202309011118fy22 23

Content
1 Performance Highlights 02
2 Our Values 08
3 Our Customers & Process 09
4 Life at APAC 13
5 CSR 14
6 Directors Profiles 15
7 Corporate Information 19
8 Directors Report 19
9 Management Discussion & Analysis 37
10 Corporate Governance Report 43
11 Independent Auditors Report (Standalone) 52
12 Standalone Financial Statement 60
13 Independent Auditors Report (Consolidated) 115
14 Consolidated Financial Statement 121
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023
APAC FINANCIAL SERVICES 2
Corporate Information
A. BOARD OF DIRECTORS
Mr. Gunit Chadha – Chairman and Managing Director
Mr. Shankar Dey – Executive Director & CFO
Ms. Nithya Easwaran – Non-Executive Investor Director
Mr. Sanjay Maliah - Non-Executive Director
Mr. Sanjay Athalye – Non-Executive Independent Director
Mr. Neeraj Bhai - Non-Executive Independent Director
B. JOINT CHIEF EXECUTIVE OFFICERS
Mr. Randhir Singh – Joint Chief Executive Officer
Mr. Sankar Sastri - Joint Chief Executive Officer
C. DETAILS OF COMMITTEES
I. AUDIT COMMITTEE
Mr. Sanjay Athalye
Mr. Neeraj Bhai
Ms. Nithya Easwaran
II. NOMINATION AND REMUNERATION COMMITTEE
Mr. Sanjay Athalye
Mr. Neeraj Bhai
Ms. Nithya Easwaran
Mr. Gunit Chadha
III. CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE
Mr. Gunit Chadha
Mr. Shankar Dey
Mr. Sanjay Maliah
Mr. Sanjay Athalye
IV. RISK MANAGEMENT COMMITTEE
Mr. Sanjay Athalye
Ms. Nithya Easwaran
Mr. Gunit Chadha
Mr. Shankar Dey
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 17
V. IT STRATEGY COMMITTEE
Mr. Neeraj Bhai
Ms. Nitya Easwaran
Mr. Gunit Chadha
Mr. Shankar Sastri
Mr. Nikhil Bandi
D. CHIEF FINANCIAL OFFICER
Mr. Shankar Dey
E. REGISTERED AND CORPORATE OFFICE ADDRESS
First Floor, Ashford Centre, Shankar Rao Naram Marg, Lower Parel – West, Mumbai
– 400 013
F. BANKS
• Kotak Mahindra Bank
• STCI Finance Limited
• Bandhan Bank Limited
• HDFC Bank Limited
• Equitas Small Finance Bank
• CSB Bank
• DCB Bank
• SIDBI
• IDFC First Bank
• Yes Bank
• Tata Capital
• Capital SFB
• Equitas Small Finance Bank
• IndusInd Bank Limited
• Federal Bank Limited
G. STATUTORY AUDITORS
M/s Borkar & Mazumdar
H. SECRETARIAL AUDITORS
Manish Ghia & Associates
APAC FINANCIAL SERVICES

