.85 (20.48)

ActualCompanyContributions - -

BenefitsPaid (26.59) (65.83)

Others - -

PlanAssetattheendoftheYear 37.62 38.80

(E) Actuarial Assumptions

Financial Assumption

Impact on defined benefits obligations Gratuity Leave Encashment

March 31, 2021 March31,2020 March 31, 2021 March31,2020

DiscountRate 6.20% 6.10% 6.20% 6.10%

Salary Escalation 5.00% 7.00% 5.00% 7.00%





Demographic Assumption

Impact on defined benefits obligations Gratuity Leave Encashment

March 31, 2021 March31,2020 March 31, 2021 March 31, 2020

Mortalityrate Indian Assured

Lives Mortality

(2006-08) Ult.

Indian Assured

LivesMortality(2006-08)Ult.

Indian Assured

Lives Mortality

(2006-08) Ult.

Indian Assured


WithdrawalRate 18-35 years:

20%

36-45 years:

15%

46 and above:

10%

18-35years:20%

36-45years:15%

46andabove:5%

18-35 years:

20%

36-45 years:

15%

46 and above:

10%

18-35years:20%

36-45years:15%

46andabove:5%

Sensitivity Analysis

The sensitivity analysis below has been determined based on reasonably possible change of the respectiveassumptions occurring at the end of the reporting period, while holding all other assumptions constant. Thesesensitivitiesshowthehypotheticalimpactofachangeineachofthelistedassumptionsinisolation.Whileeachofthesesensitivitiesholdsallotherassumptionsconstant,inpracticesuchassumptionsrarelychangeinisolationandtheassetvaluechangesmayoffsettheimpacttosomeextent.Forpresentingthesensitivities,thepresentvalueofthedefinedbenefitobligationhasbeencalculatedusingtheprojectedunitcreditmethodattheendofthereportingperiod,whichisthesameasthatappliedincalculatingtheDefinedBenefitObligationpresentedabove.Therewasnochangeinthemethodsandassumptionsusedinthepreparationofsensitivityanalysisfrompreviousyear.

Impact on defined benefits obligations March 31, 2021 March31,2020Discount Rate

Increaseby0.5% (2.36) (2.45)Decreaseby0.5% 2.49 2.58Future salary increases

Increaseby0.5% 2.51 2.55Decreaseby0.5% (2.40) (2.44)

Risk Analysis

TheCompanyisexposedtoanumberofrisksinthedefinedbenefitplans.Mostsignificancyriskpertainingtodefinedbenefitsplansandmanagementestimationoftheimpactoftheserisksareasfollows:

Salary Growth Rate

Thepresentvalueofdefinedbenefitplansliabilityiscalculatedbyreferencetothefuturesalariesofplanparticipates.Salaryincreaseconsidered@5%.Assuch,anincreaseinthesalaryoftheplanparticipantswillincreasetheplan’sliability.

Demographic Risk

This is theriskofvariabilityofresultsduetosystematicnatureofdecrementsthat includemortality. ,withdrawal, disabilityand retirement .Theeffectof thesedecrementson thedefinedobligation isnot straight forwardanddependsuponthecombinationofsalaryincrease,discountrateandvestingcriteria.itisimportantnottooverstatewithdrawalsbecauseinthefinancialanalysistheretirementbenefitofshortcareeremployeetypicallycostslessperyearascomparedtolongserviceemployee.

Interest rate risks

Thedefinedbenefitobligationusesadiscountratebasedongovernmentbonds.Ifbondsyieldsfall,thedefinedbenefitobligationwilltendtoincrease.

(II) Religare Finvest Limited (“RFL”)

(i) Defined Contribution Plan Contributiontowardprovidentfundplanforallemployeesismadetoregulatoryauthorities,wheretheRFLhasno

furtherobligations.SuchbenefitsareclassifiedasDefinedContributionSchemeastheRFLdoesnotcarryanylegalorconstructiveobligationstopayfurthercontributionsapartfromthecontributionsmadeonmonthlybasiswhicharechargedtothestatementofProfitandLossaccountasincurred.




(Amount in Rs. Lakh, unless otherwise stated)(ii) Defined Benefits plan TheRFLhasadefinedbenefitgratuityplaninIndia(funded).TheRFL’sdefinedbenefitgratuityplanisafinalsalary

planforIndiaemployees,whichrequirescontributionstobemadetoaseparatelyadministeredfund.Thegratuityplan isgovernedby thePaymentofGratuityAct,1972.Under theact,employeewhohascompletedfiveyearsofserviceisentitledtospecificbenefit.Thelevelofbenefitsprovideddependsonthemember’slengthofserviceandsalaryatretirementage.ThefundhastheformofatrustanditisgovernedbytheBoardofTrustees,whichconsistsofanequalnumberofemployerandemployeerepresentatives.TheBoardofTrusteesisresponsiblefortheadministrationoftheplanassetsandforthedefinitionoftheinvestmentstrategy.


The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:


Particulars


Defined benefits

obligation

Fair value

of plan

assets

Benefits liability



Benefitsliability


PresentvalueofDBOatthebeginningoftheyear

530.28 281.14 249.14 504.96 470.68 34.28

Service Cost 67.98 - 67.98 66.86 - 66.86

NetInterestIncome/Expense 25.27 18.65 6.62 29.56 28.43 1.13

Sub total included in profit & loss 93.25 18.65 74.60 96.42 28.43 67.99

Benefitspaid (106.93) (107.78) 0.85 (114.14) (114.14) -

Remeasurement gains/(losses) in other comprehensive income

Return on plan assets (excluding amountsincludedinnetinterestexpenses) - 206.03 (206.03) - (138.11) 138.11

Actuarial changes arising from changes indemographic assumptions

(3.47) - (3.47) - - -

Actuarial changes arising from changes infinancialassumptions (21.74) - (21.74) (2.26) - (2.26)

Experienceadjustments (10.56) - (10.56) 45.30 - 45.30

SubtotalincludedinOCI (35.77) 206.03 (241.80) 43.04 (138.11) 181.15

Contributionsbyemployer - 249.14 (249.14) - 34.28 (34.28)

Present value of DBO at the end of the

year* 480.83 647.18 (166.35) 530.28 281.14 249.14

*DuringFY2020-21anadditionalamountof INR85,000wasmistakenly transferred from the fundalongwithapayment.Thisamountwillbe reversedafter thevaluationdate.Since thisamount isnotanactualpayout toanemployee,itdoesnotaffecttheliabilityoftheRFLandhencehasbeenexcludedfrombenefitspaidunderliabilityreconciliation.




Particulars

As at March 31, 2021 AsatMarch31,2020Defined benefits

obligation

Benefits Liability


BenefitsLiability

Leave Encashment cost charged to profit & loss

Present value of DBO at the beginning of the year 190.09 190.09 209.65 209.65

Service Cost 90.02 90.02 90.19 90.19

Netinterestexpense 7.21 7.21 10.77 10.77

ActuarialGain/(Loss)arisingduringtheyear (11.44) (11.44) (3.37) (3.37)

Sub total included in profit & loss 85.79 85.79 97.59 97.59

BenefitsandSettlementpaid (108.19) (108.19) (117.15) (117.15)

Remeasurement gains/(losses) in other comprehensive income

Return on plan assets (excluding amounts included in netinterestexpenses)

- - -

Actuarial changes arising from changes in demographicassumptions

- - -

Actuarialchangesarisingfromchangesinfinancialassumptions (6.44) (6.44) (0.64) (0.64)

Experienceadjustments (5.00) (5.00) (2.73) (2.73)

ActuarialGain/(Loss)arisingduringtheyear 11.44 11.44 3.37 3.37

SubtotalincludedinOCI - - - -

Contributionsbyemployer - - -

Present value of DBO at the end of the year 167.69 167.69 190.09 190.09


(B) Major Category of Plan asset as percentage of total plan asset (Gratuity)

Investments quoted in active markets: 31-March-2021 31-March-2020



Telecom sector - -




SchemeofInsurance-ConventionalProducts 100.00% 100.00%

Total 100.00% 100.00%

ThecurrentservicecostandnetinterestexpensefortheyearpertainingtoGratuityexpenseshavebeenrecognisedin ‘Gratuity and compensated absences expenses.’ The remeasurements of the net defined benefit liability areincludedinStatementofProfitandLossandOtherComprehensiveIncomeinStatementofchangeinEquity.






Gratuity Leave Encashment

31-March-2021 31-March-2020 31-March-2021 31-March-2020

Within the next 12 months (next annualreportingperiod) 193.12 201.08 105.50 127.36

Between2and5years 379.28 429.26 119.97 172.10


Beyond10years - -

Total expected payments 688.49 833.94 248.02 345.20

(D) Changes in Fair Value of Plan Assets (Gratuity)

Particulars 31-March-2021 31-March-2020

PlanAssetatthebeginningoftheYear - -


ExpectedReturnonPlanAsset - -

RemeasurementGain/LossonPlanAssets - -

ActualRFLContributions 206.03 (138.11)

BenefitsPaid 18.65 28.43

Others - -

Plan Asset at the end of the Year 224.68 (109.68)



Impact on defined benefits obligationsGratuity Leave Encashment


DiscountRate 4.90% 5.30% 4.90% 5.30%



Impact on defined benefits obligationsGratuity Leave Encashment


MortalityrateIndian Assured


Indian Assured


Indian Assured


Indian Assured


WithdrawalRate

18-45years:40%

46andabove:35%

18-45years:43%

46andabove:25%

18-45years:40%

46andabove:35%

18-45years:43%

46andabove:25%







Impact on defined benefits obligations



Discount Rate

Increaseby0.5% (4.94) (6.23) (1.30) (1.74)

Decreaseby0.5% 5.05 6.41 1.33 1.78

Future salary increases

Increaseby0.5% 5.05 6.30 1.33 1.75

Decreaseby0.5% (4.98) (6.17) (1.31) (1.72)

Risk Analysis

TheRFL isexposed toanumberof risks in thedefinedbenefitplans.Mostsignificant riskpertaining todefinedbenefitsplansandmanagementestimationoftheimpactoftheserisksareasfollows:

Salary Growth Rate

Thepresentvalueofdefinedbenefitplansliabilityiscalculatedbyreferencetothefuturesalariesofplanparticipates.Salaryincreaseconsidered@5%.Assuch,increaseinthesalaryoftheplanparticipantswillincreasetheplan’sliability.

Life expectancy/ Longevity risks Thepresentvalueofthedefinedbenefitplanliabilityiscalculatedbyreferencestothebestestimatesofthemortality

ofplanparticipantsbothduringandaftertheiremployment.MortalitytablesasperIndianAssuredLivesMortality(2006-08)modifiedUltisusedforduringtheemploymentandpostretirementrespectively.Asincreaseinthelifeexpectancyoftheplanparticipantswillincreasetheplan’sliability.

Interest rate risks


Inflation risk Higherthanexpectedincreasesinsalarywillincreasethedefinedbenefitobligation.

(III) Religare Housing Development Finance Corporation Limited (“RHDFC”)

(i) Defined Contribution Plan Contributiontowardprovidentfundplanforallemployeesismadetoregulatoryauthorities,wheretheRHDFCLhas

nofurtherobligations.SuchbenefitsareclassifiedasDefinedContributionSchemeastheRHDFCLdoesnotcarryanylegalorconstructiveobligationstopayfurthercontributionsapartfromthecontributionsmadeonmonthlybasiswhicharechargedtothestatementofProfitandLossaccountasincurred.

(ii) Defined Benefits plan TheRHDFCLhasadefinedbenefitgratuityplaninIndia(funded).TheRHDFCL’sdefinedbenefitgratuityplanis

afinalsalaryplanforIndiaemployees,whichrequirescontributionstobemadetoaseparatelyadministeredfund.ThegratuityplanisgovernedbythePaymentofGratuityAct,1972.Undertheact,employeewhohascompletedfiveyearsofserviceisentitledtospecificbenefit.Thelevelofbenefitsprovideddependsonthemember’slengthofserviceandsalaryatretirementage.ThefundhastheformofatrustanditisgovernedbytheBoardofTrustees,whichconsistsofanequalnumberofemployerandemployeerepresentatives.TheBoardofTrusteesisresponsiblefortheadministrationoftheplanassetsandforthedefinitionoftheinvestmentstrategy.






The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

(A) Changes in the defined benefit obligation and fair value of plan assets

Particulars

As at 31 March 2021 Asat31March2020Defined benefits

obligation

Fair value

of plan

assets

Benefits liability



Benefitsliability

Gratuity cost

Present value of DBO / Fair value of planassetsatthebeginningoftheyear 109.16 48.19 60.97 92.61 49.38 43.23

Current Service Cost 15.48 15.48 15.12 15.12

Net interestonnetdefinedbenefit (liability)/asset 5.61 3.98 1.63 5.23 3.81 1.42

Benefitspaid* (2.37) (4.46) 2.09 (26.66) (26.66) -

Amount recognised in OCI - -

Return on plan assets (excluding amountsincludedinnetinterestexpenses) 42.54 (42.54) (21.57) 21.57

Actuarial(gain)/loss-experience 39.76 - 39.76 (1.78) - (1.78)

Actuarial (gain) / loss - demographicassumptions

9.48 - 9.48 1.93 - 1.93

Actuarial(gain)/loss-financialassumptions (11.40) - (11.40) 22.71 - 22.71

SubtotalincludedinOCI - -

Contributionsbyemployer - 60.97 (60.97) - 43.23 (43.23)

Present value of DBO / Fair value of plan assets at the end of the year

165.72 151.22 14.50 109.16 48.19 60.97

*AnadditionalamountofINR209,000wasmistakenlytransferredfomthefundalongwithapayment.Thisamountwillbereversedafterthevaluationdate.Sincethisamountisnotanactualpayouttoanemployee,itdoesnotaffecttheliabilityoftheRHDFCLandhencehasbeenexcludedfrombenefitspaidunderLiabilityReconciliation.

Particulars


obligation

Benefits liability


Benefitsliability

Leave Encashment cost

PresentvalueofDBOatthebeginningoftheyear 46.48 46.48 49.80 49.80

Current Service Cost 27.03 27.03 31.16 31.16

Netinterestexpense 1.60 1.60 2.58 2.58

Benefits/Settlementpaid (31.58) (31.58) (35.52) (35.52)




Particulars


obligation

Benefits liability


Benefitsliability

Immediate recognition of (gains)/losses – other long term employee benefit plans


- - - -

Actuarial(gain)/loss-demographicassumptions 1.10 1.10 (0.32) (0.32)

Actuarial(gain)/loss-financialassumptions (3.05) (3.05) 0.85 0.85

Actuarial(gain)/loss-experience 7.54 7.54 (2.07) (2.07)

SubtotalincludedinOCI

Contributionsbyemployer - - - -

Present value of DBO at the end of the year 49.12 49.12 46.48 46.48


(B) Major Category of Plan asset as percentage of total plan asset (Gratuity)

Investments quoted in active markets: 31 March 2021 31March2020



Telecom sector - -




SchemesofInsurance-ConventionalProducts 100.00% 100.00%

Total 100.00% 100.00%

ThecurrentservicecostandnetinterestexpensefortheyearpertainingtoGratuityexpenseshavebeenrecognisedin “‘Gratuityandcompensatedabsencesexpenses” .Theremeasurementsof thenetdefinedbenefit liabilityareincludedinStatementofProfitandLossandOtherComprehensiveIncomeinStatementofchangeinEquity.


Expected payment for future yearsGratuity Leave Encashment

31 March 2021 31March2020 31 March 2021 31March2020

Withinthenext12months(nextannualreportingperiod)

51.53 38.71 25.68 32.46



Beyond10years

Totalexpectedpayments 265.75 172.46 92.76 92.33




(Amount in Rs. Lakh, unless otherwise stated)(D) Changes in Fair Value of Plan Assets (Gratuity)

Particulars 31 March 2021 31March2020FairvalueofPlanAssetatthebeginningoftheYear 48.19 49.38AcquisitionAdjustment - -InterestincomeonPlanAsset 3.98 3.81ReturnonPlanAssetsgreater/lesserthandiscountrate 42.54 (21.57)EmployerContributions 60.97 43.23BenefitsPaid* (4.46) (26.66)Others - -FairValueofPlanAssetattheendoftheYear 151.22 48.19






DiscountRate 5.10% 5.20% 5.10% 5.20%


Expected Return on Plan Assets





Mortalityrate Indian Assured

Lives Mortality

(2006-08) Ult.

Indian Assured


Indian Assured

Lives Mortality

(2006-08) Ult.

Indian Assured


WithdrawalRate 18-45 years:

35%

46 and above:

25%

18-45years:43%

46andabove:57%

18-45 years:

35%

46 and above:

25%

18-45years:43%

46andabove:57%






Discount Rate

Increaseby0.5% (2.21) (1.08) (0.60) (0.38)

Decreaseby0.5% 2.27 1.11 0.61 0.39


Increaseby0.5% 2.28 1.09 0.61 0.38

Decreaseby0.5% (2.23) (1.07) (0.60) (0.38)





Risk Analysis

TheRHDFCLisexposedtoanumberofrisksinthedefinedbenefitplans.Mostsignificantriskpertainingtodefinedbenefitsplansandmanagementestimationoftheimpactoftheserisksareasfollows:

Salary Growth Rate


Life expectancy/ Longevity risks

Thepresentvalueofthedefinedbenefitplanliabilityiscalculatedbyreferencestothebestestimatesofthemortalityofplanparticipantsbothduringandaftertheiremployment.MortalitytablesasperIndianAssuredLivesMortality(2006-08)modifiedUltisusedforduringtheemploymentandpostretirementrespectively.Asincreaseinthelifeexpectancyoftheplanparticipantswillincreasetheplan’sliability.

Interest rate risks

Thedefinedbenefitobligationusesadiscountberatebasedongovernmentbonds.Ifbondsyieldsfall,thedefinedbenefitobligationwilltendtoincrease.

inflation risk

Higherthanexpectedincreasesinsalarywillincreasethedefinedbenefitobligation

(IV) Religare Broking Limited (“RBL”)

(i) Defined Contribution Plan

The RBLmakes contributions towards Provident Fund, Family Pension Fund, National Pension Scheme,andEmployeeStateInsuranceSchemewhicharedefinedcontributionretirementbenefitplansforqualifyingemployees.

AmountofRs.441.16Lakhs(PreviousYearRs.473.18Lakhs)isrecognisedasexpenses,whichisclassifiedasapartof“Contributiontoprovidentandotherfunds”.

(ii) TheRBLhasadefinedbenefitgratuityplan in India (funded).TheRBL’sdefinedbenefitgratuityplan isafinalsalaryplanfor Indiaemployees,whichrequirescontributionstobemadetoaseparatelyadministeredfund.ThegratuityplanisgovernedbythePaymentofGratuityAct,1972.Undertheact,employeewhohascompletedfiveyearsofserviceisentitledtospecificbenefit.Thelevelofbenefitsprovideddependsonthemember’slengthofserviceandsalaryatretirementage.ThefundhastheformofatrustanditisgovernedbytheBoardofTrustees.TheBoardofTrusteesisresponsiblefortheadministrationoftheplanassetsandforthedefinitionoftheinvestmentstrategy.

Eachyear,theBoardofTrusteesreviewstheleveloffundingintheIndiagratuityplan.Suchareviewincludestheasset-liabilitymatchingstrategyandinvestmentriskmanagementpolicy.TheBoardofTrusteesdecidesits contributionbasedon the results of this annual review.TheReligareSecurities LimitedGroupGratuityScheme“theTrust”hasobtainedagroupgratuityplanfromLifeInsuranceCorporationofIndiawhichisIRDARegisteredInsuranceRBL.Generally,theplanenvisagesallocationaspertheObjectsoftheTrust.

(Rs. in Lakhs)

Particulars March 31, 2021 March31,2020

Defined benefit plans

a)Gratuitypayable 20.78 358.78

b)CompensatedabsencesforEmployees 179.79 152.10




(Amount in Rs. Lakh, unless otherwise stated)(A) Actuarial assumptions

Particulars

March 31, 2021 March31,2020

Gratuity Compensated

absences Gratuity Compensated

absences

Mortality IALM (2006-08)

Modified Ultimate IALM (2006-08)

Modified Ultimate IALM(2006-08)ModifiedUltimate

IALM(2006-08)ModifiedUltimate

Discountrate(perannum) 4.90% 4.90% 5.40% 5.40%

SalaryEscalationRate 6.00% 6.00% 5.00% 5.00%

AttritionRates 18-35 Years: 70%

p.a., 36-45 Years:

35% p.a., 46

Years and above:

35% p.a. and

CEO & above-NA

18-35 Years: 70%

p.a., 36-45 Years:

35% p.a., 46

Years and above:

35% p.a. and CEO

& above-NA

18-35Years:38%p.a.,36-45Years

:53%p.a.,46Yearsandabove:

10%p.a.andCEO&above-NA

18-35Years:38%p.a.,36-45Years

:53%p.a.,46Yearsandabove:

10%p.a.andCEO&above-NA

(B) Reconciliation of opening and closing balances of defined benefit obligation (Rs. in Lakhs)

Particulars

March 31, 2021 March31,2020



absences

Present value of Defined Benefit obligation at the beginning of the year

729.85 152.10 694.06 251.40

Interest cost 36.55 6.99 41.10 14.38

Settlement Cost - - (4.00) 2.48

AcquisitionCost((refernote45(k)) - - 79.13 24.96

Current service cost 68.67 46.98 70.74 104.88

Curtailments

Settlements - - - (56.50)

Benefitspaid (105.97) (45.29) (142.69) (100.52)

Actuarial(gain)/lossonobligations 37.95 19.01 (8.49) (88.98)

Present value of Defined Benefit obligation at the end of the year

767.05 179.79 729.85 152.10

(C) Reconciliation of opening and closing balance of fair value of plan assets (Rs. in Lakhs)

Particulars

March 31, 2021 March31,2020



absences

Fair values of plan assets at the beginning of

the year

371.07 - 663.34 -

Interest income on plan assets 24.43 - 40.09 -

Employercontribution 268.60 - 30.72 -

ReturnonPlanAssets 188.14 - (220.39) -

BenefitsPaid (105.97) - (142.69) -

Fair value of plan assets at year end 746.27 - 371.07 -




(D) Expense recognized in the Statement of Profit and Loss (Rs. in Lakhs)

Particulars

March 31, 2021 March31,2020



absences

Current service cost 68.67 46.98 70.74 104.88

Settlement Cost - - - 2.48

Interest cost 12.12 6.99 1.01 14.38

Immediaterecognitionof(gains)/losses-otherlongtermemployeebenefitplan

- 19.01 - (88.98)

Total expenses recognized in the Statement

Profit and Loss 80.79 72.98 71.75 32.76

(E) Loss/(Gain) recognised during the year in other comprehensive income (OCI) (Rs. in Lakhs)

Particulars

March 31, 2021 March31,2020



absences

Actuarial(gain)/lossduetodefinedbenefitobligation

23.43 - (11.59) -

Actuarial(gain)/lossduetodefinedbenefitobligationassumptionchanges

14.52 - 3.10 -

Actuarial(gain)/lossarisingduringtheyear 37.95 - (8.49) -

Returnonplanassets(greater)/lessthandiscount rate

(188.14) - 220.39 -

Actuarial (gain)/loss recognized in Other Comprehensive Income (OCI)

(150.19) - 211.90 -

(F) Net Asset/ (liability) recognised in the balance sheet (Rs. in Lakhs)

Particulars

March 31, 2021 March31,2020



absences

Netdefinedbenefitassets/(liability)atendofthe period

(358.78) (152.10) (30.72) (251.40)

Service cost (68.67) (46.98) (70.74) (107.36)

Interest cost (12.12) (6.99) (1.01) (14.38)

AmountrecognizedinOCI 150.19 (211.90)

Actuarial(losses)/gain (19.01) 88.98

EmployerContribution 268.60 30.72

Acquisition Cost - - (75.13) (24.96)

SettlementmadedirectlybytheRBL - 56.50

BenefitspaiddirectlybytheRBL - 45.29 - 100.52

Net asset / (liability) recognized in Balance Sheet

(20.78) (179.79) (358.78) (152.10)




(G) Sensitivity analysis (Rs. in Lakhs)

Particulars March 31, 2021 March31,2020Projected defined benefit obligation

(DBO) on current assumptions


absences


absencesDiscount rate 4.90% 4.90% 5.40% 5.40%EffectonDBOdueto0.5%increaseindiscount rate

(8.24) (1.66) (8.12) (1.45)

EffectonDBOdueto0.5%decreaseindiscount rate

8.45 1.71 8.39 1.49

Salary Escalation Rate 6.00% 6.00% 5.00% 5.00%EffectonDBOdueto0.5%increaseinSalary escalation rate

8.38 1.70 8.42 1.50

EffectonDBOdueto0.5%decreaseinSalary escalation rate

(8.24) (1.66) (8.22) (1.47)

(H) Maturity analysis of expected benefit obligation (Rs. in Lakhs)

Particulars March 31, 2021 March31,2020Expected benefits payable in future

years from the date of reporting


absences


absencesApr2017-Mar2018

1stFollowingYear 300.48 100.50 332.82 93.892ndFollowingYear 213.67 55.46 191.51 54.973rdFollowingYear 151.69 33.47 128.79 34.434thFollowingYear 115.53 21.34 81.00 20.435thFollowingYear 92.10 14.22 60.78 12.36Sumofyears6to10 206.54 25.66 214.41 28.36

(iii) Theestimateoffuturesalaryincreasesconsideredintheactuarialvaluationtakesintoaccounttherateofinflation,seniority,promotion,businessperformanceandotherrelevantfactors,suchassupplyanddemandintheemploymentmarket.

51. Related Party Disclosures

Nature of Relationship Name of Party

(a) Individual Owning Direct or Indirect Interest

and Voting Power that Given them Control

Nil

(b) Joint Ventures of the Company

IBOFInvestmentManagementPrivateLimited

(c) Key Managerial Personnel (“KMP”) and

close members of their families

Dr.RashmiSaluja

Mr.NitinAggarwal

Mrs.SabinaVaisoha

Mrs.VijaylakshmiRajaramIyer





Mr.MalayKumarSinha

Mr.SushilChandraTripathi

Mr.SiddarthDineshMehta(w.e.f.July30,2019)

Mr.MilindNarendraPatel(tillJuly19,2019)

Mr.SanjayD.Palve(tillMay31,2020)

Mr.PankajSharma(w.e.f.September11,2020)

Mr.GauravKaushik(w.e.f.March28,2019)

Mr.GurvinderSinghJuneja(w.e.f.April23,2019tillAugust8,2019)

Mr.AshishTyagi(w.e.f.August8,2019tillSeptember9,2019)

Mr.RahulMehrotra(w.e.f.March3,2020)

Mr.GaganChhabra(w.e.f.March3,2020)

Mr.Gourav Mardia(tillMarch03,2020)

Mr.AnujGulati

Mr.PankajGupta

Mr.AjayShah

Mr.ChandrakantMishra

Mr.NitinKatyal

Mr.AnoopSingh

Ms.BhawanaJain

Mr.PratikKapoor

Mr.SanjeevMeghani

Mr.ManishDodeja

Mr.IrvinderSinghKohli

Mr.KamalKumarKaushik(w.e.f.May29,2018tillJuly16,2019)

Mr.ShamLalMohan

Lt.Gen(Retd.)ShamsherSinghMehta

Mrs.AshaNair

Dr.ManjushreeGhodke(w.e.f.September18,2019)

Mr.SanjayChandel(w.e.f.December13,2019)

Ms.JaishriChandel(w.e.f.December13,2019)

Mr.TirlockeeChauhan

Mr.GurpreetSinghSidana(w.e.f.September25,2019)

Mr.JayantManglik-(tillSeptember25,2019)





Mrs.SanjanaManglik

Mr.RajenderSinghKaira(w.e.f.June12,2019)

Mr.MohitAdhikari(w.e.f.June12,2019tillDecember31,2020)

Mr.HamidAhmed(w.e.fFebruary10,2021)

Mr.VijayShankarMadan(w.e.fFebruary10,2021)

(d) Enterprises over which KMP and close

members of their families are able to exercise

significant influence with whom transactions have taken place

BayCapitalAdvisorsPrivateLimited

(e) Post-Employment Benefit Plan

ReligareEnterprisesLimitedGroupGratuityTrust

ReligareFinvestLimitedGroupGratuityScheme

ReligareHousingDevelopmentFinanceCorporationLimitedGroupGratuityScheme

ReligareCommoditiesLimitedGroupGratuityScheme

ReligareSecuritiesLimitedGroupGratuityScheme

(f) Subsidiaries / Subsidiaries of Subsidiary *

ReligareCapitalMarketsLimited

ReligareCapitalMarketsInternational(Mauritius)Limited

ReligareCapitalMarkets(Europe)Limited

ReligareCapitalMarkets(UK)Limited

ReligareCapitalMarketsCorporateFinancePteLimited

ReligareCapitalMarkets(Hongkong)Limited

Tobler(UK)Limited

KyteManagementLimited

ReligareCapitalMarkets(Singapore)PteLimited

BartleetWealthManagement(Private)Limited

(formerlyReligareBartleetCapitalMarkets(Private)Limited)

BartleetAssetManagement(Private)Limited

StrategicResearchLimited

BartleetReligareSecurities(Private)Limited

ReligareCapitalMarketsInc.

* Refer Note 2.2 (C)





Following transactions were carried out with related parties in the ordinary course of business at arm’s length basis:

NATURE OF TRANSACTIONS Name of the Related PartyRP

Type

For the Year

Ended on

March 31, 2021

FortheYearEnded on

March31,2020

INCOME

BrokerageEarned

Ms.SanjanaManglik c 0.01 -

Mr.NitinAggarwal c - 0.01

Mr.SanjayChandel c 0.05 -

Ms.JaishriChandel c 0.01 -

Brokerage Earned Total 0.07 0.01

DepositoryCharges

Mr.NitinAggarwal c 0.01 -



ReligareCapitalMarketsLimited f 0.09 0.15

Depository Charges Total 0.31 0.15

LeaseRentalIncome

ReligareCapitalMarketsLimited f - 0.63

Lease Rental Income Total - 0.63

EXPENSES

Director’sSittingFees

Mr.MalayKumarSinha c 64.70 51.80

Mr.SushilChandraTripathi c 48.50 31.00

Ms.SabinaVaisoha c 15.30 19.00

Dr.ManjushreeGhodke c 6.00 6.20

Ms.VijayalakshmiRajaramIyer c 16.00 18.00

Dr.RashmiSaluja c - 48.20

Mr.GurvinderSinghJuneja c - 0.50

Mr.SanjayChandel c 5.60 1.00

LtGen(Retd)ShamsherSinghMehta c 19.00 15.00

Mr.SiddharthDineshMehta c 4.10 3.00

Mrs.AshaNair c 11.40 10.91

Mr.ShamLalMohan c 20.00 15.00

Mr.HamidAhmed c 5.50 -

Mr.VijayShankarMadan c 7.50 -

Director’s Sitting Fees Total 223.60 219.61





Type

For the Year

Ended on

March 31, 2021

FortheYearEnded on

March31,2020RemunerationtoKeyManagementPersonnel*

Dr.RashmiSaluja c

5,202.09 5,225.19

Mr.NitinAggarwal c

Mr.AnujGulati c

Mr.PankajGupta c

Mr.AjayShah c

Mr.ChandrakantMishra c

Mr.NitinKatyal c

Mr.AnoopSingh c

Ms.BhawanaJain c

Mr.PratikKapoor c

Mr.SanjeevMeghani c

Mr.ManishDodeja c

Mr.IrvinderSinghKohli c

Mr.JayantManglik c

Mr.TirlockeeChauhan c

Mr.GurpreetSinghSidana c

Mr.SanjayDPalve c

Mr.GauravKaushik c

Mr.PankajSharma c

Mr.KamalKumarKaushik c

Mr.Gourav Mardia c

Mr.MilindNarendraPatel c

Mr.RahulMehrotra c

Mr.GaganChhabra c

Mr.GurvinderSinghJuneja c

Mr.AshishTyagi c

Mr.MohitAdhikari c

Mr.RajendraSinghKaira c

Remuneration to Key

Management Personnel Total

5,202.09 5,225.19

ContributiontoPostEmploymentBenefitPlans

ReligareHousingDevelopmentFinanceCorporationLimitedGroupGratuityScheme

e 60.97 43.23

ReligareFinvestLimitedGroupGratuityScheme

e 249.14 34.28

ReligareSecuritiesLimitedGroupGratuityScheme

e 268.60 30.72





Type

For the Year

Ended on

March 31, 2021

FortheYearEnded on

March31,2020

ReligareCommoditiesLimitedGroupGratuityScheme

e - 75.10

Contribution to Post

Employment Benefit Plans Total

578.71 183.33

OTHER RECEIPTS AND

PAYMENTS

PurchaseofFixedAsset

Mr.TirlockeeChauhan c - 0.03

Purchase of Fixed Asset

Total

- 0.03

InsuranceClaimsPayment

Mr.SanjeevMeghani c 0.24 -

Insurance Claims Payment

Total

0.24 -

PremiumReceivedinAdvance/CashDeposit

BayCapitalAdvisorsPrivateLimited d 0.19 -

Premium Received in

Advance / Cash Deposit Total 0.19 -

Receipt/RefundofPremium

Dr.RashmiSaluja c 0.28 -

Mr.PankajGupta c 0.01 0.04

Mr.AjayShah c 0.97 0.13

Ms.BhawanaJain c - 0.01

Mr.ManishDodeja c 0.27 0.29

Mr.AnoopSingh c 0.29 0.03

Mr.SanjeevMeghani c - 0.54

Mr.PratikKapoor c - 0.05

LtGen(Retd)ShamsherSinghMehta c - 0.20

BayCapitalAdvisorsPrivateLimited d 3.86 -

Receipt / Refund of Premium Total

5.68 1.29





OUTSTANDING BALANCES Name of the Related Party RP Type As at

March 31, 2021

As at

March31,2020

PAYABLES

SecurityDepositsPayable


Security Deposits Payable Total 2.30 2.30

TradePayable



Other Payables Total 4.64 -

OtherPayables

ReligareCapitalMarkets(HongKong)Limited

f 59.31 60.82


Other Payables Total 65.49 65.13

KMP’sSalaryPayable

Mr.MohitAdhikari c - 1.63

Mr.RajendraSinghKaira c 0.53 1.58

KMP’s Salary Payable Total 0.53 3.21

RECEIVABLES

InterCorporateLoansReceivable


Inter Corporate Loans

Receivable Total

901.60 901.60

ExpectedCreditLossonOutstandingInterCorporateLoans


Expected Credit Loss on

Outstanding Inter Corporate

Loans Total

901.60 901.60

InterestReceivableonInterCorporateLoans


Interest Receivable on Inter

Corporate Loans Total

295.49 353.27

ExpectedCreditLossonInterestReceivableonInterCorporateLoans





OUTSTANDING BALANCES Name of the Related Party RP Type As at

March 31, 2021

As at

March31,2020

Expected Credit Loss on Interest

Receivable on Inter Corporate

Loans Total

295.49 353.27

TradeReceivable**


Trade Receivable Total 0.87 0.77

AdvancegivenforSettlementofCorporateGuarantee

ReligareCapitalMarketsLimited f 1,326.50 1,326.50

Advance given for Settlement of

Corporate Guarantee Total

1,326.50 1,326.50

ExpectedCreditLossonadvancegivenforSettlementofCorporateGuarantee

ReligareCapitalMarketsLimited f 1,326.50 1,326.50

Expected Credit Loss on

advance given for Settlement of


1,326.50 1,326.50

OtherReceivables


Other Receivables Total 545.04 545.37

ExpectedCreditLossonOtherReceivables


Expected Credit Loss on Other

Receivables Total

545.04 545.37

* Remuneration to Key Management Personnel

ParticularsFor The Year Ended On

March 31, 2021 March31,2020

ShortTermEmployeeBenefits 3,834.57 3,195.16

Post-EmploymentBenefits 491.34 475.93

LongTermEmployeeBenefits 3.21 13.17

TerminationBenefits - -

EmployeeShareBasedPayments 872.97 1,540.93

Total 5,202.09 5,225.19

**ECLprovisionagainstthishasbeenmadewithothertradereceivablesofthegroupcompanyusingsimplifiedmethod.




52. Financial Risk Management

TheGroupbusinessactivitiesareexposedtoavarietyoffinancialrisks,namelyliquidityrisk,marketrisks,creditriskandoperational risk.TheBoardofDirectors (“Board”)of the respectiveGroupcompanieshas theoverall responsibility forestablishingandgoverningtheriskmanagementframework.TheBoardhasconstitutedaRiskManagementCommittee,whichisresponsibleforthedevelopmentoftheriskstrategyandimplementingprinciples,frameworks,policiesandlimits.TheRiskManagementCommitteeisresponsibleformanagingriskdecisionsandmonitoringrisklevelsandreportstotheBoard.

The Risk Management Unit is responsible for implementing and maintaining risk related procedures to ensure anindependentcontrolprocessismaintained.ThisunitworkscloselywithandreportstotheRiskManagementCommittee,toensurethatproceduresarecompliantwiththeoverallframework.

The Risk Management Unit along with independent functions Compliance, FCU, Technical Teams is responsible formonitoringcompliancewithriskprinciples,policiesandlimitsacrosstheGroup.TheGroupcompanieshavetheirownunitwhichisresponsibleforthecontrolofrisks,includingmonitoringtheactualriskofexposuresagainstauthorisedlimitsandtheassessmentofrisksofnewproductsandstructuredtransactions.ItistheGroup’spolicythatthisunitalsoensuresthecompletecaptureofrisksinitsriskmeasurementandreportingsystems.TheGroup’spolicyalsorequiresthatexceptionsarereportedperiodically,wherenecessary, to theRiskManagementCommittee,andtherelevantactionsaretakentoaddressexceptionsandanyareasofweakness.

Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also primarilyresponsibleforthefundingandliquidityrisksoftheGroup.

TheGroup riskmanagementpoliciesareestablished to identifyandanalyse the risks facedby theGroup, tosetandmonitorappropriaterisklimitsandcontrols,periodicallyreviewthechangesinmarketconditionsandreflectthechangesinthepolicyaccordingly.ThekeyrisksandmitigatingactionsarealsoplacedbeforetheAuditCommitteeoftheCompany.

ItistheGroup’spolicytoensurethatarobustriskawarenessisembeddedinitsorganisationalriskculture.Employeesareexpectedtotakeownershipandbeaccountablefortherisksthegroupisexposedtothattheydecidetotakeon.TheGroup’scontinuoustraininganddevelopmentemphasisesthatemployeesaremadeawareoftheGroup’s/company’sriskappetiteandtheyaresupportedintheirrolesandresponsibilitiestomonitorandkeeptheirexposuretoriskwithintheGroup’s/company’sriskappetitelimits.Compliancebreachesandinternalauditfindingsareimportantelementsofemployees’annual ratingsand remuneration reviews.Groupalsohas inplace ‘StaffAccountabilityPolicy’which is tomonitortheemployeesperformance.

TheGroup’sprincipalfinancial liabilitiescompriseofborrowings,tradeandotherpayables.ThemainpurposeofthesefinancialliabilitiesistofinancetheGroup’soperations.TheGroup’sprincipalfinancialassetsincludeloansgiven,tradeandotherreceivables,investmentsandcashandcashequivalentsthatarisesdirectlyfromitsoperations.

(A) Liquidity Risk

LiquidityriskariseswheretheGroupisunabletomeetitsobligationsasandwhentheyarise.Liquidityriskmaybemeasuredatastructurallevelandcashflowlevel.Treasurymonitorsrollingforecastsofthecompany’scashflowpositionandensuresthatthecompanyisabletomeetitsfinancialobligationatalltimesincludingcontingencies.TheCompanyaimstomaintainthelevelofitscashandcashequivalents,shorttermliquidassetsinbankdepositsandliquidmutualfundsatanamountinexcessofexpectedcashoutflowonfinancialliabilities.

In NBFC companies to manage structural liquidity level, theAsset Liability Management Policy (“ALM Policy”)envisagesadherencetocertainkeyratiosandgaplimitsinnormalbusinessandunderstressedmarketconditionsandtomanage liquidityriskatcashflowlevel, theALMPolicyenvisagesadherencetocertaingap limitsbasedondynamicliquidityforecasts.Maintaininganoptimalbalancesheetstructureandcashflowpatternsshallbethecornerstoneof the liquidity riskmanagement strategy.Please referNote43 forMaturitypatternof certain itemsofAssetsandLiabilitiesatgroup leveland forcompanyspecificdetailpleaserefer respectiveGroupcompaniesstandalonefinancials.

(B) Market Risk

Marketriskistheriskoflossoffutureearnings,tofairvaluesortofuturecashflowsthatmayresultfromachangeinthepriceofafinancialinstrument.Thevalueofafinancialinstrumentmaychangeasaresultofchangesintheinterestrates,foreigncurrencyexchangeratesandothermarketchangesthataffectmarketrisksensitiveinstruments.Marketriskisattributabletoallmarketrisksensitivefinancial instrumentsincludinginvestments,foreigncurrencyreceivables,payablesandborrowings.

TheGroup’sexposuretomarketriskisafunctionofloansgiven,investmentandborrowingactivitiesandrevenuegenerating inforeigncurrencies.Theobjectiveofmarketriskmanagement istoavoidexcessiveexposureoftheGroup’searningsandequitytolosses.

TheGroupsizeandoperations result in itbeingexposed to the followingmarket risks thatarise from itsuseoffinancialinstruments:




(i) Price Risk, Insurance Risk, Product Risk and Prepayment Risk

→ TheGroup ismainly exposed to the price risk due to its investment in debt securities, governmentsecurities,mutualfunds,etc.Thepriceriskarisesduetouncertaintiesaboutthefuturemarketvaluesoftheseinvestments.

AsatMarch31,2021,theinvestmentsinsuchinstrumentsamountstoRs335,627Lakh(March31,2020:Rs216,573Lakh).Theseareexposedtopricerisk.

TheGrouphaslaidpoliciesandguidelineswhichitadherestoinordertominimisepricingriskarisingfrominvestments.OneofthemajorgroupcompanyisinthebusinessofprovinghealthinsurancewhereinvestmentsaresubjecttotherulesstipulatedbyIRDA.

→ w.r.t.healthinsurancebusiness: Insuranceriskreferstoinherentuncertaintiesastotheoccurrence,badportfolio,amountandtimingof

insuranceliabilities.Productrisk istheriskassociatedfromdevelopinganddistributingnewproducts.This includes the risk that the product features do not conform to regulatory requirements, are notsupportedby thesystemand/or theproduct termsandconditionsarenot transparentormisleadingforthecustomers.Thepricingriskresultswheretheproductsareeithernotprofitableorthepricingisuncompetitiveorunfair. Italsoresultswhenassumptionswith respect to liabilities /claims,costsandreturnsassociatedwith thesaleofaproductare inaccuratelyestimated.Tomitigate this thesame isconstantlyreviewedbyappointedactuarywhosuggestschangesinpriceincaseoftheserisk.

Subsidiary also defines underwriting guidelines for each product including the nonmedical limits fordifferentagecategories.

→ w.r.t.NBFC: Prepayment risk is the risk that the company will incur a financial loss because its customers and

counterpartiesrepayorrequestrepaymentearlierorlaterthanexpected,suchasfixedratemortgageswheninterestratesfall.

TheNBFCcompaniesuseregressionmodelstoprojecttheimpactofvaryinglevelsofprepaymentonitsnetinterestincome.Themodelmakesadistinctionbetweenthedifferentreasonsforrepayment(e.g.,relocation,refinancingandrenegotiation)andtakesintoaccounttheeffectofanyprepaymentpenalties.Themodelisbacktestedagainstactualoutcomes.

(ii) Foreign Exchange Risk

Foreignexchangeriskistheriskofimpactrelatedtofairvalueorfuturecashflowsofanexposureinforeigncurrency,whichfluctuateduetochangesinforeignexchangerates.

TheGroup’sexposure to the riskof changes in foreignexchange rates relates to foreigncurrencyvendorpayments.ForeigncurrencyexposureoftheGroupisnotsignificantconsideringthesizeandnatureofbusiness.