ANNUAL REPORT 2022-2023 18
Directors’ Report
Dear Members,
Your Directors are pleased to present the Sixth Annual Report (“Report”) of APAC Financial Services Private Limited
(“APACFS” or the “Company”) business and operations, together with the Audited Financial Statements for the financial
year ended March 31, 2023, and other accompanying notes and certificates. Also enclosed are the Consolidated
Audited Financial Statements for the same period, which include its wholly owned subsidiary, APAC Housing Finance
Private Limited (“APACHF”). Together they are referred to as APAC. The Management Discussion and Analysis is also
enclosed.
COMPANY OVERVIEW
APACFS is a Company is incorporated under the Companies Act, 2013 (“the Act”) on May 4, 2017, with registration
number 294664. The Company received its Certificate of Registration No. N-13.02221 as a Non-Banking Financial
Company (NBFC) (Non-Deposit Taking) from the Reserve Bank of India (“RBI”) on February 21, 2018.
The Company is a tech led secured MSME lender in semi-urban and rural markets catering primarily to micro enterprises.
It is headquartered in Mumbai and had 122 branches in 6 states as on March 31, 2023.
APAC is in the process of amalgamation of APACHF with APACFS, subject to necessary regulatory and statutory
approvals.
FINANCIAL PERFORMANCE
The summary of the Company’s financial performance for the financial year 2022-23 and the previous year, on both
stand alone and consolidated basis, is given below:
Rs. in Crores
Consolidated APACFS
Particulars Years Ended Years Ended
Mar 31, 2023 Mar 31, 2022 Mar 31, 2023 Mar 31, 2022
Loans – Year End 1,051.08 581.27 1,013.63 531.63
Borrowings – Year End 678.30 169.70 678.30 169.70
Net Worth – Year End 488.53 459.51 486.80 460.68
Total Net Revenue 136.97 77.77 129.34 68.74
Total Expenses 88.06 55.38 85.94 53.41
Pre-Provision Operating Profit 48.91 22.39 43.40 15.33
Credit Costs 16.16 10.28 14.37 9.92
Profit Before Tax 32.74 12.11 29.03 5.41
Tax 8.77 0.97 7.99 0.27
Profit After Tax 23.97 11.15 21.04 5.15
APAC had an excellent year, with the loan book growing 81% to Rs 1051.08 crores as on 31st March 2023, on a
consolidated basis. Total revenue from operations showed even stronger growth, rising 109% to Rs 171.19 crores in
2022-23 from Rs 82.03 crores in the previous year. While this was mainly due to AUM growth, our focus on the micro
business loan segment also improved the overall yield on our loan book. Due to higher borrowings to fund growth, our
interest costs increased; hence, Net Revenues grew 76%. Expense growth was mostly due to growth in branches and
investment in improving our technology stack. As revenues growth strongly outpaced expense growth, Pre-Provision
Operating Profits grew an impressive 118% to Rs 48.91 crores. While the core portfolio remained robust, the Company
provided for/wrote off a major part of its non-core/run-off book leading to slightly higher credit costs. Profits Before Tax
grew 2.7 times to Rs 32.74 crores. In the previous year, our income tax liability was very low due to deferred tax credits
which were not available in 2022-23 resulting in higher tax liability this year estimated at Rs 8.77 crores. Nevertheless,
Profits After Tax more than doubled to Rs 23.97 crores from Rs 11.15 crores in the previous year.
APAC has managed its loan portfolio closely and the quality of its book improved further, with GNPA falling to 1.25%
from 1.38% in the previous year. GNPA on the core book which is ~98.6% of our overall book was a very modest 0.70%
as on 31st March 2023. Stressed assets have been more than adequately provisioned. The balance sheet remains
strong with net worth of Rs 488.53 crores as on 31st March 2023 and leverage at 1.4. APAC is currently in the process
of raising further equity capital.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 19
TRANSFER TO RESERVES
As per requirement of RBI regulations, the Company has transferred the following amounts to various reserves during
Financial Year ended March 31, 2023:
Amount Transferred to Amount in (Rs Crore)
Statutory Reserve 4.79
BUSINESS OPERATIONS
APAC’s growth journey gained further momentum in FY23, with the loan book growing 81% to Rs 1051.08 crores, with
zero DSA sourcing. APAC closed FY23 with 122 branches, nearly 47% growth as compared to FY22.
Most notable is the strong momentum achieved on disbursements of Rs 78.97 crore in March 2023 as against Rs 58.51
crores in March 2022 (~1.35x increase). Given the consistently strong disbursement trend and medium to long term
nature of these loans, APAC, on run rate basis itself, is targeting an AUM of over Rs 1,700 crores by 31st March 2024.
Given the small ticket size (around Rs 4 to 6 lacs) of most loans, the loan portfolio is very granular which mitigates
portfolio level credit risk. Geographical diversification across many branches in 6 different states and across industries
further adds to the resilience of our portfolio.
APAC continues to demonstrate strong credit quality with GNPA on the consolidated book falling to 1.25% as on 31st
March 2023 from 1.38% in the previous year. Core book GNPA was 0.70% as of 31st March 2023. During the pandemic,
our physical presence and digital connect allowed us to be in constant touch with borrowers and achieve impressive
collections and recoveries. APAC was also very successful in running-down its modest non-core portfolio to ~1.4% of
AUM as of 31st March 2023.
APAC remains focused on being a secured lender (almost 100% of portfolio secured by property), to underserved micro
and small enterprises in semi-urban and rural areas enabled by a strong technology stack.
DIVIDEND
Since your Company is in an early stage, the Directors do not recommend any dividend for the period under review.
RISK MANAGEMENT
The Company has strong risk management systems and processes, with a high degree of independent oversight.
Senior management is very knowledgeable and experienced and has been through several business cycles. Board
oversight is exercised through the Risk Management Committee and regular reviews.
Credit risk is managed through board approved policies and product programs under the oversight of APAC’s Credit
Committee. This committee also has 2 independent members, Smt. Varsha Purandare (ex-Chief Credit & Risk Officer
and Dy MD, SBI) and Mr. Arijit Chanda, a highly experienced and respected retail finance professional. All approvals
by the APAC Credit Committee need to be mandatorily unanimous. Portfolio reviews are carried out regularly by the
business, credit, and risk functions. Almost 100% of the portfolio is secured by property. Gross Non-performing Assets
as on March 31, 2023, were at 1.25%, which have been adequately provided for. GNPA on the core book was 0.7%.
The Company has very modest leverage and, hence, liquidity and interest rate risks are low.
In 2022, the Company set up a separate Operations Risk Management Unit with an experienced head. An Operational
Risk Management Committee has also been formed, chaired by the Chief Risk Officer and with some members of
the Management Committee also as members. There are strong internal controls over systems and processes, with
resilience provided by good use of technology and training for all staff. The Internal Audit department carries out regular
reviews of all processes and branches. There is also a separate Fraud Control Unit with trained staff.
APAC has in place a Staff Code of Conduct, staff policies on whistle blowers, prevention of sexual harassment, related
party transactions, conflicts of interest etc. The Fair Practice Code and Grievance Redressal Mechanism etc. are also
in place.
The Company is in the process of implementing the Internal Capital Adequacy Assessment Process (“ICAAP”) and
has engaged a leading consulting firm to advise on the same. This will provide a comprehensive risk management
architecture and process.

SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS
As on March 31, 2023, the Company has only one subsidiary, APAC Housing Finance Private Limited (“APACHF”)
which is 100% owned by APACFS.
In accordance with Section 129 (3) of the Act, a separate statement containing salient features of the financial statements
of the subsidiary of the Company in Form AOC-1 is attached as Annexure 1 to this Report.
The summary financial performance of APACHF for the FY 2022-23 is as follows:
Rs in Crores
Years Ended
Particulars
Mar 31, 2023 Mar 31, 2022
Loans – Year End 37.45 49.64
Borrowings – Year End 0 0
Net Worth – Year End 66.79 63.87
Total Net Revenue 8.06 9.45
Total Expenses 2.56 2.39
Pre-Provision Operating Profit 5.50 7.06
Credit Costs 1.79 0.33
Profit Before Tax 3.71 6.73
Tax 0.79 0.70
Profit After Tax 2.92 6.03
On July 27, 2022 an application was filed before the National Company Law Tribunal(“NCLT”) for amalgamation of
APAC Housing Finance Private Limited with APAC Financial Services Private Limited on a going concern basis. In
relation to the application filed, NCLT on March 30, 2023, issued an order for calling the shareholders and creditors
meetings of both the Companies.
As per the above order, notices have been sent to the shareholders and creditors of APACFS and APACHF for convening
this meeting on May 12, 2023.
DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAS

During the year under review there was no onsite inspection conducted by the RBI and hence no disclosure on
divergence in asset classification and provisioning for NPAs is required for the year ended March 31, 2023.
NATURE OF BUSINESS
During the period under consideration, there were no material changes in the nature of the business of the Company.
SHARE CAPITAL
AUTHORISED SHARE CAPITAL:
The Authorised Share Capital of the Company on March 31, 2023, stands at Rs. 323,50,00,000/- (Rupees Three
Hundred and Twenty-Three Crores and Fifty Lakhs only) divided into 30,60,00,000 (Thirty Crores and Sixty Lakhs) Equity
Shares of Rs. 10/- (Rupees Ten Only) each and 1,75,00,000 (One Crore and Seventy-Five Lakhs) 0.01% Compulsorily
Convertible Preference Shares of Rs. 10/- (Rupees Ten Only) each.
ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL:
During the period under consideration, the Company had allotted 305,920 Equity Shares of INR 10/- each to the
employees of the Company pursuant to exercise of stock options.
Due to the above allotment, the Issued, Subscribed, and Paid-up capital of the Company during the year under
consideration stands at Rs. 304,65,59,200 /- (Rupees Three Hundred and Four Crores, Sixty Five Lakhs, Fifty Nine
thousand and two hundred only) divided into 30,46,55,920 (Thirty Crore Forty Six Lakhs Fifty Five Thousand Nine
Hundred and Twenty) Equity Shares of INR 10/- (Rupees Ten only) each.
BORROWING POWERS
As of March 31, 2023, the Board approved an enhanced limit on the borrowing of the Company to INR 1200,00,00,000/-
(Rupees Twelve Hundred Crores Only), to fund the growth plans of the Company
Further, there have been no payment defaults or one-time settlements undertaken by the Company with respect to
loans taken from banks or financial institutions.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 21
CREDIT RATING
During the year under review, your Company received rating upgrades from both ICRA & Acuite on the back of superior
operating and financial performance. Our current credit ratings are [ICRA] A-(Stable) & ACUITE A(Stable).
CORPORATE GOVERNANCE
A separate section on Corporate Governance standards followed by the Company and the relevant disclosures, as
stipulated under SEBI (Listing Obligation and Disclosure Requirement) 2015, the Act and rules made thereunder, and
RBI Regulations forms part of the Annual Report.
LEGAL AND COMPLIANCE MATTERS

During the year under review, a robust compliance and legal framework was in place. The Compliance department
regularly monitors the relevant updates/changes in regulations specific to the Company and disseminates the same.
The Legal department has standardized the loan documents for various loan products. In-house training is a priority and
is delivered to employees on a frequent basis. In-house legal support is given to the business teams during the process
of collections.
In addition, legal newsletters are issued by Legal & Compliance departments every month for the knowledge and benefit
of employees covering various legal, regulatory and ESG updates.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

APACFS has internal control policies and systems which are commensurate with the size, scale, and complexity of
its operations. These controls ensure transactions are authorized, recorded, and reported correctly and assets are
safeguarded and protected against loss from unauthorized use or disposition. The Company has an Internal Audit
department, which is independent of business with the head of Internal Audit reporting to the Audit Committee of the
Board. A separate Operations Risk Management Unit and Fraud Control Unit monitors operations and fraud risks
overseen by the Operations Risk Management Committee. The Company is also in the process of implementing the
Internal Capital Adequacy Assessment Process (“ICAAP”) and has engaged a leading consulting firm to advise on the
same.
HUMAN RESOURCE DEVELOPMENT

People are our most valuable assets, and we take pride in offering a positive work environment that fosters employee
satisfaction, well-being, and commitment. APAC’s total workforce as on 31st March 2023 was 1064, including 969 in
the branches.
We provide continuous learning opportunities to our employees to help them grow professionally and take on new
and challenging roles within the organization. Many of our field employees were promoted to managerial roles during
the year, and we continue to develop learning content that covers product, sales, operations, legal, compliance, and
regulatory matters.
We recognize and reward high-performing individuals and teams. We have a performance-linked incentive program
that evaluates employees holistically, and we also have a monthly STAR award for high performers. Additionally, we
have an inclusive and employee-friendly Employee Stock Option Scheme (“ESOP”) program that enables employees to
participate in the Company’s future growth and success. Some of the eligible employees exercised their vested ESOPs
during the past financial year.
We have a completely digitized HR process using Jarvis, a Darwinbox powered HRMS system. All HR processes,
including employee onboarding, offer letters, performance management, leave and attendance, and reimbursements,
are available on a mobile application for employees. All employee records are digitally stored in a central HR repository
on the cloud, accessible to employees on a need basis.
In addition, we have improved our payroll process by transitioning to an established industry leader with expertise in
payroll and related compliance matters.
We remain committed to providing our employees with the support and resources they need to thrive both professionally
and personally, and we are proud of the positive impact they have on our organization’s success.
TECHNOLOGY
APAC leverages technology to improve productivity, performance, resilience and cost efficiencies. The Company
intends that the entire customer life-cycle process starting from client on-boarding to transactions, risk management and
servicing is largely technology driven. To this end, APAC has developed its in-house built platform APAC α, which enables
paperless customer onboarding, superior underwriting, and credit decisioning. APAC also developed and in-house easy

to use multi-lingual customer app (APACm) with a vision to provide a digital branch experience to every APAC customer.
Jarvis, the Darwin Box HRMS implemented in APAC, has made our HR processes completely digital. To ensure future
scalability and system driven enabled decisioning and controls, several key projects implemented including an industry
leading enterprise resource planning (ERP) solution, a data lake with associated business intelligence and analytical
model building capabilities anda document management system.
In FY24, in addition to continuously improving our current systems, APAC’s digital goals would be focussed towards
predictive analytics, technology enabled customer servicing and increasing digital marketing efforts for new customer
acquisition.
FINANCE
APAC is very well capitalized with modest leverage, and liquid assets of Rs. 115.30 crores as on March 31, 2023,
on a consolidated basis. During FY23, your company received rating upgrades from both ICRA and Acuite on the
back of superior operating and financial performance. Our credit ratings currently are [ICRA] A-(Stable) and ACUITE
A(Stable). Notably, even though RBI hiked rates by 250 bps during FY23, APAC’s cost of funds during FY23 is about
55 bps lower as compared to FY22. Due to rising interest rates, the Company increased its Prime Lending Rate (PLR)
by 50 bps in Q4FY23.
During the year, the Company significantly increased and diversified its base of leverage providers and currently has
sanctions from 15 lenders totaling Rs 882 crores. APAC has been able to raise leverage on attractive terms from high
quality lenders.
DIRECTORS, KEY MANAGERIAL PERSONNEL AND SENIOR MANAGEMENT PERSONNEL