(iii) Interest Rate Risk

TheGroupisexposedtointerestrateriskwhichislikelytoariseduetoafundamentaldurationmismatchofassetsandliabilities,onaccountofshorttermgapbetweendisbursementsandraisingthematchingliability.Additionally,mismatchesbetweenfloatingandfixedassetsandliabilitiesareexpectedtoenhanceinterestraterisk.SincetheGroupreliesonbankfinanceforfundinganditfindsitsdifficulttopasstherevisioninbaseratesbybankstocustomersimmediately,generalincreaseininterestratesislikelytoaffecttheNIMsoftheNBFCcompanies.Containingdurationmismatchesandmaintaininganequitablemixoffixed-floatingassetsandliabilitiesshallbethecornerstoneofinterestrateriskmanagementstrategy.

(C) Credit Risk

CreditriskistheriskthattheGroupwillincuralossbecauseitscustomersorcounterpartiesfailtodischargetheircontractualobligations.TheGroupmanagesandcontrolscreditriskbysettinglimitsontheamountofriskitiswillingtoacceptforindividualcounterpartiesandforgeographicalandindustryconcentrationsandbymonitoringexposuresinrelationtosuchlimits.

InNBFCcompaniesoftheGroup,creditriskismonitoredbythecreditriskdepartmentoftherespectivecompany’sindependentRiskManagementUnit.Itistheirresponsibilitytoreviewandmanagecreditrisk,includingenvironmentalandsocialriskforalltypesofcounterparties.Creditriskconsistsoflinecreditriskmanagerswhoareresponsiblefortheirbusinesslinesandmanagespecificportfoliosandexpertswhosupportboththelinecreditriskmanager,aswellasthebusinesswithtoolslikecreditrisksystems,policies,modelsandreporting.

NBFCcompanieshasestablishedacreditqualityreviewprocesstoprovideearlyidentificationofpossiblechangesinthecreditworthinessofcounterparties,includingregularcollateralrevisions.Counterpartylimitsareestablishedbytheuseofacreditriskclassificationsystem,whichassignseachcounterpartyariskrating.Riskratingsaresubjecttoregularrevision.ThecreditqualityreviewprocessaimstoallowtheGrouptoassessthepotentiallossasaresultoftheriskstowhichitisexposedandtakecorrectiveactions.




(D) Operational Risk

Operationalriskistheriskoflossarisingthroughfraud,unauthorizedactivities,error,omission,inefficiency,systemsfailureorfromexternalevents.Itisinherenttoeverybusinessorganizationandcoversawidespectrumofissues.Thetermserror,omissionandinefficiencyincludesprocessfailures,systems/machinefailuresandhumanerror.Operationalriskalsoincludescompliancerisksanddistributionrisks.

TheGroupcannotexpecttoeliminatealloperationalrisks,butitendeavourstomanagetheserisksthroughacontrolframeworkandbymonitoringand responding topotential risks.Controls includeeffectivesegregationofduties,access,authorisationandreconciliationprocedures,staffeducationandassessmentprocesses,suchastheuseofinternalaudit.Further,grievanceandcustomerscomplaintsarereviewedonperiodicbasis.

(E) Compliance Regulatory Legal Risk

ComplianceRegulatoryLegalRisk is theriskarising fromnon-adherencetoprescribed law in force,regulations,policies,proceduresandguidelineswhichmaygiverise toregulatoryactions, litigations,deficiency inproductorservicesdependingonthelevelofnon-adherence.Thecorporategovernancefunctionisprimarilydesignedtoavoidincurrenceofcompliance-regulatory-legalrisk.

(F) Strategic Business Risk

Strategicrisksarebasicallythoseriskwhicharetypicallymanagedbythetopmanagementgroupandaretacticalinnaturesuchascontinueordiscontinueaproductline,scalingupordownthebusiness,majorinvestmentdecision,keyborrowings,mergersoracquisitionsetc.

(G) Reputational Risk

RELisalsoexposedtoreputationriskarisingfromfailuresingovernance,businessstrategyandprocess,regulatory-complianceandlegalrisk.TheserisksaregenerallycoveredunderOperationalrisks.ReputationalriskistheriskofpotentialdamagetotheGroupduetodeteriorationofitsreputation.ThereputationoftheGroupmaysufferasaresultofitsfailuretocomplywithlaws,regulations,rules,reportingrequirements,standardsandcodesofconductapplicable to its activities, rather than compliancewith the internal limits or procedures. Proactivemeasures tominimizetheriskoflosingreputationcouldbeasoundriskmanagementframework,goodcorporategovernancehighlevelethicsandintegrity,rigorousantimoneylaunderingprocedures,goodbusinesspracticesandreportingofallbreacheswhichleadtoreputationalrisktotheattentionofseniormanagementandtheboard.

Management of subsidiaries and support functions of REL should take into consideration above basic riskcategorizationanddevise theirown riskcumcontrolmatrix foreachof theproduct line,segment,businessandoperations.

53. Capital Management

TheGroup’sobjectiveswhenmanagingcapitalareto:

#safeguardtheirabilitytocontinueasgoingconcern,sothattheycancontinuetoprovidereturnsforshareholdersandbenefitsforotherstakeholders;

#maintainanoptimalcapitalstructuretoreducethecostofcapital;

#ensurecomplianceswithregulatorycapitalrequirements;and

#maintainstrongcreditratingsandhealthycapitalratiosinordertosupportitsbusiness.

Inordertomaintainandadjustthecapitalstructurethegroupissuesnewsharesand/orsellsassetstoreducedebts.

Forthepurposesofthedifferentcompanies’capitalmanagement,capitalincludesissuedcapital,sharepremiumandallotherequityreservesattributabletotheequityholders.

Consistentwithotherinindustries,thegroupcompaniesmonitorcapitalonthebasisofdifferentgearingratios.Further,mostofthegroupcompaniesareregulatedentitiesanditisnecessarythattheyhavesufficientcapitaland/ornetworthtomeettheregulatoryrequirements.Allregulatedcompaniesensureadherencetoregulatoryrequirementswithasafetymargin.However,CapitaltoRiskWeightedAssetsRatio(“CRAR”)ofReligareFinvestLimited,asonMarch31,2021,isbelowtheprescribedlimit.(AlsoreferNote22A)

54. Other Notes

(a) TheMicro,SmallAndMediumEnterprisesDevelopment(“MSMED”)Act,2006:

Rs244.51LakhwasoutstandingtoMicro,SmallandMediumEnterprisesasatMarch31,2021(March31,2020:Rs145.70Lakh).Noamountwasoverdue(i.e.outstandingformorethan45days)duringtheyearsforwhichdisclosurerequirementsunderMicro,SmallandMediumEnterprisesDevelopmentAct,2006areapplicable.





S.No Particulars As at

March 31, 2021

As at

March31,2020

(a) the principal amount and the interest due thereon (to be shownseparately) remaining unpaid to any supplier at the end of eachaccounting year;

-principalamount 244.51 145.70

-interestdue - -

(b) theamountofinterestpaidbythebuyerintermsofSection16oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006,alongwith the amount of the payment made to the supplier beyond theappointed day during each accounting year;

- -

(c) theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedunderMicro,SmallandMediumDevelopmentAct,2006

- -

(d) theamountofinterestaccruedandremainingunpaidattheendofeachaccounting year; and

- -

(e) theamountoffurtherinterestremainingdueandpayableeveninthesucceedingyears,until suchdatewhen the interestduesaboveareactuallypaidtothesmallenterprises,forthepurposeofdisallowanceofadeductibleexpenditureunderSection23oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006

(b) Exceptional Item - Expense Towards Capital Commitment

InrelationtoorderdatedMarch21,2018passedbyHon’bleDebtRecoveryTribunal–II,NewDelhi(“DRT–II”)intheOriginalApplication(“OA”)filedbyAxisBankLimitedinwhichapartfromotherparties,theCompany,ReligareCapital Markets Limited (“RCML”), and Religare Capital Markets International (Mauritius) Limited (“RCMIML”),havebeenmadepartiesforrecoveryofRs.31,293.93LakhinrelationtoaloanfacilityobtainedbyRCMIMLfromAxisBankwhichwas,interalia,securedbypersonalguaranteesexecutedbyMr.MalvinderMohanSinghandMr.ShivinderMohanSinghandcertainother securitiesprovided toAxisBank.TheCompanyhasnotprovidedanyguarantee / securities in relation to the facility obtainedbyRCMIML fromAxisBank.RELhasexecutedaNon-DisposalUndertaking(“NDU”) infavourofAxisBankstatingthatuntil therepaymentof the loantoAxisBankbyRCMIML,RELshallnotalienatethesharesinCareHealthInsuranceLimited(formerlyknownasReligareHealthInsuranceCompanyLimited).RELhasbeenmadeapartytotheproceedingsbasedontheNDUandcertainotheractionstakenbyit.Inthematter,inviewofthefullandfinalpaymentofRs17,000LakhmadebytheCompanytoAxisBankintermsoftheConsentAgreementdatedOctober1,2019enteredintobetweentheCompany,RCML,RCMIMLandAxisBank,theHon’beTribunalhasvideitsorderdatedJuly13,2020hasdeletedREL,RCMLandRCMIMLfromthearrayofpartiesinviewoffullandfinalsettlementandInterimorderspassedonMarch21,2018andAugust26,2019againstREL,RCMLandRCMIMLstandvacated.TheaccountingimpactofRs17,000LakhonthefinancialresultsfortheyearendedMarch31,2020hasbeentakenanddisclosedasanexceptionalitem.TheCompanypaidRs1,700LakhduringFY2019-20andbalanceofRs15,300LakhpaidinJune,2020.

(c) TheNBFCsinthegrouphavedisbursedloansagainstmortgageofproperties,andtheborrowershaveassignedtheirleaserentals,fees,creditcardreceivable,projectreceivableetc.throughescrowtowardsrepaymentofEMIs/installments.TheborrowershaveopenedtheiraccountswithcertainbanksunderescrowtotheNBFCcompanies.Theaforesaidescrowaccountsdonotformpartofthesefinancialstatements.

(d) SecuritiesreceivedfromclientsbythesubsidiariesoftheCompanyinthebusinessofstockbroking,ascollateralformargins,areheldbythesubsidiarycompaniesinitsownnameinafiduciarycapacity.

(e) TheBoardofDirectorshadappointedMr.SubramanianLakshminarayananandMr.FrancisDanielLeeasExecutiveChairmanandExecutiveDirectoronNovember14,2017andNovember17,2017respectivelysubjecttoapprovalofshareholders.TheyceasedtobeExecutiveDirectorsoftheCompanyw.e.f.January22,2018andJanuary24,2018respectively.TheshareholdersoftheCompanyattheAnnualGeneralMeetingheldonSeptember20,2018didn’taccordapprovalforpaymentofremunerationtoabovesaiddirectorsfortheirtenureasExecutiveDirectors.Accordingly,U/s197(9)oftheCompaniesAct,2013,theCompanyhassentnoticesforrefundtheremunerationofRs




82.61LakhandRs4.36Lakhpaidtothemrespectively.Theyhavenotrefundedtheamounttilldate.TheCompanyhassubmittedanComplaint/ApplicationwiththeROC,DelhiforAdjudicationofPenaltyunderSection454oftheCompaniesAct,2013inSeptember2019torecovertheamount.However,noreplyhasbeenreceivedfromtheROCinthemattertilldate.Therecoverywillbeaccountedonrealisation.

(f) Theapplicationforre-classificationofpromoters/promotersgroupintopublicshareholderscategorywassubmittedtothestockexchangesonJuly31,2020postreceiptofapprovalofshareholders.SubsequenttothebalancesheetdatetheCompanyhasreceivedapproval,undertheprovisionsofRegulation31AoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBIListingRegulations”),fromboththestockexchangesviz.NationalStockExchangeofIndiaLimitedandBSELimitedonJune11,2021andJune12,2021respectively,forre-classificationofthefollowingPromotersandPromoterGroupasPublicShareholders:

(1) MalvinderMohanSingh (5) AbhishekSingh

(2) ShivinderMohanSingh (6) RHCFinancePrivateLimited

(3) JapnaMalvinderSingh (7) RHCHoldingPrivateLimited

(4) AditiShivinderSingh (8) PSTrust (heldinthenameofMalvinderMohanSingh&ShivinderMohanSingh)

However,nowconsequenttotheapprovalofre-classificationofPromotersintoPublicCategory,NimritaParvinderSinghisautomaticallyoutofPromoterGroupasdefinedinSEBIICDRRegulationsandhencewillnotbeclassifiedunderthePromoters/PromotersGroupintheShareholdingPatternoftheCompanyfromnowonwards.

ConsequenttoabovetheCompanyhasbecomea“listed entity with no promoters”.

(g) (i) ReserveBankofIndia(“RBI”)videletterdatedFebruary25,2021issuedaRiskAssessmentReport(“RAR”)andtheInspectionReport(“IR”)totheCompanyforfinancialyearendedMarch31,2020.Further,RBIissuedSupervisoryLetterdatedApril26,2021 in thematter.TheCompany is in theprocessof responding to thesame.

(ii) InaccordancewiththeSecuritiesandExchangeBoardofIndia(SettlementProceedings)Regulations,2018andguidelinesandcircularsissuedbySEBI,theCompanyhasfiledaJointSettlementApplicationonMarch31,2021againsttheShowCauseNoticedatedNovember17,2020receivedbytheCompanyfromSEBIinthematterofinvestigationofReligareEnterprisesLimitedinitiatedinFebruary2018.

(iii) InthematterofMalvinderMohanSinghvs.ReligareEnterprisesLimited&Ors.,inHon’bleDelhiHighCourt,Mr.MalvinderMohanSinghhasfiledSuitfordeclarationthatterminationofIndemnityandReleaseAgreementdatedNovember14,2017bytheCompanyisunlawful.NonoticeisissuedonthesaidPetition.RELhasraisedobjectionsregardingmaintainabilityofsuit.Thematterissub-juidice.

(h) ReligareAdvisorsLimited,awhollyownedsubsidiaryofReligareBrokingLimited(“”RBL””),awhollyownedsubsidiaryof theCompanyhasdefaulted in the redemptionof8,400,000,0.01%CumulativeNon-ConvertibleRedeemablePreferenceSharesheldbyRBL.ThesesharesweredueforredemptionduringtheperiodMarch,2019toMarch,2021(March4,2019:1,000,000Shares;March26,2019:1,500,000Shares;April29,2019:900,000Shares;May4,2019:1,000,000Shares;June1,2019:1,000,000Shares;July3,2019:1,000,000SharesandJuly21,2020:2,000,000Shares).

AspertheprovisionsofCompaniesAct,2013,PreferenceSharescanberedeemedeitherfrom(i)ProfitsavailablefordistributiontoitsshareholdersasDividend(ii)Proceedsofsharesissuedsolelyforthepurposeoffundingtheredemptionof thepreference shares. In light of thenegative reservesand surplus or other equity, theReligareAdvisorsLimitedcouldn’tredeemitsPreferencessharesdueforredemptiondurningtheperiodMarch2019toMarch2021respectively.

TheRALisindiscontinuedoperationandthefinancialstatementshavenotbeenpreparedunderthegoingconcernassumptionandallassetsandliabilitieshavebeenstatedattheirnetrealizablevalues.Adjustmentsrelatingtotherecoverabilityandclassificationofrecordedassetamountortoclassificationofliabilitiesthatmaybenecessaryhavebeenmadebasedonmanagement’sassessmentofthesame.

(i) PursuanttotheCompositeSchemeofArrangementapprovedbythePrincipalbenchoftheNationalCompanyLawTribunal(“NCLT”),NewDelhionDecember8,2017,BrokingbusinessofReligareSecuritiesLimited(“DemergedCompany”)havebeen transferred toandvested in theReligareBrokingLimited (“theResultingCompany”)withretrospectiveeffectfromApril1,2016,theAppointedDate.However,therearecertainlicenses,titlesandaccountswhicharestillappearing in thenameofDemergedCompanyandthesameis inprocessofgetting transferred/changed/surrenderedfromDemergedCompanytotheResultingCompany.Further,pursuanttoabove,thereisnoimpactonthefinancialstatements.

(j) (i) Duringtheyear,basedonrequestsreceivedfromReligareEnterprisesLimited(“REL”)andReligareComtradeLimited (“RCTL”), subsidiaries of the Company; the Risk Management Committee,Audit Committee, andBoard ofDirectors of theReligare Finvest Limited (“RFL”) have agreed for settlement of loans amount at




principaloutstandingofRs18,550LakhandRs12,500LakhoutstandingfromRELandRCTLrespectivelyandtheSettlementAmountispayablebythemwithintwoyears(onorbeforeApril30,2022).Theentirecurrentaccruedand future interest component andall other charges till thedate of actual payment ofSettlementAmountisbeingwaivedoff.Further,incasetheCompanydivestsitsholdinginRFL,partlyorfully,theLoanSettlementwillbeaccelerated,inawaythattheproceedsofdivestmentshallbefirstutilizedforacceleratingtheSettlement.

(ii) IntercorporateLoan(OutstandingbalanceofRs.6,893.99Lakh)borrowedfromsubsidiary,RCTLinpreviousyears.DuringthepreviousfinancialyearRCTLagreedtowaiveofcurrentandfutureinterestcomponentandotherfinancialchargesthatmayhaveaccruedormayaccrueinfutureontheseloan.

(k) SecuritiesandExchangeBoardofIndia(“SEBI”)hasissuedshowcausenoticedatedSeptember25,2018toReligareCommoditiesLimited(”RCL”),asubsidiaryoftheCompany,forallegedviolationofregulation5(e),9(b)&9(f)ofSEBI(StockBroker&SubBroker)Regulations,1992.IthasbeenfoundbySEBIthatpairedcontractsfloatedbyNationalSpotExchangeLimited(“NSEL”)wereincontraventionofprovisionsofForwardContractRegulationActandcentralgovernmentnotificationdatedJune05,2007oncommodityspotcontracts.Undertheabovenotificationtheexemptiontospotcontractswasonlyforonedayforwardcontractssubjecttocertainconditionsinter-aliaincluding“noshortsalebythemembersofexchangeandalloutstandingpositionsofthetradesattheendofdayshallresultintodelivery.FMCconductedenquiryonabovecontractsofNSELandfoundthatNSELboardallowedsuchcontractswereultimatelyinthenatureoffinancialtransactions.RCLbeingthememberofNSELenteredtradesonbehalfofclientsforsuchpairedcontractsatNSELatthattime.SEBIhasallegedRCLasnotaFit&ProperpersontocontinueasStockBrokerandadvisedtosubmitreplyastowhyactionshouldnotbeundertakeagainstRCLunderregulation27ofSEBI(Intermediaries)Regulations.RCLhassubmittedthereplyonOctober16,2018withSEBI.

Further,SEBIvideitsletterdatedOctober16,2019hassoughtwrittenexplanationonthesaidmatterandRCLhassubmittedthereplyonNovember22,2019withSEBI.

SEBIhasvideitsnoticedatedFebruary24,2020hadcalleduptoshowcauseastowhytheinformation/materialbroughtoutalongwithenquiryreportconcerningthefitandproperpersoncriterionshouldnotbeconsideredandastowhytheactionrecommendedbytheDesignatedAuthorityoranyotheractionshouldnotbetakenagainstRCLasdeemedfitbytheCompetentAuthority,underRegulation28(2)ofintermediariesRegulations.RCLhassubmittedreplywithSEBIonApril09,2020.

SincetradinghasbeensuspendedinNSELbytheMinistryofFinanceduetoaboveallegedcontracts,theexchangerecoverableandclientobligationsofRs411.54Lakh(March31,2020:Rs411.54Lakh)havebeendisclosedunderTradeReceivableandTradePayablerespectively.TheCompanywillimmediatelysettlethebalancesofitsclientsasandwhenNSELpaysoff.

(l) TheCompany has received a letter dated February 28, 2018 fromSerious Fraud InvestigationOffice (“SFIO”),MinistryofCorporateAffairs(“MCA”),GovernmentofIndia,intimatingtheCompanythattheMCAhasorderedaninvestigationintotheaffairsoftheCompanybytheSFIO.TheinvestigationisgoingonasondateandinformationsoughtbySFIOforCompanyanditssubsidiariesthroughvariouscommunicationsisbeingprovided.

(m) In thematterofan investigationof thecompany initiatedbySEBI inFebruary,2018,SEBIvide itsOrderdatedNovember12,2020,has issueddirections to initiateadjudicationproceedingsunderappropriate legalprovisionsagainst certain entitiesmentioned in the saidOrder. Subsequently onNovember 17, 2020, SEBI has issued ashowcausenoticetoRELtoshowcausewhyappropriatedirections,asdeemsfit,shouldnotbeissuedagainstitunderspecifiedsectionsofSEBIActandSCRAActanditfurthercalledupontoshowwhyappropriatedirectionsforimposingpenaltyundervarioussectionsoftheSEBIAct,SEBIRulesandSCRAActshouldnotbeissuedagainstREL.

ThefinalsetofdocumentsrequestedbyRELvideitsletterdatedDecember27,2020werereceivedfromSEBIonJanuary30,2021basiswhichthepreliminaryreplywassubmittedwithSEBIbyRELonFebruary11,2021.Further,duringthehearingdatedMarch15,2021,theproposalforfilingofSettlementApplicationonbehalfofReligarewaspresentedbeforeSEBIandpursuanttosame,theSettlementApplicationhasbeensubmittedwithSEBIonMarch31,2021.

(n) “ReligareGlobalAssetManagement Inc.,USA (“RGAM Inc”),asubsidiaryof theCompanyandoneof its thenaffiliates,LandmarkPartnersLLC(“Landmark”)receivedanoticeofadjustmentfromtheInternalRevenueService(“IRSNotice”)forthereversalofamortizationexpenseintheamountofUS$10,269,136relatingtoRGAMInc.’sacquisitionofLandmarkinyear2011.

InSeptember,2016,LandmarkfiledaPetitionwith theUnitedStatesTaxCourt forReadjustmentofPartnershipItemsunderCodeSection6226(a)andprayingthatitbedeterminedthattheamortizationadjustmentsproposedtobemadeunderthenoticebereversed.

AMotionforEntryofDecisionalongwithaproposeddecisiontobeenteredbytheTaxCourtconcedingtheamortizationdeductionwasfiledbyIRSonMarch1,2019.Pursuantly,theTaxCourtenteredanOrderandDecisiononMay13,2019whichcontainedtheAgreementofthepartieswhereintheamortizationdeductionwouldbeconcededbytheIRSandallowedinfull.Consequently,thecasewasconcluded.




(o) Religare Business Solutions Limited (“RBSL”), a step down subsidiary of the Company has not commencedanycommercialoperationssince incorporationand is inaprocessofmergerwith theCompany. Therefore, thefinancialstatements for theyearendedMarch31,2021havebeenpreparedonnotgoingconcernbasisandallassetsandliabilitieshavebeenstatedattheirnetrealizablevalues.AdjustmentsrelatingtotheirrecoverabilityandclassificationofrecordedassetamountortoclassificationofliabilitiesthatmaybenecessaryhavebeenmadebasedonManagement’sassessmentofthesame.

(p) Pursuant to RBI direction following are the details of the companies not consolidated {Refer Note 2.2 (C)}:

ReligareCapitalMarketsLimited(“RCML”)istheholdingcompanyofundermentionedsubsidiaries.ThelastauditforRCMLwascarriedoutforthefinancialyearendedMarch31,2017.Sincethen,RCMLdoesnothaveafunctionalboardowingtowhichauditedfinancialstatementsforsubsequentyearstillFY2021,arenotavailable.Therefore,reportinghasbeendoneonthebasisoflastauditedconsolidatedfinancials.


Name of Entity Nature of Business GAAP Size of

Assets

(Amount)

Debt-Equity

Ratio

Net Profit (Amount)

FY 2016-17 FY 2016-17 FY 2016-17


InstitutionalEquitiesBrokingandInvestmentBanking

IGAAP 21,976.03 (1.05) (51,644.34)

ThedetailsofthesubsidiarycompaniesconsideredintheabovementionedRCMLconsolidatedfinancialstatementsareasunder:

S.

No.

Name of Entity Proportion

of ownership

Interest as

at March 31,

2017

Country of

Incorporation

Nature of Business

1 ReligareCapitalMarketsInternational(Mauritius)Limited

100% Mauritius ThecompanyisanInvestmentHoldingcompanyhavingCategoryGBL-1 License fromFinancialServicesCommission(FSC),Mauritius.

2 ReligareCapitalMarkets(Europe)Limited(RCME)(FormerlyknownasReligareCapitalMarketsPlc.)

100% United

Kingdom

The companywas engaged in the business ofsecurities broking and investment banking andregulatedbyFinancialConductAuthority(FCA),UK.The licensewassurrendered in year2013andcurrentlyithasnobusinessoperations.

3 ReligareCapitalMarkets(UK)Limited

100% United

Kingdom

The companywas engaged in the business ofprovidingcorporatefinanceanditwasregulatedbyFCA,UK.Thelicensewassurrenderedinyear2012andcurrentlyithasnobusinessoperations.

4 ReligareCapitalMarketsCorporateFinancePte.Ltd.

100% Singapore The company was engaged into business ofadvisingon corporate finance. Itwas regulatedby Monetary Authority of Singapore (MAS),Singapore.Thelicensewaslapsedinyear2017andcurrentlyithasnobusinessoperations.

5 ReligareCapitalMarketsInc

100% USA The company was a registered broker dealerengagedinsecuritiesbrokinganditwasregulatedby Securities Exchange Commission (SEC),USA.Thelicensewassurrenderedinyear2012andcurrentlyithasnobusinessoperations.

6 ToblerUKLimited 100% United

Kingdom

Thecompanyhasnobusinessoperations.

7 ReligareCapitalMarkets(HK)Limited

100% HongKong The company was engaged into securitiesbrokingbusiness.ItwasregulatedbySFC,HongKong.Thelicensewassurrenderedinyear2017andcurrentlyithasnobusinessoperations.




S.

No.

Name of Entity Proportion

of ownership

Interest as

at March 31,

2017

Country of

Incorporation

Nature of Business

8 ReligareCapitalMarkets(Singapore)PteLimited

100% Singapore The company was engaged into securitiesbroking business. It was regulated by MAS,Singapore.Thelicensewassurrenderedinyear2017andcurrentlyithasnobusinessoperations.

9 KyteManagementLimited

100% BVI The company is a holding company in BritishVirgin Island. It had operating subsidiariesnamelyReligareCapitalMarkets (HongKong )LimitedandReligareCapitalMarketsSingaporePte.Limited.

10 BartleetReligareSecurities(Private)Limited(BRSL)

50% SriLanka Thecompanyisengagedintosecuritiesbrokingbusiness. It is regulated by SEC andCSE, SriLanka.

11 BartleetAssetManagement(Private)Limited

50% SriLanka The company is engaged in the businessinvestment advisory services. It is regulatedbySEC,SriLanka.

12 StrategicResearchLimited

50% SriLanka The company is engaged in equity research

activities.13 ReligareBartleet

CapitalMarket(Private)Limited

50% SriLanka The company was engaged in the businessof providing wealth management services.Currently,ithasnobusinessoperations.

(q) ReligareComtradeLimited(“RCTL”)havefiledarbitrationapplicationonDecember31,2018withNationalStockExchangeof IndiaLimited (“NSE”)againstArchFinanceLimited (“AFL”) for the refundofmoney [email protected]%.TheNSEarbitrationpanelpassedawell-reasonedawarddatedApril24,2019whereinitupheldRCTL’sclaimofRs525LakhagainstAFL.However,itreducedtherateofinterestfrom11.75%to8%p.a.payablefromdateofdeposittilldateofpayment.TheimpugnedawardwaslateronchallengedbyAFLandthesaidappealwasdismissedbyNSEAppellateArbitralTribunalvideappellateawarddatedOctober4,2019.SinceAFLdidfileanyfurtherchallenge,NSEreleasedtheawardamountalongwithinteresti.e.Rs670.19Lakh(approx.)totheRCTL(netamountreceivedinJanuary,2020wasRs658.19Lakh(approx.)afteradjustingamountofRs12LakhwhichwasearlierdepositedbyAFLintoPANofRCTLtowardsTDSobligation).

55. Previous Years Figures

Previousyears’figureshavebeenregrouped,re-arrangedandreclassifiedwherevernecessarytoconformtothecurrentyear’sclassification.


Signature to Note 1 to 55 Forming Part of the Financial Statements




Sd/- Sd/- NITIN AGGARWAL REENA JAYARA Group-CFO CompanySecretary Membership No. A19122Place : New Delhi Place : New Delhi



Form AOC - 1F

OR

M A

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- 1

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suan

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first

pro

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4)StatementcontainingsalientfeaturesofthefinancialstatementsofS

ubsidiaries/AssociateCom

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entures

Part

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” :

Su

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1S

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12

34

56

2N

am

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ub

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itie

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alt

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ran

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an

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or

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d

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are

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Lim

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d

3T

he d

ate

sin

ce w

hen

su

bsid

iary

was a

cq

uir

ed

September

30,2005

July20,

2016

April1,2006

April2,2007

Decem

ber

20,2013

June24,

2010

4R

ep

ort

ing

Peri

od

if

dif

fere

nt

fro

m H

old

ing

Co

mp

an

yN.A.

N.A.

N.A.

N.A.

N.A.

N.A.

5R

ep

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Cu

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INR

INR

INR

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as o

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of fi

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ear

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

7E

qu

ity S

hare

Cap

ital (R

s in

Lakh

)26,209.53

18,079.58

200.00

84,104.22

93.98

3,712.67

8O

ther

Eq

uit

y (

Rs in

Lakh

)(78,667.21)

(4,158.89)

6,095.56

24,662.85

(18.48)(14,681.42)

9To

tal A

ssets

(R

s in

Lakh

)497,129.19

77,153.52

6,789.02

303,575.53

82.37

7,038.65

10

To

tal L

iab

ilit

ies (

Rs in

Lakh

) (E

xclu

din

g E

qu

ity a

nd

Oth

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Eq

uit

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549,586.87

63,232.83

493.46

194,808.46

6.87

18,007.40

11

Investm

en

ts (

Rs in

Lakh

)79,615.38

954.06

2,590.00

268,848.65

--

12

To

tal R

even

ue^

(R

s in

Lakh

)29,556.97

24,087.15

531.87

190,444.78

12.15

29.01

13

Profi

t / (L

oss)

Bef

ore

Taxa

tion

(Rs

in L

akh)

(57,537.56)

776.31

493.46

7,392.45

(8.08)

(530.09)

14

Pro

vis

ion

fo

r Taxati

on

(R

s in

Lakh

)13.93

241.38

126.54

(2,682.04)

4.25

-

15

Profi

t / (L

oss)

Afte

r Tax

atio

n (R

s in

Lak

h)(57,551.49)

534.93

366.92

10,074.49

(12.33)

(530.09)

16

Oth

er

Co

mp

reh

en

siv

e In

co

me (

Rs in

Lakh

)241.80

150.19

-2,428.95

--

17

To

tal C

om

pre

hen

siv

e In

co

me (

Rs in

Lakh

)(57,309.69)

685.12

366.92

12,503.44

(12.33)

(530.09)

18

Pro

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sed

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iden

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Rs in

Lakh

)-

--

--

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%

of

sh

are

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(Eq

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as

on

la

st

date

o

f

finan

cial

yea

r100.00%

100.00%

100.00%

70.71%

99.99%

100.00%


Form AOC - 1

Part

“A

” :

Su

bsid

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es*

1S

l. N

o.

78

91

011

2N

am

e o

f th

e S

ub

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ors

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(fo

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kn

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an

ag

em

en

t

Lim

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)

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gare

Bu

sin

ess

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luti

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s

Lim

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Reli

gare

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bal A

sset

Man

ag

em

en

t

Inc.

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lig

are

Ins

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nc

e

Lim

ite

d

Re

lig

are

Ho

us

ing

De

ve

lop

me

nt

Fin

an

ce

Co

rpo

rati

on

Lim

ite

d

3T

he d

ate

sin

ce w

hen

su

bsid

iary

was a

cq

uir

ed

March15,2007

October20,

2016

Decem

ber1,

2010

July21,2016

June15,2009

4R

ep

ort

ing

Peri

od

if

dif

fere

nt

fro

m H

old

ing

Co

mp

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yN.A.

N.A.

N.A.

N.A.

N.A.

5R

ep

ort

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Cu

rren

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INR

INR

USD

INR

INR

6Ex

chan

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ate

as o

n la

st d

ate

of fi

nanc

ial y

ear

N.A.

N.A.

73.24

N.A.

N.A.

7E

qu

ity S

hare

Cap

ital (R

s in

Lakh

)2,432.00

4.00

-0.50

3,999.80

8O

ther

Eq

uit

y (

Rs in

Lakh

)(3,681.91)

(4.08)

(108.67)

(0.45)

17,096.02

9To

tal A

ssets

(R

s in

Lakh

)731.40

0.17

59.04

0.05

49,658.12

10

To

tal L

iab

ilit

ies (

Rs in

Lakh

) (E

xclu

din

g E

qu

ity

an

d O

ther

Eq

uit

y)

1,981.31

0.25

167.71

-28,562.30

11

Investm

en

ts (

Rs in

Lakh

)-

--

-4,905.22

12

To

tal R

even

ue^

(R

s in

Lakh

)50.78

-0.18

-8,251.30

13

Profi

t / (L

oss)

Bef

ore

Taxa

tion

(Rs

in L

akh)

(27.48)

(0.72)

(3.44)

-1,212.09

14

Pro

vis

ion

fo

r Taxati

on

(R

s in

Lakh

)-

--

-300.59

15

Profi

t / (L

oss)

Afte

r Tax

atio

n (R

s in

Lak

h)(27.48)

(0.72)

(3.44)

-911.50

16

Oth

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Co

mp

reh

en

siv

e In

co

me (

Rs in

Lakh

)-

--

-3.52

17

To

tal C

om

pre

hen

siv

e In

co

me (

Rs in

Lakh

)(27.48)

(0.72)

(3.44)

-915.02

18

Pro

po

sed

Div

iden

d (

Rs in

Lakh

)-

--

--

19

% o

f sh

are

ho

ldin

g (

Eq

uit

y)

as o

n last

date

of

finan

cial

yea

r100.00%

100.00%

100.00%

100.00%

87.50%

*SubsidariesasperIndAS.(ReferNote2.2(C)oftheConsolidatedFinancialStatements.)

^Incaseofforeignsubsidiariestotalincom

eisconvertedatmonthlyaverageexchangerate.

Nam

es o

f su

bsid

iari

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hic

h a

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et

to c

om

men

ce o

pera

tio

ns

Sl. N

o.

Nam

e o

f th

e C

om

pan

y(1)


(2)

ReligareBusinessSolutionsLimited

F

or

an

d o

n b

eh

alf

of

the B

oard

of

Dir

ecto

rs

Sd/-

Sd/-

D

r. R

AS

HM

I S

AL

UJA

H

AM

ID A

HM

ED


Director

(D

IN-

01715298)

(D

IN-

09032137)

Sd/-

Sd/-

N

ITIN

AG

GA

RW

AL

R

een

a J

ayara

Group-CFO

Com

panySecretary

Mem

bers

hip

No

. A

19122

Place:New

Delhi

Date

:June22,2021


Form AOC - 1

FORM AOC - 1

Part “B” : Associates and Joint Ventures*

Statement pursuant to section 129(3) of the Companies Act, 2013 related to Associates Companies and Joint Ventures

SI.

No

Name of Associates / Joint Ventures Joint Venture Associate

IBOF Investment

Management Private

Limited

1 Latest audited balance sheet Date March31,2021

2 Date on which the Associate or Joint Venture was

associated or acquired

April8,2009

3 Equity Shares of Associate / Joint Ventures held by the Company on the year end

Numbers 3,499,999

AmountofInvestmentinAssociates/JointVenture(NetofAllowanceforImpairmentLoss/Provisions)(RsinLakh)

350.00

ExtendofEquitySharesHolding(%) 50%

4 Description of how there is significant influence ReferNoteAbelow

5 Reason why the associate / Joint Venture is not consolidated

N.A.

6 Net worth attributable to shareholding (of Holding

Company) as per latest audited Balance Sheet (Rs

in Lakh)

13.96

7 Profit / (Loss) for the year i.ConsideredinConsolidation(RsinLakh) (8.41)

ii. Not Considered in Consolidation (Owing toproportionateconsolidationofJointVenture)(RsinLakh)

N.A.

*AssociatesandJointVenturesasperIndAS.

Note A: ThereisSignificantinfluenceduetopercentage(%)ofShareCapital.

For and on behalf of the Board of Directors

Sd/- Sd/- Dr. RASHMI SALUJA HAMID AHMED

ExecutiveChairperson Director DIN- 01715298 DIN-09032137



Place:NewDelhiDate :June22,2021

--------------------------------N

IL--------------------------------


StatementonImpactofAuditQualificationsfortheFinancialYearendedMarch31,2021onAuditedConsolidatedFinancialResults

Statement on Impact of Audit Qualifications for the Financial Year ended March 31, 2021 on Audited Consolidated Financial Results

(Rs. in Lakhs)

S.No. Particulars Audited Figures Adjusted Figures

(as reported

before adjusting

for qualifications)

(audited figures after adjusting for

qualifications)

1 Turnover/TotalIncome 2,53,046.94 2,53,046.94

2 TotalExpenditure(IncludingExceptionalItem) 3,02,784.64 3,03,205.09

3 NetProfit/(Loss)-TotalComprehensiveIncome (44,912.89) (45,333.34)

4 NonControllingInterest 3,776.17 3,723.61

5 Profitattributabletoowner (48,689.06) (49,056.95)

6 EarningsPerShare(EPS)

BasicEPS (19.65) (19.79)

DilutedEPS (19.69) (19.83)

7 Total Assets 8,72,557.15 8,71,911.90

8 TotalLiabilities 8,42,774.99 8,42,774.99

9 NetWorth/Equity(ExcludingNon-ControllingInterest) (4,708.64) (5,353.89)

10 Anyotherfinancialitem(s)(asfeltappropriatebythemanagement)

N.A. N.A.

RELIGARE FINVEST LIMITED

II(a) Audit Qualification :

a. DetailsofAuditQualification:

Noteno.15andNoteno.17.1totheStatement(readwithmodifiedreportdatedJuly24,2020fortheyearendedMarch31,2020ofRFL)inrelationtoadjustmentoffixeddepositsofRs.79,145lacs(excludingRs.2,703.39lacsinterestaccrued&duetillthedateoforiginalmaturityi.e.July20,2018)withandbytheLakshmiVilasBank(LVB)againsttheloansgiventoerstwhilepromotergroupcompaniesinthepreviousyearscontinuedtobeunderlitigationatHon’bleHighCourtofDelhifordeclarationandrecovery.

RFLhasalsofiledacriminalcomplaintbeforetheEOWandEOWhadregisteredFIRagainsttheaccusedpersons/entities.Also,theEnforcementDirectoratehadlodgedanECIRonthebasisoftheFIR.RFLhasfiledapplicationforsubstitutionofLVBwithDBSBankIndiaLimited(DBS)onwhichnoticewasissuedbytheHon’bleCourt.Pendingdisposalof thecase,weareunable tocommenton thestatusof recoverabilityandclassificationof thereportedbalance.

b. TypeofAuditQualification:QualifiedOpinion

c. Frequencyofqualification:Repetitive–ContinuingsinceMarch’18

d. ForAuditQualification(s)wheretheimpactisquantifiedbytheauditor,Management’sViews:TheAuditorshavenotquantifiedtheimpactoftheQualifiedOpinion.

e. ForAuditQualification(s)wheretheimpactisnotquantifiedbytheauditor:

(i) Management’sestimationontheimpactofauditqualification:

RFLhadfileda suitfor recoveryof amountsmisappropriatedby the LakshmiVilasBank(LVB)placedas



FixedDeposits(FD)withitonMay31,2018beforetheHon’bleDelhiHighCourt.StrategicCreditCapitalPrivateLimitedand ParticipationFinancehavealsofiledanapplicationtobeimpleadedinthematter,whichareyettobeadjudicateduponbytheHon’bleCourt.Further,StateBankofIndia(SBI)hasfiledapplicationfor impleadment in thesaidSuit,which isyet tobeadjudicated uponbytheHon’bleCourt.TheCompanythereafterfiledapplicationto bringSEBIorderdatedSeptember11,2019onrecord.RFLhasalsoplacedonrecord,theFIRlodgedbyitagainstLVB&ors.

RFLhas furtherfiledanapplication forsubstitution ofLVBwithDBSBank IndiaLimited (DBS)onwhichnoticewasissuedbytheHon’bleCourt.TheCourthas directedthatallthependingapplicationsbetakenuptogether.TheHon’bleCourt further directed that the application for substitution of Defendant, i.e. DBS inplaceofLVBwillbetakenupfirstonAugust4,2021.

RFL has also filed a criminal complaint onMay 15, 2019 before the EOW and EOWhasregisteredFIRbearingno.189of2019againsttheaccusedpersons/entitieson September23,2019.Also,theEnforcementDirectoratehaslodgedanECIRonthe basisoftheFIR.AspertheCompanyestimatesandunderstanding,RFLhasrightlyclassifiedthereportedbalanceunderthefixeddepositandamountisfullyrecoverable.

(ii) Ifmanagementisunabletoestimatetheimpact,reasonsforthesame:Notapplicable

(iii) Auditors’Commentson(i)or(ii)above:TheAuditorsareoftheviewthatpendingdisposalofthecase,theyareunabletocommentonthestatusofrecoverabilityandclassificationofthereportedbalance.

2. Religare Housing Development Finance Corporation Limited (RHDFC)

a. Details of audit Qualification

AttentionisinvitedtoNote16and17.2oftheStatement,(readwithourmodifiedreportdated20thMay2019fortheyearendedMarch31,2019ofRHDFCL)oftheIndASfinancialstatementsinrelationtotransactionwithatrustnamely“RARC059(RHDFCHL)“(specialpurposevehicle)whereinduringFY2018-19GrossNPAofRs.3038.13lakhsweresold foravalueofRs.2278.60 lakhs&Trusthas issuedsecurity receipts (SR) in the ratioof85:15.As informedbyRHDFCL,basedonthe legalopinionobtained itwasa truesale.Considering thatRHDFCLhasderecognisedNPAloanreceivablesandhasrecognizedsecurityreceiptsasinvestmentsinthebooksofaccounts.AsperIndAS-109,derecognitionoffinancialassetsshalltakeplaceonlyifsubstantialriskandrewardhasbeentransferred.However,inthereferredtransactionofsecurityreceipts,RHDFCLmayremainexposedtosubstantialriskofreturn.

HadtheseNPAloanreceivablesnotbeenderecognizedasonMarch31,2021,classificationofloansintoinvestmentswouldnothavechangedandprofitfortheyearendedMarch31,2021wouldhavedecreasedbyRs.420.45Lakhs.

(b) TypeofAuditQualification:QualifiedOpinion

(c) Frequencyofqualification:Repetitive-ContinuingsinceMarch’19

(d) ForAuditQualification(s)wheretheimpactisquantifiedbytheauditor,Management’sViews:ThesaleofGNPAtoRelianceARCwasconcludedwithintheRBIpurviewandRHDFChasobtainedtruesaleopinionforconcludingthetransaction.Accordingly,RHDFChasderecognizedtheNPAloanreceivablesandhasrecognizedsecurityreceiptsasinvestmentsinthebooksofaccounts.RHDFCshallrecognizeprofit/lossontheSecurityReceiptsbasedontheevaluationbyindependentratingagencyasstipulatedunderRBIRegulation.UnderINDAS,thesecurityreceiptsissuedbythetrustfull-fillthecriteriaforafinancialassetandhasbeenrecognizedinitsbooks.

Further,RHDFChadobtainedthirdpartyopinion,whichisalsosupportingtheaccountingtreatmentforderecognitionoftheloanportfolioandrecognitionofSRsasInvestmentsaspertheapplicableprovisionsofIndASparticularlyIndAS109,FinancialStatements



(e) ForAuditQualification(s)wheretheimpactisnotquantifiedbytheauditor:Notapplicable

(i) Management’sestimationontheimpactofauditqualification:Notapplicable

(ii) Ifmanagementisunabletoestimatetheimpact,reasonsforthesame:Notapplicable

(iii) AuditorsCommenton(i)and(ii)above:Notapplicable

III Signatories:

• Executive Chairperson - Dr. Rashmi Saluja Sd/-

• Audit Committee Chairperson – Vijayalakshmi Rajaram Iyer Sd/-

• Group CFO – Nitin Aggarwal Sd/-

• Statutory Auditor of the Company

S S Kothari Mehta & Company, Chartered Accountants

Sd/-Yogesh K. Gupta

Partner

Membership No. 093214

Place :- New Delhi

Date :- June 22, 2021

STANDALONE

FINANCIALS



TO THE MEMBERS OF RELIGARE ENTERPRISES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

1. WehaveauditedtheaccompanyingstandalonefinancialstatementsofReligare Enterprises Limited (“the Company”),

whichcomprisethestandaloneBalanceSheetasatMarch31,2021,thestandaloneStatementofProfitandLoss(includingothercomprehensiveincome),thestandaloneStatementofChangesinEquityandthestandaloneStatementofCashFlowfortheyearthenendedandnotestothestandalonefinancialstatements,includingasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“thestandalonefinancialstatements”).

2. Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheCompaniesAct,2013(“theAct)inthemannersorequiredandgivea trueand fairview inconformitywith IndianAccountingStandardsprescribedundersection133of theAct readwiththeCompanies(IndianAccountingStandards)Rules2015,asamended,(“INDAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch312021,theprofitandtotalcomprehensiveincome,changesinequityanditscashflowfortheyearendedonthatdate.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards onAuditing (SAs)specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the“Auditor’sResponsibilitiesfortheAuditoftheStandaloneFinancialStatements”sectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwith theethical requirements that are relevant toouraudit of theStandalonefinancial statementsunder theprovisionsoftheActandtheRulesthereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropiniononthestandalonefinancialstatements.

Emphasis of Matter

4. Wedrawattentiontonoteno.2.3tothestandalonefinancialstatements,whichstatesthemanagement’sevaluationofCOVID-19impactontheoperationsoftheCompany.

OurOpinionisnotmodifiedinrespectofthismatters.

Key Audit Matters

5. Key auditmatters are thosematters that, in our professional judgment,were ofmost significance in our audit of thestandalone financial statements of the current year.Thesematterswereaddressed in the context of our audit of thestandalonefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopinionon these matters. We have determined that there are no key audit matters to be communicated in our report.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

6. TheCompany’s Board of Directors is responsible for the preparation of the other information. The other informationcomprisestheinformationincludedintheCompany’sannualreportparticularlywithrespecttotheManagementDiscussionand Analysis, Board’s Report including Annexures to Board’s Report, Business responsibility report and CorporateGovernancereport,butdoesnotincludethestandalonefinancialstatementsandourauditor’sreportthereon.Theotherinformationisexpectedtobemadeavailabletousafterthedateofthisauditor’sreport.

Ouropiniononthestandalonefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

In connectionwith our audit of the standalone financial statements, our responsibility is to read theother informationidentifiedabovewhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththestandalonefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobe materially misstated.



When we read theAnnual Report, if we conclude that there is a material misstatement therein, we are required tocommunicate the matter to those charged with governance.

Management’s and Board of Directors’ Responsibilities for the standalone financial statements

7. TheCompany’sManagementandBoardofDirectorsareresponsibleforthemattersstatedinsection134(5)oftheActwithrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformance, total comprehensive income,changes inequityandcashflowsof theCompany inaccordancewithINDASandtheaccountingprinciplesgenerallyacceptedinIndia.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;making judgments and estimates that are reasonable and prudent; and design, implementation andmaintenance ofadequate internalfinancialcontrols, thatwereoperatingeffectively forensuring theaccuracyandcompletenessof theaccountingrecords,relevanttothepreparationandpresentationofthestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthestandalonefinancialstatements,theManagementandBoardofDirectorsareresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheBoardofDirectorseitherintendstoliquidatetheCompanyortoceaseoperations, or has no realistic alternative but to do so.

TheBoardofDirectorsarealsoresponsibleforoverseeingtheCompany’sfinancialreportingprocess.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

8. OurobjectivesaretoobtainreasonableassuranceaboutwhethertheStandaloneFinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatements.

Aspart of anaudit in accordancewithSAs,weexerciseprofessional judgment andmaintainprofessional skepticismthroughout the audit. We also:

• Identifyandassesstherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraud is higher than for one resulting from error, as fraudmay involve collusion, forgery, intentional omissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that areappropriate in thecircumstances.Undersection143(3)(i)of theAct,wearealso responsible forexpressingouropiniononwhether theCompanyhasadequate internal financial controlswith reference to standalonefinancialstatementsinplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelateddisclosuresinthestandalonefinancialstatementsmadebyManagementandBoardofDirectors.

• ConcludeontheappropriatenessofManagementandBoardofDirectorsuseofthegoingconcernbasisofaccountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that

maycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompany to cease to continue as a going concern.



• Evaluate the overall presentation, structure and content of the standalone financial statements, including thedisclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Materiality is themagnitudeofmisstatements in thestandalonefinancialstatements that, individuallyor inaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably be thought

tobearonourindependence,andwhereapplicable,relatedsafeguards.

From thematterscommunicatedwith thosechargedwithgovernance,wedetermine thosematters thatwereofmostsignificanceintheauditofthestandalonefinancialstatementsofthecurrentyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen, in extremely rare circumstances, we determine that a matter should not be communicated in our report because

theadverseconsequencesofdoingsowouldreasonablybeexpected tooutweigh thepublic interestbenefitsofsuchcommunication.

Report on Other Legal and Regulatory Requirements

9. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”),issuedbytheCentralGovernmentofIndiaintermsofsubsection(11)ofsection143ofthecompaniesAct,2013,wegiveinthe“AnnexureA”astatementonthemattersspecifiedinparagraphs3and4oftheOrder,totheextentapplicable.

10. AsrequiredbySection143(3)oftheAct,wereportthat:

a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.

b) In our opinion, properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

c) TheStandaloneBalanceSheet,theStandaloneStatementofProfitandLossincludingotherComprehensiveIncome,theStandaloneStatementofChangesinEquityandtheStandaloneStatementofCashFlowdealtwithbythisReportareinagreementwiththerelevantbooksofaccount.

d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeIndASspecifiedunderSection133oftheAct,readwithrelevantrulesissuedthereunder.

e) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2021takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2021frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) WithrespecttotheadequacyoftheinternalfinancialcontrolswithreferencetostandalonefinancialstatementsoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureB”.OurreportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessoftheCompany’sinternalfinancialcontrolswithreferencetothestandalonefinancialstatements.

g) With respect to theothermatters tobe included in theAuditor’sReport inaccordancewith the requirementsofsection197(16)oftheAct,asamended:

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,remunerationpaidbytheCompanytoitsdirectorsduringtheyearisinaccordancewiththeprovisionsofSection197oftheAct



h) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,asamendedinouropinionandtothebestofourinformationandaccordingtotheexplanations given to us:

(i) TheCompanyhasdisclosedtheimpactofpendinglitigationsasonMarch31,2021onitsfinancialpositioninitsstandalonefinancialstatements.(refernoteno.33ofthestandalonefinancialstatements);

(ii) TheCompanyhasmadeprovision,asrequiredundertheapplicablelaworIndianaccountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontracts.TheCompanydidnothaveanyderivativecontractsduringtheyear;and

(iii) Therehasbeennodelay intransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.

FOR S S KOTHARI MEHTA & COMPANY

CharteredAccountantsFirm’sRegistrationNumber:000756N

Sd/-

YOGESH K. GUPTA

PartnerPlace: New Delhi MembershipNo.093214Date: June 22, 2021 UDIN:21093214AAAADS9886



ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 9 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the

Members of Religare Enterprises Limited of even date on the standalone Balance Sheet as at March 31, 2021)

i. InrespectoftheCompany’sProperty,PlantandEquipments(fixedassets):

a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

b) Accordingtotheinformationandexplanationprovidedtous,theproperty,plantandequipmentarephysicallyverifiedby the management according to designed process to cover all the items once in three year. In our opinion, this

frequencyisreasonablehavingregardtothesizeoftheCompanyandthenatureofitsfixedassets.Pursuanttothisprogram,nophysicalverificationexercisewasdueduringpreviousandcurrentfinancialyear.Accordingly,questionofdiscrepanciesdoesnotarise.

c) According to the informationandexplanationsgiven tousandon thebasisofourexaminationof recordsof theCompany,thetitledeedsofimmovablepropertiesareheldinthenameoftheCompany.

ii. TheCompanyisprimarilyaholdingcompany,holdinginvestmentinitssubsidiariesandothergroupcompanies.Accordingly,itdoesnotholdanyinventories.Thus,theprovisionofClause(ii)ofPara3oftheOrderisnotapplicabletotheCompany.

iii. Accordingtotheinformationandexplanationgiventousandonthebasisofourexaminationoftherecords,theCompanyhasgrantedaloantotwocompaniescoveredintheregistermaintainedunderSection189oftheCompaniesAct,2013,

InrespectofLoangiventoReligareBrokingLimited(RBL):

a) Thetermsandconditionsofthegrantofloangivenduringtheyearare,inouropinion,primafacie,notprejudicialtotheCompany’sinterest.

b) Thescheduleofrepaymentofprincipalandpaymentofinteresthasbeenstipulatedandrepaymentsorreceiptsofprincipal amounts and interest have been regular as per stipulations.

c) Thereisnooverdueamountoutstandingasattheyear-endwithrespecttoloangiven.

InrespecttoLoangiventoReligareCapitalMarketsLimited(RCML):

SuchloanwasgivenbytheCompanytoRCMLinpreviousyears,TheCompanyhasprovidedintheBooksofAccountfortheentireprincipalamount.Theprincipalamountisoverdueandnointerestisreceivedduringtheyear.

TheCompanyhasnot grantedany loans, securedor unsecured to firm,Limited liability partnershipsor otherpartiescoveredintheregistermaintainedundersection189oftheAct.

iv. In our opinion and according to the information and explanations given to us, the Company has complied with theprovisionsofSections185and186oftheActinrespectofgrantofloans,makinginvestmentsandprovidingguaranteesand securities, as applicable.

v. Inouropinionandaspertheinformationandexplanationprovidedtous,theCompanyhasnotacceptedanydepositsfromthepublicwithinthemeaningofdirectivesissuedbytheReserveBankofIndiaandprovisionsofSections73to76oranyotherrelevantprovisionsoftheCompaniesAct,2013andtherulesframedthereundertotheextentnotified.Accordingly,theprovisionofclause3(v)oftheOrderisnotapplicabletotheCompany.

vi. Asper the requirementunder section148(1)ofCompaniesAct, 2013 theCentral governmenthasnotprescribed formaintenancesofthecostrecordsforanyoftheservicesrenderedbytheCompany.Accordingly,Clause(vi)ofPara3oftheOrderisnotapplicabletotheCompany.

vii. Accordingtotheinformationandexplanationsgiventous,inrespectofstatutorydues:

a) The Company, has been generally regular in depositing with appropriate authorities undisputed statutory duesincludingProvidentFund,employees’state insurance, IncomeTax,GoodsandServiceTax,Cessandanyothermaterialstatutoryduesapplicabletoit,thoughtherehasbeenaslightdelayinafewcases.Further,therewerenoundisputedamountsoutstandingattheyear-endforaperiodofmorethansixmonthsfromthedatetheybecamepayable.



b) AccordingtotheinformationandexplanationsgiventousandtherecordsoftheCompanyexaminedbyus,therearenoduesofincometax,servicetaxandGoodsandServicesTaxwhichhavenotbeendepositedonaccountofanydisputeexceptforthefollowing:

Name of the

Statute

Nature of Dues Gross

Demand

(Rs. In

Lakhs)

Amount paid/

adjusted with

refund

(Rs. In Lakhs)

Period to

which the

amount relates

Forum where the Dispute is

pending

IncomeTaxAct Income tax

Demands 7.61 7.61 AY2013-14 Assessingofficer

245.63 - AY2016-17 CommissionerofIncomeTax(Appeals)**

21,678.92 1227.26 AY2016-17 IncomeTaxAppellateTribunal

ServiceTax ServiceTax 21.11 5.00 FY2005-06ToFY2009-10

CustomExciseandServiceTaxAppellateTribunal**

39.55 2.97 FY2010-11 CustomExciseandServiceTaxAppellateTribunal

51.95 3.90 FY2011-12 CustomExciseandServiceTaxAppellateTribunal

82.63 - FY2014-15 Joint Commissioner, Central

Goods&ServiceTax,Audit-II,NewDelhi

*TheCompanyhasreceivedademandnoticeforAY2016-17,pertainingtoReligareSecuritiesLimited(nowmergedwithReligareEnterprisesLimited),u/s.156oftheActofRs.245.63lakhsoutofwhichRs.230.40lakhspertainstoshortTDScreditgivenbytheAOwhilecomputingtaxableincomeforwhichtheCompanyhasfiledarectificationrequestundersection154oftheActbeforetheAssessingOfficerandCompanyrepresentsittobenotpayable.

**InclusiveofPenaltyofRs.10.58lakhs

viii. Inouropinionandaccordingtotheinformation&explanationsgiventous,readtogetherwiththefactthatduringthecurrentyear,basedontherequestoftheCompanytothelenderi.e.ReligareFinvestLimited(RFL),thelenderhasrescheduledtheloanbyprovidinganextensionoftwoyears(i.e.repaymentdueonorbeforeApril30,2022)fromdateofrequestletterforrepaymentofprincipalandwaiverofallinterestcomponentandallotherfinancialcharges.Accordingly,theCompanyhasnotdefaultedinrepaymentofloanorborrowingtofinancialinstitutions.i.e.toRFL,itswhollyownedsubsidiarywhichisnon-bankingfinancialcompanyaspersection45IofRBIAct1934.TheCompanyhasnottakenanyloansorborrowingsfromanybankorgovernment.TheCompanyhasnotissuedanydebentures.

ix. Aspertheinformationandexplanationgiventousandonthebasisofourexaminationoftherecords,theCompanyhasnotraisedmoneysbywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstrumentsortermloans).Hence,reportingunderclause(ix)ofpara3oftheorderisnotapplicabletotheCompany.

x. AspertheinformationandexplanationgiventousandonthebasisofourexaminationoftherecordswehaveneithercomeacrossanyinstanceofmaterialfraudbytheCompanyorontheCompanybyitsemployees,noticedorreportedduringtheyear,norhavebeeninformedofsuchcasebythemanagement.



xi. Aspertheinformationandexplanationgiventousandonthebasisofourexaminationoftherecords,theCompanyhaspaid/providedmanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbyprovisionsofSection197oftheActreadwithScheduleVoftheAct.

xii. TheCompanyisnotNidhiCompany.Accordingly,Clause(xii)ofPara3oftheorderisnotapplicabletotheCompany.

xiii. Aspertheinformationandexplanationgiventousandonthebasisofourexaminationoftherecords,theCompanyhastransactedwiththerelatedpartieswhichareincompliancewithsection177andsection188oftheActandthedetailshavebeendisclosedinthestandalonefinancialstatementsasrequiredbyIndAS24.

xiv. Duringtheyear,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlypaidconvertibledebenturesandhencereportingunderclause3(xiv)oftheOrderisnotapplicabletotheCompany.

xv. AccordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsoftheCompany,theCompanyhasnotenteredintonon-cashtransactionswithdirectorsorpersonsconnectedwithhim.Accordingly,paragraph3(xv)oftheOrderisnotapplicable.

xvi. TheCompanyisrequiredtoandhasbeenregisteredundersection45-IAoftheReserveBankofIndiaAct,1934asaCoreInvestment Company (CIC).



Sd/-

YOGESH K. GUPTA



Annexure B to Independent Auditor’s Report

ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT

Report on the Internal Financial Controls with reference to standalone financial statement under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) as referred to in paragraph 10(f) of ‘Report on Other

Legal and Regulatory Requirements’ section

WehaveauditedtheinternalfinancialcontrolswithreferencetothestandalonefinancialstatementsofReligare Enterprises

Limited (“theCompany”) as atMarch 31, 2021 in conjunctionwith our audit of the standalone financial statements of theCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalfinancialcontrolswith reference to thestandalonefinancialstatementscriteriaestablishedby theCompanyconsidering theessential componentsof internal control stated in theGuidanceNoteonAudit of InternalFinancialControls overFinancialReporting issued by the Institute of CharteredAccountants of India (the ‘ICAI’). These responsibilities include the design,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionof fraudsanderrors, theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.

Auditor’s Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolswithreferencetothestandalonefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditinganddeemedtobeprescribedundersection143(10)oftheActtotheextentapplicabletoanauditofinternalfinancialcontrolswithreferencetothestandalonefinancialstatements,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolswithreferencetothestandalonefinancialstatementswasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ouraudit involvesperformingprocedurestoobtainauditevidenceabout theadequacyof the internalfinancialcontrolswithreferencetothestandalonefinancialstatementsandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolswithreferencetothestandalonefinancialstatementsincludedobtaininganunderstandingofinternalfinancialcontrolswithreferencetothestandalonefinancialstatements,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalcontrolswithreferencetothestandalonefinancialstatements.

Meaning of Internal Financial Controls with reference to the standalone financial statements

Acompany’sinternalfinancialcontrolswithreferencetothestandalonefinancialstatementsisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationofstandalonefinancialstatementsforexternalpurposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s internalfinancial controlswithreferencetothestandalonefinancialstatementsincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionoftheCompany’sassetsthatcouldhaveamaterialeffectonthestandalonefinancialstatements.


Annexure B to Independent Auditor’s Report

Inherent Limitations of Internal Financial Controls with reference to the standalone financial statements

Becauseoftheinherentlimitationsofinternalfinancialcontrolswithreferencetothestandalonefinancialstatements,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolswithreferencetothestandalonefinancialstatementstofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolswithreferencetothestandalonefinancialstatementsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorprocedures may deteriorate.

Opinion

Inouropinion,tothebestofourinformationandaccordingtotheexplanationsgiventous,theCompanyhas,inallmaterialrespect,anadequateinternalfinancialcontrolswithreferencetothestandalonefinancialstatementsandsuchinternalfinancialcontrolwithreferencetothestandalonefinancialstatementswereoperatingeffectivelyasatMarch31,2021,basedonthecriteriaforinternalfinancialcontrolswithreferencetothestandalonefinancialstatementsestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolsstatedinGuidancenoteonauditofinternalfinancialcontrolsoverfinancialreportingissuedbytheInstituteofCharteredAccountantsofIndia.



Sd/-

YOGESH K. GUPTA



Balance Sheet for the year ended March 31, 2021


ParticularsNote

No.

As at

March 31, 2021

Asat March 31, 2020

ASSETS

Financial Assets

Cashandcashequivalents 6 1,027.28 71.13

Bank Balance other than above 7 5.70 5.40Loans 8 5,677.20 -Investments 9 195,977.81 206,624.01OtherFinancialAssets 10 399.38 1,548.86Non-financial AssetsCurrentTaxAssets(Net) 11 3,681.18 4,629.67DeferredtaxAssets(Net) 12 - 171.59Property,PlantandEquipment 13 389.32 228.48IntangibleAssets 14 1.10 9.57OtherNon-FinancialAssets 15 1,382.60 1,817.72

Total Assets 208,541.57 215,106.43LIABILITIES AND EQUITY

LIABILITIES


Payables

Trade Payables

(i)Totaloutstandingduesofmicroenterprisesandsmallenterprises - -(ii)Totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises

15A 1,130.53 1,598.84

Borrowings(OtherthanDebtSecurities) 16 33,664.33 33,301.81

OtherFinancialLiabilities 17 15,554.39 28,846.72Non-Financial Liabilities

Provisions 18 118.56 136.89OtherNon-FinancialLiabilities 19 156.18 163.26

EQUITY

Share Capital 20 25,941.39 25,812.82OtherEquity 21 131,976.19 125,246.09Total Liabilities and Equity 208,541.57 215,106.43TheaccompanyingnotesareanintegralpartoftheFinancialStatements.

Overview&SignificantAccountingPolicies1-5This is the Balance sheet referred to in our report of even date

For S S KOTHARI MEHTA & COMPANY For and on behalf of the Board of DirectorsFirmRegistrationNo.000756NCharteredAccountants


Sd/- Sd/- NITIN AGGARWAL REENA JAYARA Group-CFO CompanySecretary Membership No. A19122Place : New Delhi Place : New Delhi Date : June 22, 2021 Date : June 22, 2021


StatementofProfitandLossfortheyearendedMarch31,2021


ParticularsNote

No.

Year ended

March 31, 2021

Yearended

March 31, 2020

Revenue from Operations

Interest Income 22 613.30 251.18Others 23 3.32 21.34Total Revenue from operations (I) 616.62 272.52OtherIncome(II) 24 11,261.57 5,786.42Total Income (III)=(I+II) 11,878.19 6,058.95Expenses

FinanceCosts 25 417.95 603.06

Netlossonfairvaluechanges 26 76.74 147.60EmployeeBenefitsExpenses 28 1,924.96 1,485.10DepreciationandAmortization 29 115.86 63.47ImpairmentonFinancialInstruments 27 336.04 12,036.73

LiabilityTowardCapitalCommitment 30 a - 894.85OthersExpenses 31 2,571.71 4,844.46Total Expenses (IV) 5,443.26 20,075.28Profit/(Loss) Before Exceptional items and Tax (V)=(III-IV) 6,434.93 (14,016.34)Exceptionalitems(VI) 30 b - 17,000.00

Profit/(Loss) Before Tax (VII)=(V -VI ) 6,434.93 (31,016.33)

Tax Expense: (VIII) 32

(1)CurrentTax - -(2)TaxesforearlierYears (136.36) -(2)DeferredTax 171.59 -Profit/(Loss) for the year (IX)=(VII-VIII) 6,399.70 (31,016.33)

ItemsthatwillnotbereclassifiedtoprofitorlossRe-measurementgains/(losses)ondefinedbenefitplans 41.69 (51.50)Other Comprehensive Income (X) 41.69 (51.50)

Total Comprehensive Income for the period (Comprising Profit(Loss) and other Comprehensive Income for the period)(IX+X)

6,441.39 (31,067.83)

Earning Per Share

a)BasicEPS(Rs.) 2.47 (13.16)

b)DilutedEPS(Rs.) 2.41 (13.16)

TheaccompanyingnotesareanintegralpartoftheFinancialStatements.

Overview&SignificantAccountingPolicies1-5This is the Statement of Profit and Loss referred to in our report of even dateFor S S KOTHARI MEHTA & COMPANY For and on behalf of the Board of DirectorsFirmRegistrationNo.000756NCharteredAccountants




Statement of Changes in Equity

For the year ended March 31, 2021E

qu

ity S

hare

Cap

ital

(Am

ou

nt

in R

s.

lak

hs

, u

nle

ss

oth

erw

ise

sta

ted

)

Bala

nce s

heet

as o

n M

arc

h 3

1, 2021

Bala

nce a

t th

e

beg

inn

ing

of

the

rep

ort

ing

year

Ch

an

ge

s i

n e

qu

ity

sh

are

ca

pit

al

du

rin

g t

he

ye

ar

Ba

lan

ce

at

the

en

d o

f th

e

rep

ort

ing

ye

ar

FortheYearendedMarch31,2020

21,694.27

4,118.55

25,812.82

FortheYearendedMarch31,2021

25,812.82

128.57

25,941.39

Oth

er

Eq

uit

y

Par

ticu

lars

Sh

are

War

ran

t

Res

erve

s an

d S

urp

lus

Oth

er

Co

mp

reh

ensi

ve

Inco

me

Tota

lS

tatu

tory

Res

erve

s

Cap

ital

Res

erve

Sec

uri

ties

Pre

miu

m

Res

erve

Cap

ital

Red

emp

tio

n

Res

erve

Gen

eral

Res

erve

ES

OP

Res

erve

Ret

ain

ed

Ear

nin

gs

Res

erve

on

acc

ou

nt

Sch

eme

of

Arr

ang

emen

t

Res

erve

on

Fo

rfei

ture

of

Sh

are

war

ran

t

BalanceatApril0

1,2019

9,546.11

9,712.63

6,525.65

-368,656.46

123.14

2,654.14

-(252,995.53)

(1.56)

144,221.02

Restatedbalanceatthebeginningofthe

rep

ort

ing

pe

rio

d

--

--

--

--

--

-

Profit/(Loss)fortheYear

--

--

--

--

(3

1,0

16

.33

)-

(3

1,0

16

.33

)

Re-measurement(gain)/lossonpost

employmentbenefitobligation(netoftax)

--

--

--

--

-(51.50)

(51.50)

TotalC

omprehensiv

eIncomefortheyear

--

--

--

- (

31

,01

6.3

3)

(51.50)

(3

1,0

67

.83

)

ESOPgrantedbysubsid

iarycom

panyto

employeesoftheCo

mpany

--

--

--

--

3.96

-3.96

ESOPreservecreatedduringtheyear

--

--

--

-52.47

--

52.47

Divid

ends

--

--

--

--

--

-Transfertoretainedearnings

--

--

--

--

--

-An

yotherchange(Securitie

sPrem

ium

increaseduetoconversionofSharewarrant

intoEquityShare)

--

--

13

,06

6.0

8

--

--

- 1

3,0

66

.08

Sh

are

Wa

rra

nts

Mo

ne

y u

tilis

ed

on

allo

tme

nt

(5,384.99)

--

-4,355.36

--

--

-(1,029.63)

UnutilisedamounttransferredtoCapital

Reserve

(4,161.12)

--

4,161.12

--

--

--

-

Ba

lan

ce a

t M

arc

h 3

1,

20

20

-9,712.63

6,525.65

4,161.12

386,077.90

123.14

2,654.14

52.47(284,007.90)

(53.06)125,246.09

Restatedbalanceatthebeginningofthe

rep

ort

ing

pe

rio

d

--

--

--

--

--

-

Profit/(Loss)fortheYear

--

--

--

--

6,399.70

-6,399.70

Re-measurement(gain)/lossonpost

employmentbenefitobligation(netoftax)

--

--

--

--

-41.69

41.69

TotalC

omprehensiv

eIncomefortheyear

--

--

--

--

6,399.70

41.69

6,441.39

ESOPgrantedbysubsid

iarycom

panyto

employeesoftheCo

mpany

--

--

--

--

13.93

-13.93

ESOPreservecreatedduringtheyear

--

--

--

-23.47

--

23.47

Divid

ends

--

--

--

--

--

-Transfertoretainedearnings

-1,279.94

--

--

--

(1,279.94)

--

Any

other

change(Securitie

sPrem

ium

increasedueto

conversionofSharew

arrant

intoEquityShare)

--

--

251.31

--

--

-251.31


Statement of Changes in Equity


Par

ticu

lars

Sh

are

War

ran

t

Res

erve

s an

d S

urp

lus

Oth

er

Co

mp

reh

ensi

ve

Inco

me

Tota

lS

tatu

tory

Res

erve

s

Cap

ital

Res

erve

Sec

uri

ties

Pre

miu

m

Res

erve

Cap

ital

Red

emp

tio

n

Res

erve

Gen

eral

Res

erve

ES

OP

Res

erve

Ret

ain

ed

Ear

nin

gs

Res

erve

on

acc

ou

nt

Sch

eme

of

Arr

ang

emen

t

Res

erve

on

Fo

rfei

ture

of

Sh

are

war

ran

t

Unutilisedam

ounttransferre

dtoCa

pital

Reserve

--

--

--

--

--

-

Ba

lan

ce

at

Ma

rch

31

, 2

02

1 -

1

0,9

92

.57

6

,52

5.6

5

4,1

61

.12

3

86

,32

9.2

1

12

3.1

4

2,6

54

.14

7

5.9

4

27

8,8

74

.21

) (

11.3

7)

13

1,9

76

.18

No

te

1.

S

ecu

riti

es P

rem

ium

Acco

un

t:ThisReserverepresentstheprem

iumonissueofsharesandcanbeutilisedinaccordancewiththeprovisionsoftheCom

paniesAct,2013.

2.

C

ap

ital R

ed

em

pti

on

Reserv

e: TheCom

panyhasrecognisedCapitalR

edem

ptionReserveonredemptionofNon-ConvertibleRedeemablePreferenceSharesfromitsretainedearnings.Theamount

inCapitalR

edem

ptionReserveisequaltonom

inalamountoftheNon-ConvertibleRedeemablePreferenceSharesredeem

ed.T

heCom

panymayissuefullypaidupbonussharestoitsmem

bers

outofthecapitalredem

ptionreserveaccount.

3.

G

en

era

l R

eserv

e:T

hisReserveiscreatedbyanappropriationfromonecom

ponentofotherequity(generallyRetainedEarnings)toanother,notbeinganitemofO

therCom

prehensiveIncome.The

samecanbeutilisedbytheCom

panyinaccordancewiththeprovisionsoftheCom

paniesAct,2013.

4.

Reta

ined

Earn

ing

s:T

hisReserverepresentsthecumulativeprofitsoftheCom

panyandeffectsofre-measurementofdefinedbenefitobligations.ThisReservecanbeutilisedinaccordancewiththe

provisionsofC

ompaniesAct,2013.

5.

Sh

are

Warr

an

t:ReligareEnterprisesLimited(“theCom

pany”)obtainedanIn–PrincipleapprovalundertheSEBI(ListingObligationsandDisclosureRequirements)R

egulations2015fromNational

StockExchangeofIndiaandBSELimited(“theExchanges”)toissueandallotmentof175,224,258convertiblewarrantsofRs.52.30/-eachexercisableintoequalnum

bero

fEquitySharesofRs.

10/-eachoftheCom

panyonpreferentialbasis.P

ursuanttoshareholderapprovaldatedMarch19,2018,theCom

panyissuedandallotted111,497,714convertiblewarranteachonpreferentialbasis

undertheprovisionofchapterVIIofSecuritiesExchangesBoardofIndia(IssueofC

apitalanddisclosurerequirement)Regulation2009,asam

ended(ICDRRegulations)a

ndsection62and42of

theCom

paniesAct2013.

6.

S

tatu

tory

Reserv

e:T

hereservewascreatedinaccordancetoSection45IC

ofR

BIA

ct,1934

7.

C

ap

ital re

serv

e

(i)CapitalR

eservearisingoutofcom

positeschem

eofarrangement:Pursuanttothetermsofapprovedschemeofarrangement,theinvestmentheldbytheCom

panyintransferorentitiesandre

lated

provisionfordiminutionstandcancelled;thedifferencebetweenbookvalueofinvestmentsandfacevalueofsharesam

ountingtoRs.6,525.65LakhshasbeencreditedtoCapitalR

eserve.

(ii)

CapitalR

eserveonForfeitureofunutilisedSharewarrant:Thewarrantholderscouldnotexercisedtheirpreferencerightforconversionofconvertiblewarrantintoequityshare.H

ence,theunutilised

advancesharewarrantmoneyreceivedforfeited.TheunutilisedamountofR

s.4,161.12LakhshasbeencreditedtoCapitalR

eserve.

8.

E

SO

P R

eserv

e:T

heESOPreservehasbeencreatedinaccordancewiththeapprovedEmployeeStockOptionSchem

e.


Overview&SignificantA

ccountingPolicies1-5

Thisisthestatem

entofchangesinEquityreferredtoinourreportofevendate

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Cash Flows Statement for the year ended March 31, 2021


ParticularsYear ended

March 31, 2021

Yearended

March 31, 2020

Cash Flow From Operating Activities:

Profit/(Loss)BeforeTax 6,434.93 (31,016.33)

Adjustments for:

Loss/(profit)onSaleofProperty,PlantandEquipment(Net) (5.45) (15.81)InterestIncomeonICD (613.30) (251.18)InterestonIncomeTaxrefund (628.73) (145.58)InterestonFixedDeposit (0.45) (0.37)

DepreciationandAmortisationExpense 115.86 63.47ProvisionforGratuityandLeaveEncashment (5.68) 97.56Loss/(Profit)onSaleofInvestment (8,768.47) (36.26)

ProvisionforNonPerformingAssets 16.99 0.00

ProvisionforSecurityDeposit - 363.57Liability/ProvisionWriteback (38.81) (3,988.48)Investmentwrittenoff - 31.62

ShareBasedPayments 35.87 15.00PaymentforGratuityandLeaveEncashment (12.39) (27.55)GSTInputCreditexcessbooked-expenseoff 269.37 333.80

Interest expense 417.95 603.06

LossonFairValuechangesinInvestmentThroughP&L 336.04 12,036.73

ExpensetowardCapitalCommitment - 17,894.85ExpensetowardsContingency 535.07 673.99(Gain)/LossonFinancialAssetsMeasuredatFVTPL(Net) 76.74 147.60Re-measurementgains/(losses)ondefinedbenefitplans 41.69 (51.50)ECLonSupportServices (49.45) (132.65)Operating Profit/Loss before Working Capital changes (1,842.22) (3,404.46)Adjustments for changes in Working Capital :

-(Increase)/DecreaseinFinancialAssets 728.11 633.50-(Increase)/DecreaseinNon-FinancialAssets 197.96 260.36

-Increase/(Decrease)inTradePayables (454.43) 595.78-Increase/(Decrease)inFinancialLiabilities 1,514.78 584.80-Increase/(Decrease)inNon-FinancialLiabilities (7.08) 39.92Cash Generated From / (Used in) from Operations 137.12 (1,290.10)-Taxes(Paid)/Refunds(Net) 628.73 330.74Net Cash Generated From / (Used) in Operating Activities 765.85 (959.36)Cash Flow From Investing Activities:

Adjustments for changes in :

PurchaseofProperty,PlantandEquipment (4.58) (155.31)ProceedsfromSaleofProperty,PlantandEquipment 10.28 16.92ProceedsfromSaleofNonCurrent/CurrentInvestmentsin:InvestmentmadeinMutualFund (2,099.95) (5,200.00)RedemptionofMutualFund 1,100.00 5,221.34-others(includingunitsofAIF/VCFetc.) 3.32 124.64InvestmentsinNonCurrent/CurrentInvestmentsof:


Cash Flows Statement for the year ended March 31, 2021

ParticularsYear ended

March 31, 2021

Yearended

March 31, 2020

-SubsidiaryCompanies(IncludingEquityshare/Debentures/PreferenceShares/CPs)

- (3,008.58)

ICD-Giventosubsidiaries (5,850.00) (5,600.00)ICD-Receivebackfromsubsidiaries 150.00 5,600.00InterestonFixeddeposits 0.45 0.37

InterestonICD-Received 421.16 251.18PaymentagainstCapitalCommitment (15,300.00) (2,594.85)Changesinbankbalancesotherthancashandcashequivalent 0.30 -Net Cash Generated From/ (Used in) Investing Activities (21,569.02) (5,344.29)Cash Flow From Financing Activities:

Proceedsfromsaleofshareinsubsidiaries 20,000.00 -Purchaseofsubsidiariesshare - (4,705.15)InterestPaid (19.67) (302.84)ProceedfromIssueofShareCapital 379.88 16,155.00RepaymentfromShortTermBorrowings-InterCorporateLoan (36.88) (5,116.73)AdvancegiventoGroupCompanyemployee(receivedback) 1,499.99 -LeaseLiabilitypaid (45.85) -InterestpaidonLeaseliability (18.15) -Net Cash Generated From/ (Used In) Financing Activities 21,759.32 6,030.28

NetIncrease/(Decrease)inCashandCashEquivalents 956.15 (273.38)

CashandCashEquivalentsattheBeginningoftheyear 71.13 344.51Cash and Cash Equivalents at the end of the year 1,027.28 71.13

Cash and Cash Equivalents as at the end of the year comprises of As at

March 31, 2021

Asat March 31, 2020

Cash in hand 0.27 0.46Cheques/Stampsinhand 27.12 1.57BalanceswithScheduledBanksinCurrentAccounts 999.89 69.10TOTAL 1,027.28 71.13


This is the statement of Cash Flows referred to in our report of even date





Notes Forming Part of the Financial Statements


STANDALONE ACCOUNTING POLICIES FOR THE YEAR ENDED MARCH 31, 2021

1 CORPORATE INFORMATION

ReligareEnterprisesLimited(“REL”or“theCompany”)isaleadingemergingmarketsfinancialservicescompanyinIndia.RELwasoriginallyincorporatedasaprivatelimitedcompanyundertheCompaniesAct,1956onJanuary30,1984.TheCompanywasregisteredwiththeReserveBankofIndiaasaNon-BankingFinancialCompanyundersection45IAofRBIAct,1934governedbyerstwhileNon-BankingFinancial(NonDepositAcceptingorHolding)CompaniesPrudentialNorms(ReserveBank)Directions,2007(“NBFCDirections”).

TheCompanynowholdstheCertificateofRegistrationasaNon-DepositTakingSystemicallyImportantCoreInvestmentCompany(“CIC-ND-SI”)videCertificateNo.N-14.03222datedJune03,2014issuedbytheReserveBankofIndia(“RBI”)andaccordinglyatpresent isgovernedby thedirectionscontained inMasterDirection–Core InvestmentCompanies(Reserve Bank) Directions, 2016 (“CIC Directions”). More than 90% of its total assets are invested in Non CurrentInvestments in group companies.

TheCompanyhaschangeditsregisteredofficefrom2ndFloor,RajlokBuilding,24,NehruPlace,NewDelhi-110019toFirstFloor,P-14,45/90,P-Block,ConnaughtPlace,NewDelhi–110001w.e.f.May13,2020,

Religareisadiversifiedfinancialservicesgrouppresentacrossthreeverticals.RELoffersanintegratedsuiteoffinancialservicesthroughitsunderlyingsubsidiariesandoperatingentities,includingloanstoSMEs,AffordableHousingFinance,HealthInsuranceandRetailBroking.RELislistedontheBSE(formerlyBombayStockExchange)andNationalStockExchange(NSE)inIndia.

2 BASIS OF PREPARATION

2.1 Statement of Compliance

The financial statements of theCompanyhavebeenprepared in accordancewith IndianAccountingStandards(IndAS)notifiedundertheCompanies(IndianAccountingStandards)Rules,2015(asamendedfromtimetotime). The financial statements have been prepared on a historical cost basis, except for fair value through othercomprehensiveincome(FVOCI)instruments,otherfinancialassetsheldfortradingandfinancialassetsandliabilitiesdesignatedatfairvaluethroughprofitorloss(FVTPL),allofwhichhavebeenmeasuredatfairvalue.Furtherthecarryingvaluesofrecognisedassetsandliabilitiesthatarehedgeditemsinfairvaluehedges,andotherwisecarriedatamortisedcost,areadjustedtorecordchangesinfairvalueattributabletotherisksthatarebeinghedged.Thestandalonefinancialstatementsarepresented in IndianRupees(INR)andallvaluesareroundedto thenearestlakhs, except when otherwise indicated.

ThefinancialstatementsfortheyearendedMarch31,2021wereauthorisedforissueinaccordancewitharesolutionoftheBoardofdirectorsonJune 22, 2021.

2.2 Presentation of financial statements

TheCompanypresentsitsbalancesheetinorderofliquidity.Ananalysisregardingrecoveryorsettlementwithin12monthsafterthereportingdate(current)andmorethan12monthsafterthereportingdate(non–current)ispresentedinNote43. Financialassetsandfinancialliabilitiesaregenerallyreportedgrossinthebalancesheet.Theyareonlyoffsetandreportednetwhen,inadditiontohavinganunconditionallegallyenforceablerighttooffsettherecognisedamountswithoutbeingcontingentona futureevent, thepartiesalso intend tosettleonanetbasis inallof the followingcircumstances:

Thenormalcourseofbusiness Theeventsofdefault Theeventofinsolvencyorbankruptcyofthecompanyanditscounterparties

Derivative assets and liabilitieswithmaster netting arrangements are only presented netwhen they satisfy theeligibilityofnetting forallof theabovecriteriaandnot just in theeventofdefault.Therearenosuchnettingoffarrangement during the year ended March 31, 2021.

2.3 COVID-19 Impact

OnMarch11,2020,theWorldHealthOrganisationdeclaredthenovelcoronavirus(COVID-19)asapandemic.Thispandemicdisruptedthesocial,economicandfinancialstructuresoftheentireworld.InIndia,thecentralgovernmentdeclaredanationallockdown,restrictingthemovementoftheentirepopulationofthecountryasapreventivemeasure




againstthespreadofCOVID-19duringwhichonlydefinedessentialserviceswereoperatingwithlimitedcapacity.Thereremainsahighlevelofuncertaintyaboutthedurationofthelockdownandthetimerequiredforlifeandbusinessoperationstonormalize.TheextenttowhichtheCOVID-19pandemicwillimpacttheCompany’sbusinessandfinancialresultsincludingtheexpectedcreditlossonfinancialassetsisdependentonfuturedevelopments,whicharehighlyuncertain. TheCompanytookvariousstepstoensuresafetyandhealthofitsemployeeswhichinclude:

a) TheCompanyadopted ‘Work fromHome’ inofficesacross India, thereby leveraging thedigitalproductivitytools.

b) FromMay13,2020 inaccordancewith therelaxationsannouncedbyvariousStatesandUnionTerritories,Companyhasstartedopeningofficesingradualmanner,keepingthesafetyofitsemployeesandesteemedcustomers in mind. Through rostering, Company is ensuring that office strength does not go beyond thestipulationsofthelocaladministrativeguidelines.

c) TheCompanyhasensuredheightenedsanitizationprogramacrossallofficesincludingmicrobialfumigationbeforeopeninganyoffice.Allnecessarysupportintermsofsafetyequipment/toolsareprovidedtoemployeesattendingtheoffice.

d) TheCompanyshallcontinuetomonitorgovernmentdirectivesandactaccordingly.

Basedontheinformationavailabletilldate,theCompanyhasusedtheprinciplesofprudenceinapplyingjudgments,estimatesandpossibleforward-lookingscenariotoassessandprovidefortheimpactofpandemiconthefinancialstatements specifically while assessing the expected credit loss on financial assets by applying managementjudgments,approvedbyitsBoardofDirectors.

TheCompanyinitsinvestmentportfoliomadevariousinvestmentsintheequity&preferencefundsofsubsidiary&Jointventurescompaniesbesidesother investments.Giventhedynamicnatureof thepandemicsituation, thecarryingvaluationoftheseinvestmentsasatMarch31,2020,maybeaffectedbytheseverityanddurationoftheoutbreak.TheCompanybelievesthatithastakenintoaccountallthepossibleimpactofknowneventsarisingoutofCOVID19pandemicinthepreparationoffinancialresultsresultingoutoffairvaluationoftheseinvestments.

Inadditiontotheabove,theCompanyhasevaluatedtherecoverabilityandcarryingvalueofitsnon–financialassetsincludingassetsonpropertyplantandequipment, investmentproperties,rightofuseassetsandotherassetsasMarch31,2021.Basedonitsreview,considerationofinternalandexternalinformationuptothedateofapprovalofthesefinancialresults,currentindicatorsoffutureeconomicconditionsrelevanttotheCompany’soperationsandothermarketfactorsandinformation,managementhasconcludedthatnoadjustmentsarerequiredintheaforesaidassets at this time.

Employeeswere facilitated toWork fromHome (WFH) and enabled through secured remote access to ensurebusinesscontinuitywithminimaldisruption.However, thefullextentof impactof theCOVID-19pandemicontheoperations,andfinancialmetricswill dependongovernmentand regulatoryguidelinesand futuredevelopmentswhichareuncertainandincapableofestimationatthistime.BasedonthecurrentassessmentofthepotentialimpactoftheCOVID-19ontheCompany,managementisoftheviewthattheCompanydoesnotanticipateanymaterialuncertaintieswhichaffects its liquiditypositionandalsoability tocontinueasagoingconcern.TheManagementandDirectors are actively engaged andwill continue tomonitor the future developments. However, the impactassessmentofCOVID-19isacontinuingprocessgiventheuncertaintiesassociatedwithitsnatureandduration.