During the year FY 23, the Company re-appointed Mr. Sanjay Athalye and Mr. Neeraj Bhai as Independent Directors
w.e.f from February 14, 2023. Further, the Board of Directors at their meeting held on March 31, 2023, subject to
approval of shareholders, re-appointed Mr. Gunit Chadha as Managing Director of the Company with effect from July
16, 2023. The Directors of the Company have been re-appointed keeping in mind the Company’s size, complexity, and
business. The Board has varied expertise and is committed to its duties and responsibilities.
As of March 31, 2023, the Board consists of the following six (6) directors:
Sr. No Name of directors
1. Mr. Gunit Chadha (DIN: 00078184) – Managing Director
2. Mr. Shankar Dey (DIN: 00056794) – Executive Director & CFO
3. Ms. Nithya Easwaran (DIN: 03605392) – Non-Executive Investor Director
4. Mr. Sanjay Maliah (DIN: 02491696) – Non-Executive Director
5. Mr. Sanjay Athalye (DIN:07650678) Non-Executive Independent Director – re-appointed on February 14,
2023
6. Mr. Neeraj Bhai (DIN:09342931) Non-Executive Independent Director – re-appointed on February 14, 2023
Brief profiles of the Directors of the Company are available on the website.
During the year under review, Mr. Anand Asawa resigned as Company Secretary of the Company with effect from
September 02, 2022 and in his place Mr. Akhil Parikh was appointed as Company Secretary with effect from September
08, 2022. Pursuant to the provisions of section 203 of the Act read with the Rules made thereunder, the following
employees are the whole-time key managerial personnel of the Company:
Mr. Gunit Chadha, Managing Director
Mr. Shankar Dey, Executive Director & Chief Financial Officer
Mr. Akhil Parikh, Company Secretary & Compliance Officer
Further, as on March 31, 2023, the following were classified as Senior Management Personnel of the Company:
Mr. Randhir Singh, Joint CEO
Mr. Sankar Sastri, Joint CEO
Mr. Viswanathan N, Head - Group Treasury
Mr. Nikhil Bandi, Chief Technology, Digital & Operations Officer
Mr. K Selvaraj, Chief Compliance Officer and General Counsel
Mr. Sanjay Sharma, Group Chief People Officer
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 23
STATEMENT ON DECLARATION BY INDEPENDENT DIRECTORS
Mr. Sanjay Athalye and Mr. Neeraj Bhai are the two Independent Directors of the Company as on March 31, 2023.
Pursuant to the provisions of Section 149 of the Act, the Independent Directors have submitted declarations that each of
them meets the criteria of independence as provided in Section 149(6) of the Act along with Rules framed thereunder.
There has been no change in the circumstances affecting their status as Independent Directors of the Company. In the
opinion of the Board, the Independent Directors possess the requisite integrity, experience, expertise, and proficiency
required under all applicable laws and the policies of the Company.
PERFORMANCE EVALUATION OF THE BOARD

The Company has laid down criteria for performance evaluation of Chairman and Managing Director, Board Level
Committees and the Board as a whole, in line with the provisions of the Act. The Independent Directors at their meeting
held on March 22, 2023 had carried out the performance evaluation of the Chairman & Managing Director, Board Level
Committees and Board as a whole, for the FY 23, in an appropriate manner.
NUMBER OF MEETINGS OF THE BOARD AND IT’S VARIOUS COMMITTEES

The details of meetings of the Board and Committees held during the year, attendance of Directors at the meetings and
constitution of various Committees of the Board are included separately in the Corporate Governance Report, which
forms part of the Annual Report.
DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirements under section 134(3)(c) read with section 134(5) of the Act, with respect to the Directors
Responsibility Statement, your directors hereby confirm that:
a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with
proper explanations relating to material departures;
b. the directors had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company
at the end of the financial year and of the profit and loss of the Company for that period;
c. the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities;
d. the directors had prepared the annual accounts on a going concern basis;
e. the directors have laid down internal financial controls to be followed by the company and that such internal
financial controls are adequate and were operating effectively;
f. the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that
such systems were adequate and operating effectively.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Since the Company is a non-banking financial institution registered with the RBI, the provisions of section 186 of the Act
relating to loans made, guarantees given or securities provided are not applicable to the Company.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS ENTERED INTO WITH RELATED PARTIES

The Company has entered into transactions with its wholly owned subsidiary in the normal course of business and on
an arm’s length basis in accordance with the provisions of section 188 of the Act, the details of which are included in
the notes forming part of the financial statements. Accordingly, information in form AOC - 2 is enclosed as Annexure 2
to this report.
The Board of Directors of your Company has formulated a policy on related party transactions, which is displayed
on the web site of the Company at https:/apacfin.com/compliances .This policy deals with review of the related party
transactions and regulates all transactions between the Company and its related parties.
AUDITORS AND AUDITORS REPORT

a. Statutory auditors:
In terms of the Guidelines issued by the Reserve Bank of India (‘RBI’) vide Circular No. DoS.CO.ARG/
SEC.01/08.91.001/2021-22 dated April 27, 2021 (“Circular”), in order to protect the independence of the auditors/
audit firms, entities will have to appoint the statutory auditors for a continuous period of three years, subject to

the firms satisfying the eligibility norms each year. The members of the company had appointed M/s. Borkar
& Muzumdar, Chartered Accountants (Firm Registration Number: 101569W), as the statutory auditors of the
Company for period of five years from the conclusion of 5th Annual General Meeting to the Conclusion of 10th
Annual General Meeting of the Company. In order to comply with the above circular, the Company will seek
approval of the members for amending the tenure of the statutory auditors from conclusion of 5th Annual General
Meeting to the Conclusion of 7th Annual General Meeting of the Company.
There are no qualifications, reservations, adverse remarks, or disclaimers made by the statutory auditors in their
Audit Report. The notes to the financial statements referred to in the Auditors Report are self-explanatory. The
Auditors’ Report is enclosed with the financial statements in the Annual Report.
b. Secretarial Auditors and Secretarial Audit Report
Pursuant to Section 204 of the Act, M/s. Manish Ghia & Associates, Practicing Company Secretaries, were appointed
as secretarial auditors of the Company to conduct the secretarial audit for the FY 23. The Company provided all
assistance and facilities to the secretarial auditors for conducting their audit. The report of the secretarial auditors
for the FY 23 is annexed to this report. There are no material observations, reservations or adverse remarks in the
Secretarial Audit Report for FY 23.
c. Instances of Fraud, if any, reported by the Auditors:
During the year under review, no instances of fraud committed against the Company by its officers or employees
were reported by the statutory auditors and secretarial auditors under Section 143(12) of the Act to the Audit
Committee or the Board of Directors of the Company.
INTERNAL FINANCIAL CONTROLS