3 SIGNIFICANT ACCOUNTING POLICIES

3.1 Recognition of interest income

3.1.1 The effective interest rate method

UnderIndAS109interestincomeisrecordedusingtheEffectiveInterestRate(EIR)methodforallfinancialinstrumentsmeasuredatamortisedcost,debtinstrumentmeasuredatFVOCIanddebtinstrumentsdesignatedatFVTPL.TheEIRistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialinstrumentor,whenappropriate,ashorterperiod,tothenetcarryingamountofthefinancialasset. TheEIR(andtherefore,theamortisedcostoftheasset)iscalculatedbytakingintoaccountanydiscountorpremiumonacquisition,feesandcoststhatareanintegralpartoftheEIR.Thecompanyrecognisesinterestincomeusingarateofreturnthatrepresentsthebestestimateofaconstantrateofreturnovertheexpectedlifeoftheloan.Hence,itrecognisestheeffectofpotentiallydifferentinterestrateschargedatvariousstages,andothercharacteristicsoftheproductlifecycle(includingprepayments,penaltyinterestandcharges).




Ifexpectationsregardingthecashflowsonthefinancialassetarerevisedforreasonsotherthancreditrisk.Theadjustmentisbookedasapositiveornegativeadjustmenttothecarryingamountoftheassetinthebalancesheetwithan increaseor reduction in interest income.Theadjustment is subsequently amortised throughInterestincomeinthestatementofprofitandloss.

3.1.2 Interest Income

TheCompanycalculatesinterestincomebyapplyingtheEIRtothegrosscarryingamountoffinancialassetsotherthancredit-impairedassets.Thefinancialassetiscreditimpairedwhenoneormoreeventsthathavedetrimentalimpactontheestimatedfuturecashflowsofthatfinancialassethaveoccurred.

When a financial asset becomes credit-impaired and is, therefore, regarded as ‘Stage 3’, the Companycalculates interest income by applying the effective interest rate to the net amortised cost of the financialasset.Ifthefinancialassetscuresandisnolongercredit-impaired,theCompanyrevertstocalculatinginterestincome on a gross basis.

Forpurchasedororiginatedcredit-impaired(POCI)financialassets,theCompanycalculatesinterestincomebycalculating thecredit-adjustedEIRandapplying thatrate to theamortisedcostof theasset.Thecredit-adjustedEIRistheinterestratethat,atoriginalrecognition,discountstheestimatedfuturecashflows(includingcreditlosses)totheamortisedcostofthePOCIassets.

Interestincomeonalltradingassetsandfinancialassets,ifany,mandatorilyrequiredtobemeasuredatFVTPLisrecognisedusingthecontractualinterestrateinnetgainonfairvaluechanges.

3.2 Financial instruments-initial recognition

3.2.1 Date of recognition

Financialassetsandliabilities,withtheexceptionofloans,debtsecurities,depositsandborrowingsareinitiallyrecognisedonthetradedate,i.e.,thedatethatthecompanybecomesapartytothecontractualprovisionsoftheinstrument.Thisincludesregularwaytrades:purchasesorsalesoffinancialassetsthatrequiredeliveryofassetswithinthetimeframegenerallyestablishedbyregulationorconventioninthemarketplace.Loansarerecognisedwhenfundsaretransferredtothecustomers’account.Thecompanyrecognisesdebtsecurities,depositsandborrowingswhenfundsreachthecompany.

3.2.2 Initial measurement of financial instruments

The classification of financial instruments at initial recognition depends on their contractual terms and thebusinessmodelformanagingtheinstruments.Financialinstrumentsareinitiallymeasuredattheirfairvalue,exceptinthecaseoffinancialassetsandfinancialliabilitiesrecordedatFVTPL,transactioncostsareaddedto,orsubtractedfrom,thisamount.Tradereceivablesaremeasuredatthetransactionprice.Whenthefairvalueoffinancialinstrumentsatinitialrecognitiondiffersfromthetransactionprice,thecompanyaccountfortheDay1profitorloss,asdescribedbelow.

3.2.3 Day 1 Profit or Loss

Whenthetransactionpriceoftheinstrumentdiffersfromthefairvalueatoriginationandthefairvalueisbasedonavaluation techniqueusingonly inputsobservable inmarket transactions, thecompany recognises thedifferencebetweenthetransactionpriceandfairvalueinnetgain/(loss)onfairvaluechanges.Inthosecaseswherefairvalueisbasedonmodelsforwhichsomeoftheinputsarenotobservable,thedifferencebetweenthe transactionpriceand the fairvalue isdeferredand isonly recognised inprofitor losswhen the inputsbecome observable, or when the instrument is derecognised.

3.2.4 Measurement categories of financial assets and liabilities

TheCompanyclassifiesallofitsfinancialassetsbasedonthebusinessmodelformanagingtheassetsandtheasset’scontractualterms,measuredateither:

- AmortisedcostorFVTPL

Thecompanyclassifiesandmeasuresitsderivatives(otherthanthosedesignatedinacashflowhedgingrelationship)andtradingportfolioatFVTPL.ThecompanymaydesignatefinancialinstrumentsatFVTPL,if so doing eliminates or significantly reducesmeasurement or recognition inconsistencies .Financialliabilities,otherthanloancommitmentsandfinancialguarantees,aremeasuredatFVTPLwhentheyarederivativeinstrumentsorthefairvaluedesignationisapplied.










3.3 Financial assets and liabilities

3.3.1 Bank balances, Loans, Trade receivables and financial investments at amortised cost

ThecompanymeasuresBankbalances,Loans,Tradereceivablesandotherfinancialinvestmentsatamortisedcostifbothofthefollowingconditionsaremet:

Thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollectcontractualcashflows.

Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterest(SPPI)ontheprincipalamountoutstanding.

Thedetailsoftheseconditionsareoutlinedbelow.

3.3.1.1 Business model assessment

ThecompanydeterminesitsbusinessmodelatthelevelthatbestreflectshowitmanagesCompanyoffinancialassetstoachieveitsbusinessobjective.

Thecompanybusinessmodelisnotassessedonaninstrument-by-instrumentbasis,butatahigherlevelofaggregatedportfoliosandisbasedonobservablefactorssuchas:

-Howtheperformanceofthebusinessmodelandthefinancialassetsheldwithinthatbusinessmodelareevaluatedandreportedtotheentity’skeymanagementpersonnel

-Therisksthataffecttheperformanceofthebusinessmodel(andthefinancialassetsheldwithinthatbusiness model) and, in particular, the way those risks are managed

Thebusinessmodelassessmentisbasedonreasonablyexpectedscenarioswithouttaking‘worstcase’or ‘stresscase’scenarios intoaccount. Ifcashflowsafter initial recognitionarerealised inawaythatisdifferentfromtheCompany’soriginalexpectations,theCompanydoesnotchangetheclassificationoftheremainingfinancialassetsheldinthatbusinessmodel,but incorporatessuchinformationwhenassessingnewlyoriginatedornewlypurchasedfinancialassetsgoingforward.

3.3.1.2 The Solely Payments of Principal and Interest (SPPI) test.

AsasecondstepofitsclassificationprocesstheCompanyassessesthecontractualtermsoffinancialtoidentifywhethertheymeettheSolelyPaymentsofPrincipalandInterest(SPPI)test.

‘Principal’forthepurposeofthistestisdefinedasthefairvalueofthefinancialassetatinitialrecognitionandmaychangeoverthelifeofthefinancialasset.




Themostsignificantelementsofinterestwithinalendingarrangementaretypicallytheconsiderationforthetimevalueofmoneyandcreditrisk.TomaketheSPPIassessment,theCompanyappliesjudgmentandconsidersrelevantfactorssuchasthecurrencyinwhichthefinancialassetisdenominated,andtheperiodforwhichtheinterestrateisset.

In contrast, contractual terms that introduce a more than de minimis exposure to risks or volatility in the

contractualcashflowsthatareunrelatedtoabasiclendingarrangementdonotgiverisetocontractualcashflowsthataresolelypaymentsofprincipalandinterestontheamountoutstanding.Insuchcases,thefinancialassetisrequiredtobemeasuredatFVTPL.

3.3.2 Financial assets or financial liabilities held for trading

TheCompanyclassifiesfinancialassetsasheldfortradingwhentheyhavebeenpurchasedorissuedprimarilyforshort-termprofitmakingthroughtradingactivitiesorformpartofaportfoliooffinancialinstrumentsthataremanagedtogether,forwhichthereisevidenceofarecentpatternofshort-termprofittaking.Held-for-tradingassetsandliabilitiesarerecordedandmeasuredinthebalancesheetatfairvalue.Changesinfairvaluearerecognisedinnetgainonfairvaluechanges.Interestanddividendincomeorexpenseisrecordedinnetgainonfairvaluechangesaccordingtothetermsofthecontract,orwhentherighttopaymenthasbeenestablished. Included in this classification are debt securities, equities, and customer loans that have been acquiredprincipallyforthepurposeofsellingorrepurchasinginthenearterm.

3.3.3 Debt instruments at FVOCI

DebtinstrumentsaremeasuredatFVOCIwhenbothofthefollowingconditionsaremet:

- The instrument isheldwithinabusinessmodel, theobjectiveofwhich isachievedbybothcollectingcontractualcashflowsandsellingfinancialassets.

- ThecontractualtermsofthefinancialassetmeettheSPPItest.

FVOCIdebtinstrumentsaresubsequentlymeasuredatfairvaluewithgainsandlossesarisingduetochangesinfairvaluerecognisedinOCI.Interestincomeandforeignexchangegainsandlossesarerecognisedinprofitor lossinthesamemannerasforfinancialassetsmeasuredatamortisedcost.WheretheCompanyholdsmorethanoneinvestmentinthesamesecurity,theyaredeemedtobedisposedofonafirst–infirst–outbasis.Onderecognition,cumulativegainsorlossespreviouslyrecognisedinOCIarereclassifiedfromOCItoprofitor loss.

3.3.4 Equity instruments at FVOCI

The Company subsequently measures all equity investments at fair value through profit or loss, unlessthe Company’s management has elected to classify irrevocably some of its equity investments as equityinstruments at FVOCI, when such instrumentsmeet the definition of definition of Equity under IndAS 32Financial Instruments: Presentation and are not held for trading. Such classification is determined on aninstrument-by-instrumentbasis.

Gainsandlossesontheseequityinstrumentsareneverrecycledtoprofitorloss.Dividendsarerecognisedinprofitor lossasdividend incomewhen the rightof thepaymenthasbeenestablished,exceptwhen theCompanybenefitsfromsuchproceedsasarecoveryofpartofthecostoftheinstrument,inwhichcase,suchgainsarerecordedinOCI.EquityinstrumentsatFVOCIarenotsubjecttoanimpairmentassessment.

3.3.5 Debt securities and other borrowed funds:

Afterinitialmeasurement,debtissuedandotherborrowedfundsaresubsequentlymeasuredatamortisedcost.Amortisedcostiscalculatedbytakingintoaccountanydiscountorpremiumonissuefunds,andcoststhatareanintegralpartoftheEIR.Acompoundfinancialinstrumentwhichcontainsbothaliabilityandanequitycomponent is separated at the issue date.

TheCompanyhasissuedfinancialinstrumentswithequityconversionrightsandcalloptions.Whenestablishingthe accounting treatment for these non-derivative instruments, the Company first establishes whether theinstrument is a compound instrument and classifies such instrument’s components separately as financialliabilitiesorequityinstrumentsinaccordancewithIndAS32.Classificationoftheliabilityandequitycomponentsofaconvertibleinstrumentisnotrevisedasaresultofachangeinthelikelihoodthataconversionoptionwillbe exercised, even when exercising the option may appear to have become economically advantageous to




someholders.Whenallocating the initialcarryingamountofacompoundfinancial instrument to theequityandliabilitycomponents,theequitycomponentisassignedastheresidualamountafterdeductingfromtheentire fairvalueof the instrument, theamountseparatelydetermined for the liabilitycomponent.Thevalueof any derivative features (such as a call options) embedded in the compound financial instrument, otherthantheequitycomponent(suchasanequityconversionoption),isincludedintheliabilitycomponent.OncetheCompanyhasdetermined thesplitbetweenequityand liability, it furtherevaluateswhether the liabilitycomponent has embedded derivatives that must be separately accounted.

3.3.6 Financial assets and financial liabilities at fair value through profit or loss

FinancialassetsandfinancialliabilitiesinthiscategoryarethosethatarenotheldfortradingandhavebeeneitherdesignatedbymanagementuponinitialrecognitionoraremandatorilyrequiredtobemeasuredatfairvalueunderIndAS109.ManagementonlydesignatesaninstrumentatFVTPLuponinitialrecognitionwhenoneofthefollowingcriteriaaremet.Suchdesignationisdeterminedonaninstrument-by-instrumentbasis:

- Thedesignationeliminates,orsignificantlyreduces,theinconsistenttreatmentthatwouldotherwisearisefrommeasuringtheassetsorliabilitiesorrecognisinggainsorlossesonthemonadifferentbasis.

Or

- Theliabilitiesarefinancialliabilities,whicharemanagedandtheirperformanceevaluatedonafairvaluebasis,

Or

- Theliabilitiescontainingoneormoreembeddedderivatives,unlesstheydonotsignificantlymodifythecashflowsthatwouldotherwiseberequiredbythecontract,oritisclearwithlittleornoanalysiswhenasimilarinstrumentisfirstconsideredthatseparationoftheembeddedderivative(s)isprohibited.

FinancialassetsandfinancialliabilitiesatFVTPLarerecordedinthebalancesheetatfairvalue.ChangesinfairvaluearerecordedinprofitandlosswiththeexceptionofmovementsinfairvalueofliabilitiesdesignatedatFVTPLduetochangesintheCompany’sowncreditrisk.SuchchangesinfairvaluearerecordedintheOwncreditreservethroughOCIanddonotgetrecycledtotheprofitorloss.InterestearnedorincurredoninstrumentsdesignatedatFVTPLisaccruedin interest incomeorfinancecost,respectively,usingtheEIR,takingintoaccountanydiscount/premiumandqualifyingtransactioncostsbeinganintegralpartofinstrument.InterestearnedonassetsmandatorilyrequiredtobemeasuredatFVTPLisrecordedusingcontractualinterestrate.

3.3.7 Financial guarantees and undrawn loan commitments

Financial guarantees are initially recognised in the financial statements (within Provisions) at fair value,premium/deemed premium received. Subsequent to initial recognition, the Company’s liability under eachguaranteeismeasuredatthehigheroftheamountinitiallyrecognisedlesscumulativeamortisationrecognisedinthestatementofprofitandloss.

Thepremium/deemedpremiumisrecognisedinthestatementofprofitandlossonastraightlinebasisoverthelifeoftheguarantee.

Undrawnloancommitmentsarecommitmentsunderwhich,overthedurationofthecommitment,theCompanyisrequiredtoprovidealoanwithpre-specifiedtermstothecustomer.UndrawnloancommitmentsareinthescopeoftheECLrequirements.

Thenominal contractual valueofundrawn loancommitments,where the loanagreed tobeprovided isonmarket terms, are not recorded in the balance sheet.

The Company occasionally issues loan commitments at below market interest rates drawdown. SuchcommitmentsaresubsequentlymeasuredatthehigheroftheamountoftheECLallowanceandtheamountinitially recognised less, when appropriate.

3.4 Reclassification of financial assets and liabilities

TheCompanydoesnotreclassifyitsfinancialassetssubsequenttotheirinitialrecognition,apartfromtheexceptionalcircumstancesinwhichtheCompanyacquires,disposesof,orterminatesabusinessline.Financialliabilitiesareneverreclassified.TheCompanydidnotreclassifyanyofitsfinancialassetsorliabilitiesin2019-20and2018-19.




3.5 Derecognition of financial assets and liabilities

3.5.1 Derecognition of financial assets due to substantial modification of terms and conditions

TheCompanyderecognisesafinancialasset,suchasaloantoacustomer,whenthetermsandconditionshavebeenrenegotiatedtotheextentthat,substantially,itbecomesanewloan,withthedifferencerecognisedasaderecognitiongainorloss,totheextentthatanimpairmentlosshasnotalreadybeenrecorded.ThenewlyrecognisedloansareclassifiedasStage1forECLmeasurementpurposes,unlessthenewloanisdeemedtobePOCI.

When assessing whether or not to derecognise a loan to a customer, amongst others, the Company considers

thefollowingfactors:

- Changeincurrencyoftheloan- Introductionofanequityfeature- Changeincounterparty

IfthemodificationissuchthattheinstrumentwouldnolongermeettheSPPIcriterion

Ifthemodificationdoesnotresultincashflowsthataresubstantiallydifferent,themodificationdoesnotresultinderecognition.BasedonthechangeincashflowsdiscountedattheoriginalEIR,theCompanyrecordsamodificationgainorloss,totheextentthatanimpairmentlosshasnotalreadybeenrecorded.

3.5.2 Derecognition of financial assets other than due to substantial modification

3.5.2.1 Financial assets

Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofaCompanyofsimilarfinancialassets)isderecognisedwhentherightstoreceivecashflowsfromthefinancialassethaveexpired.TheCompanyalsoderecognisesthefinancialassetifithasbothtransferredthefinancialassetandthetransferqualifiesforderecognition.

TheCompanyhastransferredthefinancialassetif,andonlyif,either:

(i) TheCompanyhastransferreditscontractualrightstoreceivecashflowsfromthefinancialasset

Or

(ii) Itretainstherightstothecashflows,buthasassumedanobligationtopaythereceivedcashflowsinfullwithoutmaterialdelaytoathirdpartyundera‘pass–through’arrangement.

Pass-through arrangements are transactions whereby the Company retains the contractual rights toreceivethecashflowsofafinancialasset(the‘originalasset’),butassumesacontractualobligationtopaythosecashflowstooneormoreentities(the‘eventualrecipients’),whenallofthefollowingthreeconditions are met:

(i) TheCompanyhasnoobligationtopayamountstotheeventualrecipientsunlessithascollectedequivalent amounts from theoriginal asset, excluding short-termadvanceswith the right to fullrecoveryoftheamountlentplusaccruedinterestatmarketrates

(ii) The Company cannot sell or pledge the original asset other than as security to the eventualrecipients

(iii) TheCompanyhastoremitanycashflowsitcollectsonbehalfoftheeventualrecipientswithoutmaterial delay. In addition, theCompany is not entitled to reinvest such cash flows, except forinvestmentsincashorcashequivalentsincludinginterestearned,duringtheperiodbetweenthecollectiondateandthedateofrequiredremittancetotheeventualrecipients.

Atransferonlyqualifiesforderecognitionifeither:

(i) TheCompanyhastransferredsubstantiallyalltherisksandrewardsoftheasset

Or

(ii) TheCompanyhasneither transferrednor retainedsubstantiallyall the risksand rewardsof theasset,buthastransferredcontroloftheasset




TheCompanyconsiderscontroltobetransferredifandonlyif,thetransfereehasthepracticalabilitytosell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and

withoutimposingadditionalrestrictionsonthetransfer.

WhentheCompanyhasneithertransferrednorretainedsubstantiallyalltherisksandrewardsandhasretainedcontroloftheasset,theassetcontinuestoberecognisedonlytotheextentoftheCompany’scontinuinginvolvement,inwhichcase,theCompanyalsorecognisesanassociatedliability.ThetransferredassetandtheassociatedliabilityaremeasuredonabasisthatreflectstherightsandobligationsthattheCompany has retained.

3.5.3 Financial liabilities

A financial liability is derecognisedwhen the obligation under the liability is discharged, cancelled orexpires.Whereanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodification is treatedasaderecognitionof theoriginal liabilityand the recognitionofanew liability.Thedifferencebetweenthecarryingvalueoftheoriginalfinancialliabilityandtheconsiderationpaidisrecognisedinprofitorloss.

3.6 Impairment of financial assets

3.6.1 Overview of the Expected Credit Loss (ECL) principles

TheCompanyrecordsallowanceforexpectedcreditlossesforallloans,otherdebtfinancialassetsnotheldatFVTPL,togetherwithloancommitmentsandfinancialguaranteecontracts,inthissectionallreferredtoas‘financialinstruments’.EquityinstrumentsarenotsubjecttoimpairmentunderIndAS109.

TheECLallowance is basedon the credit lossesexpected to arise over the life of theasset (the lifetimeexpectedcreditlossorLTECL),unlesstherehasbeennosignificantincreaseincreditrisksinceorigination,inwhichcase,theallowanceisbasedonthe12months’expectedcreditloss(12mECL).TheCompany’spoliciesfordeterminingiftherehasbeenasignificantincreaseincreditrisk,ifany.

The12mECListheportionofLTECLsthatrepresenttheECLsthatresultfromdefaulteventsonafinancialinstrumentthatarepossiblewithinthe12monthsafterthereportingdate.

BothLTECLsand12mECLsarecalculatedoneitheranindividualbasisoracollectivebasis,dependingonthenatureoftheunderlyingportfoliooffinancialinstruments.TheCompany’spolicyforCompanyingfinancialassets measured on a collective basis.

TheCompanyhasestablishedapolicy toperformanassessment,at theendofeach reportingperiod,ofwhetherafinancialinstrument’screditriskhasincreasedsignificantlysinceinitialrecognition,byconsideringthechangeintheriskofdefaultoccurringovertheremaininglifeofthefinancialinstrument.TheECLmodeloftheCompanytakesintoaccountsforwardlookinginformationaseconomicinputs.

Basedontheaboveprocess,theCompanycategorisesitsloansintoStage1,Stage2,Stage3andPOCI,asdescribed below:

Stage1:Whenloansarefirstrecognised,theCompanyrecognisesanallowancebasedon12mECLs.Stage1loansalsoincludefacilitieswherethecreditriskhasimprovedandtheloanhasbeenreclassifiedfromStage2.

Stage2:Whenaloanhasshownasignificantincreaseincreditrisksinceorigination,theCompanyrecordsanallowancefortheLTECLs.Stage2loansalsoincludefacilities,wherethecreditriskhasimprovedandtheloanhasbeenreclassifiedfromStage3.

Stage3:ForLoansconsideredcredit-impaired,theCompanyrecordsanallowancefortheLTECLs.

Credit-impaired financial assets:

Ateachreportingdate, thecompanyassesseswhetherfinancialassetscarriedatamortisedcostanddebtfinancialassetscarriedatFVOCIarecredit-impaired.Afinancialassetis‘credit-impaired’whenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthefinancialassethaveoccurred.Evidencethatafinancialassetiscredit-impairedincludesthefollowingobservabledata:




a) Significantfinancialdifficultyoftheborrowerorissuer;

b) Abreachofcontractsuchasadefaultorpastdueevent;

c) Therestructuringofaloanoradvancebythecompanyontermsthatthecompanywouldnotconsiderotherwise;

d) Itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;or

e) Thedisappearanceofanactivemarketforasecuritybecauseoffinancialdifficulties.

POCI:Purchasedororiginatedcreditimpaired(POCI)assetsarefinancialassetsthatarecreditimpairedoninitialrecognition. POCI assets are recorded at fair value at original recognition and interest income is subsequentlyrecognised based on a credit-adjustedEIR.ECLs are only recognised or released to the extent that there is asubsequentchangeintheexpectedcreditlosses.

ForfinancialassetsforwhichtheCompanyhasnoreasonableexpectationsofrecoveringeithertheentireoutstandingamount,oraproportionthereof,thegrosscarryingamountofthefinancialassetisreduced.Thisisconsidereda(partial)derecognitionofthefinancialasset.

TheCompanyderecognizesafinancialassetwhenthecontractualrightstothecashflowsfromtheassetexpire,orwhenittransfersthefinancialassetandsubstantiallyalltherisksandrewardsofownershipoftheassettoanotherparty.

OnderecognitionofafinancialassetaccountedunderIndAS109initsentirety,thedifferencebetweentheasset’scarryingamountandthesumofconsiderationreceivedandreceivableisrecognizedinprofitorloss.

If thetransferredasset ispartofa largerfinancialassetandthepart transferredqualifiesforderecognition in itsentirety,thepreviouscarryingamountofthelargerfinancialassetshallbeallocatedbetweenthepartthatcontinuestoberecognisedandthepartthatisderecognised,onthebasisoftherelativefairvaluesofthosepartsonthedateofthetransfer.

3.6.2 The calculation of ECLs

TheCompanycalculatesECLsbasedontotalloansreceivable(includingaccruedinterest)whicharedividedinto segments based upon the industry in which the customer is operating.

ThemechanicsoftheECLcalculationsareoutlinedbelowandthekeyelementsare,asfollows:

PD -TheProbabilityofDefaultisanestimateofthelikelihoodofdefaultoveragiventimehorizon.Adefaultmayonlyhappenatacertaintimeovertheassessedperiod,ifthefacilityhasnotbeenpreviouslyderecognisedandisstillintheportfolio.

EAD - The Exposure at Default is an estimate of the exposure at a reporting date, taking into accountrepaymentsofprincipalandinterest,whetherscheduledbycontractorotherwiseandaccruedinterestfrommissedpayments.TheEADissumtotalofoutstandingprincipalandaccruedinterest.

LGD -TheLossGivenDefaultisanestimateofthelossarisinginthecasewhereadefaultoccursatagiventime. It isbasedonthedifferencebetweenthecontractualcashflowsdueandthosethat the lenderwouldexpecttoreceive,includingfromtherealisationofanycollateral.ItisusuallyexpressedasapercentageoftheEAD.

Themaximumperiodforwhichthecreditlossesaredeterminedisthecontractuallifeofafinancialinstrumentunless the Company has the legal right to call it earlier.

Impairmentlossesandreleasesareaccountedforanddisclosedseparatelyfrommodificationlossesorgainsthatareaccountedforasanadjustmentofthefinancialasset’sgrosscarryingvalue.

ThemechanicsoftheECLmethodaresummarisedbelow:

Stage 1:The12mECLiscalculatedastheportionoflifetimeexpectedcreditloss(LTECLs)thatrepresenttheECLsthatresultfromdefaulteventsonafinancialinstrumentthatarepossiblewithinthe12monthsafterthereportingdate.TheGroupcalculatesthe12mECLallowancebasedontheexpectationofadefaultoccurringinthe12monthsfollowingthereportingdate.Theseexpected12-monthdefaultprobabilitiesareappliedtoaforecastEADandmultipliedbytheexpectedLGDanddiscountedbyanapproximationtotheoriginalROI.

Stage 2:Whena loanhasshownasignificant increase in credit risk sinceorigination, theGroup records




anallowancefortheLTECLs.Themechanicsaresimilartothoseexplainedabove,butPDsandLGDsareestimatedoverthelifetimeoftheinstrument.TheexpectedcashshortfallsarediscountedbyanapproximationtotheoriginalROI.

Stage 3:Forloansconsideredcredit-impaired,theGrouprecognisesthelifetimeexpectedcredit lossesfortheseloans.ThemethodissimilartothatforStage2.

3.6.3 Debt instruments measured at fair value through OCI

TheECLsfordebtinstrumentsmeasuredatFVOCIdonotreducethecarryingamountofthesefinancialassetsinthebalancesheet,whichremainsatfairvalue.Instead,anamountequaltotheallowancethatwouldariseiftheassetsweremeasuredatamortisedcostisrecognisedinOCIasanaccumulatedimpairmentamount,withacorrespondingchargetoprofitorloss.TheaccumulatedlossrecognisedinOCIisrecycledtotheprofitandlossuponderecognitionoftheassets.

3.6.4 Purchased or originated credit impaired financial assets (POCI)

For POCI financial assets, the Company only recognises the cumulative changes in LTECL since initialrecognition in the loss allowance.

3.6.5 Trade receivables and contract assets

TheCompanyfollows‘simplifiedapproach’forrecognitionofimpairmentlossallowanceontradereceivables.TheapplicationofsimplifiedapproachdoesnotrequiretheCompanytotrackchangesincreditrisk.Rather,it recognises impairment lossallowancebasedon lifetimeECLsateachreportingdate, right from its initialrecognition.TheCompanyusesaprovisionmatrixtodetermineimpairmentlossallowanceonportfolioofitstradereceivables.Theprovisionmatrixisbasedonitshistoricallyobserveddefaultratesovertheexpectedlifeofthetradereceivablesandisadjustedforforward-lookingestimates.Ateveryreportingdate,thehistoricalobserveddefaultratesareupdatedforchangesintheforward-lookingestimates.

3.7 Write-offs

FinancialassetsarewrittenoffeitherpartiallyorintheirentiretyonlywhentheCompanyhasstoppedpursuingtherecovery.Iftheamounttobewrittenoffisgreaterthantheaccumulatedlossallowance,thedifferenceisfirsttreatedasanadditiontotheallowancethatisthenappliedagainstthegrosscarryingamount.Anysubsequentrecoveriesarecreditedtoimpairmentonfinancialinstrumentonstatementofprofitandloss.

3.8 Forborne and modified loans

The Company sometimesmakes concessions ormodifications to the original terms of loans as a response totheborrower’s financial difficulties, rather than takingpossessionor tootherwiseenforcecollectionof collateral.TheCompanyconsidersaloanforbornewhensuchconcessionsormodificationsareprovidedasaresultoftheborrower’spresentorexpectedfinancialdifficultiesandtheCompanywouldnothaveagreedtothemiftheborrowerhadbeenfinanciallyhealthy.Indicatorsoffinancialdifficultiesincludedefaultsoncovenants,orsignificantconcernsraised by theCredit Risk Department. Forbearancemay involve extending the payment arrangements and theagreementofnewloanconditions.Oncethetermshavebeenrenegotiated,anyimpairmentismeasuredusingtheoriginalEIRascalculatedbeforethemodificationofterms.ItistheCompany’spolicytomonitorforborneloanstohelpensurethatfuturepaymentscontinuetobelikelytooccur.

When the loanhasbeenrenegotiatedormodifiedbutnotderecognised, theCompanyalso reassesseswhethertherehasbeena significant increase in credit risk.TheCompanyalso considerswhether theassets shouldbeclassifiedasStage3.

3.9 Determination of fair value

TheCompanymeasuresfinancialinstruments,suchas,derivativesatfairvalueateachbalancesheetdate.

Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeither:

- Intheprincipalmarketfortheassetorliability,or

- Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.




TheprincipalorthemostadvantageousmarketmustbeaccessiblebytheCompany.

Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhen pricing the asset or liability, assuming that market participants act in their economic best interest.

Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthat would use the asset in its highest and best use.

TheCompanyusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,maximizingtheuseofrelevantobservableinputsandminimizingtheuseofunobservableinputs.

Inordertoshowhowfairvalueshavebeenderived,financialinstrumentsareclassifiedbasedonahierarchyofvaluationtechniques,assummarisedbelow:

- Level 1financialinstruments−ThosewheretheinputsusedinthevaluationareunadjustedquotedpricesfromactivemarketsforidenticalassetsorliabilitiesthattheCompanyhasaccesstoatthemeasurementdate.TheCompany considersmarketsasactiveonly if thereare sufficient tradingactivitieswith regards to thevolumeandliquidityoftheidenticalassetsorliabilitiesandwhentherearebindingandexercisablepricequotesavailable on the balance sheet date.

- Level 2financial instruments−Thosewhere the inputs thatareused forvaluationandaresignificant,arederivedfromdirectlyorindirectlyobservablemarketdataavailableovertheentireperiodoftheinstrument’slife. Such inputs include quoted prices for similar assets or liabilities in activemarkets, quoted prices foridenticalinstrumentsininactivemarketsandobservableinputsotherthanquotedpricessuchasinterestratesand yield curves, implied volatilities, and credit spreads. In addition, adjustmentsmay be required for theconditionorlocationoftheassetortheextenttowhichitrelatestoitemsthatarecomparabletothevaluedinstrument.however,ifsuchadjustmentsarebasedonunobservableinputswhicharesignificanttotheentiremeasurement,theCompanywillclassifytheinstrumentsasLevel3.

-Level 3financialinstruments−Thosethatincludeoneormoreunobservableinputthatissignificanttothemeasurement as whole.

Forassetsand liabilities thatarerecognised in thefinancialstatementsonarecurringbasis, theCompanydetermineswhethertransfershaveoccurredbetweenlevels inthehierarchybyre-assessingcategorization(basedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole)attheendofeachreporting period.

TheCompanyperiodicallyreviewsitsvaluationtechniquesincludingtheadoptedmethodologiesandmodelcalibrations. However, the base models may not fully capture all factors relevant to the valuation of theCompany’s financial instruments such as credit risk (CVA), own credit (DVA) and/or funding costs (FVA).Therefore, theCompanyappliesvarious techniques toestimate thecredit riskassociatedwith its financialinstrumentsmeasuredatfairvalue,whichincludeaportfolio-basedapproachthatestimatestheexpectednetexposurepercounterpartyoverthefulllifetimeoftheindividualassets,inordertoreflectthecreditriskoftheindividualcounterpartiesfornon-collateralisedfinancialinstruments.TheCompanyestimatesthevalueofitsowncreditfrommarketobservabledata,suchassecondarypricesforitstradeddebtandthecreditspreadoncreditdefaultswapsandtradeddebtsonitself.

The Company evaluates the leveling at each reporting period on an instrument-by-instrument basis andreclassifiesinstrumentswhennecessarybasedonthefactsattheendofthereportingperiod.

3.10 Foreign currency translation

3.10.1 Functional and presentational currency

TheStandalonefinancialstatementsarepresentedinINRwhichisalsofunctionalcurrencyofthecompany.TheCompanydeterminesthefunctionalcurrencyanditemsincludedinthefinancialstatementsaremeasuredusingthatfunctionalcurrency.TheCompanyusesthedirectmethodofstandalone.

3.10.2 Transactions and balances

Transactionsinforeigncurrenciesareinitiallyrecordedinthefunctionalcurrencyatthespotrateofex-changerulingatthedateofthetransaction.However,forpracticalreasons,theCompanyusesanaveragerateiftheaverageapproximatestheactualrateatthedateofthetransaction.




Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesareretranslatedintothefunctionalcurrencyatthespotrateofexchangeatthereportingdate.Alldifferencesarisingonnon–tradingactivitiesaretakentootherincome/expenseinthestatementofprofitandloss.

Non–monetaryitemsthataremeasuredathistoricalcostinaforeigncurrencyaretranslatedusingthespotexchangeratesasatthedateofrecognition.

3.11 Leasing

TheCompanyhasapplied IndAS116using themodified retrospectiveapproachand therefore thecomparativeinformationhasnotbeenrestatedandcontinuestobereportedunderIndAS17.

PolicyapplicablefromApril01,2019

Atinceptionofacontract,theCompanyassesseswhetheracontractis,orcontainsalease.Acontractis,orcontainsaleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedasset,theCompanyusesthedefinitionofaleaseinIndAS116.

Thedeterminationofwhetheranarrangement isa lease,orcontainsa lease, isbasedon thesubstanceof thearrangementandrequiresanassessmentofwhetherthefulfillmentofthearrangementisdependentontheuseofaspecificassetorassetsorwhetherthearrangementconveysarighttousetheasset.

TherearearrangementwhereinthecommonexpensesforusageofassetswhicharenotidentifiedasperapplicationguidancegiveninAppendixBofINDAS116,accordinglyINDAS116isnotapplicable.

3.11.1 Company as a lessee

LeasesthatdonottransfertotheCompanysubstantiallyalloftherisksandbenefitsincidentaltoownershipoftheleaseditemsareoperatingleases.Operatingleasepaymentsarerecognisedasanexpenseinthestatementofprofitandlossonastraight-linebasisovertheleaseterm,unlesstheincreaseisinlinewithexpectedgeneralinflation,inwhichcaseleasepaymentsarerecognisedbasedoncontractualterms.Contingentrentalpayableis recognised as an expense in the period in which they it is incurred.

Atcommencementoronmodificationofacontractthatcontainsaleasecomponent,theCompanyallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisofitsrelativestandaloneprices.However,forleasesofproperty,theCompanyhaselectednottoseparatenon–leasecomponentsandaccountfortheleaseandnon–leasecomponentsasasingleleasecomponent.

TheCompanyrecognizesaright–of–useassetandaleaseliabilityattheleasecommencementdate.Theright-of–useassetisinitiallymeasuredatcost,whichcomprisestheinitialamountoftheleaseliabilityadjustedforanyleasepaymentsmadeatorbeforethecommencementdateplusanyinitialdirectcostsincurredandanestimateofcoststodismantleandremovetheunderlyingassetortorestoretheunderlyingassetorthesiteonwhich it is loated, less any lease incentives received.

Theright-of–useassetissubsequentlydepreciatedusingthestraight–linemethodfromthecommencementdatetotheendoftheleaseterm,unlesstheleasetransfersownershipoftheunderlyingassettotheCompanybytheendoftheleasetermorthecostoftheright–of–useassetreflectsthattheCompanywillexerciseapurchaseoption.Inthatcasetheright–of–useassetwillbedepreciatedovertheusefullifeoftheunderlyingasset,whichisdeterminedonthesamebasisasthoseofpropertyandequipment.Inaddition,theright–of–useassetisperiodicallyreducedbyimpairmentlosses,ifany,andadjustedforcertainremeasurementsofthelease liability.

The lease liability is initiallymeasuredat thepresentvalueof the leasepayments thatarenotpaidat thecommencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadilydetermined,theCompany’sincrementalborrowingrateasthediscountrate.

The Company determines its incremental borrowing rate by obtaining interest rates from various externalfinancing sources andmakes certain adjustments to reflect the terms of the lease and type of the assetleased.

Leasepaymentincludedinthemeasurementofleaseliabilitycomprisethefollowing:

-Fixedpayments,includingin–substancefixedpayments;




- Variableleasepaymentsthatdependonanindexorarate,initiallymeasuredusingtheindexorrateasatthecommencementdate;

- Amountsexpectedtobepayableunderaresidualvalueguarantee;and

- The exercise price under a purchase option that the Company is reasonable certain to exercise, leasepaymentsinanoptionalrenewalperiodiftheCompanyisreasonablycertaintoexerciseanextensionoption,andpenaltiesforearlyterminationofaleaseunlesstheCompanyisreasonablycertainnottoterminateearly.

Theleaseliabilityismeasuredatamortizedcostusingtheeffectiveinterestmethod.It isremeasuredwhenthereisachangeinfutureleasepaymentsarisingfromachangeinanindexorrate,ifthereisachangeintheCompany’sestimateoftheamountexpectedtobepayableunderaresidualvalueguarantee,iftheCompanychangesitsassessmentofwhetheritwillexerciseapurchase,extensionorterminationoptionorifthereisarevisedin–substancefixedleasepayment.

Whentheleaseliabilityisremeasuredinthisway,acorrespondingadjustmentismadetothecarryingamountoftheright–of–useasset,orisrecordedinprofitorlossifthecarryingamountoftheright–of–useassethasbeenreducedtozero.

TheCompanypresentsright–of–useassetsthatdonotmeetthedefinitionofinvestmentpropertyin‘property,plantandequipment’andleaseliabilitiesundertheheadnon–current‘borrowings’.

Short–termleasesandleasesoflowvalueassets

TheCompanyhaselectednottorecognizeright–of–useassetsandleaseliabilitiesforleasesoflow–valueassetsandshort–termleases.TheCompanyrecognizestheleasepaymentsassociatedwiththeseleasesasanexpenseonastraight–linebasisovertheleaseterm.

3.11.2 Company as a lessor

Leaseswhere theCompanydoesnot transfersubstantiallyallof the riskandbenefitsofownershipof theassetareclassifiedasoperatingleases.Rental incomearisingfromoperatingleasesisaccountedforonastraight-linebasisovertheleasetermsandisincludedinrentalincomeinthestatementofprofitorloss,unlessthe increase is in linewithexpectedgeneral inflation, inwhichcase lease income is recognisedbasedoncontractual terms. Initial direct costs incurred in negotiating operating leases are added to the carrying amount

oftheleasedassetandrecognisedovertheleasetermonthesamebasisasrentalincome.Contingentrentsare recognised as revenue in the period in which they are earned.

3.12 Recognition of income and expenses

INCOME

Revenue (other than for those items towhich IndAS109Financial Instruments are applicable) ismeasured atfairvalueoftheconsiderationreceivedorreceivable.IndAS115Revenuefromcontractswithcustomersoutlinesasinglecomprehensivemodelofaccounting for revenuearising fromcontractswithcustomersandsupersedescurrentrevenuerecognitionguidancefoundwithinIndASs.

TheCompanyrecognisesrevenuefromcontractswithcustomersbasedonafivestepmodelassetoutinInd115:

Step1:Identifycontract(s)withacustomer:Acontractisdefinedasanagreementbetweentwoormorepartiesthatcreatesenforceablerightsandobligationsandsetsoutthecriteriaforeverycontractthatmustbemet.

Step2:Identifyperformanceobligationsinthecontract:Aperformanceobligationisapromiseinacontractwithacustomertotransferagoodorservicetothecustomer.

Step3:Determinethetransactionprice:ThetransactionpriceistheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdparties.

Step4:Allocatethetransactionpricetotheperformanceobligationsinthecontract:Foracontractthathasmorethanoneperformanceobligation, theCompanyallocates the transactionprice toeachperformanceobligation inanamountthatdepictstheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangeforsatisfyingeachperformanceobligation.

Step5:Recognizerevenuewhen(oras)theCompanysatisfiesaperformanceobligation

IncomerelatedtoserviceisrecogniseasperprinciplesoftheINDAS115asmentionedabove.




3.12.1 Interest Income

InterestIncomeisrecognisedasperpolicymentionedinNoteno3.12

3.12.2 Dividend income

Dividendincome(includingfromFVOCIinvestments)isrecognisedwhentheCompany’srighttoreceivethepaymentisestablished,itisprobablethattheeconomicbenefitsassociatedwiththedividendwillflowtotheentity and the amount of the dividend can bemeasured reliably. This is generallywhen the shareholdersapprove the dividend.

3.12.3 EXPENSE

3.12.3.1 Finance Cost

FinancecostsrepresentsInterestexpenserecognisedbyapplyingtheEffectiveInterestRate(EIR)tothegrosscarryingamountoffinancialliabilitiesotherthanfinancialliabilitiesclassifiedasFVTPL.TheEIRincaseofafinancialliabilityiscomputed

i). Astheratethatexactlydiscountsestimatedfuturecashpaymentsthroughtheexpectedlifeofthefinancialliabilitytothegrosscarryingamountoftheamortisedcostofafinancialliability.

II). Byconsideringallthecontractualtermsofthefinancialinstrumentinestimatingthecashflows.

III). Including all fees paid between parties to the contract that are an integral part of the effectiveinterest rate, transaction costs, and all other premiums or discounts.

Anysubsequentchangesintheestimationofthefuturecashflowsisrecognisedininterestincomewiththecorrespondingadjustmenttothecarryingamountoftheassets.

Interestexpense includes issuecosts thatare initially recognizedaspartof thecarryingvalueof thefinancialliabilityandamortizedovertheexpectedlifeusingtheeffectiveinterestmethod.Theseincludefeesandcommissionspayabletoadvisersandotherexpensessuchasexternallegalcosts,ratingfeeetc.,providedtheseareincrementalcoststhataredirectlyrelatedtotheissueofafinancialliability.

3.12.3.2 Employee Benefits Expense EmployeebenefitsexpenseisrecognisedasperpolicymentionedinNoteno3.17

3.12.3.3 Other Income and expenses

AllotherIncomeandexpensesarerecognisedintheperiodtheyoccur.

3.13 Cash and cash equivalents

Cashandcashequivalentinthebalancesheetcomprisecashatbanksandonhandandshort-termdepositswithanoriginalmaturityofthreemonthsorless,whicharesubjecttoaninsignificantriskofchangesinvalue.

3.14 Property, plant and equipment

Property plant and equipment is stated at cost excluding the costs of day–to–day servicing, less accumulateddepreciation and accumulated impairment in value. Changes in the expected useful life are accounted for bychanging the amortisation period or methodology, as appropriate, and treated as changes in accounting estimates.

Depreciationiscalculatedusingthestraight–linemethodtowritedownthecostofpropertyandequipmenttotheirresidualvaluesovertheirestimatedusefullives.Landisnotdepreciated.Theestimatedusefullivesare,asfollows:

Asset DescriptionUseful life of Asset (In Years)

as per Schedule -III

Useful life of Asset (In Years)

as estimated by the Company

Officeequipment’s 5Years 5YearsServerandNetworks 6Years 6YearsLaptopandDesktop 3Years 3YearsElectricalInstallation&Equipment’s 10Years 5-10YearsFurniture&Fixtures 10Years 5-10YearsCar 8Years 6-8YearsBike 10Years 8-10Years

IndividualassetscostinguptoRs.5,000arefullydepreciated/amortizedintheyearinwhichtheyareacquired.




TheCompanydepreciatescertainitemsofbuildingoverestimatedusefulliveswhicharedifferentfromtheusefullifeprescribedinScheduleIItotheCompaniesAct,2013.Themanagementbelievesthattheseestimatedusefullivesarerealisticandreflectfairapproximationoftheperiodoverwhichtheassetsarelikelytobeused.

Theresidualvalues,usefullivesandmethodsofdepreciationofproperty,plantandequipmentarereviewedateachfinancialyearendandadjustedprospectively,ifappropriate.

Propertyplantandequipmentisderecognisedondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuse.Anygainorlossarisingonderecognitionoftheasset(calculatedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheasset)isrecognisedinotherincome/expenseinthestatementofprofitandloss in the year the asset is derecognised.

3.15 Intangible assets

IntangibleAssetsarerecognisedonlyifitisprobablethatthefutureeconomicbenefitsthatareattributabletoassetswillflowtotheenterpriseandthecostoftheassetscanbemeasuredreliably.IntangibleassetsarerecordedatcostandcarriedatcostlessaccumulateddepreciationandaccumulatedImpairmentlosses,ifany.

Intangibleassetsareamortisedonastraightlinebasisovertheirestimatedusefullives.Theamortisationperiodandtheamortisationmethodarereviewedatleastateachfinancialyearend.Iftheexpectedusefullifeoftheassetissignificantlydifferentfrompreviousestimates,theamortisationperiodischangedaccordingly.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the differencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandrecognisedasincomeorexpenseintheStatementofProfitandLoss.

ComputersoftwarewhichisnotanIntegralpartoftherelatedhardwareisclassifiedasanintangibleassetandisbelongamortisedovertheestimatedusefullife.TheestimatedusefullivesofIntangibleassetsare5years.

3.16 Impairments of Non-financial assets

TheCompany assesses, at each reporting date, whether there is an indication that an assetmay be impairedandwhencircumstances indicate that the carrying valuemaybe impaired.TheCompanyestimates theasset’srecoverableamount.Anasset’srecoverableamountisthehigherofanasset’sorcash-generatingunit’s(CGU)fairvaluelesscostsofdisposalanditsvalueinuse.Recoverableamountisdeterminedforanindividualasset,unlesstheassetdoesnotgeneratecashinflowsthatarelargelyindependentofthosefromotherassetsorCompanyofassets.WhenthecarryingamountofanassetorCGUexceeds its recoverableamount, theasset isconsideredimpaired and is written down to its recoverable amount.

Inassessingvalue inuse, theestimated futurecashflowsarediscounted to theirpresentvalueusingapre-taxdiscount rate that reflects currentmarket assessments of the time value ofmoney and the risks specific to theasset. In determining fair value less costs of disposal, recentmarket transactions are taken into account. If nosuchtransactionscanbeidentified,anappropriatevaluationmodelisused.Thesecalculationsarecorroboratedbyvaluationmultiples,quotedsharepricesforpubliclytradedcompaniesorotheravailablefairvalueindicators.

TheCompanybasesitsimpairmentcalculationondetailedbudgetsandforecastcalculations,whicharepreparedseparatelyforeachoftheCompany’sCGUstowhichtheindividualassetsareallocated.Thesebudgetsandforecastcalculationsgenerallycoveraperiodoffiveyears.For longerperiods,a long-termgrowth rate iscalculatedandappliedtoprojectfuturecashflowsafterthefifthyear.

To estimate cash flow projections beyond periods covered by themost recent budgets/forecasts, theCompanyextrapolatescashflowprojectionsinthebudgetusingasteadyordeclininggrowthrateforsubsequentyears,unlessanincreasingratecanbejustified.Inanycase,thisgrowthratedoesnotexceedthelong-termaveragegrowthratefortheproducts,industries,orcountryorcountriesinwhichtheentityoperates,orforthemarketinwhichtheassetis used.

Impairmentlossesofcontinuingoperations,arerecognisedinthestatementofprofitandloss.

Forassetsexcludinggoodwill, anassessment ismadeateach reportingdate todeterminewhether there isanindicationthatpreviouslyrecognisedimpairmentlossesnolongerexistorhavedecreased.Ifsuchindicationexists,theCompanyestimatestheasset’sorCGU’srecoverableamount.Apreviouslyrecognisedimpairmentlossisreversedonlyiftherehasbeenachangeintheassumptionsusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thereversalislimitedsothatthecarryingamountoftheassetdoesnotexceedits




recoverableamount,norexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Suchreversalisrecognisedinthestatementofprofitorloss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

Goodwillistestedforimpairmentannuallyandwhencircumstancesindicatethatthecarryingvaluemaybeimpaired. ImpairmentisdeterminedforgoodwillbyassessingtherecoverableamountofeachCGU(orCompanyofCGUs)towhichthegoodwillrelates.WhentherecoverableamountoftheCGUislessthanitscarryingamount,animpairmentlossisrecognised.Impairmentlossesrelatingtogoodwillcannotbereversedinfutureperiods.

3.17 Retirement and other employee benefits

Short term employee benefits

Employeebenefitspayablewhollywithintwelvemonthsofreceivingemployeesservicesareclassifiedasshorttermemployeebenefits.Thesebenefitsincludesalariesandwages,performanceincentivesandcompensatedabsenceswhichareexpectedtooccurinnexttwelvemonths.Theundiscountedamountifshorttermbenefitstobepaidinexchangeforemployeeservicesisrecognisedasanexpenseastherelatedserviceisrenderedbyemployees.

Compensated absences

Compensatedabsencesaccruing toemployeesandwhichcanbecarried to futureperiodsbutwhere therearerestriction on availment or encashment or where the availment or encashment is not expected to occur wholly with

innext twelvemonths, the liabilityonaccountofbenefits isdeterminedactuariallyusingtheprojectedunitcreditmethod.

Defined Benefit Plans - Gratuity and Provident Fund

Provident Fund

Retirementbenefitintheformofprovidentfundisadefinedcontributionscheme.TheCompanyhasnoobligation,other than the contribution payable to the provident fund.TheCompany recognises contribution payable to theprovidentfundschemeasanexpense,whenanemployeerenderstherelatedservice.Ifthecontributionpayabletotheschemeforservicereceivedbeforethebalancesheetdateexceedsthecontributionalreadypaid,thedeficitpayabletotheschemeisrecognisedasaliabilityafterdeductingthecontributionalreadypaid.Ifthecontributionalready paid exceeds the contribution due for services received before the balance sheet date, then excess isrecognisedasanassettotheextentthatthepre-paymentwillleadto,forexample,areductioninfuturepaymentoracashrefund.

Gratuity

TheCompanyoperatesadefinedbenefitgratuityplaninIndia,whichrequirescontributionstobemadetoaseparatelyadministeredfund.Thecostofprovidingbenefitsunderthedefinedbenefitplanisdeterminedusingtheprojectedunitcreditmethod.Remeasurements,comprisingofactuarialgainsandlosses,theeffectoftheassetceiling,excludingamountsincludedinnetinterestonthenetdefinedbenefitliabilityandthereturnonplanassets(excludingamountsincludedinnetinterestonthenetdefinedbenefitliability),arerecognisedimmediatelyinthebalancesheetwithacorrespondingdebitorcredittoretainedearningsthroughOCIintheperiodinwhichtheyoccur.Remeasurementsarenotreclassifiedtoprofitorlossinsubsequentperiods.

Pastservicecostsarerecognisedinprofitorlossontheearlierof:

- Thedateoftheplanamendmentorcurtailment,and

- ThedatethattheCompanyrecognisesrelatedrestructuringcosts

Netinterestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityorasset.TheCompanyrecognises the following changes in the net defined benefit obligation as an expense in the Standalonestatementofprofitandloss:

- Servicecostscomprisingcurrentservicecosts,past-servicecosts,gainsandlossesoncurtailmentsandnon-routinesettlements;and

- Netinterestexpenseorincome

3.18 Provisions

ProvisionsarerecognisedwhentheCompanyhasapresentobligation(legalorconstructive)asaresultofpastevents,anditisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettlethe




obligation,andareliableestimatecanbemadeoftheamountoftheobligation.Whentheeffectofthetimevalueofmoneyismaterial,theCompanydeterminesthelevelofprovisionbydiscountingtheexpectedcashflowsatapre-taxratereflectingthecurrentratesspecifictotheliability.Theexpenserelatingtoanyprovisionispresentedinthestatementofprofitandlossnetofanyreimbursement.

3.19 Operating Cycle

Anassetoraliabilityisclassifiedascurrentwhenitsatisfiesanyofthefollowingcriteria:

1. Itisexpectedtoberealized/settled,orisintendedforsaleorconsumption,intheCompany’snormaloperatingcycle;or

2. Itisheldprimarilyforthepurposeofbeingtraded;or

3. Itisexpectedtoberealized/duetobesettledwithintwelvemonthsafterthereportingdate;or

4. Itiscashorcashequivalentunlessitisrestrictedfrombeingexchangedorusedtosettlealiabilityforatleasttwelvemonthsafterthereportingdate;or

5. TheCompanydoesnothaveanunconditionalrighttodefersettlementoftheliabilityforatleasttwelvemonthsafterthereportingdate.

Allotherassetsandliabilitiesareclassifiedasnon-current.

4. TAXES

4.1 Current tax

Currenttaxassetsandliabilitiesforthecurrentandprioryearsaremeasuredattheamountexpectedtoberecoveredfrom,orpaid to, the taxationauthorities.Thetaxratesandtax lawsusedtocomputeamountare thosethatareenacted, or substantively enacted, by the reporting date in the countries where the Company operates and generates

taxable income.

Current income tax relating to items recognisedoutsideprofit or loss is recognisedoutsideprofit or loss (eitherin other comprehensive income or in equity). Current tax items are recognised in correlation to the underlyingtransactioneitherinOCIordirectlyinequity.Managementperiodicallyevaluatespositionstakeninthetaxreturnswithrespecttosituationsinwhichapplicabletaxregulationsaresubjecttointerpretationandestablishesprovisionswhere appropriate.

4.2 Deferred tax

Deferredtaxisprovidedontemporarydifferencesatthereportingdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.

Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,except:

- Where thedeferred tax liability arises from the initial recognitionof goodwill or of anasset or liability in atransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss

- Inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,wherethetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,thecarryforwardofunusedtaxcreditsandanyunusedtax losses.Deferredtaxassetsarerecognisedtotheextentthat it isprobablethattaxableprofitwillbeavailableagainstwhich thedeductible temporarydifferences,and thecarry forwardofunused tax credits and unused tax losses can be utilised, except:

- Whenthedeferredtaxassetrelatingtothedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss.

- In respectof deductible temporarydifferencesassociatedwith investments in subsidiaries, associatesandinterests in jointventures,deferred taxassetsare recognisedonly to theextent that it isprobable that thetemporarydifferenceswillreverseintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.




Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilised.Unrecogniseddeferredtaxassetsarere-assessedateachreportingdateandarerecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitswillallowthedeferredtaxassettoberecovered.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheyearwhenthe asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or

substantively enacted at the reporting date.

Deferredtaxrelatingto itemsrecognisedoutsideprofitor loss isrecognisedoutsideprofitor loss(either inothercomprehensiveincomeorinequity).DeferredtaxitemsarerecognisedincorrelationtotheunderlyingtransactioneitherinOCIordirectlyinequity.

Deferredtaxassetsanddeferredtaxliabilitiesareoffsetifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxation authority.

Taxbenefitsacquiredaspartofabusinesscombination,butnotsatisfyingthecriteriaforseparaterecognitionatthatdate,arerecognisedsubsequentlyifnewinformationaboutfactsandcircumstanceschange.Acquireddeferredtaxbenefitsrecognisedwithinthemeasurementperiodreducegoodwillrelatedtothatacquisitioniftheyresultfromnewinformationobtainedaboutfactsandcircumstancesexistingattheacquisitiondate.Ifthecarryingamountofgoodwilliszero,anyremainingdeferredtaxbenefitsarerecognisedinOCI/capitalreservedependingontheprincipleexplainedforbargainpurchasegains.Allotheracquiredtaxbenefitsrealisedarerecognisedinprofitorloss.

4.3 Minimum Alternate Tax (MAT)

Minimumalternate tax (MAT )paid inayear is charged to thestatementofprofitand lossascurrent tax.TheGrouprecognizesMATcreditavailableasanassetonlytotheextentthatit isprobablethattheGroupwillpaynormalincometaxduringthespecifiedperiod,i.e.,theperiodforwhichMATcreditisallowedtobecarried forward. In theyear inwhich theGroup recognizesMATcreditasanasset inaccordancewith theGuidanceNoteonAccountingforCreditAvailableinrespectofMinimumAlternativeTaxundertheIncome-taxAct,1961,thesaidassetiscreatedbywayofcredittothestatementofprofitandlossandshownas“MATCreditEntitlement.”TheGroupreviewstheMATCreditEntitlementassetateachreportingdateandwritesdown the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the

specifiedperiod.

4.4 Dividends on ordinary shares

TheCompany recognisesa liability tomakecashornon-cashdistributions toequityholdersof theparentwhenthedistributionisauthorisedandthedistributionisnolongeratthediscretionoftheCompany.AsperthecorporatelawsinIndia,adistributionisauthorisedwhenitisapprovedbytheshareholders.Acorrespondingamountisrecogniseddirectlyinequity.

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value re-measurementrecogniseddirectlyinequity.

Upon distribution of non-cash assets, any difference between the carrying amount of the liability and thecarryingamountoftheassetsdistributedisrecognisedinthestatementofprofitandloss.

4.5 Non-current assets held for sale and disposal Company’s

TheCompanyclassifiesnon-currentassetsanddisposalCompanyasheldforsaleiftheircarryingamountswillberecoveredprincipallythroughasaleratherthanthroughcontinuinguse.Actionsrequiredtocompletethesaleshouldindicatethatitisunlikelythatsignificantchangestothesalewillbemadeorthatthedecisiontosell/distributewillbewithdrawn.Managementmustbecommittedtothesale/distributionexpectedwithinoneyearfromthedateofclassification.

Forthesepurposes,saletransactionsincludeexchangesofnon-currentassetsforothernon-currentassetswhen theexchangehascommercialsubstance.Thecriteria forheld forsaleclassification is regardedmetonlywhentheassetsordisposalCompanyisavailableforimmediatesale/distributioninitspresentcondition,subjectonlytotermsthatareusualandcustomaryforsalesofsuchassets(ordisposalcompany),itssaleishighlyprobable;anditwillgenuinelybesold,notabandoned.TheCompanytreatssale/distributionoftheassetor disposal Company to be highly probable when:




Theappropriatelevelofmanagementiscommittedtoaplantoselltheasset(ordisposalCompany),

Anactiveprogrammedtolocateabuyerandcompletetheplanhasbeeninitiated(ifapplicable),

Theasset(ordisposalCompany)isbeingactivelymarketedforsaleatapricethatisreasonableinrelationtoitscurrentfairvalue,

Thesaleisexpectedtoqualifyforrecognitionasacompletedsalewithinoneyearfromthedateofclassification,and

Actionsrequiredtocompletetheplanindicatethatitisunlikelythatsignificantchangestotheplanwillbemadeor that the plan will be withdrawn.

Non-currentassetsheldforsale/fordistributiontoownersanddisposalcompanyaremeasuredattheloweroftheircarryingamountandthefairvaluelesscoststosell/distribute.Assetsandliabilitiesclassifiedasheldforsale/distributionarepresentedseparatelyinthebalancesheet.

Property,plantandequipmentandintangibleassetsonceclassifiedasheldforsale/distributiontoownersarenot depreciated or amortised.

AdisposalCompanyqualifiesasdiscontinuedoperationifitisacomponentofanentitythateitherhasbeendisposedof,orisclassifiedasheldforsale,and:

Representsaseparatemajorlineofbusinessorgeographicalareaofoperations,

Ispartofasingleco-ordinatedplantodisposeofaseparatemajorlineofbusinessorgeographicalareaofoperations

Or

Isasubsidiaryacquiredexclusivelywithaviewtoresale

Discontinuedoperationsareexcludedfromtheresultsofcontinuingoperationsandarepresentedasasingleamountasprofitorlossaftertaxfromdiscontinuedoperationsinthestatementofprofitandloss.

5. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

ThepreparationoftheCompany’sStandalonefinancialstatementsrequiresmanagementtomakejudgments,estimatesandassumptions thataffect thereportedamountof revenues,expenses,assetsand liabilities,and theaccompanyingdisclosures,aswellasthedisclosureofcontingentliabilities.Uncertaintyabouttheseassumptionsandestimatescouldresult in outcomes that require amaterial adjustment to the carrying amount of assets or liabilities affected in futureperiods.

Judgments

Intheprocessofapplyingthecompany’saccountingpolicies,managementhasmadethefollowingjudgments,whichhaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear.

5.1 Business model assessment

Classificationandmeasurementoffinancialassetsdependson the resultsof theSPPIand thebusinessmodeltest.The company determines the businessmodel at a level that reflects how company of financial assets aremanaged together to achieve a particular business objective. This assessment includes judgment reflecting allrelevantevidenceincludinghowtheperformanceoftheassetsisevaluatedandtheirperformancemeasured,therisksthataffecttheperformanceoftheassetsandhowthesearemanagedandhowthemanagersoftheassetsarecompensated.Thecompanymonitorsfinancialassetsmeasuredatamortisedcostorfairvaluethroughothercomprehensiveincomethatarederecognisedpriortotheirmaturitytounderstandthereasonfortheirdisposalandwhetherthereasonsareconsistentwiththeobjectiveofthebusinessforwhichtheassetwasheld.Monitoringispartofthecompany’scontinuousassessmentofwhetherthebusinessmodelforwhichtheremainingfinancialassetsareheldcontinuestobeappropriateandifitisnotappropriatewhethertherehasbeenachangeinbusinessmodelandsoaprospectivechangetotheclassificationofthoseassets.

Estimates and assumptions

Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthereportingdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear,aredescribedbelow.Thecompanybaseditsassumptionsandestimatesonparametersavailablewhentheconsolidatedfinancialstatementswereprepared.Existingcircumstancesandassumptionsaboutfuturedevelopments,however,maychangeduetomarketchangesorcircumstancesarisingthatarebeyondthecontrolof




thecompany.Suchchangesarereflectedintheassumptionswhentheyoccur.

5.2 Fair value of financial instruments Thefairvalueoffinancialinstrumentsisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliability

in an orderly transaction in the principal (or most advantageous) market at the measurement date under current

market conditions (i.e., an exit price) regardless of whether that price is directly observable or estimated usinganothervaluationtechnique.Whenthefairvaluesoffinancialassetsandfinancialliabilitiesrecordedinthebalancesheet cannot be derived from activemarkets, they are determined using a variety of valuation techniques thatincludetheuseofvaluationmodels.Theinputstothesemodelsaretakenfromobservablemarketswherepossible,butwherethis isnotfeasible,estimationisrequiredinestablishingfairvalues.Judgmentsandestimatesincludeconsiderationsofliquidityandmodelinputsrelatedtoitemssuchascreditrisk(bothownandcounterparty),fundingvalueadjustments,correlationandvolatility.ForfurtherdetailsaboutdeterminationoffairvaluepleaseseeNote35.

5.3 Effective Interest Rate (EIR) method

Thecompany’sEIRmethodology,recognisesinterestincome/expenseusingarateofreturnthatrepresentsthebestestimateofaconstantrateofreturnovertheexpectedbehavioral lifeofloansgiven/takenandrecognisestheeffectofpotentiallydifferent interestratesatvariousstagesandothercharacteristicsoftheproduct lifecycle(including prepayments and penalty interest and charges).

Thisestimation,bynature,requiresanelementofjudgementregardingtheexpectedbehaviorandlife-cycleoftheinstruments,aswellexpectedchangestoIndia’sbaserateandotherfeeincome/expensethatareintegralpartsofthe instrument.

5.4 Impairment of financial asset Themeasurementof impairment lossesacrossallcategoriesoffinancialassets requires judgment, inparticular,

theestimationof theamountand timingof futurecashflowsandcollateralvalueswhendetermining impairmentlossesandtheassessmentofasignificantincreaseincreditrisk.Theseestimatesaredrivenbyanumberoffactors,changesinwhichcanresultindifferentlevelsofallowances.

Thecompany’sECLcalculationsareoutputsofcomplexmodelswithanumberofunderlyingassumptionsregardingthechoiceofvariableinputsandtheirinterdependencies.ElementsoftheECLmodelsthatareconsideredaccountingjudgmentsandestimatesinclude:

Thecompany’sinternalcreditgradingmodel,whichassignsPDstotheindividualgrades

Thecompany’scriteria forassessing if therehasbeenasignificant increase incredit riskandsoallowances forfinancialassetsshouldbemeasuredonaLTECLbasisandthequalitativeassessment

ThesegmentationoffinancialassetswhentheirECLisassessedonacollectivebasis

DevelopmentofECLmodels,includingthevariousformulasandthechoiceofinputs

Determinationofassociationsbetweenmacroeconomicscenariosand,economic inputs,suchasunemploymentlevelsandcollateralvalues,andtheeffectonPDs,EADsandLGDs

Selection of forward-lookingmacroeconomic scenarios and their probability weightings, to derive the economicinputsintotheECLmodels

Ithasbeenthecompany’spolicytoregularlyreviewitsmodelsinthecontextofactuallossexperienceandadjustwhen necessary.

5.5 Provisions and other contingent liabilities

Thecompanyoperatesinaregulatoryandlegalenvironmentthat,bynature,hasaheightenedelementoflitigationriskinherenttoitsoperations.Asaresult,itisinvolvedinvariouslitigation,arbitrationandregulatoryinvestigationsandproceedingsintheordinarycourseofthecompany’sbusiness.

Whenthecompanycanreliablymeasuretheoutflowofeconomicbenefitsinrelationtoaspecificcaseandconsiderssuchoutflowstobeprobable,thecompanyrecordsaprovisionagainstthecase.Wheretheprobabilityofoutflowisconsidered to be remote, or probable, but a reliable estimate cannot be made, a contingent liability is disclosed.

Giventhesubjectivityanduncertaintyofdeterminingtheprobabilityandamountoflosses,thecompanytakesintoaccount anumberof factors including legal advice, the stageof thematter andhistorical evidence fromsimilarincidents.Significantjudgmentisrequiredtoconcludeontheseestimates.




6. Cash and Cash Equivalents (Amount in Rs. lakhs, unless otherwise stated)

ParticularsAs at

March 31, 2021

AsatMarch 31, 2020

Cash on hand 0.27 0.46Balances with banks

Oncurrentaccounts 999.89 69.10Chequesonhand 27.12 -StampPapersonhand - 1.57

Total cash and cash equivalents 1,027.28 71.13

7. Bank balances other than Cash and cash equivalent

ParticularsAs at

March 31, 2021

AsatMarch 31, 2020

CurrentInFixeddepositwithmaturityformorethan3months# 5.70 5.40Total 5.70 5.40FixedDepositandotherbalanceswithbanksearnsinterestatfixedrate.#FixeddepositbalancesaretheFD’spledgedwithbankforcorporatecreditcardfacilityRs5.60LakhsandRs0.10LakhsOtherpurpose(March31,2020-PledgedwithbankforstatutorypurposeRs4.80LakhsandRs0.60lakhsOtherpurpose).

8. Loans

ParticularsAs at

March 31, 2021

Asat March 31, 2020

At Amortised Cost

Loanstorelatedparties[refernote44.1] 5,925.00 225.00Loanstoothers 7,361.71 7,361.71

Total (A) - Gross 13,286.71 7,586.71Less:Impairmentlossallowance 7,586.71 7,586.71Less:ContingenciesReservesonstandardasset 22.80 -Total Impairment 7,609.51 7,586.71Total (A) - Net 5,677.20 -Unsecured 13,286.71 7,586.71Total (B) - Gross 13,286.71 7,586.71Less:Impairmentlossallowance 7,586.71 7,586.71Less:ContingenciesReservesonstandardasset* 22.80 -Total Impairment 7,609.51 7,586.71Total (B) - Net 5,677.20 -Loans in India - Others 13,286.71 7,586.71Total (C) - Gross 13,286.71 7,586.71Less:Impairmentlossallowance 7,586.71 7,586.71Less:ContingenciesReservesonstandardasset 22.80 -Total Impairment 7,609.51 7,586.71Total (C) - Net 5,677.20 -*Contingencyprovisionrepresents0.40%inFY2020-21(PreviousYear0.40%FY2019-20)oftheOutstandingStandardLoans&Advances,whichisincompliancewithprovisioningrequirementsforNBFCsprescribedunderMasterDirectionDNBR.PD.008/03.10.119/2016-17– Non-Banking Financial Company – Systemically Important Non-Deposit takingCompanyandDeposittakingCompany(ReserveBank)Directions,2016.(1) TheCompanyhasfiledapetitionundersection7ofInsolvencyandBankruptcyCode,2016against“ANRSecurities

PrivateLimited”onOctober09,2018forrecoveryofoutstandingloanamountofRs.8,139.66Lakhs.Theargumentswereheard,however theOrder reservedbyHon’bleNCLTon theadmissionofpetitionhasbeenstayedby theHon’bleSupremeCourtvideorderdatedApril05,2019towhich,theCompanyfiledanapplicationforinterventionwhichwasallowedbytheSupremeCourt.ArgumentsonapplicationforvacationofstayorderdatedApril5th,2019hasbeenheardbytheSupremeCourtandthematterisreservedfororder.

(2) TheCompanyhasfiledapetitionundersection7ofInsolvencyandBankruptcyCode,2016against“LigareAviationLimited”onJanuary18,2021forrecoveryofoutstandingloanamountRs.587.27Lakhs.





8.1 Credit Quality of Assets

ThetablebelowshowsthecreditqualityandthemaximumexposuretocreditriskbasedontheCompany’sinternalcreditratingsystemandyear-endstageclassification.Theamountspresentedaregrossofimpairmentallowances.

Internal Rating Grade March 31, 2021


Standard 5,700.00 - - 5,700.00

Sub-Standard - - - -

Doubtful - - 7,586.71 7,586.71

Loss - - - -

Total 5,700.00 - 7,586.71 13,286.71

InternalRatingGrade March 31, 2020


Standard - - - -Sub-Standard - - - -Doubtful - - 7,586.71 7,586.71Loss - - - -Total - - 7,586.71 7,586.71

8.2 Asset Classification as per RBI Norms As per RBI notification RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated 13-03-2020, The

information onAssetClassification and comparative Loss allowance as per INDAS109andProvision as per normsprudentialnormson“IncomeRecognition,AssetClassificationandProvisioning(IRACP)”asonMarch31,2021.

Asset Classification as per RBI Norms

Asset

classification as per INDAS

109

Gross carrying

value as per

INDAS

Loss Allowances

(Provisions) as

required under IND

AS 109

Provisions

required as

per IRACP

norms

Difference

between

IND AS 109

provisions and

IRACP norms

Performing Asset StandardAsset Stage 1 5,700.00 22.80 22.80 - Stage 2 - - - -Total 5,700.00 22.80 22.80 - Non Performing Asset SubstandardAsset Stage 3 - - - -Doubtful up to 1 year Stage 3 - - - -1-3Years Stage 3 - - - -MoreThan3Years Stage 3 7,586.71 7,586.71 7,586.71 -Subtotal of Doubtful Asset 7,586.71 7,586.71 7,586.71 - Loss Stage 3 - - - -Subtotal for NPA 7,586.71 7,586.71 7,586.71 - Other items such as guarantees, loancommitments,etc.whichareinthescopeofINDAS109butnotcoveredundercurrentIncome Recognition, Asset ClassificationandProvisioning(IRACP)norms.

Stage 1 - - - -Stage 2 - - - -Stage 3 - - - -

- - - -Total Stage 1 5,700.00 22.80 22.80 -

Stage 2 - - - - Stage 3 7,586.71 7,586.71 7,586.71 -

Grand Total 13,286.71 7,609.51 7,609.51 -





9. Investments

InvestmentsAs at

March 31, 2021

Asat March 31, 2020

(i) Investments measured at Fair Value through Profit or Loss

(A)Mutualfunds/VentureCapitalfunds/AlternativeInvestmentfunds 1,646.16 723.00

Investments measured at Cost (Unquoted)

InvestmentinEquityShareofSubsidiaries(fullypaidup) 228,192.62 239,425.94

InvestmentinEquityShareofothers(fullypaidup) 2,823.33 2,823.33

InvestmentinEquityShareofSubsidiary(partlypaidup)[refernote47(e)] - -

InvestmentinEquityShareofJointVentures(fullypaidup) 350.00 350.00

Investment in Preference Share of Subsidiary (fully paid up) [refer note 47(e)] - -

InvestmentinPreferenceShareofothers(fullypaidup) 40.95 40.95

Total - Gross (A) 233,053.06 243,363.22

(i) Investments outside India - -

(ii) Investments in India 233,053.06 243,363.22

Total (B) 233,053.06 243,363.22

Total(A)totallywith(B)

Less:AllowanceforImpairmentloss(i) 2,864.28 2,864.28

LessImpairmentlossesonInvestmentinsubsidiaries(ii) 33,874.93 33,874.93

LessImpairmentlossesonInvestmentinothers(iii) 336.04 -

Total - Net D= (A)-(C) 195,977.81 206,624.01

(i) ProvisionfordiminutioninvalueofitslongterminvestmentshasbeenmadeinaccountsduringFY2016-17.(ii) Subsequentlyallinvestmentcheckedforimpairmentlosseseveryyear.Investmentcheckedforimpairmenttesting

andimpairmentlossoninvestmentcalculatedandrecordedasexpenseofRs.11,903.96LakhsduringFY2017-18andRs.9,934.24LakhsduringFY2018-19andRs.12,036.73lakhsduringFY2019-20throughProfitandLossaccount.

(iii) The Investment inIBOFInvestmentManagementPrivateLimitedhasbeencheckedfor impairment testing.TheimpairmentlossofRs.336.04LakhsoninvestmenthasbeenrecordedduringFY2020-21.

(A) Current Investments

Particulars

As at

March 31, 2021

Asat March 31, 2020

No. of Share Amount No.ofShare Amount

1 InvestmentinVentureCapitalFund

-IndiaBuildOut-Fund-I 10,594 37.66 10,594 93.08

-IndiaBuildOut-Fund-I-ClassBunits - 1.70 - 1.70

-MilestoneArmyTrust-ClassBunits - 0.04 - 0.04

Total (A) - 39.40 - 94.82





(B) Non Current Investments

Particulars

As at

March 31, 2021

Asat March 31, 2020


1 InvestmentinEquitySharesofsubsidiaries

-ReligareFinvestLimited1 262,095,287 66,451.59 262,095,287 66,451.59

-CareHealthInsuranceLimited(erstwhileknownas ReligareHealthInsuranceCompanyLimited)

594,732,253 126,585.39 647,516,629 137,820.24

-ReligareBrokingLimited 180,795,817 34,900.00 180,795,817 34,900.00

-ReligareInsuranceLimited 5,000 - 5,000 -

-ReligareComtradeLimited 27,126,712 212.67 27,126,712 212.67

-ReligareCreditAdvisorsPvtLtd 9,398,262 - 9,398,262 -

-ReligareFinvestLimited-ESOP2 - 37.03 - 37.03

-ReligareHousingDevelopmentCo.Ltd-ESOP2 - 3.58 - 2.76

-ReligareBrokingLimited-ESOP2 - 2.36 - 1.64

-ReligareGlobalAssetManagementInc.(U.S.A.) 10 - 10 -

LessImpairmentlossesonInvestmentinsubsidiaries (33,874.93) (33,874.93)

194,317.69 205,551.01

2 InvestmentinEquitySharesofJointventure

-IBOFInvestmentManagementPrivateLimited 3,499,999 350.00 3,499,999 350.00

Less:ImpairmentlossesonInvestment3 (336.04) -

13.96 350.00

3 InvestmentinEquitySharesofsubsidiary(Partlypaidshare)

-ReligareCapitalMarketsLimited 81,550,000 - 81,550,000 -

Less:provisionfordiminutioninvalueofinvestment - -

- -

4 InvestmentinEquitySharesofotherbodycorporate

-NetambitInfosource&E-ServicesPrivateLimited 67,536 2,823.33 67,536 2,823.33

Less:provisionfordiminutioninvalueofinvestment (2,823.33) (2,823.33)

- -

5 InvestmentsinPreferenceSharesofsubsidiary

-ReligareCapitalMarketsLimited

0.002%CumulativeNon-Convertible 170,000,000 - 170,000,000 -



Less:provisionfordiminutioninvalueofinvestment - -

- -




Particulars

As at

March 31, 2021

Asat March 31, 2020


6 InvestmentsinPreferenceSharesOfOthers

-NetambitInfosource&E-ServicesPrivateLimited

CompulsoryConvertibleCumulativePreferredParticipatorySeriesEPreferenceSharesTranche-1&2-CouponRate0.01%

40,952 40.95 40,952 40.95

Less:provisionfordiminutioninvalueofinvestment (40.95) (40.95)

- -

7 InvestmentinAlternativeInvestmentFund

-ReligareCreditInvestmentsTrust 182 1.27 182 1.27

-CerestraInfrastructureTrust 386 459.84 386 495.93

-IndiaBullsRealEstateFundCategoryIIAIF - 138.41 - 130.99

599.52 628.18

8 InvestmentinMutualFunds

-UTILiquidCashPlan-DirectGrowthPlan(NAVRs3370.4873asonMarch31,2021)

29,884.40 1,007.25 - -

Total (B) 195,938.41 206,529.19

Total (A) + (B) 195,977.81 206,624.01

Note

1. ReferNote33.5

2. TheCompanygrantsESOP’stogroupcompaniesemployeeinaccordancewithapprovedEmployeeStockOptionScheme.[refernoteno41]

3. TheInvestmenthasbeencheckedforimpairmentandprovisionsofRs336.04Lakhshasbeenmadeequivalenttodeclined in networth.

10. Other Financial assets (Amount in Rs. lakhs, unless otherwise stated)

ParticularsAs at

March 31, 2021

Asat March 31, 2020

SecurityDeposits 529.54 492.61

Less:ECL (489.61) (489.61)

Interestaccruedbutnotdueonintercorporateloans(fromrelatedparties) [refernoteno.44.1]

196.51 15.62

Less:ECL (15.62) (15.62)

Interestaccruedbutnotdueonintercorporateloans(fromnonrelatedparties) 34.57 34.57

Less:ECL (34.57) (34.57)

InterestaccruedonFixedDeposit 0.04 0.39

RecoverableforSupportservices* 520.79 436.55

Less:ECL (372.13) (421.30)

StaffAdvances 29.86 30.23

Advancegiventoemployeesofgroupcompany - 1,499.99

Total 399.38 1,548.86




ParticularsAs at

March 31, 2021

Asat March 31, 2020

*Recoverable for Support services

Otherreceivablesconsideredgood-secured - -

Otherreceivablesconsideredgood-unsecured 520.79 436.55

Otherreceivableswhichhavesignificantincreaseincreditrisk - -

Otherreceivables-creditimpaired - -

520.79 436.55

ECLagainstRecoverable (372.13) (421.30)

Total 148.66 15.25

Further classified as :

Receivablefromrelatedparties 444.57 360.33

ReceivablefromOthers 76.22 76.22

Total 520.79 436.55

11. Current Tax Asset

ParticularsAs at

March 31, 2021

Asat March 31, 2020

Advanceincometax 3,681.18 4,629.67

Total 3,681.18 4,629.67

12. Deferred Tax Assets (Net)

ParticularsAs at

March 31, 2021

Asat March 31, 2020

MATCredit[refernoteno47(b)] - 171.59

Total - 171.59




3.

Pro

pert

y, P

lan

t an

d E

qu

ipm

en

t (A

mo

un

t in

Rs

. la

kh

s,

un

les

s o

the

rwis

e s

tate

d)

F

or

the y

ear

en

ded

Marc

h 3

1, 2021

Pa

rtic

ula

rs

Gro

ss

blo

ck

D

ep

rec

iati

on

Ne

t b

loc

k

As

at

Ma

rch

31

,

20

20

Ad

dit

ion

s/

Ad

jus

tme

nts

De

du

cti

on

s/

Ad

jus

tme

nts

As

at

Ma

rch

31

,

20

21

As

at

Ma

rch

31

,

20

20

Fo

r th

e

ye

ar

De

du

cti

on

s/

Ad

jus

tme

nts

As

at

Ma

rch

31

,

20

21

As

at

Ma

rch

31

,

20

21

As

at

Ma

rch

31

,

20

20

Land

24.71

--

24.71

--

--

24.71

24.71

Co

mp

ute

r sy

ste

ms

an

d

pe

rip

he

rals

18.59

4.58

14.48

8.69

11

.18

3.91

12.15

2.95

5.74

7.41

Vehicle

s269.88

-9.76

26

0.1

2

77

.07

41.53

7.2

7

111

.32

148.80

192.81

FurnitureandFixture

11.42

--

11.42

10.53

0.29

- 1

0.8

2

0.6

0

0.89

OfficeEquipment

15.64

--

15.64

12.98

0.8

0

- 1

3.7

8

1.8

6

2.6

6

SubTotal

340.24

4.58

24.24

320.58

111

.76

46.53

19.42

13

8.8

7

18

1.7

1

228.48

Righttouse

Asset(premise

sinlease)*

-268.47

-268.47

- 6

0.8

6

- 6

0.8

6

20

7.6

1

-

SubTotal

-268.47

-268.47

- 6

0.8

6

- 6

0.8

6

20

7.6

1

-

To

tal

34

0.2

4

27

3.0

4

24

.24

5

89

.05

1

11.7

6

10

7.3

9

19

.42

1

99

.73

3

89

.32

2

28

.48


Particulars

Gro

ss b

lock

De

preciation

Netblock

Asat

Ma

rch

31

,

2019

Additio

ns/

Adjustments

Deductions/

Adjustments

Asat

Ma

rch

31

,

20

20

Asat

Ma

rch

31

,

2019

Forthe

yea

r

Deductions/

Adjustments

Asat

Ma

rch

31

,

20

20

Asat

Ma

rch

31

,

20

20

Asat

Ma

rch

31

,

2019

Land

24.71

--

24.71

--

--

24.71

24.71

Co

mp

ute

r sy

ste

ms

an

d

pe

rip

he

rals

22

.73

2

.33

6.47

18.59

12

.08

5.25

6.1

6

11

.18

7.41

10.65

Vehicle

s 1

23

.31

152.87

6.3

0

269.88

58.77

24.76

6.46

77

.07

192.81

64.54

Leaseholdimprovem

ent

4.71

--

4.71

4.71

--

4.71

--

FurnitureandFixture

11.42

--

11.42

9.58

0.65

(0

.30

)10.53

0.89

1.84

OfficeEquipment

16.64

0.1

1

1.1

1

15.64

9.74

3.34

0.09

12.98

2.6

6

6.90

Total

203.52

155.31

13

.88

344.95

94.87

34.00

12.41

116.47

228.48

108.65

13.1T

herearenoadjustmentsto

Property,P

lantandEquipment-TangibleAssetsonaccountofb

orrowingcostsandexchangedifferences.Thereisno

revaluationofassetsduringtheyear.

13.2Lossesarisingfromth

eretirem

ento

f,andgainsorlossesarisingfromdisposaloftangibleassetswhicharecarriedatcosto

rrevaluedamountare


rofitandLoss.

13.3T

hetitledeedsinrespectoflandareinthenameoftheCom

pany.




4.

Inta

ng

ible

assets

(A

mo

un

t in

Rs

. la

kh

s,

un

les

s o

the

rwis

e s

tate

d)

F

or

the y

ear

en

ded

Marc

h 3

1, 2021

Pa

rtic

ula

rs

Gro

ss

blo

ck

A

mo

rtis

ati

on

Ne

t b

loc

k

As

at

Ma

rch

31

,

20

20

Ad

dit

ion

s/

Ad

jus

tme

nts

De

du

cti

on

s/

Ad

jus

tme

nts

As

at

Ma

rch

31

,

20

21

As

at

Ma

rch

31

,

20

20

Fo

r th

e

ye

ar

De

du

cti

on

s/

Ad

jus

tme

nts

As

at

Ma

rch

31

,

20

21

As

at

Ma

rch

31

,

20

21

As

at

Ma

rch

31

,

20

20

ComputerS

oftware

229.66

--

229.66

220.09

8.47

-228.56

1.1

0

9.57

Inta

ng

ible

ass

et

un

de

r d

eve

lop

me

nt

--

--

--

--

--

To

tal

22

9.6

6

-

-

22

9.6

6

22

0.0

9

8.4

7

-

22

8.5

6

1.1

0

9.5

7


Particulars

Gro

ss b

lock

Am

ortisation

Netblock

Asat

Ma

rch

31

,

2019

Additio

ns/

Adjustments

Deductions/

Adjustments

Asat

Ma

rch

31

,

20

20

Asat

Ma

rch

31

,

2019

Forthe

yea

r

Deductions/

Adjustments

Asat

Ma

rch

31

,

20

20

Asat

Ma

rch

31

,

20

20

Asat

Ma

rch

31

,

2019

Com

puterS

oftware

229.66

--

229.66

190.62

29.47

-220.09

9.57

39.04

In

tan

gib

le a

sse

t

un

de

r d

eve

lop

me

nt

--

--

--

--

--

Total

229.66

--

229.66

190.62

29.47

-220.09

9.57

39.04

14.1T

herearenoadjustmentstoIntangibleAssetsonaccountofborrowingcostsandexchangedifferences.Thereisnorevaluationofassetsduringthe

year.

14.2Lossesarisingfromtheretirem

entof,andgainsorlossesarisingfromdisposalofintangibleassetswhicharecarriedatcostorrevaluedam

ountare


rofitandLoss.




15. Other Non Financial Assets (Amount in Rs. lakhs, unless otherwise stated)

ParticularsAs at

March 31, 2021

Asat March 31, 2020

Balance with government authorities 305.75 652.90

Prepaidexpenses 65.54 70.85

Depositspaidunderprotest 585.59 703.40

Advancestorelatedparties(forservices)[refernoteno44.1] 1,326.50 1,326.50

Less:ECL (1,326.50) (1,326.50)

Advancestoothers(forservices) 74.42 72.04

Less:ECL (14.72) (39.82)

Less:ContingentProvisiononstandardAsset* (1.30) (7.40)

StampPapersonhand 1.57 -

Artworks 1.78 1.78

AssetsAcquiredinsatisfactionofReceivables** 363.97 363.97

Total 1,382.60 1,817.72

*ReferNote8.

**Pursuant to theapprovedSchemeofArrangement, theasset (land&Building) transferred fromerstwhile “ReligareSecuritiesLimited”(RSL).ThetitleoftheacquiredassetisinthenameoferstwhileReligareSecuritiesLimited.AspercurrentvaluationreportdatedSeptember28,2020,theNetRealizableValueofassetisRs.397.35Lakhs.

15A Trade Payable

ParticularsAs at

March 31, 2021

Asat March 31, 2020

(i)Totaloutstandingduesofmicroenterprisesandsmallenterprises - -

(ii)Totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmall enterprises

1,130.53 1,598.84

Total 1,130.53 1,598.84

16. Borrowings (Other than Debt Securities)

ParticularsAs at

March 31, 2021

Asat March 31, 2020

Borrowings measured at Amortised Cost

Unsecured

(a)Loansfromrelatedparties1 25,443.99 25,455.53(b)Loansrepayableondemand

(i)frombanks - -(ii)fromotherparties - 25.33

(c)Liabilityportionofredeemablepreferenceshares2 8,220.34 7,820.95Total (A) 33,664.33 33,301.81

Borrowings in India 33,664.33 33,301.81

Borrowings outside India - -Total (B) to tally with (A) 33,664.33 33,301.81





Terms of Repayment of Inter Corporates Loans

Particulars Rate of Interest RateofInterest

RelatedParties 9.5% to 13.5% 9.5%to18.75%

NonRelatedParties 9% 9%

1. Loans from related parties

(a) InterCorporateLoanofRs.18,550LakhsborrowedfromsubsidiaryReligareFinvestLimited(RFL)inFY2017-18.DuringtheFY2019-20reschedulementoftheloansignedwithRFL.AspertheletterofreschedulementRFLhasgranted:

i) Extensionof2years(payableonorbeforeApril30,2022)fromthedateoflettertorepaytheprincipalamountinoneormorebulletpaymentsdependingupontheliquidityandfinancialpositionoftheCompany.

ii) Waiveofcurrentandfutureinterestcomponentandotherfinancialchargesthatmayhaveaccruedormayaccrueinfutureontheseloan.