The Internal Financial Controls with reference to financial statements as designed and implemented by the Company
are adequate. During the year under review, no material or serious observation has been received from the statutory
auditors of the Company for inadequacy of such controls.
The statutory auditors, M/s. Borkar and Mazumdar, have issued an unqualified report on Internal Financial Controls.
To the best of our knowledge and belief, and according to the information and explanations obtained by us and based
on the report(s) of the statutory auditors of the Company for the financial year under review, the Directors are of the
view that the internal financial controls with reference to the financial statements of the Company were adequate and
operating efficiently.
IND AS IMPLEMENTATION
Your Company has adopted Indian Accounting Standards (“Ind AS”) notified under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015 from April 01, 2019, and the effective date of such transition is
April 01, 2018. Such transition has been carried out from the erstwhile accounting standards notified under the Act, read
with relevant rules issued thereunder and guidelines issued by the Reserve Bank of India (“RBI”) (collectively referred
to as ‘the Previous GAAP’).
EXTRACT OF ANNUAL RETURN

As per Section 92 (3) of the Act, every company shall place a copy of the annual return on the website of the company,
if any, and the web-link of such annual return shall be disclosed in the Board’s Report.
Pursuant to the provisions of Section 134(3)(a) of the Act, a copy of the annual return for the financial year ended March
31, 2023, made under the provisions of Section 92(3) of the Act, has been placed on the below-mentioned web-address:
- https://apacfin.com/compliances.
DEPOSITS
The provisions of section 73 to section 76A of the Act are not applicable to your Company being an NBFC. During the
period under consideration, your Company has not accepted any deposits and shall not accept any deposits from the
public without obtaining prior approval of the RBI.
RBI COMPLIANCE
The Company has complied with the RBI regulations as applicable to it as a Non-Deposit Taking Non-Banking Finance
Company. The Company being a Non-Deposit Taking Non-Banking Finance Company has not accepted any deposits
from the public during the year under review and shall not accept any deposits from the public without obtaining prior
approval of the Reserve Bank of India (RBI).
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 25
COMPLIANCE WITH SECRETARIAL STANDARDS
In terms of provisions of Section 118 of the Act, your Company is in compliance with Secretarial Standards on Meetings
of the Board of Directors and Secretarial Standards on General Meetings issued by the Institute of Company Secretaries
of India.
MATERIAL ORDERS OF REGULATORS/COURTS/TRIBUNALS/JUDICIAL BODIES

There are no significant and material orders passed by the regulators or courts or tribunals or judicial bodies against the
Company impacting its status as a going concern and on its operations.
PARTICULARS OF EMPLOYEES
The Company is not required to disclose information as required under Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Considering that the Company is a Non-Banking Financial Company, the particulars regarding conservation of energy
and technology absorption as required to be disclosed pursuant to Section 134(3) (m) of the Act, read with Rule 8(3) of
the Companies (Accounts) Rules, 2014 are not relevant to its activities. However, your Company has been increasingly
using information technology in its operations and promotes conservation of resources.
VIGIL MECHANISM
The Company as part of the vigil mechanism has in place a Whistle Blower Policy to deal with mismanagement,
instances of actual or suspected fraud, if any, and provides safeguards against victimization of employees who avail
of this mechanism. The Whistle Blower Policy has been placed on the website of the Company. During the year under
review, no whistle blower complaint was received.
CORPORATE SOCIAL RESPONSIBILITY (CSR)

Pursuant to Section 135 of the Act, read with the Companies (Corporate Social Responsibility Policy) Rules, 2014,
your Company has adopted a policy on CSR and the policy has been placed on the website of the Company at https://
apacfin.com/compliances. The Company has constituted a Corporate Social Responsibility (‘CSR’) Committee and
statutory disclosures with respect to the CSR Committee and Annual Report on CSR Activities is enclosed as Annexure
III of this report.
DISCLOSURE AS PER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

PROHIBITION AND REDRESSAL) ACT, 2013
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 seeks to protect
women colleagues against sexual harassment at their workplace.
Pursuant to the requirements of Section 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 read with the rules made thereunder, the Company put in place a Prevention of Sexual
Harassment Policy and did not receive any complaint of sexual harassment during the period under consideration.
INTERNAL COMPLAINTS COMMITTEE

The Company has complied with provisions relating to the constitution of the Internal Complaints Committee under
the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
MAINTENANCE OF COST RECORDS

The Company is in the financial services industry. In view of the nature of activities which are being carried on by the
Company, the maintenance of cost records as specified by the Central Government under sub-section (1) of section 148
of the Act is not applicable to the Company and hence such accounts and records are not maintained.
INTERNAL AUDITOR
Pursuant to Section 138 of the Act, the Company has appointed Mr. Moorthy Govindarajan, as the Internal Auditor of
the Company.

EMPLOYEE STOCK OPTION SCHEME
The Company believes that its success is largely determined by the quality of its workforce and their commitment
towards achieving the goals of the Company. To enable the employees to participate in the future growth and success
of the Company, APAC has an inclusive ESOP program. We are amongst a few NBFC, to share wealth creation via
ESOPs even at the branch level.
During the year under review, ESOPs were granted by the Company to employees, details of which are enclosed as
Annexure IV to this Report.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY
WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE
FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
There are no material changes and commitments affecting the financial position of the Company which have occurred
between the end of the financial year of the Company i.e. March 31, 2023 and the date of the Directors’ Report i.e. May
05, 2023.
THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND
BANKRUPTCY CODE, 2016 DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE
FINANCIAL YEAR
During the period under review, no application was made, nor any proceeding was pending under the Insolvency and
Bankruptcy Code, 2016.
SAFETY, HEALTH & ENVIRONMENT

Health and safety remained an area of importance for your Company with an aim to achieve an accident-free workplace.
This ensures that all employees strive for excellence in their own personal safety and the safety of others including
employees, contractors, customers, and the communities within which your Company operates. During the year under
review, there were NIL incidents of accidents.
GENDER DIVERSITY INITIATIVE

The Company has a woman member in each of its senior-most cohorts:
- Board of Directors
- Audit Committee
- Nomination and Remuneration Committee
- APAC Credit Committee
Further, during the year under review around 33% of the corporate office employees were women.
ACKNOWLEDGEMENTS
Your Board takes this opportunity to thank all its employees and partners for their dedicated service and firm commitment
to the goals and vision of the Company.
Your Board also wishes to place on record its sincere appreciation for the wholehearted support received from the
members, bankers and various government and regulatory authorities at all levels.
For and on behalf of the Board of Directors

APAC Financial Services Private Limited
Gunit Chadha Shankar Dey Place: Mumbai

Managing Director Executive Director Date: May 05, 2023
(DIN: 00078184) (DIN: 00056794)
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 27
Annexure I
Form No. Aoc – 1