(b) IntercorporateLoan(OutstandingbalanceofRs.6,893.99Lakhs)borrowedfromsubsidiaryReligareComtradeLimited (RCTL) inpreviousyears.During thepreviousfinancialyearRCTLagreed towaiveofcurrentandfutureinterestcomponentandotherfinancialchargesthatmayhaveaccruedormayaccrueinfutureontheseloan.

2. Liability portion of redeemable preference shares

RedeemablepreferencesharesaccountedasafinancialliabilitymeasuredinitiallyatthefairvalueandsubsequentlyatamortisedcostwiththeinterestaccretionatEffectiveInterestRate(EIR)basedontheIRRcalculatedontheyieldthereon

(a) 13.66% Cumulative Redeemable Preference Share

The face value of each share is Rs. 10. The share shall have voting rights applicable to the preferenceshareundertheCompaniesAct2013.EachpreferenceshareholderhasrighttoreceiveinprioritytoEquityshareholders,preferencedividendoncumulativebasisattheratenotexceeding13.66%perfinancialyear.Theaggregatesharesoutstandingasat theyearendare1,500,000(Previousyear1,500,000)atRs.100(includingpremiumofRs.90pershare).

TheaboveshareswereredeemableatanamountofRs.4,190.28Lakhs(includingpremiumnotexceedingRs.269.36pershare)onOctober31,2018.

(b) 0.01% Non Convertible Non Cumulative redeemable preference share

The face value of each share is Rs. 10/- The share shall have voting rights applicable to the preferenceshareundertheCompaniesAct2013.EachpreferenceshareholderhasrighttoreceiveinprioritytoEquityshareholder,preferencedividendonnoncumulativebasisattheratenotexceeding0.01%perfinancialyear.Thesharesallottedwere25,000,000inonetrancheonAugust30,2016.Theabovesharesareredeemableatanamount(includingpremium)notexceedingRs.16.851pershareonAugust30,2021.ThecarryingvalueofpreferenceshareasonMarch31,2021isRs.4,030.06Lakhs(PreviousyearRs.3,630.67Lakhs).

16A Changes in liabilities arising from financing activities ThechangesintheCompany’sliabilitiesarisingfromfinancingactivitiescanbeclassifiedasfollows:

Particluars March 31, 2021 March 31, 2020 March31,2019

Borrowings(OtherthanDebtSecurities) 33,664.33 33,301.81 38,058.74

LeaseLiability 208.80 - -

InterestPayables - 19.26 4,040.39

Total 33,873.13 33,321.07 42,099.13





Particulars

Borrowings

(Other than

Debt Securities)

Lease

Liability

Interest

PayablesTotal

AsatMarch31,2019 38,058.74 - 4,040.39 42,099.13CashFlow:

Proceed/Repayment(Net) (5,116.74) - - (5,116.74)NonCashFlow:

InterestAccrued 359.81 - (4,021.13) (3,661.32)

AsatMarch31,2020 33,301.81 - 19.26 33,321.07

CashFlow:

Proceed/Repayment(Net) (36.87) - - (36.87)

InterestPaid - - (19.26) (19.26)NonCashFlow:

InterestAccrued 399.40 - - 399.40AddiotionalLeaseliability - 208.80 - 208.80

As at March 31, 2021 33,664.34 208.80 - 33,873.13

17. Other Financial liabilities

ParticularsAs at

March 31, 2021

Asat March 31, 2020

Interest accrued and due - 6.81

Interest accrued but not due - 12.46

SecurityDeposit(relatedparties)[refernoteno44.1] 1,789.48 1,802.48

LeaseLiability 208.80 -

EmployeesBenefitsPayables 201.21 172.90

OtherPayables1 15.11 172.43

Liabilitytowardsletterofcomfort2[refernoteno44.1] 11,218.90 10,688.67

LiabilitytowardsCapitalCommitment3 894.85 15,300.00

Liabilitytowardscontingency4 1,209.06 673.99

Marginforvehicle 16.98 16.98

Total 15,554.39 28,846.72

1. IncludesamountofRs.NilLakhs(previousyearRs.157Lakhs)payabletoReligareBrokingLimitedonaccountoftransferunderschemeofarrangement.

2 (a) TheCompany has given a letter of comfort datedMay 15, 2020 to Religare Comtrade Limited (“RCTL”),awhollyownedsubsidiaryof theCompanysuperseding theearlier letterof comfort issued inFY2017-18toprovidefinancialsupport toRCTLforrepaymentofall itsoutstandingdues including interestcomponentthereonrelatingtoICDsandNCDsissuedbyRCTL.AsperINDAS109,theFinancialliabilityofRs.10,438.67LakhshasbeenrecodeduptoyearendedMarch31,2020andRs.530.23Lakhsrecorded inFY2020-21againstthenegativenetworthofRCTL(Financial liabilityofRs.10,968.90LakhshasbeenrecordedasonMarch 31, 2021).





2 (b) TheCompanyhasgivenaletterofcomforttoReligareAdvisorsLtd,awhollyownedsubsidiaryoftheCompany,toprovidefinancialsupportofRs.250Lakhstomeetbusinessrequirements.Asper INDAS109,financialliabilityofRs.250LakhshasbeenbookedinFY2017-18againstthesaidletterofcomfort.

3. (i) TheCompanyhasenteredintoaconsentagreementdatedOctober1,2019withAxisBanktosettlealegalcaseagainstanaggregatepaymentofRs.17,000Lakhs.TheCompanyhaspaidRs.1,700LakhsduringFY2019-20andbalanceofRs.15,300lakhshasbeenpaidinJune’20.[refernote47(j)]

(ii) TheCompanyobtainthepermissionofthecompetentgovernmentauthoritytotransfertheSettlementAmountofRs.894.85Lakhs.TheprocesstotransferthesettlementamountaspertermsofSPAandapprovalhasbeeninitiated.(referNote33.5)

4. TheadhoccontingencyprovisionofRs.1,209.06Lakhs(Rs.673.99LakhsinFY2019-20andRs.535.07LakhsinFY20-21)hasbeenmadeasonMarch31,2021.[Refernoteno47(d)]

18. Provisions

Particulars As at

March 31, 2021

Asat 31 March 2020

Provisionforemployeebenefits

ProvisionforGratuity(referNoteno.38) 47.14 67.13

ProvisionforLeaveEncashment(referNoteno.38) 71.42 69.76

Total 118.56 136.89

19. Other Non Financial liabilities

Particulars As at

March 31, 2021

Asat 31 March 2020

Statutory due payable 156.18 163.26

Total 156.18 163.26

20. Share capital

The Company has only one class of equity share capital having a par value of Rs. 10 per share, referred to herein

as equity shares.

Particulars As at

March 31, 2021

Asat 31 March 2020

Authorized Equity Share Capital

March31,2021;654,450,000(March31,2020:654,450,000)EquitySharesofRs.10each 65,445.00 65,445.00

Total 65,445.00 65,445.00

Issued, subscribed and paid up

March31,2021:259,413,902(March31,2020:258,128,152)equitysharesofRs.10eachfullypaid 25,941.39 25,812.82

Total 25,941.39 25,812.82





20.1(a) Reconciliation of equity shares outstanding at the beginning and at the end of the year

Particulars

As at

March 31, 2021

Asat March 31, 2020

Number of

shares Amount

Numberofshares

Amount

Outstandingatthebeginningoftheyear 258,128,152 25,812.82 216,942,733 21,694.27

Add:Issuedduringtheyear 1,285,750 128.57 41,185,419 4,118.55

Outstandingattheendoftheyear 259,413,902 25,941.39 258,128,152 25,812.82

20.1(b) Rights, preferences and restrictions attached to shares

EquityShares:TheCompanyhasonlyoneclassofequityshareshavingparvalueofRs.10pershare.Eachshareholderisentitledtoonevotepershareheld.DividendifanydeclaredispayableinIndianRupees.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.

20.1(c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company

Name of the shareholder


Number of

shares

% of

holding in

the class

Numberofshares

%ofholdingin the class

(a) Equity Shares

PuranAssociatesPrivateLimited 18,164,432 7.00 18,164,432 7.04

InvestmentOpportunitiesVPte.Limited 17,638,579 6.80 - -

ResilientIndiaGrowthFund - - 17,638,579 6.83

ChandrakantarockBuildersandDevelopersPrivateLimited(formerlyknownasWinSureTradeInvestPrivateLimitedRockBuildersandDevelopersPrivateLimited)*

15,719,304 6.06 14,659,304 5.68

InternationalFinanceCorporation 12,818,331 4.94 12,818,331 4.97

*onbehalfofChandrakantaEnterprise

20.1(d) NoclassofshareshavebeenissuedasbonussharesorforconsiderationotherthancashbytheCompanyduringtheperiodoffiveyearsimmediatelyprecedingthecurrentyearend.

20.1(e) NoclassofshareshavebeenboughtbackbytheCompanyduringtheperiodoffiveyearsimmediatelyprecedingthecurrent year end.

20.2 The Company has preference share capital having a par value of Rs. 10 per share, referred to herein as preference

share capital.

Particulars As at

March 31, 2021

Asat 31 March 2020

Authorized

March31,2021;162,000,000(March31,2020:162,000,000)Redeem-ablePreferenceSharesofRs.10each 16,200.00 16,200.00

Total 16,200.00 16,200.00





21. Other equity

ParticularsAs at

March 31, 2021

Asat March 31, 2020

21.1 Securities premium

Openingbalance 386,077.90 368,656.46

Add:Securitiespremiumcreditedonshareissue 251.31 17,421.44

Closing balance 386,329.21 386,077.90

Securitiespremiumisusedtorecordthepremiumonissueofshares.Thereservecanbeutilisedonly for limitedpurposessuchasissuanceofbonussharesinaccordancewiththeprovisionsoftheCompaniesAct,2013.

ParticularsAs at

March 31, 2021

Asat March 31, 2020

21.2 Capital Redemption Reserve

Openingbalance 123.14 123.14

Add:Changesduringtheyear - -

Closing balance 123.14 123.14

21.3 Capital Reserve

21.3.1 Reserve on account Scheme of Arrangement

Openingbalance 6,525.65 6,525.65


Closing balance 6,525.65 6,525.65

21.3.2 Reserve on Forfeiture of Share warrant

Openingbalance 4,161.12 -

Add:Changesduringtheyear - 4,161.12


Total Capital Reserve 10,686.77 10,686.77

21.4 General reserve (GR)




21.5 Statutory Reserve (SR)*


Add:Changesduringtheyear 1,279.94 -


*InaccordancetoSection45ICofRBIAct,1934,everynon-bankingfinancialcompanyshallcreateareservefundandtransferthereinasumnotlessthantwentypercentofitsnetprofiteveryyear.




ParticularsAs at

March 31, 2021

Asat March 31, 2020

21.6 Retained Earning

Openingbalance (284,007.90) (252,995.53)

AdjustmentforESOPexpense 13.93 3.96

Add:NetProfit/(loss)forthecurrentyear 6,399.70 (31,016.33)

Less:TransfertoStatutoryReserve* (1,279.94) -

Closing balance (278,874.21) (284,007.90)

21.7 Other Comprehensive Income

OpeningBalance (53.06) (1.56)

Add:Remeasurementgain/(loss)onpostemploymentbenefitobligation 41.69 (51.50)

Closing balance (11.37) (53.06)

21.8 ESOP reserve

OpeningBalance 52.47 -

Changes during the year 23.47 52.47

Closing balance 75.94 52.47

21.9 Money Received against Share Warrants

Openingbalance - 9,546.11

Amountreceivedduringtheyear - 16,154.98

Less:UtilisedtowardEquityAllotment - (21,539.98)

Less:TransfertoCapitalReserve - (4,161.12)

Closing balance - -

Total other equity 131,976.19 125,246.09


22. Revenue from operations - Interest Income

Particulars Year Ended

March 31, 2021

YearEndedMarch 31, 2020

On Financial Assets measured at Amortised Cost

InterestincomefromInvestments 613.30 251.18

Total 613.30 251.18

23. Revenue from operations (Others)

ParticularsYear Ended

March 31, 2021


ProfitonSale/RedemptionofNonCurrentandCurrentInvestments 3.32 21.34

Total 3.32 21.34





24. Other Income


March 31, 2021


Support Service Income 1,327.93 1,620.43

ProfitonSaleofProperty,PlantandEquipment(Net) 5.45 15.81

InterestonFixedDepositswithBanks 0.45 0.37

IncomefromSale/DistributionofNoncurrentinvestments 8,776.31 14.92

InterestonIncomeTaxRefund 628.73 145.58

Credit Balances Written back 38.81 3,988.48

Miscellaneous Income 483.88 0.83

Total 11,261.57 5,786.42

25. Finance Costs


March 31, 2021


On Financial liabilities measured at Amortised Cost

InterestonInterCorporateLoans 0.40 243.24

InterestonliabilityportionofRedeemablePreferenceShares 399.40 359.82

Otherinterestexpense(onleaseLiability)[refernoteno39] 18.15 -

Total 417.95 603.06

Particulars

2020-21 2019-20

On

financial liabilities

Measured

at FVTPL

On financial liabilities

Measured at

Amortised

cost

Total

Onfinancialliabilities

Measured

atFVTPL

Onfinancialliabilities

Measured at

Amortisedcost

Total

A Borrowings (other than debt

securities)

-

InterestonInterCorporateLoans - 0.40 0.40 - 243.24 243.24

Interestexpensesonfinancialliabilitiesdesignatedatfairvaluethroughprofit&loss

399.40 - 399.40 359.82 - 359.82

Otherinterestexpense 18.15 - 18.15

Total 417.55 0.40 417.95 359.82 243.24 603.06

26. Net Loss on Fair Valuation changes


March 31, 2021


LossonFairValuationofMutualfund,venturecapitalfundandalternativeinvestmentfunds

76.74 147.60

Total 76.74 147.60





27. Impairment on Financial Instruments


March 31, 2021


ImpairmentLossesonInvestmentinsubsidiaries[refernoteno.9] 336.04 12,036.73

Total 336.04 12,036.73

28. Employee Benefits Expenses


March 31, 2021


Salaries and wages 1,842.00 1,343.43

Contributiontoprovidentandotherfunds 39.25 53.83

ShareBasedPaymentstoemployees 35.87 15.00

Staffwelfareexpenses 30.60 25.15

Gratuity and compensated absences expenses 36.01 46.06

Recruitmentandtraining 0.22 1.63

Less:Expensessharedbysubsidiaries/JVs (59.01) -

Total 1,924.96 1,485.10

29. Depreciation and amortization expense


March 31, 2021


Depreciationonproperty,plant&equipment[refernoteno.13] 107.39 34.00

Amortizationofintangibleassets[refernoteno.14] 8.47 29.47

Total 115.86 63.47

30. Capital Commitment/ Settlement


March 31, 2021


(a) ExpenseforCapitalCommitment/Settlement[refernoteno.33.5] - 894.85

Total - 894.85

(b) ExceptionalItems

ExpenseforCapitalCommitment/Settlement[refernoteno.17and47(j)]

- 17,000.00

Total - 17,000.00





31. Other expenses


March 31, 2021


Rent 76.69 159.64ProvisionagainstLetterofcomfort[refernoteno.17] 530.23 1,569.67Repairsandmaintenance-others 13.88 87.52Communication Costs 2.22 79.50Printingandstationery 5.53 16.97Advertisementandpublicity 17.20 14.27Director’sfees,allowancesandexpenses 59.30 98.00Auditor’sfeesandexpenses[refernoteno.31.1] 39.04 55.96LegalandProfessionalcharges 937.80 1,078.90Insurance 117.01 48.79Custodial and stamp charges 2.82 9.41Contingent provision on standard assets 16.70 -Provisionfornonperformingassets 0.29 0.00

Provisionforsecuritydeposit - 363.57ExpensetowardsContingency[refernoteno.47(d)] 535.07 673.99FilingFees 12.11 10.55Membershipandsubscriptionfees 13.68 9.83Travelandconveyance 9.94 54.20PostageandCourier 0.56 7.67

OfficeExpenses 12.57 13.30

Electricityandwater 2.03 123.20

Fines&Penalties 2.22 7.45Lossonsaleoflongterminvestments(net) - 31.62

SoftwareLicenceFees 35.63 48.87GSTinputcredit(expenseoff) 269.37 333.80

MiscellaneousExpenses 12.05 1.65Less:Expensessharedbysubsidiaries/JVs (152.28) (53.86)Total 2,571.71 4,844.46

31.1 Payment to Auditor’s (exclusive of GST)


March 31, 2021


As Auditors

StatutoryAuditFees 29.39 28.20

TaxauditFees 1.25 1.21

In Other Capacity

ForotherServices(Certification) 8.40 20.26

Outofpocketexpense - 6.29

Total 39.04 55.96





32. Tax Expense recognised in Profit or Loss


March 31, 2021


Current Tax:

CurrentYear - -

ForEarlierYears (136.36) -

Deferred Tax:

MATCredit 171.59 -

Total 35.23 -

32.1 Reconciliation of the total tax charge

ThetaxchargeshowninthestatementofprofitandlossdiffersfromthetaxchargethatwouldapplyifallprofitshadbeenchargedatIndiacorporatetaxrate.AreconciliationbetweenthetaxexpenseandtheaccountingprofitmultipliedbyIndia’sdomestictaxrateisasfollows:


March 31, 2021


ProfitBeforeTax(A) 6,434.93 (31,016.33)

ApplicableTaxRate(B) 25.17% 29.12%Computed Tax Expense (A X B) 1,619.54 -Tax Effect of :

Expensesdisallowedfortaxpurpose 710.00 -Expensesallowedfortaxpurpose (120.73) -Income taxes related to prior years (136.36) -LossesSetoff (2,208.82) -

Current Tax Provision (C) (136.36) -Deferred tax Provision (D) 171.59 -Tax Expenses recognised in Statement of Profit and Loss (C + D) (E) 35.23 -Effective Tax Rate (E /A X 100) 0.55% -

33. Contingent Liabilities and Commitments


March 31, 2021


(a) Guarantees

-Guaranteesgiventobanksonbehalfofsubsidiaries1 10,000.00 4,291.00

(b)Othermoneyforwhichthecompanyiscontingentlyliable

-DisputedTaxDemandsnotprovidedfor-DirectTax2 (ReferNote33.3and33.4)

22,104.27 1,437.58

-DisputedTaxDemandsnotprovidedfor-IndirectTax3 195.24 112.61

-Claimagainstthecompanynotacknowledgedasdebts 10.37 10.37

-Underwritingcommitments/obligationsforshares/debentures

(referNote33.1&33.2) 11,761.98 11,991.09

Total 44,071.86 17,842.66




1. TheCompanyhasgivenacorporateguaranteetobanksonbehalfofitswhollyownedsubsidiaryReligareBrokingLimited(RBL)amountingtoRs.19,000lakhs(PreviousyearRs.19,000Lakhs)againstvariouscreditfacilities.AsonMarch31,2021,asumofRs.10,000Lakhs(PerviousyearRs.4,291Lakhs)wasoutstandingtowardsthesaidcreditfacility.

2. Includesdemandswhicharepending foradjudicationwithvarious incometaxauthorities i.e. ITAT,CIT(Appeal),CommissionerofIncomeTax,etc.

3. IncludesdemandswhicharependingforadjudicationwithCESTAT.

33.1 InclusiveofUnpaidCapitalcallonequitysharesofReligareCapitalMarketsLimitedamountingtoRs.4,077.50Lakhs.

33.2 (i) DuringtheyearendedMarch31,2018,BartleetTranscapitalLimited(BTL),SrilankahasexercisetheirputoptionrighttorequireReligareCapitalMarketsInternational(Mauritius)Limited’s(RCMIML)(subsidiaryofReligareCapitalMarketsLimited(RCML),RCMLandtheCompanytoacquireshareholdingofBTLinBartleetReligareSecuritiesPrivateLimited,Srilanka(BRS)foraconsiderationofUSD10,497,422.98aspertheshareholders’agreementdatedSeptember15,2010betweenBartleetCompanyPvtLtd,BTL,BRSandtheCompany.TheCompany,videAssignmentAgreementdatedSeptember30,2010,assignedtherightsandobligationstoRCMLwhichfurtherassignedthesametoitssubsidiaryRCMIML,underAssignmentAgreementdatedSeptember30,2010andthusRCMIMLacquired50%stakeinBRS.

(ii) Subsequently,RCMIMLandBTLenteredintoaSale&PurchaseAgreement(SSPA)datedDecember21,2017forsaleofitsentireshareholdinginBRStoBTLforUSD250000alongwithaconditiontowithdrawthesaidputoptionnoticebyBTL,whichwerepartofthetermsandconditionsoftheSSPA.

(iii) ThesaleofsharesasperSSPAcouldnotbecompletedasattheyear-enddateduetopendinglegalmattersagainstRCMIML.During theFY2020-21BTLhassenta letterdatedMay26,2020,addressed to theCompany,RCMLandRCMIML,allegingbreachofseveralrepresentations,covenantsandwarrantiesofthesaidSSPAresultingintobreachoftheSSPA.Ithasbeenallegedthatduetonon-completionofthetransactioninareasonabletimeoftheexecutionofSSPAandbreachofSSPA,thesaidSSPAisconsideredasterminatedbyBTLandthereforeRELshouldcomplywithitsobligationsinrespectofthePutOptionNoticedatedJune23rd,2017,withimmediateeffect.

(iv) RCMIMLandtheCompanyhavedeniedanybreachofShareholders’Agreementdated15September2010(SHA)orShareSaleandPurchaseAgreementdated21December2017(SSPA)andanyliabilitytowardsPutOptionNoticedated23June2017.Thepartiesarediscussingthematterforanamicableresolution.

(v) TheestimatedvalueofexercisedputoptionasatMarch31,2021amountstoRs7,684.48Lakhs(March31,2020Rs7,913.59Lakhs).

33.3 Assessment proceedings for theAY2016-17was referred for the special audit under section 142(2A) of the IncomeTaxAct,1961videdirections issuedby the IncomeTaxDepartmentdatedAugust06,2019.TheSpecialAuditorshadsubmittedauditreporton18.11.2019whereintheyhaveproposedanaggregateadditionofRs.384.57crores(approx.)onvariousgroundsandproposeddisallowanceofcapitallossamountingtoRs.894.26crores(approx.).

Thereafter,theIncometaxdepartmenthas,videitsdraftassessmentorderu/s.144CoftheActdated19thMarch,2020,confirmedall theadditionsofapprox.1,249.42crores (includingdisallowanceofcapital lossamounting toRs.894.26crores)asproposedbythespecialauditors.AggrievedbydisallowancesmadebytheAO,thecompanyhasfiledobjectionsbeforetheDisputeResolutionPanel(“DRP”),NewDelhion26thJune,2020.PostrepresentationofthegroundsbeforetheDRP,thebenchhaspassedtheorderon8thFebruary,2021whereintheDRPhasnotgivenanyreliefexceptonthetwogroundsentailtheamountaggregatingtoRs.7.17crores(approx.).

Successively, the tax department haswithout giving any opportunity of being heard, has passed a final assessmentorderon31.03.2021,wherein ithasconfirmedall thedisallowancesproposed in thedraftassessmentorder.Thesaiddisallowancealsoincludestheadditions/disallowancesonwhichreliefwasaccordedbytheDRPandfurtherconfirmedbytheTPOinrelationtotheTPaddition.ConsequentlyinthefinalassessmentordertheIncometaxdepartmenthasmadeanaggregatedisallowanceamountingtoRs.1,249.42crores(includingthedisallowanceofcapitallossofRCMLpursuanttoreductionofsharecapitalaggregatingtoRs.834Crores).Further,theincometaxdepartmenthasraisedademandaggregatingtoRs.204.51Crores(includinginterestu/s.234Band234CofRs.76.42crores)aftersetting-offadvancetaxandTDSforthesubjectyear.

AgainsttheimpugnedorderpassedbytheIncometaxdepartment,theCompanyhastakenfollowingaction(i)withrespecttothemistakenapparentfromrecordsinthefinalassessmentordertheCompanyhasfiledarectificationapplicationvideletterdated12thApril,2021.Postadjudicationofthesaidapplicationbythetaxdepartment,thedemandshallreducefromRs.204.51crorestoRs.200.54crores(ii)ThecompanyhasfiledanappealbeforetheIncomeTaxAppellantTribunal(‘ITAT’)againstthedisallowancesmadebytheincometaxdepartmenton19thApril,2021,whichisyettobefixedforthe




hearingand(iii)ThecompanyhadfiledstayapplicationbeforeITATforstayofdemandon19thApril,2021.Thehearingforstayofdemandisyettobefixed.

33.4 The assessment proceedings was initiated u/s 143(3) for AY 2017-18 and thereafter the assessment was referredtheTransfer pricingoffice (‘TPO’) by theAssessingOfficer. In the transfer pricingassessment, theTPOhasmadeadisallowanceofRs.8.32croresonaccountofcorporateguaranteeof150MUSDgivenbyRGAMInvestmentAdvisorsLimited(mergedwithRELw.e.f.01.04.2016)toRGAMInc.(awhollyownedsubsidiary).

Subsequently the Assessing Officer has passed a draft assessment order u/s 144C on 31.03.2021 proposing thedisallowancesaggregatingtoRs.947.46croreswhichincludesdisallowanceproposedbytheTPOamountingtoRs.8.32croresanddisallowanceofcapitallossofRs.939.14crores.

Againsttheaforesaidorderundersection144CoftheAct,thecompanyhasfileditsobjectionsbeforeHon’blebenchofDisputeResolutionPenal(DRP),NewDelhion29.04.2021.Sincethisisdraftassessmentorder,nodemandnoticeu/s156hasbeenissuedandnotaxliabilityispayablebythecompany.

33.5 Duringthepreviousyears,twononresidentshareholdersofReligareFinvestLimited(RFL),asubsidiaryoftheCompany,hadexercisedtheirrightofputoptionrequiringtheCompanytoacquiretheirshareholdinginRFLandhadfiledpetitionsinDelhiHighCourtforseekingvariousreliefs.Accordingly,acontingentliabilityofRs.Nil(previousyearRs.84,182.34Lakhs)wasdisclosed.OnFebruary11,2020,theCompany,enteredintoSharePurchaseAgreements(“SPA”)foracquisitionof37,641,204equitysharesofRFLconstituting14.36%shareholdingofRFLfromthesaidnonresidentshareholders.Further,ConsentTermAgreementshadbeenenteredamongst theparties toamicably settleall theexistingdisputesinitiatedby thesaidnonresidentshareholdersagainst theCompanyandRFL.TheCompanydepositedasumofRs.894.85Lakhswith theCourt inaccordancewith the termssetout therein.TheCompanyobtain thepermissionof thecompetentgovernmentauthoritytotransfertheSettlementAmount.TheprocesstotransferthissettlementamountaspertermsofSPAhasbeeninitiated.

Accordingly, in termsof theSPA,14.36%stakeofRFLwasacquired foraconsiderationofRs.4,705LakhsandRFLbecameawhollyownedsubsidiaryoftheCompanyonFebruary28,2020.

33.6 TheAuditCommitteeand theBoardofDirectorsonDecember8,2016&December10,2016 respectively,approvedthepaymentofBrandLicenseFeestoRHC‘DuringtheyearendedMarch31,2017,theCompanyhadenteredintoanagreementforpaymentofBrandLicenseFeestoRHCHoldingPrivateLimited(“RHC”)foraperiodof6yearseffectiveApril01,2016forusageofthe“Religare”trademark/brand.DuringtheyearendedMarch31,2018,RHChasassignedthetrademark“Religare”anditslogotoEliveInfotechPvtLimited(assignee/Elive).Further,ElivehaswaivedtherighttoreceivethebrandlicensefeefromRELoritssubsidiaries/affiliatestillthetimeinterestonloansavailedbythegroupcompaniesofEliveandRHC fromReligareFinvestLimited isserviced. In thesuit titledSCCPL&Anothervs.LVB&Othershavingno.CS(COMM)633/2018pendingbeforetheDelhiHighCourt,SCCPLhadclaimedownershipof“ReligareBrand”bywayofanAssignmentDeedallegedlyexecutedinitsfavourbyRHCandElive.TheDelhiHighCourtvideitsorderdate22.02.2018passedanordertomaintainstatusquoregardingtheReligareTrademark.RHCandElivehavefiledanapplicationunderSection340Cr.P.CagainstSCCPLforwilfullyknowing,deliberatelymakingfalsestatementsandsubmittingforgeddocuments.Loancoreservicingsolutionsltd.hasfiledsubstitutiononbehalfofSCCPLbywayofassignmentdeed..SCCPLhasfiledapplicationsforamendmentofsuitandapplicationu/o391&2seekingstatusquoquatheinvestigationagency.Thematterislistedforargumentsonapplicationspendingdisposal.Thematterissub-juidice.

33.7 InthematterofLoancoreServicingSolutionsLtd.Vs.REL,LoancorehasfiledinsolvencypetitionunderSection9ofIBConthebasisofPenaltyFeeAgreementofRs.125CroreallegedlysignedbyExChairpersonoftheCompany.However,thecompanyhasnosuchagreementinitsrecordsandneitherithasbeenfoundinanyoftheminutesofBoardmeetingsanctioningtheexecutionofsaidagreement.ThepetitionisnotmaintainableaspertheCompany.TheCompanyhassubmitteditsCertificateofregistrationasNBFCandsuitablereply.Thematterisbeingpursuedfordisposalthecompanyis expected positive outcome.

34. Segment Reporting:

A Basis Of Segmentation

ThesegmentreportingofthecompanyhasbeenpreparedinaccordancewithINDAS108“OperatingSegment”(specifiedUnder section133of theCompaniesAct 2013.Formanagement purpose theCompany is organisedintobusinessunitsbasedonservicesandhastworeportable(a)InvestmentandFinancingActivities(b)SupportServices .

The Segment have been identified as reportable segment by the Company’s Chief Operating Decision Maker(“CODM”).SegmentprofitamountsareevaluatedregularlybytheBoard,whichhasbeenidentifiedasCODM,indecidinghowtoallocateresourcesandinassessingperformance.




SegmentsRevenue ,Results ,Assets and Liabilities include the respective amounts identifiable to each of thesegmentsandamountallocatedonareasonablebasis.Unallocatedexpenditureconsistsofcommonexpenditureincurred for all segments. The asset and liabilities that cannot be allocated between segments are shown asunallocated between the segments are shown as unallocated corporate assets and liabilities respectively.

B Information about Reportable Segments :

Primary Segment

(a) Thebusinesssegmenthasbeenconsideredastheprimarysegmentfordisclosure.TheCompany’sprimarybusinesscomprisesof‘InvestmentandFinancing’and‘SupportServices’.Thebusinesssegmentshavebeenidentifiedconsideringthenatureofservices,thedifferingrisksandreturns,theorganizationstructureandtheinternalfinancialreportingsystem.

(b) Segmentrevenue,results,assetsandliabilitieshavebeenaccountedforonthebasisoftheirrelationshiptotheoperatingactivitiesofthesegmentandamountsallocatedonareasonablebasis.

(c) Revenue and expenses directly attributable to segments are reported under each reportable segment.Expensesincurredonbehalfofothersegmentsandnotdirectlyidentifiabletoeachreportablesegmenthavebeenallocated toeachsegmenton thebasisofassociatedrevenuesofeachsegment.Allotherexpenseswhich are not attributable or allocable to segments have been disclosed as unallocable expenses.

(d) Assets (including fixedassets) and liabilities that aredirectly attributable to segmentsaredisclosedundereachreportablesegment.Commonassetshavebeenallocatedtoeachsegmentonthebasisofassociatedrevenuesofeachsegment.Common liabilitieshavebeenallocated toeachsegmenton thebasisof totalsegmentexpense.Allotherassetsandliabilitiesaredisclosedasunallocable.

Ifthesegmentresultofasegmentincludesinterestordividendincome,itssegmentassetsincludetherelatedreceivables, loans, investments, or other interest or dividend generating assets.

Ifthesegmentresultofasegmentincludesinterestexpense,itssegmentliabilitiesincludetherelatedinterest-bearing liabilities.

INFORMATION ABOUT PRIMARY BUSINESS SEGMENT


Particulars

Investment

and Financing

Activities

Support

ServicesUnallocated Total

(i) Segment Revenue

ExternalRevenue 9,392.93 1,333.38 1,113.06 11,839.38

Inter-SegmentalRevenue - - - -

Balances Written Back - 38.81 - 38.81

Add:Interest/DividendIncome - - - -

TotalRevenue 9,392.93 1,372.19 1,113.06 11,878.19

(ii) Segment Results 4,627.59 694.28 1,113.06 6,434.93

OtherComprehensiveIncome 36.38 5.31 - 41.69

TotalComprehensiveIncome 4,663.97 699.59 1,113.06 6,476.62

Less:Interestexpense

IncomeTaxes(Current,DeferredandMinimumAlternativeTax)

- - - 35.23

OtherComprehensiveIncome

Profit/Lossaftertax - - - 6,441.39

(iii) Segment Assets 203,940.86 333.94 4,266.77 208,541.57

Total Assets 203,940.86 333.94 4,266.77 208,541.57




Particulars

Investment

and Financing

Activities

Support

ServicesUnallocated Total

(iv) Segment liabilities 48,194.58 2,273.23 156.18 50,623.99

UnallocatedCorporateLiabilities - - - -

Total liabilities 48,194.58 2,273.23 156.18 50,623.99

(v) Capital Expenditure 238.24 34.80 - 273.04

(vi) Depreciation/Amortization 101.09 14.77 - 115.86

(vii) Non Cash Expenditure other than

Depreciation

1,129.25 104.96 - 1,234.21

Note:-1. Advancetax/TDSreceivableandstatutorypaymentsareconsideredasunallocateditem2. Depreciationcostallocatedonactualbasis

35. Fair value measurement

Thisnotedescribesthefairvaluemeasurementofbothfinancialandnon-financialinstrumentsandisstructuredasfollows:35.1 ValuationPrinciples35.2 Assetsandliabilitiesbyfairvaluehierarchy35.3 ValuationTechniques35.4 Movementsinlevel3financialinstrumentsmeasuredatfairvalue35.5 FairValueoffinancialinstrumentsnotmeasuredatfairvalue35.6 Valuationmethodologiesoffinancialinstrumentsnotmeasuredatfairvalue

35.1 Valuation Principles

Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionintheprincipal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardlessofwhetherthatpriceisdirectlyobservableorestimatedusingavaluationtechnique.

Inordertoshowhowfairvalueshavebeenderived,financialinstrumentsareclassifiedbasedonahierarchyofvaluationtechniques.

35.2 Fair value hierarchy

Fairvalueofthefinancialinstrumentsisclassifiedinvariousfairvaluehierarchiesbasedonthefollowingthreelevels:

Level 1: Quotedprices(unadjusted)inactivemarketforidenticalassetsorliabilities.

Level 2:Inputsotherthanquotedpriceincludedwithinlevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices).

Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarketisdeterminedusingmarketapproachandvaluationtechniqueswhichmaximizetheuseofobservablemarketdataandrelyaslittleaspossibleonentity-specificestimates.Ifsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinLevel2.

Level 3: Inputsfortheassetsorliabilitiesthatarenotbasedonobservablemarketdata(unobservableinputs).

Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,thefairvalueisdeterminedusinggenerallyacceptedpricingmodelsbasedonaanalysis,withthemostsignificantinputsbeingthediscountratethatreflectsthecreditriskofcounterparty.

Thefairvalueoftradereceivables,tradepayablesandotherCurrentfinancialassetsandliabilitiesisconsideredtobeequaltothecarryingamountsoftheseitemsduetotheirshort-termnature.WheresuchitemsareNon-currentinnature,thesamehasbeenclassifiedasLevel3andfairvaluedeterminedusingbasis.Similarly,unquotedequity instrumentswheremost recent information tomeasure fair value is insufficient, or if there is awide range of possible fair valuemeasurements,costhasbeenconsideredasthebestestimateoffairvalue.

TherehasbeennochangeinthevaluationmethodologyforLevel3inputsduringtheyear.TheCompanyhasnotclassifiedanymaterialfinancialinstrumentsunderLevel3ofthefairvaluehierarchy.TherewerenotransfersbetweenLevel1andLevel2duringtheyear.




Financials Instruments

Financial instruments – Fair values and risk management

A. Financial instruments by category (Amount in Rs. lakhs, unless otherwise stated)

Particulars

March 31, 2021 March 31, 2020

FVTPL FVTOCIAmortised

CostFVTPL FVTOCI Amortised

Cost

Financial Assets

Cashandcashequivalents - - 1,027.28 - - 71.13

Bank Balance other than cash and

cashequivalents - - 5.70 - - 5.40

Loans - - 5,677.20 - - -Investments 1,646.16 - 194,331.65 723.00 - 205,901.01OtherFinancialassets - - 399.38 - - 1,548.86Total 1,646.16 - 201,441.21 723.00 - 207,526.40Financial Liabilities

TradePayables - - 1,130.53 - - 1,598.84Borrowings(OtherthanDebtSecurities)

- - 33,664.33 - - 33,301.81

Otherfinancialliabilities - - 15,554.39 - - 28,846.72Total - - 50,349.25 - - 63,747.37

35.2.1 Assets and liabilities by fair value hierarchy

Thefollowingtableshowsananalysisoffinancialinstrumentsrecordedatfairvaluebylevelofthefairvaluehierarchy: As at March 31, 2021

Particulars Level 1 Level 2 Level 3 Total

Assets measured at fair value on a recurring basis

Financial assets designated at fair value through profit or loss

Equitysecurities - - 1646.16 1646.16

Total - - 1,646.16 1,646.16

AsatMarch31,2020

Particulars Level1 Level2 Level3 Total

Assetsmeasuredatfairvalueonarecurringbasis

Financial assets designated at fair value through profit or loss

Equitysecurities - - 723.00 723.00

Total - - 723.00 723.00

35.3 Valuation Techniques

Non-current assets and liabilities held for sale

TheCompany’snon-currentassetsandliabilitiesheldforsalearemeasuredatfairvalueonnon-recurringbasis,withtheexceptionofthecertainfinancialinstrumentsthathavealreadybeenmeasuredatfairvalueonarecurringbasis.Initsnormalcourseofbusiness,theCompanydoesnotphysicallyrepossesspropertiesorotherassetsinitsretailportfolio,butengagesexternalagentstorecoverfunds,generallyatauction,tosettleoutstandingdebt.Asaresultofthispractice,theresidentialpropertiesunderlegalrepossessionprocessarenotrecordedonthebalancesheetandtreatedasnon-currentassets/liabilitiesheldforsale.Ofthenon-currentassetsheldforsaleanddisclosedinNote15.





35.4 Movements in Level 3 financial instruments measured at fair value

ThefollowingtablesshowareconciliationoftheopeningandclosingamountsofLevel3financialassetsandliabilitieswhicharerecordedatfairvalue.TransfersfromLevel3toLevel2occurwhenthemarketforsomesecuritiesbecamemoreliquid,whicheliminatestheneedforthepreciouslyrequiredsignificantunobservablevaluationinputs.Sincethetransfer,theseinstrumentshavebeenvaluedusingvaluationmodelsincorporatingobservablemarketinputs.TransfersintoLevel3reflectchangesinmarketconditionsasaresultofwhichinstrumentsbecomelessliquid.Therefore,theCompanyrequiressignificantunobservableinputstocalculatetheirfairvalue.

ThefollowingtablesshowthereconciliationoftheopeningandclosingamountsofLevel3financialassetsandliabilitiesmeasuredatfairvalue:

Financial assets designated at Fair Value through Profit or Loss (FVTPL)

Particulars FY 2020-21 FY2019-20Opening Balance 723.00 1,026.84Purchase 2,549.90 5,200.00Sales 1,553.32 5,364.69Lossofprincipal(Investmentwrittenoff) - 27.81

Issuances Settlements - -TransfersintoLevel3 - -TransfersfromLevel3 - -Netinterestincome,nettradingincomeandotherincome 3.32 36.26

Othercomprehensiveincome - -Closing Balance 1,646.16 723.00

Unrealised gains and (losses) related to balances held at the end of the period (76.73) (147.60)

35.5 Fair value of financial instruments not measured at fair value Setoutbelowisacomparison,byclass,ofthecarryingamountsandfairvaluesoftheCompany’sfinancialinstruments

thatarenotcarriedatfairvalueinthefinancialstatements.Thistabledoesnotincludethefairvaluesofnon–financialassetsandnon–financialliabilities.


Particulars Carrying

amount

Fair Value


Financial Assets

CashandCashequivalent 1,027.28 - - 1,027.28 1,027.28

Bankbalancesotherthancashandcashequivalent 5.70 - - 5.70 5.70

Investment 195,977.81 - - 195,977.81 195,977.81

Loansandadvancestocustomers 5,677.20 - - 5,677.20 5,677.20

OtherFinancialassets–atamortisedcost 399.38 - - 399.38 399.38

Total financial assets 203,087.37 - - 203,087.37 203,087.37


Tradepayables 1,130.53 - - 1,130.53 1,130.53

Borrowing other than debt securities 33,664.33 - - 33,664.33 33,664.33

SecurityDeposits 1,789.48 - - 1,789.48 1,789.48

Otherfinancialliabilities 13,764.91 - - 13,764.91 13,764.91

Total Financial liabilities 50,349.25 - - 50,349.25 50,349.25





AsatMarch31,2020

Particulars Carrying

amount

FairValueLevel1 Level2 Level3 Total

FinancialAssetsCashandCashequivalent 71.13 - - 71.13 71.13

Bankbalancesotherthancashandcashequivalent 5.40 - - 5.40 5.40Investment 206,624.01 - - 206,624.01 206,624.01Loansandadvancestocustomers - - - - -OtherFinancialAssets 1,548.86 - - 1,548.86 1,548.86Totalfinancialassets 208,249.40 - - 208,249.40 208,249.40FinancialLiabilitiesTradepayables 1,598.84 - - 1,598.84 1,598.84Borrowing other than debt securities 33,301.81 - - 33,301.81 33,301.81

SecurityDeposits 1,802.48 - - 1,802.48 1,802.48Otherfinancialliabilities 27,044.24 - - 27,044.24 27,044.24TotalFinancialliabilities 63,747.37 - - 63,747.37 63,747.37

35.6 Valuation methodologies of financial instruments not measured at fair value

Belowarethemethodologiesandassumptionsusedtodeterminefairvaluesfortheabovefinancial instrumentswhicharenotrecordedandmeasuredatfairvalueintheCompany’sfinancialstatements.Thesefairvalueswerecalculatedfordisclosure purposes only.

Short-term financial assets and liabilities

Forfinancialassetsandfinancialliabilitiesthathaveashort-termmaturity(lessthantwelvemonths),thecarryingamounts,which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash andbalances,Tradereceivables,Contractassets,balancesotherthancashandcashequivalents,tradepayablesandcontractliabilitywithoutaspecificmaturity.SuchamountshavebeenclassifiedasLevel3onthebasisthatnoadjustmentshavebeen made to the balances in the balance sheet.

36. Financial Risk Management

36.0 Introduction and risk profile

Company has operations in India.Whilst risk is inherent in theCompany’s activities, it ismanaged through anintegratedriskmanagementframework,includingon-goingidentification,measurementandmonitoring,subjecttorisklimitsandothercontrols.ThisprocessofriskmanagementiscriticaltotheCompany’scontinuingprofitabilityandeachindividualwithintheCompanyisaccountablefortheriskexposuresrelatingtohisorherresponsibilities.TheCompanyisexposedtocreditrisk,liquidityriskandmarketrisk.Itisalsosubjecttovariousoperatingandbusinessrisks.

36.1 Risk Management Structure

The Board of Directors are responsible for the overall risk management approach and for approving the riskmanagement strategies and principles.

TheBoardhasconstituted theRiskManagementCommitteewhich is responsible formonitoring theoverall riskprocess within the Company.

The Risk Management Committee has the overall responsibility for the development of the risk strategy andimplementing principles, frameworks, policies and limits. The Risk Management Committee is responsible formanaging risk decisions and monitoring risk levels.

AtRELanditssubsidiariesthedaytodaymonitoringismanagedbyHeadofrespectivedepartment/functionand/orRiskManagementDepartmentatthekeysubsidiariesshallberesponsibleforimplementationoftheriskmanagement




systemasmaybeapplicabletotheirrespectiveareasoffunctioningwhowillmaintainrecordofeachriskidentifiedalongwithmitigationplaninRisk&ControlMatrix(RCM)andwillupdateitperiodically.

TheCompany’spolicyisthatriskmanagementprocessesthroughouttheCompanyareauditedatregularintervalbytheInternalAuditfunction,whichexaminesboththeadequacyoftheproceduresandtheCompany’scompliancewiththeprocedures.InternalAuditdiscussestheresultsofallassessmentswithmanagement,andreportsitsfindingsandrecommendationstotheSupervisoryBoardandAuditCommittee.

36.1.2 Risk measurement and reporting systems

TheCompany’s risksaremeasuredusingamethod that reflectsboth theexpected loss likely toarise innormalcircumstances and unexpected losses, which are an estimate of the ultimate actual loss based on statisticalmodels.Themodelsmakeuseofprobabilitiesderivedfromhistoricalexperience,adjustedtoreflecttheeconomicenvironment.TheCompanyalsorunsworst-casescenariosthatwouldariseintheeventthatextremeeventswhichareunlikelytooccurdo,infact,occur.

Monitoringandcontrolling risks isprimarilyperformedbasedon limitsestablishedby theCompany.These limitsreflectthebusinessstrategyandmarketenvironmentoftheCompanyaswellasthelevelofriskthattheCompanyiswillingtoaccept,withadditionalemphasisonselectedindustries.Inaddition,theCompany’spolicyistomeasureandmonitortheoverallrisk-bearingcapacityinrelationtotheaggregateriskexposureacrossallrisktypesandactivities.

36.2 REL is involved in financial services business and is exposed to following key risks

36.2.1 Compliance-Regulatory-Legal risk

Compliance-Regulatory-Legal risk is the risk arising from non-adherence to prescribed law in force,regulations, policies, procedures and guidelines which may give rise to regulatory actions, litigations,

deficiency in product or services depending on the level of non-adherence. The corporate governancefunctionisprimarilydesignedtoavoidincurrenceofcompliance-regulatory-legalrisk.

36.2.2 Investment Risk

InvestmentRiskistheriskinwhichtheprovideroffinancesharesinthebusinessrisk.InvestmentRiskisthemajorriskfacedbyRELbeingaholdingcompany.TheCompanyfacesinvestmentriskexposurefromitsvarious investments, such as direct investments, asset management etc.

Note:investmentriskisnottheriskarisingfromshort-termtradingforthepurposeofgainingshort-termprofits.Risksarisingfromshort-termmarketfluctuationsaredealtwithundermarketrisk.TheCompany’sstrategytowardsinvestmentriskmanagementwillbebasedonBusinessStrategy,DueDiligence,DiversificationofInvestments,SettingLimits,ExitStrategy,StressTestingetc.

36.2.3 Strategic Business risk

StrategicBusiness risk–Strategic risksarebasically those riskwhichare typicallymanagedby the topmanagement group and are tactical in nature such as continue or discontinue a product line, scaling up or

downthebusiness,majorinvestmentdecision,keyborrowings,mergersoracquisitionsetc.

36.2.4 Financial Risk Management

The Company’s principal financial liabilities, other than derivatives, comprise of borrowings, trade andotherpayables.ThemainpurposeofthesefinancialliabilitiesistofinancetheCompany’soperations.TheCompany’sprincipalfinancialassets,otherthanderivatives,includetradeandotherreceivables,investmentsandcashandcashequivalentsthatarisedirectlyfromitsoperations.

TheCompanyisexposedtocreditrisk,liquidityriskandmarketrisk.Itisalsosubjecttovariousoperatingand business risks.

Marketriskistheriskoflossoffutureearnings,fairvaluesorfuturecashflowsthatmayresultfromachangeinthepriceofafinancialinstrument.Thevalueofafinancialinstrumentmaychangeasaresultofchangesintheinterestrates,foreigncurrencyexchangerates,commodityprices,equitypricesandothermarketchangesthataffectmarketrisksensitiveinstruments.Marketriskisattributabletoallmarketrisksensitivefinancialinstruments,includinginvestmentsanddeposits,receivables,payablesandborrowings.

TheCompany’soverallriskmanagementfocusesontheunpredictabilityoffinancialmarketsandseekstominimizepotentialadverseeffectsonthefinancialperformanceoftheCompany.




The sources of risks which the Company is exposed to and their management is given below

Risk Exposure Arising From Measurement Management

• Market Risk

-Foreign ExchangeRisk

Committed commercial

transactions not denominated

inRs.

CashFlowForecasting

Amountinsignificant

-InterestRateRisk Borrowingsatfixed/variablerates,InvestmentsinDebtSchemesofMutualFundsandOtherDebtSecurities

InterestRateMovements

PortfolioDiversification

-EquityPriceRisk Investmentsinequity FinancialPerformanceoftheinvestee Company

Equity risk relates to thesensitivityoffinancialproductsto the changes in prices

• Credit Risk CashandCashequivalents,TradeReceivables,Investments,Loans

AgeingAnalysis,CollateralAnalysis,CreditRating

Diversification of Bankdeposits, mutual fundinvestments and portfoliocredit monitoring, credit limit

and credit worthiness through

collateral based monitoring.

• Liquidity Risk BorrowingsandOtherLiabilitiesandLiquidInvestments

RollingCashFlow

ForecastsAdequate unused creditlinesandborrowingfacilities,PortfolioDiversification

36.2.4.1 Impairment assessment

TheCompany’sdefinitionandmeasurementofimpairmentininvestments

-HowtheCompanymeasuresandmonitorstheprobabilityofimpairmentininvestmentsduetochangesinbusinessfairvaluations.

36.2.4.2 Grouping financial assets measured on a collective basis

AssetclasseswheretheCompanycalculatesECLonacollectivebasisinclude:

-TradeReceivables

-otherReceivables

36.2.4.3 Significant increase in credit risk

TheCompanycontinuouslymonitorsallassetssubjecttoECLs.Inordertodeterminewhetheraninstrumentoraportfolioofinstrumentsissubjectto12mECLorLTECL,theCompanyassesseswhethertherehasbeenasignificantincreaseincreditrisksinceinitialrecognition.TheCompanyconsidersanexposuretohavesignificantlyincreasedincreditriskunderlyingassetsandaccordinglychangestheECL.

TheCompanyalsoappliesasecondaryqualitativemethodfor triggeringasignificant increase increditriskforanasset,suchasmovingacustomer/facilitytothewatchlist,ortheaccountbecomingforborne.Regardlessofthechangeincreditgrades,ifcontractualpaymentsaremorethan30dayspastdue,thecreditriskisdeemedtohaveincreasedsignificantlysinceinitialrecognition.

WhenestimatingECLsonacollectivebasisforaCompanyofsimilarassets,theCompanyappliesthesame principles for assessingwhether there has been a significant increase in credit risk since initialrecognition.

36.2.5 Concentration Risk

Concentration Risk is Probability of loss arising from heavily lopsided exposure to a particular group ofcounterparties.Forexampletheriskoflosstoafinancecompanyasaresultofhavingtoomanyoutstandingloansconcentratedinaparticularinstrument,withaparticulartypeofborrower,orinaparticularterritory.




36.2.6 Reputational Risk

ReputationalRiskAspertheabovestandard,RELisalsoexposedtoreputationriskarisingfromfailuresingovernance,business strategy and process, regulatory-compliance and legal risk. These risks are generally covered underOperationalrisks.ReputationalriskistheriskofpotentialdamagetotheCompanyduetodeteriorationofitsreputation.ThereputationoftheCompanymaysufferasaresultofitsfailuretocomplywithlaws,regulations,rules,reportingrequirements,standardsandcodesofconductapplicabletoitsactivities,ratherthancompliancewiththeinternallimitsorprocedures.Proactivemeasurestominimizetheriskoflosingreputationcouldbeasoundriskmanagementframework,good corporate governance high level ethics and integrity, rigorous anti money laundering procedures, good business

practicesandreportingofallbreacheswhichleadtoreputationalrisktotheattentionofseniormanagementandtheboard. Management of subsidiaries and support functions of REL should take into consideration above basic riskcategorizationanddevise theirown riskcumcontrolmatrix foreachof theproduct line,segment,businessandoperations.

36.2.6 Liquidity risk

Liquidityriskisthepotentialoflossarisingfromtheirinabilityeithertomeetobligationsortofundincreasesinassetsastheyfallduewithoutincurringunacceptablecostsorlosses.

36.2.6.1 Analysis of financial assets and liabilities by remaining contractual maturities

ThetablebelowsummarisesthematurityprofileoftheundiscountedcashflowsoftheCompany’sfinancialassetsandliabilitiesasatMarch31.Repaymentswhicharesubjecttonoticearetreatedasifnoticeweretobegivenimmediately.However,theCompanyexpectsthatmanycustomerswillnotrequestrepaymentontheearliestdateitcouldberequiredtopayandthetabledoesnotreflecttheexpectedcashflowsindicatedby its deposit retention history.


Particulars On demandLess than 3

months

3 to 12

Months1 to 5 years Over 5 years Total


Financial assets

Cashandcashequivalentandotherbankbalances

1,027.28 - 5.70 - - 1,032.98

Financialassetsatfairvaluethroughprofitandloss

- - 1,046.65 599.51 - 1,646.16

OtherFinancialAssets - 148.66 182.02 68.70 - 399.38

Loans - - 5,677.20 - - 5,677.20

Financialinvestmentsatamortisedcost - - - - 194,331.65 194,331.65

Total undiscounted financial assets 1,027.28 148.66 6,911.57 668.21 194,331.65 203,087.37

Financial liabilities

TradePayable - 210.00 624.53 296.00 - 1,130.53

Borrowings(otherthandebtsecurities)* 6,893.99 - 18,550.00 - 8,220.34 33,664.32

Otherfinancialliabilities - 894.85 13,102.83 146.43 1,209.06 15,353.18

Total undiscounted financial liabilities* 6,893.99 1,104.85 32,277.36 442.43 9,429.40 50,148.04

Total Net financial assets/(liabilities) (5,866.71) (956.19) (25,365.80) 225.78 184,902.25 152,939.33

*Intercorporateborrowing’sfromsubsidiariesareoverdue.





ParticularsOn

demand

Less than

3 months

3 to 12

Months

1 to 5

years

Over 5

yearsTotal


Financial assets

Cashandcashequivalentandotherbank balances

71.13 - 5.40 - - 76.53

Financialassetsatfairvaluethroughprofitandloss

- - 94.82 628.18 - 723.00

OtherFinancialAssets - 1,515.24 30.62 3.00 1,548.86

Financialinvestmentsatamortisedcost

- - - - 205,901.01 205,901.01

Total undiscounted financial assets*

71.13 1,515.24 130.84 631.18 205,901.01 208,249.40

Financial liabilities

TradePayable - - - 745.15 - 745.15

Borrowings (other than debt

securities)

- 25.33 25,455.53 7,820.95 - 33,301.81

Otherfinancialliabilities 15,319.26 172.43 13,182.12 - 28,673.82

Total undiscounted financial liabilities*

- 15,344.60 25,627.97 21,748.22 - 62,720.78

Net undiscounted financial assets/(liabilities)

71.13 (13,829.36) (25,497.13) (21,117.04) 205,901.01 145,528.62

36.2.7 Market risk

Markettheriskthatthefairvalueorfuturecashflowsoffinancialinstrumentswillfluctuateduetochangesinmarketvariablessuchas interest rates, foreignexchange ratesandequityprices.TheCompanyclassifiesexposures tomarket risk intoeither tradingornon–tradingportfoliosandmanageseachofthoseportfoliosseparately.Non–tradingpositionsaremanagedandmonitoredusingothersensitivity analyses.

36.2.7.1 Total market risk exposure

Particulars

March 31, 2021 March 31, 2020

Carrying

amount

Traded

risk

Non-traded

risk

Carrying

amount

Tradedrisk

Non-tradedrisk

Primaryrisksensitivity

Assets

Cashandcashequivalentand other bank balances

1,032.98 - 1,032.98 76.53 - 76.53 Interest rate

FinancialassetsatFVTPL 1,646.16 - 1,646.16 723.00 - 723.00 Interestrate/FXandEquityprice Interest

rate

Loans 5,677.20 - 5,677.20 - - - Interest rate

Financialinvestments–amortised cost

194,331.65 - 194,331.65 205,901.01 - 205,901.01 Interest rate

Total 202,687.99 - 202,687.99 206,700.54 - 206,700.54




Particulars

March 31, 2021 March 31, 2020

Carrying

amount

Traded

risk

Non-traded

risk

Carrying

amount

Tradedrisk

Non-tradedrisk

Primaryrisksensitivity

Liabilities

Borrowings(otherthanDebtSecurities)

33,664.33 - 33,664.33 33,301.81 - 33,301.81 Interest rate

Deposits 1,789.48 - 1,789.48 1,802.48 - 1,802.48 Interest rate

Tradepayables 1,130.53 - 1,130.53 1,598.84 - 1,598.84 Interest rate

Otherliabilities 13,764.91 - 13,764.91 27,044.24 - 27,044.24 Interest rate

Total 50,349.25 - 50,349.25 63,747.37 - 63,747.37

36.2.8 Operational risk

Operational risk is the riskof loss resulting from inadequateor failed internalprocesses,peopleandsystemsor fromexternalevents.This riskshallalso incorporatepossiblecausesof loss resulting fromregulatorynon-compliances. The main sources of operational risk are Process design, Employees, Equipment, Informationtechnology,Physicalrisk,regulatorynon-compliance,Fiduciaryetc.

37. Capital

TheCompanymaintainsanactivelymanagedcapitalbase tocover risks inherent in thebusinessand ismeeting thecapitaladequacyrequirementsofthelocalbankingsupervisor,ReserveBankofIndia(RBI)ofIndia.TheadequacyoftheCompany’scapitalismonitoredusing,amongothermeasures,theregulationsissuedbyRBI.

Companyhascompliedinfullwithallitsexternallyimposedcapitalrequirementsoverthereportedperiod.

37.1 Capital Management

TheprimaryobjectivesoftheCompany’scapitalmanagementpolicyaretoensurethattheCompanycomplieswithexternally imposedcapital requirementsandmaintainsstrongcredit ratingsandhealthycapital ratios inorder tosupportitsbusinessandtomaximizeshareholdervalue.

TheCompanymanagesitscapitalstructureandmakesadjustmentstoitaccordingtochangesineconomicconditionsandtheriskcharacteristicsof itsactivities. Inordertomaintainoradjust thecapitalstructure, theCompanymayadjusttheamountofdividendpaymenttoshareholders,returncapitaltoshareholdersorissuecapitalsecurities.Nochangeshavebeenmadetotheobjectives,policiesandprocessesfromthepreviousyears.However,theyareunderconstant review by the Board.

38. Retirement benefit Plan

38.1 Defined Contribution Plan

Contributiontowardprovidentfundplanforallemployeesismadetoregulatoryauthorities,wheretheCompanyhasnofurtherobligations.SuchbenefitsareclassifiedasDefinedContributionSchemeastheCompanydoesnotcarryanylegalorconstructiveobligationstopayfurthercontributionsapartfromthecontributionsmadeonmonthlybasiswhicharechargedtothestatementofProfitandLossaccountasincurred.TheamountchargedtoP&LaccountRs39.25LakhsduringtheFY2020-21(ForFY2019-20Rs53.82Lakhs)

38.2 Defined Benefits plan

TheCompanyhasadefinedbenefitgratuityplaninIndia(funded).TheCompany’sdefinedbenefitgratuityplanisafinalsalaryplanforIndiaemployees,whichrequirescontributionstobemadetoaseparatelyadministeredfund.ThegratuityplanisgovernedbythePaymentofGratuityAct,1972.Undertheact,employeewhohascompletedfiveyearsofserviceisentitledtospecificbenefit.Thelevelofbenefitsprovideddependsonthemember’slengthof




serviceandsalaryatretirementage.ThefundhastheformofatrustanditisgovernedbytheBoardofTrustees,whichconsistsofanequalnumberofemployerandemployeerepresentatives.TheBoardofTrusteesisresponsiblefortheadministrationoftheplanassetsandforthedefinitionoftheinvestmentstrategy.


Thefollowingtablessummariesthecomponentsofnetbenefitexpenserecognisedinthestatementofprofitorlossandthefundedstatusandamountsrecognisedinthebalancesheetfortherespectiveplans:



Gratuity

Particulars


Defined benefits

obligation

Fair

value

of plan

assets

Benefits liability

Definedbenefits

obligation


Benefitsliability



67.13 - (67.13) 117.03 119.00 1.97

Service Cost 17.61 - (17.61) 17.74 - (17.74)

Netinterestexpense 4.09 - (4.09) 5.97 - (5.97)

Sub total included in profit & loss 21.70 - (21.70) 23.71 - (23.71)

Benefitspaid (26.59) (26.59) - (65.83) (65.83) -

Remeasurement gains/(losses) in

other comphrensive income

Returnonplanassets(excludingamounts included in net interest

expenses)

- - - - - -

Actuarialchangesarisingfromchangesin demographic assumptions

- - - - - -

Actuarialchangesarisingfromchangesinfinancialassumptions

(11.28) - 11.28 (0.86) - 0.86

Returnonplanassetsgreater/(lesser)than discount rate

- 23.85 23.85 - (14.37) (14.37)

Experienceadjustments (6.56) - 6.56 31.88 - (31.88)

SubtotalincludedinOCI - - - - - -

Contributions by employer - - - - - -

Present value of DBO at the end of

the year

44.40 (2.74) (47.14) 105.93 38.80 (67.13)





Leave Encashment

Particulars


Defined benefits

obligation

Fair

value

of plan

assets

Benefits liability

Definedbenefits

obligation


Benefitsliability

Leave Encashment cost charged to

profit & loss


69.76 - (69.76) 68.85 - (68.85)

Service Cost 18.28 8.11 (10.17) 18.26 - (18.26)

Netinterestexpense 3.88 - (3.88) 3.91 - (3.91)Sub total included in profit & loss 22.16 8.11 (14.05) 22.17 - (22.17)

Benefitspaid (12.39) - 12.39 (27.55) - 27.55Remeasurement gains/(losses) in

other comphrensive income

- - - - - -

Returnonplanassets(excludingamounts included in net interest

expenses)

- - - - - -

Actuarialchangesarisingfromchangesin demographic assumptions

- - - (0.31) - 0.31

Actuarialchangesarisingfromchangesinfinancialassumptions

(5.67) (5.67) - - - -

Experienceadjustments (2.44) (2.44) - 6.60 - (6.60)

SubtotalincludedinOCI - - - - - -Contributions by employer - - - - - -Present value of DBO at the end of

the year

71.42 - (71.42) 69.76 - (69.76)

(B) Major Category of Plan asset as percentage of total plan asset

Investments quoted in active markets: Gratuity

March 31, 2021 March 31, 2020

Quotedequityinvestments - -Manufacturingandconsumerproductssector - -Telecomsector - -Cashandcashequivalents - -Unquotedinvestments: - -Bonds issued by India Government - -SchemeofInsurance-ConventionalProducts - -SchemeofInsurance-ULIPProducts 100.00% 100.00%Total 100.00% 100.00%

ThecurrentservicecostandnetinterestexpensefortheyearpertainingtoGratuityexpenseshavebeenrecognisedin “Gratuity and compensated absences expenses”.The remeasurements of the net defined benefit liability areincludedinStatementofProfitandLossandOtherComprehensiveIncomeinStatementofchangeinEquity.






Particulars Gratuity

March 31, 2021 March 31, 2020

Within the next 12 months (next annual reporting period) 11.29 14.23



Beyond 10 years - -

Total expected payments 161.33 182.74

(D) Changes in Fair Value of Plan Assets:

Particulars Gratuity

March 31, 2021 March 31, 2020

PlanAssetatthebeginningoftheYear 38.80 119.00


ExpectedReturnonPlanAsset 1.56 6.11

RemeasurementGain/LossonPlanAssets 23.85 (20.48)

ActualCompanyContributions - -

BenefitsPaid (26.59) (65.83)

Others - -

Plan Asset at the end of the Year 37.62 38.80





March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020

DiscountRate 6.20% 6.10% 6.20% 6.10%

SalaryEscalation 5.00% 7.00% 5.00% 7.00%




March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020

Mortality rate

Indian Assured

Lives Mortality

(2006-08) Ult.

IndianAssuredLivesMortality(2006-08)Ult.

Indian Assured

Lives Mortality

(2006-08) Ult.

IndianAssuredLivesMortality(2006-08)Ult.

WithdrawalRate18-35 years: 20%

36-45 years: 15%

46 and above: 10%

"18-35years:20%

36-45years:15%

46andabove:5%"

18-35 years: 20%

36-45 years: 15%

46 and above: 10%

18-35years:20%

36-45years:15%

46andabove:5%






The sensitivity analysis below has been determined based on reasonably possible change of the respectiveassumptions occurring at the end of the reporting period, while holding all other assumptions constant. Thesesensitivitiesshowthehypotheticalimpactofachangeineachofthelistedassumptionsinisolation.Whileeachofthese sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and

theassetvaluechangesmayoffsettheimpacttosomeextent.Forpresentingthesensitivities,thepresentvalueofthedefinedbenefitobligationhasbeencalculatedusingtheprojectedunitcreditmethodattheendofthereportingperiod,whichisthesameasthatappliedincalculatingtheDefinedBenefitObligationpresentedabove.Therewasnochangeinthemethodsandassumptionsusedinthepreparationofsensitivityanalysisfrompreviousyear.

Impact on defined benefits obligations March 31, 2020 March31,2019

Discount Rate

Increaseby0.5% (2.36) (2.45)

Decreaseby0.5% 2.49 2.58


Increaseby0.5% 2.51 2.55

Decreaseby0.5% (2.40) (2.44)

Risk Analysis

TheCompanyisexposedtoanumberofrisksinthedefinedbenefitplans.Mostsignificancyriskpertainingtodefinedbenefitsplansandmanagementestimationoftheimpactoftheserisksareasfollows

Salary Growth Rate


Demographic Risk

This is the riskofvariabilityof resultsdue tosystematicnatureofdecrements that includemortality,withdrawal,disability and retirement. The effect of these decrements on the defined obligation is not straight forward anddependsuponthecombinationofsalaryincrease,discountrateandvestingcriteria.itisimportantnottooverstatewithdrawalsbecauseinthefinancialanalysistheretirementbenefitofshortcareeremployeetypicallycostslessperyear as compared to long service employee.

Interest rate risks


39. IND AS 116: Details of assets taken under operating lease are as under:

(INDAS116wasnotapplicableinFY2019-20asthereisnooperatingleaseinthatyear)

(i) The right-of-use assets consist of:

BuildingsonleaseforresidentialpurposeofKeyManagementPerson.Theleasetermsthepropertyis3yearsandSecuritydepositofRs.48Lakhsequivalentto6monthsrent.





(ii) The balance sheet shows the following amounts relating to leases:

- Right-of-use assets

ParticularsAsset on Lease -

Land & BuildingTotal

AtMarch31,2020 - -Additions/Terminations 268.47 268.47At March 31, 2021 268.47 268.47Accumulateddepreciation

At31stMarch2020 - -Chargeduringthefinancialyear 60.86 60.86

Terminations - -At March 31, 2021 60.86 60.86

Carrying value

AtApril01,2020 - -AtMarch31,2021 207.61 207.61

- Lease Liabilities

Particulars


Asset on Lease

- Land & BuildingTotal

Current 79.34 79.34

Non-Current 129.45 129.45

Total 208.80 208.80

(iii) Amounts recognised in the Statement of Profit & Loss

TheProfitandLossshowingthefollowingamountrelatingtoleases:

Particulars


Asset on Lease


Assetwisedepreciationchargeofright-of-useassets 60.86 60.86

Interestexpense(includedinfinancecost) 18.15 18.15

Expenserelatingtoshort-termleases(includedinadministrativeexpenses)

72.78 72.78

Total 151.79 151.79

(iv) Total Cash outflow during the year:

Particulars


Asset on Lease


Interestexpenseandprincipalrepaymentsofleaseliabilitiesandshort-termandlow-valueleaseexpenses

64.00 64.00





(v) At the balance sheet date, the company had commitments under non-cancellable leases which fall due as

follows:

Particulars


Asset on Lease


Maturity analysis – contractual undiscounted cash flows

Within1Year 61.83 61.83

Within2Years 86.73 86.73



Within5Years - -

After5Years - -

Total undiscounted lease liabilities 254.65 254.65

Impactofdiscountingandotheradjustments 45.85 45.85

Lease liabilities included in the balance sheet 208.80 208.80

40. Revenue from contract with customers

Setoutbelowisthedisaggregationofthecompanyrevenuefromcontractswithcustomersandreconciliationtoprofitandloss account:

Type of Services or service

For year ended March 31, 2021

Interest

Income

Support

Service

Other

IncomeTotal

InterestonICD 613.30 - - 613.30

Support Service Income - 1,327.93 - 1,327.93

ProfitonSale/RedemptionofInvestments - - 8,779.63 8,779.63

ProfitonSaleofFixedAssets - - 5.45 5.45

Total revenue from contracts with customers 613.30 1,327.93 8,785.08 10,726.31

Geographical markets

India 613.30 1,327.93 8,785.08 10,726.31

OutsideIndia - - - -

Total revenue from contracts with customers 613.30 1,327.93 8,785.08 10,726.31

Timing of revenue recognition

Servicestransferredatapointintime - - 8,785.08 8,785.08

Servicestransferredovertime 613.30 1,327.93 - 1,941.23

Total revenue from contracts with customer 613.30 1,327.93 8,785.08 10,726.31





ParticularsForyearendedMarch31,2020

Interest

Income

Support

Service

OtherIncome

Total

TypeofServicesorserviceInterestonICD 251.18 - - 251.18Support Service Income - 1,620.43 - 1,620.43ProfitonSale/RedemptionofInvestments - - 21.34 21.34ProfitonSaleofFixedAssets - - 15.81 15.81Totalrevenuefromcontractswithcustomers 251.18 1,620.43 37.15 1,908.76Geographical markets

India 251.18 1,620.43 37.15 1,908.76OutsideIndia - - - -Totalrevenuefromcontractswithcustomers 251.18 1,620.43 37.15 1,908.76TimingofrevenuerecognitionServicestransferredatapointintime - - 37.15 37.15Servicestransferredovertime 251.18 1,620.43 - 1,871.61

Totalrevenuefromcontractswithcustomers 251.18 1,620.43 37.15 1,908.76

Contract Balances

Particulars March 31, 2021 March 31, 2020

Recoverablefromsupportservices 520.79 436.55

Revenue recognised in the period from:

Recoverablefromsupportservicesarenon-interestbearingandaregenerallyontermsof30to90days.AsonMarch31,2021Rs.372.13Lakhs(March31,2020:Rs.421.29Lakhs)wasrecognisedasprovisionforexpectedcreditlossesontrade receivable.

41. Disclosure on Employees Stock Options Scheme

41.1 ESOP Policy

Equity-settledshare-basedpaymentstoemployeesandothersprovidingsimilarservicesaremeasuredatthefairvalueoftheequityinstrumentsatthegrantdate.Detailsregardingthedeterminationofthefairvalueofequity-settledshare-basedpaymentstransactionsaresetoutinnotestoaccounts.

Thefairvaluedeterminedatthegrantdateoftheequity-settledshare-basedpaymentsisexpensedonastraight-linebasisoverthevestingperiod,basedontheCompany’sestimateofequityinstrumentsthatwilleventuallyvest,withacorrespondingincreaseinequity.Attheendofeachreportingperiod,theCompanyrevisesitsestimateofthenumberofequity instrumentsexpectedtovest.The impactof therevisionof theoriginalestimates, ifany, isrecognisedinStatementofProfitandLosssuchthatthecumulativeexpensesreflectstherevisedestimate,withacorrespondingadjustmenttotheShareBasedPaymentsReserve.

ESOPs(equity–settledshare–basedpayments)havealsobeengrantedtotheemployeesof:

Subsidiary (including step down subsidiary) whereby:

i) TheCompanyhasdebitedthesesharesas‘InvestmentinSubsidiary’andcrediteditsequity;

ii) Thesubsidiaryhasdebiteditsexpenses(employeerelatedcost)andcreditedthecapitalcontributionfromtheparent;




The employees of theCompany are recipient of equity – settled share based payments either from the parent(includingultimateparent)and/oritssubsidiary(includingstepdownsubsidiary.

i) Where the transaction iswith thesubsidiary, credit to ‘Dividend Income’anddebit toexpenses (employeerelated cost)

Thedilutiveeffectofoutstandingoptionsisreflectedasadditionalsharedilutioninthecomputationofdilutedearningsper share.

41.2 ESOP DISCLOSURES

Details of the Scheme:

TheBoardofDirectorsatitsmeetingheldonFebruary12,2019,approvedtheReligareEnterprisesLimitedEmployeeStockOptionPlan2019(“RELESOP2019/Scheme”)toissueandallotstockoptionsuptoamaximumof10%of expanded share capital of theCompany (after taking intoaccount anyother equityShares including throughconvertible instruments) for thepermanentemployeesanddirectorswhetherawhole-timedirectorornot (otherthanPromotersoftheCompany,IndependentDirectorsandDirectorsholdingdirectlyorindirectlymorethan10%oftheoutstandingEquitySharesoftheCompany)oftheCompanyanditspresentandfutureholdingcompanyandsubsidiary company(ies) in terms ofSecurities andExchangeBoard of India (ShareBasedEmployeeBenefits)Regulations,2014.Theshareholdersof theCompanyapprovedtheSchemevidetheirspecial resolutionpassedthroughpostalballotonMarch29,2019.

TheNominationandRemunerationCommitteeoftheCompanyhasapprovedthefollowinggrantstoselectseniorlevelexecutivesoftheCompanyinaccordancewiththeStockOptionScheme.

41.3 ThedetailsofgrantsapprovedforemployeesoftheCompany,itssubsidiaries(includingstepdownsubsidiaries)&parent(includingultimateparent)inaccordancewiththeStockOptionScheme:


41.3.1 To the employees of the Company

Grant dateExercise

price

Options

granted

Options

vested and

exercisable

Options

unvested

Options

exercised

Options

cancelled

Options

outstanding

01-Apr-19 29.43 8,750,000 60,000 862,500 252,500 7,575,000 1,175,000

08-Aug-19 30.85 150,000 - 112,500 37,500 - 150,000

09-Sep-19 31.35 650,000 162,500 487,500 - - 650,000

01-Jun-20 24.10 5,000,000 - 5,000,000 - - 5,000,000

27-Jul-20 39.55 3,570,000 - 3,570,000 - - 3,570,000

Total 18,120,000 222,500 10,032,500 290,000 7,575,000 10,545,000

41.3.2 To the employees of the subsidiaries (including step down subsidiaries)

Grant dateExercise

price

Options

granted

Options

vested and

exercisable

Options

unvested

Options

exercised

Options

cancelled

Options

outstanding

01-Apr-19 29.43 6,375,000 264,250 1,126,250 858,250 4,126,250 2,248,750

19-Jun-19 29.43 500,000 - 225,000 75,000 200,000 300,000

08-Aug-19 30.85 450,000 112,500 325,000 12,500 - 450,000

09-Sep-19 31.35 350,000 37,500 262,500 50,000 - 350,000

27-Jul-20 39.55 2,930,000 - 2,830,000 - 100,000 2,830,000

Total 10,605,000 414,250 4,768,750 995,750 4,426,250 6,178,750





41.3.3 Weighted average fair value of stock options granted during the year is as follows:

Particulars

Previous Year (Scheme 2020) Current Year

Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 1 Tranche 2

Grant date 01-Apr-19 19-Jun-19 08-Aug-19 09-Sep-19 01-Jun-20 27-Jul-20

No.ofoptionsgranted 15,125,000 500,000 600,000 1,000,000 5,000,000 6,400,000

Weightedaveragefairvalue Rs.29.43 Rs.29.43 Rs.30.85 Rs.31.35 Rs.24.10 Rs.39.55

41.3.4 Following table depicts range of exercise prices and weighted average remaining contractual life


options

Range of

exercise prices

Weighted

average

exercise price

Weighted average

remaining

contractual life

(years)

Outstandingatthebeginningoftheyear 9,075,000 Rs.29.43-Rs.31.35

- -

Granted during the year 11,500,000 Rs.24.10-Rs.39.55

Rs.34.02 1.91

Cancelled during the year 3,851,250 Rs.29.43 Rs.29.71 -

Expiredduringtheyear - - - -

Exercisedduringtheyear - - - -

Outstandingattheendoftheyear 16,723,750 Rs.24.10-Rs.31.35

Rs.33.2 1.99

Exercisableattheendoftheyear - - -

Note:TheweightedaveragemarketpriceofequitysharesforoptionsexercisedduringtheyearisNil(previousyearNil).

41.4 Method used for accounting for share based payment plan


ThekeyassumptionsusedinBlack–ScholesModelforcalculatingfairvalueasonthedateofrespectivegrantsare:

• Grantdate

• Riskfreeinterestrate

• Expectedlife

• Expectedvolatility

• Dividendyield

• Priceoftheunderlyingshareinthemarketatthetimeoftheoptiongrant

Note:FortheyearendedMarch31,2021,theCompanyhasaccountedexpenseofRs.35.87LakhsasemployeebenefitExpenseson theaforesaidemployeestockoptionplan(PreviousyearRs.15Lakhs).Thebalance inemployeestockoptionoutstandingaccountisRs.75.94LakhsasofMarch31,2021(Rs.52.47asofMarch31,2020).




41.5 TRANSACTIONS DURING THE YEAR

During the year, the Company has:

Credited ESOP reserve on:

i) DebitingtoemployeerelatedcostbyRs.30.18Lakhs(previousyear:Rs.11.04Lakhs)beingESOPexpensesonitsownemployees;

ii) DebitinginvestmentinsubsidiariesbyRs.1.53Lakhs(previousyear:Rs.41.43Lakhs)beingESOPexpensesonitssubsidiariesemployees;

Credited‘dividendincome’&debitedemployeerelatedcostbyRs.5.69Lakhs(previousyear:Rs.3.96Lakhs)beingESOPsgrantedtotheemployeesoftheCompanybyitssubsidiary;

ThepartofESOPgrantedtoemployeesoftheitssubsidiariesstandcancelledduringtheyear.OnCancellationofESOP’stheamountofRs.13.93LakhswastransferredfromESOPreserveA/ctoRetainedearning.

41.6 DuringtheYearFY21,theCompanygranted50,00,000stockoptionsatagrantpriceofRs.24.10pershareonJune01,2020and6,500,000stockoptionsatagrantpriceofRs.39.55pershareonJuly27,2020under“ReligareEnterprisesLimitedEmployeesStockOptionPlan2019”(RELESOPScheme2019).

Further,theCompanyallotted1,285,750EquitySharesoffacevalueofRs.10/-each(whichcomprises1,198,250equity shares at exercise price ofRs. 29.43 each, 37,500 equity shares at exercise price ofRs. 30.85 each&50,000equitysharesatexercisepriceofRs.31.35each)pursuanttoexerciseofstockoptionsgrantedundertheRELESOPScheme2019.Pursuanttothesaidallotment,theissued,subscribedandpaidupequitycapitaloftheCompanystandsincreasedfromRs.25,812.82Lakhsdividedinto258,128,152equitysharesofRs.10/-eachtoRs.25,941.39Lakhsdividedinto259,413,902equitysharesofRs.10/-each.

42. Earnings per share

Basicearningspershare(EPS)iscalculatedbydividingthenetprofitfortheyearattributabletoequityholdersofCompanybytheweightedaveragenumberofequitysharesoutstandingduringtheyear.

DilutedEPSiscalculatedbydividingthenetprofitattributabletoequityholdersofCompany(afteradjustingforinterestontheconvertiblepreferencesharesandinterestontheconvertiblebond,ineachcase,netoftax)bytheweightedaveragenumberofequitysharesoutstandingduringtheyearplustheweightedaveragenumberofequitysharesthatwouldbeissuedontheconversionofallthedilutivepotentialordinarysharesintoordinaryshares.

ThefollowingtableshowstheincomeandsharedatausedinthebasicanddilutedEPScalculations:


A. Continuing operations:

Particulars2020-21 2019-20

(Amount) (Amount)Netprofitfromcontinuedoperationattributabletoequityholdersoftheparent 6,399.70 (31,016.33)

Netprofitfromcontinuingoperationattributabletoordinaryequityholdersoftheparentadjustedfortheeffectofdilution

- -

Weightedaveragenumberofordinarysharesforbasicearningspershare 258,748,947 235,764,730Effectofdilution:-Contingentconvertiblebonds - --Convertiblebonds - --ForstockOptions(asperESOPscheme) 6,518,896 -Weightedaveragenumberofordinarysharesadjustedfortheeffectofdilution 265,267,843 235,764,730EarningspershareEquityshareholdersoftheparentfortheyear:Basic earnings per share 2.47 (13.16)

Dilutedearningspershare 2.41 (13.16)

TherehavebeennotransactionsinvolvingordinarysharesorpotentialordinarysharesbetweenthereportingdateandthedateofthecompletionofthesefinancialstatementswhichwouldrequiretherestatementofEPS.




43. Maturity analysis of assets and liabilities

Thetablebelowshowsananalysisofassetsandliabilitiesanalysedaccordingtowhentheyareexpectedtoberecoveredorsettled.Derivativeshavebeenclassifiedtomatureand/orberepaidwithin12months,regardlessoftheactualcontractualmaturitiesoftheproducts.Withregardtoloansandadvancestocustomers,theCompanyusesthesamebasisofexpectedrepaymentbehaviourasusedforestimatingtheEIR.Issueddebtreflectthecontractualcouponamortisations.