Statement containing salient features of the financial statement of Subsidiaries / associate companies / joint
ventures
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules,
2014)
Part A – Subsidiaries
(Information in respect of each subsidiary to be presented with amounts in Rs. ‘000)
Sr. No Particulars Details

1 Name of the subsidiary APAC Housing Finance
Private Limited
2 Reporting period for the subsidiary concerned, if different from the holding April 1, 2022 – March 31,
company’s reporting period 2023
3 Reporting currency and Exchange rate as on the last date of the relevant Rupees
financial year in the case of foreign subsidiaries.
4 Share capital 6,50,000
5 Reserves & surplus 17,937
6 Total assets 6,74,631
7 Total Liabilities 6,74,631
8 Investments 1,92,807
9 Turnover 81,068
10 Profit before taxation 37,076
11 Provision for taxation 7,861
12 Profit after taxation 29,215
13 Proposed Dividend -
14 % of shareholding 100%
Names of subsidiaries which are yet to commence operations - NIL
Names of subsidiaries which have been liquidated or sold during the year - NIL

Part B - Associates and Joint Ventures – Not Applicable
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint
Ventures
Name of Associates/Joint Ventures Name
1. Latest audited Balance Sheet Date --
2. Shares of Associate/Joint Ventures held by the company on the year end --
No. --
Amount of Investment in Associates/Joint Venture --
Extend of Holding % --
3. Description of how there is significant influence --
4. Reason why the associate/joint venture is not consolidated --
5. Networth attributable to Shareholding as per latest audited Balance Sheet --
6. Profit / Loss for the year --
i. Considered in Consolidation --
i. Not Considered in Consolidation --
Names of associates or joint ventures which are yet to commence operations - NIL
Names of associates or joint ventures which have been liquidated or sold during the year - NIL


Managing Director Executive Director Date: May 05, 2023
(DIN: 00078184) (DIN: 00056794)
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 29
Annexure II
Form No. Aoc -2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts)
Rules, 2014
Form for Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub section (1) of section 188 of the Companies Act, 2013 including certain arms-length transaction under third
proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s length basis: NIL
2. Details of contracts or arrangements or transactions at arm’s length basis:
Sr.
Particulars Details
No.
1 Name (s) of the related party & nature of relationship APAC Housing Finance Private Limited
2 Nature of contracts/arrangements/transaction For Intercompany services cost recovery as per
Service Level Agreement
3 Duration of the contracts/arrangements/transaction For the FY 2022-23
4 Salient terms of the contracts or arrangements or The Company has recovered intercompany service
transaction including the value, if any cost of Rs 3,275,960 (excluding taxes ) on arm’s length
basis
5 Date of approval by the Board March 03, 2022
6 Amount paid as advances, if any NIL
S.
Particulars Details
No.
1 Name (s) of the related party & nature of relationship APAC Housing Finance Private Limited
2 Nature of contracts/arrangements/transaction For Intercompany services cost payment as per
Service Level Agreement
3 Duration of the contracts/arrangements/transaction For the FY 2022-23
4 Salient terms of the contracts or arrangements or The Company has paid intercompany service cost of
transaction including the value, if any Rs 1,064,961 ( excluding taxes ) on arm’s length basis
5 Date of approval by the Board March 03, 2022
6 Amount paid as advances, if any NIL
Gunit Chadha Shankar Dey

Managing Director Director
(DIN: 00078184) (DIN: 00056794)
Place: Mumbai
Date: May 05, 2023

Annexure III
Annual Report On CSR Acitivities

1. Brief outline on CSR Policy of the Company: The Board of the Company has approved a Corporate Social
Responsibility Policy (“CSR policy”) in line with the requirements of Section 135 of the Companies Act, 2013
and rules made thereunder. The CSR Policy of the Company is in conformity with the provisions of Section 135 of
the Companies, Act 2013 read with Schedule VII to the Act and the Companies (Corporate Social Responsibility
Policy) Rules, 2014. The CSR Policy lays down the guiding principles that shall be applicable to the CSR projects
/ programmes / activities of the Council. The Board of Directors of the Company had approved the CSR Policy, on
the basis of the recommendations of the Corporate Social Responsibility Committee (the “Committee”).
2. Composition of CSR Committee:
Sr. Name of Director Designation / Nature of Number of meetings Number of meetings of
No. Directorship of CSR Committee CSR Committee attended
held during the year during the year
1 Gunit Chadha Managing Director 2 2
2 Shankar Dey Executive Director 2 2
3 Sanjay Maliah Director 2 2
4 Sanjay Athalye Independent Director 2 2
3. Provide the Web-link(s) where Composition of CSR Committee, CSR Policy and CSR projects approved by the
board are disclosed on the website of the company: https://apacfin.com/compliances
4. Provide Executive Summary along with Web-Link(s) of Impact assessment of CSR projects carried out in pursuance
of sub-rule (3) of rule 8, if applicable (attach the report): Not applicable for the Financial Year 2022 -23
5. (a) Average net profit of the company as per section 135(5) INR 80,062,562
(b) Two percent of average net profit of the company as per section 135(5) INR 1,601,251
(c) Surplus arising out of the CSR projects or programs or activities of the previous NIL
financial years
(d) Amount required to be set off for the financial year, if any NIL
(e) Total CSR obligation for the financial year [(b)+(c)-(d)] INR 1,601,251
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project INR 1,613,015
(b) Amount spent in Administrative Overheads : NIL
(c) Amount spent on Impact Assessment, if applicable : NA
(d) Total amount spent for the Financial Year [(a)+(b)+(c)] : INR 1,613,015
(e) CSR amount spent or unspent for the financial year: NIL
Total Amount Spent for Amount Unspent (in Rs.)