March 31, 2021 March 31, 2020

Within 12

months

After 12

months

Total Within 12

months

After12months

Total

Assets

Cashandcashequivalents 1,027.28 - 1,027.28 71.13 - 71.13

Bank Balance other than above 5.70 - 5.70 5.40 - 5.40Loans 5,677.20 - 5,677.20 - - -Investment 1,046.65 194,931.16 195,977.81 94.82 206,529.19 206,624.01OtherFinancialAssets 330.68 68.70 399.38 1,545.86 3.00 1,548.86Non-financial Assets CurrentTaxAsset(Net) - 3,681.18 3,681.18 900.00 3,729.67 4,629.67DeferredTaxAssets(Net) - - - - 171.59 171.59Property,PlantandEquipment - 389.32 389.32 - 228.48 228.48OtherIntangibleassets - 1.10 1.10 - 9.57 9.57OtherNon-FinancialAssets 491.26 891.34 1,382.60 461.42 1,356.30 1,817.72

Total Assets 8,578.77 199,962.80 208,541.57 3,078.63 212,027.80 215,106.43LIABILITIES 0.00 -Financial Liabilities

Trade Payables

(i)Totaloutstandingduesofcreditorsother than micro enterprises and small

enterprises

834.53 296.00 1,130.53 853.69 745.15 1,598.84

Borrowings(Otherthandebtsecurities) 25,443.99 8,220.34 33,664.32 25,480.86 7,820.95 33,301.81

Otherfinancialliabilities 14,198.90 1,355.49 15,554.39 15,664.60 13,182.12 28,846.72Non-Financial Liabilities

Provisions 46.89 71.67 118.56 51.06 85.83 136.89OtherNonFinancialAssets 156.18 - 156.18 163.27 - 163.27

Total liabilities 40,680.48 9,943.50 50,623.99 42,213.48 21,834.05 64,047.53Net (32,101.72) 190,019.30 157,917.58 (39,134.84) 190,193.75 151,058.91

44. Related Party Disclosures


(a) (i) Subsidiaries ReligareFinvestLimited


CareHealth InsuranceLimited (formerly knownasReligareHealth InsuranceCompanyLimited)






ReligareCreditAdvisorPrivateLimited


ReligareComtradeLimited

ReligareGlobalAssetManagementInc.

a(ii)SubsidiariesofSubsidiary ReligareHousingDevelopmentFinanceCorporationLimited

ReligareCommoditiesLimited

ReligareCapitalMarketsInternational(Mauritius)Limited*

ReligareCapitalMarkets(Europe)Limited*

ReligareCapitalMarkets(UK)Limited*

ReligareCapitalMarketsCorporateFinancePteLimited*

ReligareCapitalMarkets(Hongkong)Limited*

Tobler(UK)Limited

KyteManagementLimited

ReligareCapitalMarkets(Singapore)PteLimited*

BartleetWealthManagement(Private)Limited(formerlyReligareBartleetCapitalMarkets(Private)Limited)(Boardcontrolledsubsidiary)

BartleetAssetManagement(Private)Limited(Boardcontrolledsubsidiary)

StrategicResearchLimited

BartleetReligareSecurities(Private)Limited)(Boardcontrolledsubsidiary)

ReligareBusinessSolutionsLimited

ReligareAdvisorsLimited(FormerlyReligareWealthManagementLimited)

ReligareCapitalMarketsInc.*

a(iii)JointVenturesofSubsidiaries -

a(iv)AssociateofSubsidiaries -

(b)JointVentures IBOF Investment Management Private Limited (formerly Quadria InvestmentManagementPrivateLimited)

(c)KeyManagerialpersonnel Mr.GurvinderSinghJuneja-CFO(tillAugust8,2019)

Mr.MilindNarendraPatel-GroupCEO(tillJuly19,2019)

Mr.AshishTyagi-CFO(w.e.fAugust8,2019toSeptember9,2019)

Mr.NitinAggarwal-GroupCFO(w.e.fSeptember09,2019)

Dr.RashmiSaluja-ExecutiveChairperson(w.e.fFebruary26,2020)





(d) Individuals owning directly or

indirectly interest in voting power

that gives them control

Independent Directors

Mrs.SabinaVaisoha(w.e.fOctober04.2017)

Mrs.VijaylakshmiRajaramIyer(w.e.fMay08,2018)

Mr.MalayKumarSinha(w.e.fMay28,2018)

Mr.SushilChandraTripathi(w.e.fAugust01,2018)

Dr.RashmiSaluja(w.e.fDecember20,2018tillFebruary25,2020)

Mr.HamidAhmed(w.e.fFebruary10,2021)

Mr.VijayShankarMadan(w.e.fFebruary10,2021)

Non - Executive Non - Independent Director

Mr.SiddarthDineshMehta(w.e.fJuly30,2019)

(e)EmployeesTrust Any Fund/Trust created by Reporting entity for the benefit of its employeesPost employeebenefit plans for thebenefitofemployeesofthereportingentities or Group Companies

ReligareEnterprisesLimitedGroup-GratuityTrust(w.e.fApril01,2020)

Any Fund/Trust created by Subsidiary of reporting entity for the benefit of its employees

ReligareFinvestLimitedGroupGratuityScheme(w.e.fApril01,2020)

Religare Housing Develipment Finance Corporation Limited Group GratuityScheme(w.e.fApril01,2020)

ReligareCommoditiesLimitedGroupGratuityScheme(w.e.fApril01,2020)

CAREHealthInsuranceLimitedGroupGratuityScheme(w.e.fApril01,2020)

ReligareSecuritiesLimitedGroupGratuityScheme(w.e.fApril01,2020)

ReligareCapitalMarketLimitedGroupGratuityScheme(w.e.fApril01,2020)

ReligareInfrafacilitiesLimitedGroupGratuityScheme(w.e.fApril01,2020)

*Refernoteno47(e)(Amount in Rs. lakhs, unless otherwise stated)

43.1- Following transactions were carried out with related parties in the ordinary course of business at arm’s length

basis:

(As per IND AS 24)

Nature of Transactions Name of the Related PartyRP

Type

Year Ended

March 31, 2021

YearEnded March 31, 2020

InterCorporateLoansrepaid

ReligareComtradeLimited a (i) 11.54 2,591.39 ReligareFinvestLimited a (i) - -Inter Corporate Loans repaid Total 11.54 2,591.39InterCorporateLoansGiven

ReligareBrokingLimited a (i) 5,850.00 5,600.00Inter Corporate Loans Given Total 5,850.00 5,600.00InterCorporateLoansReceivedBack

ReligareBrokingLimited a (i) 150.00 5,600.00

Inter Corporate Loans Received Back

Total

150.00 5,600.00





Type

Year Ended

March 31, 2021


Corporate Guarantee given on behalf ofsubsidiaries

ReligareBrokingLimited a (i) 6,500.00 12,500.00

Corporate Guarantee given on behalf of

subsidiaries Total

6,500.00 12,500.00

Subscription/Investment to Equity /Preference Shares/ Commercial Papersby the Company

Care Health Insurance Limited(erstwhile known as Religare HealthInsuranceCompanyLimited)

a (i) - 3,012.39

ReligareFinvestLimited(Equity) a (i) - 4,705.15

Subscription/Investment to Equity /

Preference Shares/ Commercial Papers

by the Company Total

a (i) - 7,717.54

LetterofComfort

ReligareComtradeLimited a (ii) 530.23 1,569.66

Letter of Comfort / Guarantees Total 530.23 1,569.66

PaymentmadeagainsttherecoverablebyVirtueofMerger

ReligareBrokingLimited 121.56 532.37

Payment Paid against the recoverable

by Virtue of Merger Total

a (i) 121.56 532.37

OtherReceipt&Payments

ReligareBrokingLimited2 a (i) 1,168.00 -

Other Receipt & Payments Total 1,168.00 -

OtherReceipt/Payment-Adjustments

PaymentmadeagainsttherecoverablebyVirtueofMerger

ReligareBrokingLimited1 a (i) 35.78 351.51

Other Receipt / Payment Adjustments

Total

35.78 351.51

SecurityDepositsPaid/Refunded

ReligareCommoditiesLimited a (i) 13.00 -

Security Deposits Paid / Refunded Total 13.00 -

InsurancePremium-Health/Travel


- 4.29

Insurance Premium - Health / Travel

Total

a (i) - 4.29

InterestIncomeonInterCorporateLoans

ReligareBrokingLimited ( e) 613.30 249.32





Type

Year Ended

March 31, 2021


Interest Income on Inter Corporate

Loans Total

( e) 613.30 249.32

Support Service Income

ReligareCommoditiesLimited a (i) - 8.49 ReligareFinvestLimited a (ii) 791.68 808.27


a (i) 157.81 221.92

ReligareBrokingLimited a (i) 329.00 433.02Support Service Income Total a (i) 1,278.48 1,471.70AllocationofExpenses

ReligareFinvestLimited a (i) 107.58 37.78


a (i) 49.85 29.97

ReligareBrokingLimited a (i) 30.85 - Religare Housing Development

FinanceCorporationLimiteda (i) 23.00 1.87

Allocation of Expenses Total 211.29 69.62RentExpenses


Rent Expenses Total 0.08 0.63

PurchasedofFixedAsset


ReligareBrokingLimited a (i) - 23.97 Religare Housing Development

FinanceCorporationLimiteda (i) - 0.11

Purchased of Fixed Asset Total 1.00 24.85SaleofFixedAsset


a (i) 3.08 -

ReligareFinvestLimited 0.29 0.64Sale of Fixed Asset Total a (i) 3.37 0.64DirectorSittingFees

Ms.SabinaVaisoha (d) 4.80 12.00

Mr.MalayKumarSinha (d) 17.40 23.00

Mr.SushilChandraTripathi (d) 15.00 20.20

Mrs.VijayalakshmiRajaramIyer (d) 16.00 17.80

Ms.RashmiSaluja (d) - 22.00

Mr.SiddharthDineshMehta (d) 4.10 3.00

Mr.HamidAhmed (d) 1.00 - Mr.VijayShankarMadan (d) 1.00 -





Type

Year Ended

March 31, 2021


Director Sitting Fees Total (d) 59.30 98.00Expenses Reimbursement by OtherCompanies/(RecoveryofExpenses)



ReligareCommoditiesLimited a (i) - 0.01

Expenses Reimbursement to Other

Companies Total

( e) 83.83 314.34

DepositoryExpenses

ReligareBrokingLimited 0.13 0.05Depository Expenses Total a (i) 0.13 0.05Investment in Subsidiaries (ESOPscheme)

(forESOPissuedtoSubsidiariescompanyemployees)

ReligareFinvestLimited4 a (i) - 37.03

Religare Housing DevelopmentFinanceCorporationLimited5

a (ii) 0.72 2.76

ReligareBrokingLimited6 a (i) 0.82 1.64Investment in Subsidiaries (ESOP

scheme) Total

1.53 41.43

Investment in Subsidiaries (ESOPAdjustment)

(forESOPissuedtoSubsidiariescompanyemployees)

ReligareFinvestLimited a (i) 13.04 -

Religare Housing DevelopmentFinanceCorporationLimited

a (ii) 0.02 -

Investment in Subsidiaries (ESOP

Adjustment) Total

13.06 -

Expense Reimbursement to subsidiaries(ESOPscheme)

(for ESOP issued by Subsidiaries RELemployees)

ReligareBrokingLimited7 a (i) 5.69 3.96

Expense Reimbursement to

subsidiaries (ESOP scheme) Total

5.69 3.96

Remuneration to Key ManagerialPersonnel

Mr.NitinAggarwal (d) 295.77 133.39 Dr.RashmiSaluja (d) 1,129.02 93.44 Mr.GurvinderSinghJuneja (d) - 29.30 Mr.AshishTyagi (d) - 4.25 Mr.MilindPatel (d) - 139.89Remuneration to Key Managerial

Personnel Total

(d) 1,424.79 400.28

ESOPtoKeyManagementPersonnel





Type

Year Ended

March 31, 2021


KeyManagementPersonnel3 (d) 31.64 6.45ESOP to Key Management Personnel

Total

31.64 6.45

ContributiontoGratuityTrust

Religare Enterprises Limited Group-GratuityTrust

(e) -

Contribution to Gratuity Trust Total - - -

Outstanding Balances


Type

Year Ended

March 31, 2021

YearEnded

March 31, 2020

Payable/ Liabilities

InterCorporateLoans RCNurseryPrivateLimited ( e)

ReligareComtradeLimited a (i) 6,893.99 6,905.53 ReligareFinvestLimited a (i) 18,550.00 18,550.00Inter Corporate Loans Total 25,443.99 25,455.53SecurityDepositPayable

ReligareCapitalMarketsLimited a (i) 2.30 2.30

ReligareCommoditiesLimited a (ii) 608.65 621.65 ReligareFinvestLimited a (i) 1,178.53 1,178.53Security Deposit Payable Total 1,789.48 1,802.48TradePayables

ReligareFinvestLimited a (i) 407.20 745.04Total Trade Payable 407.20 745.04OtherFinancialLiability

ReligareBrokingLimited a (i) - 157.34Other Financial Liability Total - 157.34Receivable

InterCorporateDeposits(ICD)

ReligareCapitalMarketsLimited* a (i) 225.00 225.00 ReligareBrokingLimited a (i) 5,700.00 -Inter Corporate Loans (ICD) Total 5,925.00 225.00InterestReceivable

ReligareCapitalMarketLimited* a (i) 15.26 15.26 ReligareBrokingLimited a (i) 180.89

Interest Receivable Total 196.15 15.26LetterofComfort/Guarantee

ReligareAdvisorsLimited a (ii) 250.00 250.00 ReligareComtradeLimited a (i) 10,968.90 10,438.66 ReligareBrokingLimited a (i) 19,000.00 12,500.00Letter of Comfort/ Guarantee Total 30,218.90 23,188.66





Type

Year Ended

March 31, 2021

YearEnded

March 31, 2020

AdvancegivenforSettlementofCorporateGuarantee

ReligareCapitalMarketLimited* a (i) 1,326.50 1,326.50Advance given for Settlement of


1,326.50 1,326.50

OtherReceivables ReligareBrokingLimited a (i) 105.29 13.69 ReligareCommoditiesLimited a (ii) - 13.02

ReligareComtradeLimited a (i) - 10.35 ReligareCapitalMarketsLimited* a (i) 312.43 312.43 Care Health Insurance Limited

(erstwhile known as Religare HealthInsuranceCompanyLimited)

a (i) 26.85 9.81

Religare Housing DevelopmentFinanceCorporationLimited

a (ii) - 1.03

Other Receivables Total 444.57 360.32

*Theprovisionhasbeenmadefortheseamounts.

Note-Thecurrentandfutureinterestcomponentandotherfinancialchargesthatmayhaveaccruedormayaccrueinthefutureontheinter-corporateloanfromRFLandRCTLhavebeenwaivedoff.(refernote16)

Note

1) DuringtheperiodreceivablefromRBLadjustedagainst liabilitypayabletoRBLonaccountof transferunder theSchemeofArrangement.

2) Pursuanttotheapprovedschemeofarrangement,ReligareSecuritiesLimited(RSL)wasmergedwiththeCompanyin2017,alltaxreceivableforRSLweremergedwiththeCompany.DuringtheyeartheincometaxrefundrelatingtoRSLwasreceivedbyRBL.TheincometaxrefundreceivedbyRBLtransferredtotheCompany.

3) 7,720,000sharesoutstandingasonMarch31,2021beingESOPsgrantedtotheKeyManagementPersonnelofthe Company by the Company.

4) 3,926,250sharesoutstandingasonMarch31,2021beingESOPsgrantedtotheemployeesofsubsidiarycompany“ReligareFinvestLimited”bytheCompany.

5) 740,000sharesoutstandingasonMarch31,2021beingESOPsgrantedtotheemployeesofsubsidiarycompany“ReligareHousingDevelopmentFinanceCorporationLimited”bytheCompany.

6) 1,512,500sharesoutstandingasonMarch31,2021beingESOPsgrantedtotheemployeesofsubsidiarycompany“ReligareBrokingLimited”bytheCompany.

7) 4,455,000sharesoutstandingasonMarch31,2021beingESOPsgrantedtotheemployeesoftheCompanybysubsidiarycompany“ReligareBrokingLimited”.

8) OutstandingEquityandPreferenceCapitalarenotshown.

9) TheIntercorporateloanofRs.5,700lakhshasbeenlendtosubsidiarycompany,“ReligareBrokingLimited(RBL)“,forworkingcapitalrequirement.ThefundshasbeenactuallyutilisedforthepurposeofworkingcapitalrequirementinthebusinessofRBL.





44.2 Key Management Personnel Compensation as per Ind AS-24


March 31, 2021

YearEnded

March 31, 2020

ShortTermEmployeeBenefits 1,409.02 394.51

Post-EmploymentBenefits 15.77 5.77

LongTermEmployeeBenefits - -

TerminationBenefits - -

EmployeeShareBasedPayments(refernote41) 27.49 6.45

Total 1,452.28 406.73

45. Other Notes as per RBI Guidelines:

a. (i) DuringthefinancialyearendedMarch31,2015,theCompanyreceivedtheCertificateofRegistrationasaNon-DepositTakingSystemicallyImportantCoreInvestmentCompany(“CIC-ND-SI”)videCertificateNo.N-14.03222datedJune03,2014issuedbytheRBIundertheCICDirections.ByvirtueoftheCICregistrationasaforesaid,theprovisionsofnetownedfund requirementsundersection45-IA (1)(b)of theRBIAct,1934andprovisions related to “Asset IncomePattern”,“RequirementtoCapitalAdequacy(CRAR)”and“ConcentrationofCredit/Investment”asapplicableforNBFCsunderNBFCMasterDirections2016shallnotapplytothecompany,subjecttothecomplianceofconditionsspecifiedintheCICDirections. Further,pursuanttotheRevisedRegulatoryframeworkissuedvidenotificationnoDNBR(PD)CCNo.002/03.10.1001/2014-15datedNovember10,2014andGuidelinesonCorporateGovernance-ReviewissuedvidenotificationnoDNBR(PD)CCNo.029/03.10.001/2014-15datedApril10,2015,compliancerequirementofCorporateGovernanceareexemptedforaCICCompany.Accordingly,theCompanyhasnotdisclosedmattersspecifiedinthesaidguidelines.

(ii) Core Investment Company (CIC) Compliance Ratios:

ParticularsAs at

March 31, 2021

Asat March 31, 2020

(a)InvestmentandLoanstogroupcompaniesasaproportiontoNetAssets(%) 97.9% 97.20%

(b) Investment in Equity Shares and Compulsory Convertible Instruments of groupcompaniesasaproportionofNetAssets(%)

92.6% 97.20%

(c)CapitalAdequacyRatio(%)[AdjustedNetworth/RiskWeightageAssets](%) 45.7% 44.6%

(d)LeverageRatios(Times)[Outsideliabilities/AdjustedNetworth](Times) 0.97 1.16

(e)unrealizedappreciationinthebookvalueofquotedinvestments(RsinLakhs) - -

(f)diminutionintheaggregatebookvalueofquotedinvestment - -

Disclaimer:

(a) ReserveBankofIndiadoesnotacceptanyresponsibilityorguaranteeaboutthepresentpositionastothefinancialsoundnessof thecompanyor for thecorrectnessofanyof thestatementsor representationsmadeoropinionsexpressedbythecompanyandfordischargeofliabilitybythecompany.

(b) Neitheristhereanyprovisioninlawtokeep,nordoesthecompanykeepanypartofthedepositswiththeReserveBankandbyissuingtheCertificateofRegistrationtotheCompany,theReserveBankneitheracceptsanyresponsibilitynorguaranteeforthepaymentofthepublicfundstoanyperson/bodycorporate.





b) Off Balance Sheet Exposure

ParticularsAs at

March 31, 2021

Asat March 31, 2020

i)Offbalancesheetexposure 44,071.86 17,842.66

ii)FinancialGuaranteeasa%oftotaloff-balancesheetexposure 0.0% 0.0%

iii)Non-FinancialGuaranteeasa%oftotaloff-balancesheetexposure 22.69% 24.05%

iv)Offbalancesheetexposuretooverseassubsidiaries - -

v)LetterofComfortissuedtoanysubsidiary - -

c) Capital to Risk Weighted Assets Ratio (CRAR)

AsmentionedinNote44a(i),requirementofmaintainingCRARisnotapplicableonthecompanybeingaCIC.

ItemsYear Ended

March 31, 2021


(i) CRAR(%) Refer Note 45 (a)(i) ReferNote45(a)(i)(ii) CRAR-(TierICapital(%) Refer Note 45 (a)(i) ReferNote45(a)(i)(iii) CRAR-(TierIICapital(%) Refer Note 45 (a)(i) ReferNote45(a)(i)

II. Exposure to Real Estate Sector

CategoryYear Ended March

31, 2021

YearEndedMarch31, 2010

(a) Direct Exposures

(i)ResidentialMortgages:-

(a)IndividualshousingloansuptoRs.15lakhs - - (b)IndividualshousingloansmorethanRs.15lakhs - - (ii)CommercialRealEstate - - (iii) Investments in Mortgage Backed Securities (MBS) and other

Securitisedexposures:-- -

(a)Residential, - - Total - -(b) Indirect Exposures

FundbasedandnonfundbasedexposuresonNationalHousingBank(NHB)andHousingFinanceCompanies(HFCs)

- -

III. Investments

(1) Value of InvestmentsYear Ended

March 31, 2021


1 GrossValueofInvestments

(a) In India 233,053.06 243,363.22

(b)OutsideIndia - -

2 Provisionsfordepreciation

(a) In India 37,075.25 36,739.21

(b)OutsideIndia - -

3 NetValueofInvestment

(a) In India 195,977.81 206,624.01

(b)OutsideIndia - -






March 31, 2021


(2) Movement of Provisions Held towards Depreciation of Investment

1 OpeningBalance 36,739.21 24,702.48

2 ProvisionsmadeDuringTheyear 336.04 12,036.73

3 Less-Writeoff/writebackofprovisionsduringtheyear - -

4 Closing Balance 37,075.25 36,739.21

IV. Maturity pattern of certain items of assets and liabilities (at Book Value)

Particulars1 to 7

days

8 to 14

days

15-30/ 31

days

Over 1

month to

2 month

Over 2

month to 3

months

Total

Liabilities

BorrowingfromBanks - - - - - -

Market Borrowings - - - - - -

Borrowing-InterCorporateLoans - - - - - -

Borrowing-Others - - - - - -

Assets

Advances(netofprovisions) - - - - - -

Investments(netofprovisions) - - - - - -

Particulars

Over 3

Months

upto 6

months

Over 6

months

to 1 year

1 Year to

3 years

Over 3

years to 5

years

Over 5

yearsTotal

Liabilities

BorrowingfromBanks - - - - - -

Market Borrowings - - - - - -

Borrowing-InterCorporateLoans - - 25,443.99 - - 25,443.99

Borrowing-Others - - - - 8,220.34 8,220.34

Assets

Advances(netofprovisions) - 58.40 5,678.30 - 28.76 5,765.46

Investments(netofprovisions) - 1,046.64 599.52 - 194,331.65 195,977.81

V. Investment in Other CIC’s


(a)TotalamountrepresentinganydirectorindirectcapitalcontributionmadebyoneCICinanotherCIC(includingnameofCICs

NA NA

(b)NumberofCICswiththeirnameswhereinthedirectorindirectcapitalcontributionexceeds10%ofOwnedFunds

NA NA

(c)NumberofCICswiththeirnameswhereinthedirectorindirectcapitalcontributionislessthan10%ofOwnedFunds

NA NA





VI. Provisions and Contingencies

ProvisionsandContingenciesshallbepresentedasunder:

Break up of ‘Provisions and Contingencies’ shown under the Profit and Loss Account

March 31, 2021 March 31, 2020

ProvisionsfordepreciationonInvestment 336.04 12,036.73

ProvisiontowardsNPA - -ProvisionmadetowardsIncometax - -ProvisionagainstLetterofcomfort 530.23 1,569.67OtherProvisionandContingencies[refernot47(d)andNote17] 535.07 1,037.56ProvisionforStandardAssets 16.70 -

VII. Business Ratio’s


i)ReturnonEquity(ROE) 4.1% -20.5%ii)ReturnonAssets(ROA) 3.1% -14.4%iii)Netprofitperemployee 220.68 (939.89)

VIII. Concentration of NPA’s

Particulars

March 31, 2021 March 31, 2020

(Amount) Exposure as a

% of total assets(Amount) Exposureasa%

oftotalassetsTotalExposuretotopfiveNPAaccounts 7,586.71 3.6% 7,586.71 3.5%

IX. Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)

Name of The Joint Venture Other Partner in JV Country Total Assets

NA NA NA NA

d. Disclosures of details as required in terms of Paragraph 21 of CIC Direction:

Liabilities:

Amount

Outstanding

Amount

Overdue

AmountOutstanding

AmountOverdue

March 31, 2021 March 31, 2021

1) Loans and Advances availed by the CIC inclusive of interest accrued thereon but not paid:

a) Debentures:Secured - - - -

: Unsecured - - - -

(otherthanfallingwithinthemeaningofPublicdeposits)

b) DeferredCredits - - - -

c) TermLoans - - - -

d) Inter-Corporateloansandborrowings 25,443.99 6,893.99 25,480.87 6,893.99

e) CommercialPaper - - - -

f) OtherLoans(unsecuredfinancelease) - - - -

a)WorkingCapitalLoanfromBanks - - - -

b)InterestaccruedandnotdueonUnsecuredLoans - - - -





March 31, 2021 March 31, 2020

Assets: Amount Outstanding

2) Break-up of Loans and Advances including bills receivables (other than those included in (4) below):

a) Secured - -

b) Unsecured 5,765.46 1,555.04

3) Break-up of Leased Assets and stock on hire and hypothecation loans counting towards AFC activities

i) Leaseassetsincludingleaserentalsundersundrydebtors:

a)FinancialLease - -

b)OperatingLease - -

ii) StockonhireincludinghirechargesunderSundryDebtors:

a)Assetsonhire - -

b)RepossessedAssets - -

iii) HypothecationloanscountingtowardsAFCactivities

a)Loanswhereassetshavebeenrepossessed - -

b)Loansotherthan(a)above - -

4) Break-up of Investments:

Current Investments:

1 Quoted:

i)Shares:a)Equity - -

b)Preference - -

ii)DebenturesandBonds - -

iii)Unitsofmutualfunds - -

iv) Government Securities - -

v)Others - -

2 Unquoted:


b)Preference - -




v)Others - -




March 31, 2021 March 31, 2020

Long Term Investments (at gross value):

1 Quoted:


b)Preference - -




v)Others - -

2 Unquoted:

i)Shares:a)Equity* 194,331.65 205,901.01

b)Preference - -


iii)Unitsofmutualfunds 1,007.25 -


v)Others 638.91 723.00

*IncludingPartlypaidupEquitysharesofforRs.38,555.00Lakhs(FaceValueofRs.15eachoutofwhichRs.10ispaidup)

5) Borrower group-wise classification of assets financed as in (2) and (3) above:

Category Amount net of Provisions Amount net of Provisions

Secured Unsecured Total Secured Unsecured Total

1 RelatedParties

a) Subsidiaries - 5,677.20 5,677.20 - - - b) Companies in the same group - - - - - - c)Otherrelatedparties - - - - - -2 Otherthanrelatedparties - - - - - - Total - 5,677.20 5,677.20 - - -

6) Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted):

Category

March 31, 2021

Market Values/Break-up

or Fair value or NAV

Book Value (Net of

Provisions)

1 RelatedParties

(a) Subsidiaries 44,064.24 194,317.69

(b) Companies in the same group 13.96 13.96

(c)Otherrelatedparties

2 Otherthanrelatedparties 1,646.16 1,646.16

Total 45,724.36 195,977.81





7) Other information


(i) GrossNon-PerformingAssets

(a)Relatedparties 1,551.50 1,551.50

(b)Otherthanrelatedparties 7,376.44 7,401.54

(ii) NetNon-PerformingAssets

(a)Relatedparties -

(b)Otherthanrelatedparties -

(iii) Assetsacquiredinsatisfactionofdebt 363.97 363.97

8. Joint Venture as required by IND AS-112 - “ Disclosure of Interest in Other Entities” are given below:

NameDescription of

Interest

% of Interest

March 31, 2021 March 31, 2020

IBOFInvestmentManagementPrivateLimited EquityShareholding 50.00% 50.00%

*Duetolongtermrestrictions,companyexcludedfromconsolidation

Company’s Interest in Joint Ventures

Particulars As at

March 31, 2021

Asat March 31, 2020

Assets 15.00 29.80

Liabilities 1.04 7.43

Revenue 0.13 1.35

Depreciation 0.02 0.08

OtherExpenses 17.02 15.58

9. Loans and advances in the nature of loans to subsidiaries and associates

Particulars As at

March 31, 2021

Asat March 31, 2020

Name of Subsidiary/ Associates: Outstanding

Balance

Maximum amount

outstanding at any

time during the year

OutstandingBalance

Maximum amount

outstanding at any time

during the year

ReligareCapitalMarketsLimited 1,551.50 1,551.50 1,551.50 1,551.50

ReligareBrokingLimited 5,700.00 5,850.00 - 5,600.00





45.1 (i) Following are the information of the Companies that are not consolidate

PursuanttoRBIdirectionfollowingarethedetailsoftheCompaniesnotconsolidated[ReferNote47(e)]. ReligareCapitalMarketsLimited(hereinrefertoasRCMLorTheCompany)istheholdingcompanyofundermentioned

subsidiaries.ThelastauditfortheCompanywascarriedoutforFinancialYearendingMarch31,2017.Sincethen,theCompanydoesnothaveafunctionalboardowingtowhichauditedfinancialstatementsforsubsequentyearstillFY2021,arenotavailable.Therefore,reportinghasbeendoneonthebasisoflastauditedconsolidatedfinancials.

S No Name of Entity Type of Business GAAP

Size of

Assets

Debt-Equity

Ratio

Net Profit/(Loss)

FY 16-17 FY 16-17 FY 16-17

1 ReligareCapitalMarketsLimited

InstitutionalEquitiesBrokingand Investment Banking

IGAAP 21,976.03 (1.05) (51,644.34)

The subsidiary Companies (Incorporated in Country as detailed under) considered in the consolidated

financial statements:

S.

No.Name of the Entity

Proportion

of

ownership

Interest

Country of

IncorporationNature of Business

1ReligareCapitalMarketsInternational(Mauritius)Limited 100.00% Mauritius

TheCompanyisanInvestmentHoldingCompanyhavingCategoryGBL-1LicensefromFinancialServicesCommission(FSC),Mauritius.

2

ReligareCapitalMarkets(Europe)Limited(RCME)[FormerlyknownasReligareCapitalMarketsPlc.]

100.00% UnitedKingdom

TheCompanywasengagedinthebusinessofsecuritiesbrokingand investment banking and

regulatedbyFinancialConductAuthority(FCA),UK.Thelicensewas surrendered in year 2013

and currently it has no business

operations.

3ReligareCapitalMarkets(UK)Limited 100.00% UnitedKingdom

TheCompanywasengagedinthebusinessofprovidingcorporatefinanceanditwasregulatedbyFCA,UK.Thelicensewassurrendered in year 2012 and

currently it has no business

operations.

4 ReligareCapitalMarketsCorporateFinancePte.Ltd. 100.00% Singapore

TheCompanywasengagedintobusinessofadvisingoncorporatefinance.ItwasregulatedbyMonetaryAuthorityofSingapore(MAS),Singapore.Thelicensewaslapsed in year 2017 and currently it

has no business operations.

5 ReligareCapitalMarketsInc 100.00% USA

TheCompanywasaregisteredbroker dealer engaged in securities

broking and it was regulated by

SecuritiesExchangeCommission(SEC),USA.Thelicensewassurrendered in year 2012 and

currently it has no business

operations.

6 ToblerUKLimited 100.00% UnitedKingdom TheCompanyhasnobusinessoperations.




S.

No.Name of the Entity

Proportion

of

ownership

Interest

Country of

IncorporationNature of Business

7ReligareCapitalMarkets(HK)Limited 100.00% HongKong

TheCompanywasengagedintosecurities broking business. It was

regulatedbySFC,HongKong.Thelicensewassurrenderedinyear 2017 and currently it has no

business operations.

8ReligareCapitalMarkets(Singapore)PteLimited 100.00% Singapore

TheCompanywasengagedintosecurities broking business. It was

regulatedbyMAS,Singapore.Thelicensewassurrenderedinyear 2017 and currently it has no

business operations.

9 KyteManagementLimited 100.00% BVI

ThecompanyisaholdingcompanyinBritishVirginIsland.Ithadoperating subsidiaries namely

ReligareCapitalMarkets(HongKong)LimitedandReligareCapitalMarketsSingaporePte.Limited.

10BartleetReligareSecurities(Private)Limited[BRSL] 50.00% SriLanka

TheCompanyisengagedintosecurities broking business. It is

regulatedbySECandCSE,SriLanka.

11BartleetAssetManagement(Private)Limited 50.00% SriLanka

TheCompanyisengagedinthebusiness investment advisory

services.ItisregulatedbySEC,SriLanka.

12 StrategicResearchLimited 50.00% SriLanka TheCompanyisengagedinequityresearch activities.

13ReligareBartleetCapitalMarket(Pvt)Ltd 50.00% SriLanka

TheCompanywasengagedinthebusinessofprovidingwealthmanagement services. Currently, it

has no business operations.

Note: As Audited Financials of Religare Capital Markets Limited for the year ended March 31, 2017.

(ii) Nature and type of exposure on each entity:

Sr

NoParticulars

Year Ended

March 31, 2021

(Amount)

i) Investmentsinequity 38,555.00ii) Investments in convertible instruments, -iii) Investmentsinbonds/debentures/otherinstruments, -iv) Loansandadvances, 1,551.50v) Anyother(InvestmentinPreferenceShare) 18,500.00vi) AnyOthers(Receivableagainstbusinesstransaction) 312.43vii) AnyOthers(InterestonLoan) 15.26 58,934.19

Note:AllInvestmentsandothertransactionsarewithReligareCapitalMarketLimitedOnly.

(iii) Total exposure of the CIC towards non-financial business (entity–wise)

1 Receivableagainstbusinesstransaction NA

(iv) Loans and advances to firms/companies in which directors are interested NA

(v) Investments by the loanee of the CIC in the shares of parent company and group companies. NA





46. Public disclosure on liquidity risk

(i) Funding Concentration based on significant counterparty (both deposits and borrowings)

Sr.

No.Number of Significant Counterparties Amount

% of Total

deposits% of Total Liabilities

1 2 25,443.99 - 50.3%

(ii) Top 20 large deposits (amount in Rs. Lakhs and % of total deposits)

Sr.

NoName Amount

% of Total

deposits

1 NA NA NA

(iii) Top 10 borrowings (amount in Rs. Lakhs and % of total borrowings)

Sr.

NoName Amount

% of Total

deposits

1 ReligareFinvestLimited 18,550.00 72.91%

2 ReligareComtradeLimited 6,893.99 27.09%

Total 25,443.99

Note - Liability portion of redeemable preference shares not considered as borrowing for this disclosure.

(iv) Funding Concentration based on significant instrument/product

Sr.

No.Name of the instrument/product Amount

% of Total

Liabilities

1 InterCorporateLoans 25,443.99 50.3% Total 25,443.99

(v) Stock Ratios:

(a) Commercialpapersasa%oftotalpublicfunds,totalliabilitiesandtotalassets

Sr

NoCommercial papers ( Amount)

% Total Public

Funds

% Total

Liabilities% Total Assets

1 NA NA NA NA

(b) Non-convertibledebentures(originalmaturityoflessthanoneyear)asa%oftotalpublicfunds,totalliabilitiesandtotal assets

Sr

NoNon Convertible Debenture ( Amount)

% Total Public

Funds

% Total

Liabilities% Total Assets

1 NA NA NA NA

(c) Othershort-termliabilitiesifanyasa%oftotalpublicfundstotalliabilitiesandtotalassets

Sr

NoOther Short Term Liabilities Amount

% Total

Public Funds

% Total

Liabilities

% Total

Assets

1 Liabilitiesotherthanborrowing (Sundrycreditors,provisionsandOtherfinacialLiabilities)

3,957.43 15.6% 8.0% 1.9%

(vi) Institutional set-up for liquidity risk management

TheCompany has borrowing from group companies but does not have bank borrowings or deposits. TheCompanymanagesits liquidityriskbasedontheasset liabilitymanagementpolicywhichincludesliquidityriskmanagementandincorporatestheprincipleslaiddownbyRBIintheliquidityriskmanagementframeworkofNBFC.




47. Other Notes

a) ClassificationofLoansandAdvancesandprovisionforNon-PerformingAssets/ProvisionfordiminutionofInvestmentsOther than Long Term has been made in accordance with the NBFC Directions after considering subsequentrecoveriesandrealizablevalueof investmentsrespectively.Provisionfor Investment ismade inaccordancewithIndianAccountingStandards(INDAS)notifiedundertheCompanies(IndianAccountingStandards)Rules,2015(asamendedfromtimetotime).Theclassificationofloansintostandard,sub-standardandlossassetsandinvestmentshavebeendisclosedatgrossvalueandthecorrespondingprovisionagainstnon-performingassets/investmentshasbeenincludedunderprovisionsinaccordancewithNBFCDirections.

b) ForthefinancialyearendedMarch31,2021,thecompanyhasnotmadeprovisionforIncomeTaxasthetotaltaxableincomeaftersetoffoftheboughtforwardlossesisNilunderthenormalprovisionsoftheIncomeTaxAct.Further,thecompanyhasoptedforsection115BAAoftheIncomeTaxActinthisfinancialyearpursuanttowhichMATprovisionsundersection115JBshallnotbeapplicableontheCompanyfromthisfinancialyearonwards.

c) In thematter of an investigationof the company initiatedbySEBI inFebruary2018,SEBI vide itsOrder datedNovember12,2020,has issueddirections to initiateadjudicationproceedingsunderappropriate legalprovisionsagainst certain entitiesmentioned in the saidOrder. Subsequently onNovember 17, 2020, SEBI has issued ashowcausenoticetoRELtoshowcausewhyappropriatedirections,asdeemsfit,shouldnotbeissuedagainstitunderspecifiedsectionsofSEBIActandSCRAActanditfurthercalledupontoshowwhyappropriatedirectionsforimposingpenaltyundervarioussectionsoftheSEBIAct,SEBIRulesandSCRAActshouldnotbeissuedagainstREL.

ThefinalsetofdocumentsrequestedbyRELvideitsletterdatedDecember27,2020werereceivedfromSEBIonJanuary30,2021basiswhichthepreliminaryreplywassubmittedwithSEBIbyRELonFebruary11,2021.Further,duringthehearingdatedMarch15,2021,theproposalforfilingofSettlementApplicationonbehalfofReligarewaspresentedbeforeSEBIandpursuanttosame,theSettlementApplicationhasbeensubmittedwithSEBIonMarch31, 2021.

d) TheCompanyhasnotredeemed15lakhspreferencesharesamountingtoRs.4,190.28lakhsdueforredemptiononOctober31,2018anddisputedtheliabilitystatingthetransactiontobeanillegaloneandfiledapolicecomplaintwithEOW.However,theCompanyhascreatedanadhocprovisionofRs.1,209.07Lakhs(Rs.673.99LakhsinFY2019-20andRs.535.07LakhsinFY20-21)towardsthepotentialinterestliabilityfromtheredemptiondatetillMarch31,2021.InthematterofDaiichiSankyoCompanyLimitedvs.MalvinderMohanSingh&Others,theCompanyhasbeenmadeagarnisheewithregardstothesepreferenceshares.TheCompanyhasfiledaninterimapplicationdisputingitsliabilityasagarnishee.ThepreferencesharesstandtransferredintheaccountoftheCourtreceiver.TheDecreeHolderi.e.DaiichihasfiledanapplicationbysuppressingthefactthattheentireshareholdingofRHCHoldingsPvt.Ltd.inM/sEliveInfotechPvt.Ltd.hadbeenpledgedinfavourofReligareFinvestLimited(RFL)asasecurityforvariousloanstogroupcompaniesofRHCHoldingsPvt.Ltdandobtainedastatusquoorderonthebrand“Religare”.RFLhasfiledanobjectionapplicationinthesaidproceedings.Thecaseissub-judice.

TheCompanyhasalsofiledapetitioninHon’bleNCLT,DelhiunderSection55&59oftheCompaniesAct,2013seeking rectification of Register ofMembers of the Company w.r.t. 250 Lakhs preference shares amounting to Rs4,030.06lakhsasonMarch31,2021,issuedbytheCompanytoRHCFinancePrivateLimitedinAugust2016allegingthetransactiontobeafraudulentoneandsoughtcancellationofpreferencesharesalongwithstayonvotingrightsintheinterim.Thematterissub-judice.

e) TheCompanyalthoughhasinvestmentintheequitysharesinReligareCapitalMarketsLimited(“RCML”),howevertherighttoexercisecontrol throughvotingrights isnotavailablewiththeCompany.Besidesthis, intermsofthetripartiteagreementbetweentheCompany,RCMLandRHCHoldingPrivateLimited(“RHCPL”),severelongtermrestrictionsandsignificantrestrictivecovenantsonmajordecisionmakingatRCMLhavebeenimposedbytheholdersofpreferenceshares.Accordingly,inviewoftheabove,thefinancialstatementsofRCMLanditssubsidiarieshavebeenexcludedfromtheconsolidatedfinancialstatementsoftheCompanyw.e.f.October01,2011,inaccordancewithapplicableaccountingstandards.TheCompanyhasalreadyprovidedfullyfortheentireinvestmentsmadebyitinRCMLinpreviousyears.ThenetworthofRCMLasperlastauditedfinancialstatementasonMarch31,2017wasRs.(61,971.95)Lakhs.AuditedfinancialsofRCMLforsubsequentperiodsarenotavailable.ThereisacontingentliabilityamountingtoRs.4,078Lakhs in thebooksof theCompanytowardsuncalledcapitalonequitysharesofRCML.




f) TheCompanyhasdivestedpart of its investment inCareHealth InsuranceLimited (CHIL) (erstwhile knownasReligareHealthInsuranceCompanyLimited),asubsidiarycompanyonJune02,2020foraconsiderationofRs.200crtoM/s.TrishikharVenturesLLP,subsidiaryofM/s.KedaaraCapitalFundIILLPLLP(jointlyreferredas‘Kedaara’).ThetotalinvestmentmadebyKedaaratoacquiresharesofCHILisRs.567.31cr.whichcomprisesofprimarycapitalinfusionofRs.300cr.inCHILandRs.267.31crforthepurchaseofCHILsharesfromexistingshareholdersofCHIL,includingpurchaseof6.39%stakefromtheCompanyagainstaconsiderationofRs.200cr.TheCompanyholds70.714%shareholdingoftheCompanyinCHILonapaidupcapitalbasis.

g) TheBoardofDirectorsof theCompanyin itsmeetingheldonJune08,2021has,subject totheapprovalof theshareholders,approvedraisingoffundsthroughpreferentialissueofsharesbyissuingupto54,156,761(FiveCroreFortyOneLakhFiftySixThousandSevenHundredSixtyOne)equitysharesoftheCompanyatanissuepriceofRs.105.25pershareaggregatinguptoRs.5,700,000,000/-(RupeesFiveHundredSeventyCrores)onapreferentialbasis.TheEGMforapprovalofshareholdersinthematterisscheduledtobeheldonJuly03,2021.

h) SeriousFraudandInvestigationsOffice(“SFIO”)

TheCompany has received a letter dated February 28, 2018 fromSerious Fraud InvestigationOffice (“SFIO”),MinistryofCorporateAffairs(“MCA”),GovernmentofIndia,intimatingtheCompanythattheMCAhasorderedaninvestigationintotheaffairsoftheCompanybytheSFIO.TheinvestigationisgoingonasondateandinformationsoughtbySFIOforCompanyanditssubsidiariesthroughvariouscommunicationsisbeingprovided.

i) OnDecember18,2019,theBoardofDirectorsoftheCompanyapproved,subjecttorequisiteapprovals,thedraftSchemeofAmalgamation(“”Scheme””)thatisdesignedtosimplifytheGroupcorporatestructure.IntermsoftheScheme, four (4) direct/indirectwholly owned subsidiaries of theCompany namely,ReligareComtrade Limited,Religare Insurance Limited,ReligareAdvisors Limited andReligareBusinessSolutions Limitedwillmergewith/intotheCompanysubjecttotermsandconditionsasprovidedintheScheme.TheSchemehasbeenfiledwiththeHon’bleNCLTDelhionOctober31,2020andispendingforapproval.

Further,theearlierSchemeapprovedbytheBoardonMay23,2019waswithdrawnaccordingly.

j) InrelationtoorderdatedMarch21,2018passedbyHon’bleDebtRecoveryTribunal–II,NewDelhi(DRT–II)intheOriginalApplicationfiledbyAxisBankLtd.(“OA”)inwhichapartfromotherparties,theCompany,ReligareCapitalMarketsLtd(“RCML”),andReligareCapitalMarketsInternational(Mauritius)Limited(“RCMIML”),havebeenmadepartiesforrecoveryofRs.3,129,393,167inrelationtoa loanfacilityobtainedbyRCMIMLfromAxisBankwhichwas, inter alia, secured by personal guarantees executed by Mr. Malvinder Mohan Singh and Mr. Shivinder Mohan

SinghandcertainothersecuritiesprovidedtoAxisBank.TheCompanyhasnotprovidedanyguarantee/securitiesinrelationtothefacilityobtainedbyRCMIMLfromAxisBank.RELhasexecutedaNon-DisposalUndertaking(“NDU”)infavourofAxisBankstatingthatuntiltherepaymentoftheloantoAxisBankbyRCMIML,RELshallnotalienatethesharesinRHICL.RELhasbeenmadeapartytotheproceedingsbasedontheNDUandcertainotheractionstakenbyit.Inthematter,inviewofthefullandfinalpaymentmadebytheCompanytoAxisBankintermsoftheConsentAgreement dated 01.10.2019 entered into between theCompany,RCML,RCMIML andAxis Bank, theHon’bleTribunalhasvideitsorderdatedJuly13,2020hasdeletedREL,RCMLandRCMIMLfromthearrayofpartiesinviewoffullandfinalsettlementandInterimorderspassedon21.03.2018and26.08.2019againstREL,RCMLandRCMIMLstandvacated.

k) TheBoardofDirectorshadappointedMr.SubramanianLakshminarayananandMr.FrancisDanielLeeasExecutiveChairmanandExecutiveDirectoronNovember14,2017andNovember17,2017respectivelysubjecttoapprovalofshareholders.TheyceasedtobeExecutiveDirectorsoftheCompanyw.e.f.January22,2018andJanuary24,2018respectively.TheshareholdersoftheCompanyattheAnnualGeneralMeetingheldonSeptember20,2018didn’taccordapprovalforpaymentofremunerationtoabovesaiddirectorsfortheirtenureasExecutiveDirectors.Accordingly,U/s197(9)oftheCompaniesAct,2013,theCompanyhassentnoticesforrefundtheremunerationofRs.82.61LakhsandRs.4.36Lakhspaidtothemrespectively.Theyhavenotrefundedtheamounttilldate.TheCompanyhassubmittedanComplaint/ApplicationwiththeROC,DelhiforAdjudicationofPenaltyunderSection454oftheCompaniesAct,2013inSeptember2019torecovertheamount.However,noreplyhasbeenreceivedfromtheROCinthemattertilldate.Therecoverywillbeaccountedonrealisation.




48. Micro, Small and Medium enterprises

TherearenoMicroandSmallenterprises,towhomtheCompanyowesdues,whichareoutstandingformorethan45daysduringtheyearandalsothereisnobalanceoutstandingwithanyofmicroenterprisesandsmallenterprisesasonMarch31, 2021

Amount(Rs.inLakhs)

ParticularsAs at

March 31, 2021

Asat March 31, 2020

Theprincipalamountremainingunpaidtosupplierasattheendoftheyear - -Theinterestduethereonremainingunpaidtosupplierasattheendoftheyear - -The amount of interest paid in terms ofSection 16, alongwith the amount ofpayment made to the supplier beyond the appointed day during the year

- -

Theamountofinterestdueandpayablefortheyearofdelayinmakingpayment(which have been paid but beyond the appointed day during the year) but without

addingtheinterestspecifiedunderthisAct

- -

Theamountofinterestaccruedduringtheyearandremainingunpaidattheendoftheyear

- -

Theamountoffurtherinterestremainingdueandpayableeveninthesucceedingyears, until such date when the interest dues as above are actually paid to the

small enterprise for the purpose of disallowance as a deductible expenditureundersection23oftheMicro,SmallandMediumEnterpriseDevelopmentAct,2006

- -

49. Corporate Social Responsibility

PursuanttotheprovisionsofSection135oftheCompaniesAct,2013andtheRulesmadethereunderandpursuanttotherecommendationoftheCommittee,theBoardhasapprovedaCorporateSocialResponsibility(‘CSR’)policyandthesamehasbeenuploadedonthewebsiteoftheCompanywww.religare.com.CSRPolicycontainstheCSRactivitieswhichcanbe carried out by the Company, governance structure, implementation process, etc.

AstheAverageNetProfitsoftheCompanyasperlastthreeAuditedFinancialYearasperSection198oftheCompaniesAct,2013werenegative,noamountwasrequiredtobespentonCSRactivitiesduringthefinancialyear2020-21.

50. Previous Year Figures

Previousyear’sfigureshavebeenregrouped,re-arrangedandreclassifiedwherevernecessarytoconformtothecurrentyearclassificationasperINDAS.

TheaccompanyingnotesareanintegralpartoftheseFinancialStatementsSignaturetoNoteNo1to50formingpartofFinancialStatements




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ANNUAL REPORT 2020-2021 - KFintech eVoting System

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