the Financial Year. (in Total Amount transferred to Amount transferred to any fund specified
Rs.) Unspent CSR Account as per under Schedule VII as per second
section 135(6) proviso to section 135(5)
Amount Date of Transfer Name of Amount Date of
Fund Transfer
INR 1,613,015 Not applicable Not applicable
(f) Excess amount for set-off, if any: NA
Sr.
Particulars Amount
No.
1 2 3
(i) Two percent of average net profit of the company as per section 135(5) 1,601,251
(ii) Total amount spent for the Financial Year 1,613,015
(iii) Excess amount spent for the financial year [(ii)-(i)] 11,764
(iv) Surplus arising out of the CSR projects or programmes or activities of the NA
previous financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] NA
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 31
7. Details of Unspent CSR amount for the preceding three financial years:
1 2 3 4 5 6 7 8
Sr. Preceding Amount Balance Amount Amount transferred to Amount Deficie
No. Financial transferred amount spent in the a Fund as specified remaining ncy, if
Year(s) to Unspent in Financial under Schedule VII as to be any
CSR Unspent Year (in Rs.) per second proviso to spent in
account CSR Section 135(5), if any succeeding
under Account Financial
section under Years
135(6) (in section (in Rs)
Rs.) 135(6) (in
Rs.)
Amount Date of
(in Rs.) Transfer
1. 2020 -21 NA NA NA NA NA NA NA
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility spent in
the financial year:
Yes No 
If Yes, enter the number of Capital assets created/ acquired NA
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility
amount spent in the Financial Year:
Sr. Short Pin code Date of Amount Details of entity/ Authority/

No particulars of of creation of CSR beneficiary of the registered owner
the property or the amount
asset(s) property spent
[including or asset(s)
complete
address and
location of the
property]
(1) (2) (3) (4) (5) (6)
CSR Name Registered
Registration Address
Number, if
applicable
Not Applicable
(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/
Municipal Corporation/ Gram panchayat are to be specified and also the area of the immovable property as
well as boundaries)
9. Specify the reason(s), if the company has failed to spend two percent of the average net profit as per section
135(5): Not applicable


Managing Director Executive Director
(DIN: 00078184) (DIN: 00056794)
Place: Mumbai
Date: May 05, 2023

Annexure IV
ESOP Disclosure
Sr No Particular Information
1 Options granted in the FY 23 3458500
2 options Vested in the FY 23 117830
3 Options Exercised in the FY 23 305920
4 The total number of shares arising as a result of
the exercise of option; 305920
5 Options lapsed 0
6 the exercise price of options granted in FY 23 34.5
7 The Board of Directors at their meeting held on August
16, 2022 had extended the vesting of ESOP Pool III
Variation of terms of options; Tranche VI options
8 money realized by exercise of options; 9,055,232
9 total number of options in force 14087580
employee wise details of options granted during the Financial year to
(i) Key Managerial Personnel: NIL
(ii) any other employee who receives a grant of options in any one year of option amounting to five percent or more of
options granted during that year.
Sr No Name of the Employee Number of Options Granted
1 Randhir Singh 350,000
2 Sankar Sastri 1,350,000
(iii) identified employees who were granted option, during any one year, equal to or exceeding one percent of the
issued capital (excluding outstanding warrants and conversions) of the company at the time of grant; NIL


Managing Director Executive Director
(DIN: 00078184) (DIN: 00056794)
Place: Mumbai
Date: May 05, 2023
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 33
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Mumbai
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to
good corporate practices by APAC Financial Services Private Limited (CIN: U65999MH2017PTC294664) and having
its registered office at First Floor, Ashford Centre, Shankarrao Naram Marg, Lower Parel (West), Mumbai - 400013
(hereinafter called ‘the Company’). Secretarial Audit was conducted in a manner that provided us a reasonable basis for
evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the company’s books, papers, minute books, forms and returns filed and other records
maintained by the company and also the information provided by the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during
the audit period covering the financial year ended on 31st March, 2023 complied with the statutory provisions listed
hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent,
in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended on 31st March, 2023 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder (Not applicable to the
Company during the audit period);
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) The Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of
Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): -
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; including
norms relating to insider trading;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018 (Not applicable to the Company during the audit period);
(d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 (not applicable to the Company during the audit period);
(e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations,
2021 (not applicable to the Company during the audit period);
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 (Not applicable
to the Company during the audit period);
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (Not applicable to the
Company during the audit period); and
(i) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (Not applicable to the Company during the audit period).

(vi) The Reserve Bank of India Act, 1934 and the directions issued by Reserve Bank of India thereunder and as are
applicable to Non-deposit accepting Non-Banking Financial Companies (NBFC); Credit Information Companies
(Regulation) Act, 2005 and Rules, The Prevention of Money-Laundering Act, 2002 and the rules made thereunder
to the extent applicable to NBFCs, being laws that are specifically applicable to the Company based on their sector/
industry.
We have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute
of Company Secretaries of India;
During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations,
Standards etc. mentioned above.
We further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during
the period under review were carried out in compliance with the provisions of the Act.
Few Board Meetings of the Company during the year under review were held at shorter notice with the consent of the
Directors and a system exists for seeking and obtaining further information and clarifications on the agenda items before
the meeting and for meaningful participation at the meeting.
Majority decision is carried through while the dissenting members’ views, if any are captured and recorded as part of the
minutes. However, in the minutes of board meetings for the period under review, no dissents were noted and hence we
have no reason to believe that decisions by the Board were not approved by all the directors present.
We further report that there are adequate systems and processes in the Company commensurate with the size and
operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period the Board of Directors of the Company has:
a. approved the grant of 35,78,500 options pursuant to “APAC Employee Stock Option Plan 2018” (“ESOP 2018”/
“Plan”) to the eligible employees of the Company and its wholly owned subsidiary on August 16, 2022; and
b. approved the allotment of 3,05,920 equity shares of Rs. 10/- each on March 14, 2023, pursuant to options exercised
by option holders under ESOP 2018.
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.
For Manish Ghia & Associates

Company Secretaries
(Unique ID: P2006MH007100)
CS Mannish L. Ghia
Place: Mumbai Partner
Date: May 05, 2023 M. No. FCS 6252, C.P. No. 3531
UDIN: F006252E000242653 PR 822/2020
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 35
‘Annexure A’
To,
The Members,
Mumbai
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about
the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure
that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed
provided a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Book of Accounts of the
Company.
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulation, standards is the
responsibility of management. Our examination was limited to the verification of procedures on the test basis.
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficiency
or effectiveness with which the management has conducted the affairs of the Company.
For Manish Ghia & Associates

Company Secretaries
(Unique ID: P2006MH007100)
CS Mannish L. Ghia
Place: Mumbai Partner
Date: May 05, 2023 M. No. FCS 6252, C.P. No. 3531
UDIN: F006252E000242653 PR 822/2020

Management Discussion
And Analysis
Business Profile
APAC Financial Services Private Limited (“APACFS” or “Company”) is a tech led secured MSME lender in semi-urban
and rural markets catering primarily to micro enterprises. It has a wholly owned subsidiary, APAC Housing Finance
Private Limited (“APACHF”). Together, they are referred to as APAC. The following discussion and analysis refer to the
consolidated entity. APAC is in the process of amalgamation of APACHF with APACFS, subject to necessary regulatory
and statutory approvals.
Macroeconomic Environment
FY23 saw India emerging successfully from the pandemic as the 5th largest economy globally, from the 11th largest only a
decade ago. While the world faces geopolitical uncertainty, inflation, and volatile public markets, the Indian economy has
remained resilient owing to its underlying economic fundamentals and reliance on domestic drivers. The Government’s
‘Saptarishi’ priorities, which include inclusive development, reaching the last mile and investments, coupled with its
regulatory prudence, should enable India to deliver accelerated growth while balancing fiscal challenges. India delivered
~7% real GDP growth in FY23 and remains a multi decade growth opportunity.
Market Overview and Opportunity
The MSME sector, comprising 70 million businesses (of which 99.5% are micro enterprises), contributes to about 30%
of India’s GDP and employs ~111 million people. Therefore, if the ambition is for India to be a $5 trillion economy, it is
imperative that MSMEs have enough capital to grow. However, Micro and Small enterprises are often underserved and
continue to remain deprived of adequate formal credit – as per CRIF Highmark and CIBIL research, the MSME credit
gap has infact grown from ~Rs 58 lakh crore in FY17 to ~Rs 85 lakh crore in FY22.
NBFCs are well positioned to assist in bridging this massive credit gap and thereby helping achieve the twin goals of
‘Atmanirbhar Bharat’ and a $5 trillion economy. NBFCs offer customised products for MSMEs withdeep penetration in
semi urban-rural areas and differentiated underwriting to assess cash flows. This relative strength is demonstrated by
NBFCs’ share of MSME credit growing from 14% in FY15 to 20% in FY22.
Although MSMEs were severely impacted during the pandemic years, during FY23 we have seen stabilisation
of delinquencies and improving portfolio quality across the board. We believe that borrowers in this segment have
good intent to repay. We must also credit the Government, its agencies and the regulators for offering extensive relief
measures and supporting digitization of MSMEs over the last few years, thereby reinstating their high growth trajectory.
Within the MSME credit segment the less than Rs 10 lakh loan ticket size is an attractive segment as it is deep,
underserved, granular and offers higher risk adjusted yields with the collateral being self-occupied residential property.
This segment is the focus of APAC and represents a large market opportunity: estimated at Rs 22 lakh crore, while the
credit outstanding is a fraction of the same at Rs 1.9 lakh crore in FY22. We expect credit to this segment (i.e. less than
Rs 10 lakh loan ticket size) to continue to grow at a strong pace, driven by:
i. Large total addressable market (TAM), i.e. massive credit gap
ii. Increasing digitization
iii. Growth in branch network of lenders
iv. Reduction in risk premiums due to increasing digitization
v. Inclusion of new to credit customers and
vi. Continued support of Government initiatives such as CGTMSE, MUDRA, Udyam and others
We believe APAC’s chosen customer/product segment is large and unserved. NBFCs with strong customer focus and
proximity, with granular and secured portfolio, disciplined underwriting, strong digitization and strong capitalisation will
have a high probability of success.
Business Performance and Portfolio Quality
In FY23, APAC delivered a strong performance on the key metrics of Growth, Quality and Profitability (G.Q.P.). APAC
achieved a loan book size of Rs 1,051 crores across ~20,000 customers as of 31st March 2023.
Business Strategy
APAC remains a focused secured lender (99% of portfolio secured by property), to underbanked and underserved
micro enterprises in semi-urban and rural areas with technology as the key enabler. On the back of APAC’s in-house
developed origination, underwriting and customer service technology platform APAC α, along with our on the ground
presence, APAC is able to:
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 37
i. Source customers directly with zero DSA sourcing.
ii. Gain a superior understanding of the customer and build a high touch relationship, supported by our customer care
centre, digital channels, and our customer app “APACm.”
iii. Offer high quality assessed income-based lending.
iv. Transform what is a time consuming, document heavy and opaque process into a customised, hassle-free, and
highly digitised approach.
v. Capture necessary data points to improve the quality of our underwriting, among other benefits.
Since inception, APAC has been disciplined in its mantra of balancing G.Q.P. APAC’s focus is not on footfalls or eyeballs.
It is not in growing top-line with expanding losses in the bottom-line. We respect capital, be it from the leadership team,
our institutional and other investors, or banks who have provided us with attractive leverage. We are a strong and
sustainable growth oriented firm, with authenticity and fairness.
Growth
• APAC’s total loans grew by 81% yoy to Rs 1,051 crores as of 31st March 2023, with zero DSA sourcing.
• APAC closed FY23 with 122 branches, nearly 47% growth as compared to FY22.
• Most notable is the strong momentum achieved on disbursements in FY23 vs FY22. Given the consistently strong
disbursement trend and medium to long term nature of these loans, APAC, is aiming to achieve an AUM of over
Rs 1,700 crores by 31st March 2024.
Portfolio Quality
Given the small ticket size (around Rs 4 to 6 lacs) of most loans, the loan portfolio is very granular which mitigates
portfolio level credit risk. Geographical diversification across 122 branches in 6 different states and across industries
further adds to the resilience of our portfolio.
APAC continues to demonstrate strong credit quality with core GNPAs in its core business of 0.70% as of 31st March
2023. During the pandemic, our physical presence and digital connect allowed us to be in constant touch with borrowers
and achieve impressive collections and recoveries. APAC was also very successful in running-down its modest non-
core portfolio to ~1.34% of AUM as of 31st March 2023.
Credit quality apart, on operational quality APAC has 97%+ NACH/E-NACH as on 31st March 2023. APAC has been
consistently maintaining digital/non-cash collections at ~99% of total collections throughout FY23. This helps in reduction
of operational errors and frauds in the business.
Opportunities and Threats
Opportunities
APAC caters to vast underserved segments. This requires physical and digital infrastructure and the capability built
to assess customer income, since formal financial records may be insufficient. Having built this infrastructure, APAC
is uniquely positioned to scale up in this segment by opening branches in states it is already present and adding new
states over a period of time. This, along with pricing power, means high growth with sustainable profitability over many
years to come.
Threats
While we have not encountered significant competition so far in our focused segment, this segment has started to come
into the limelight, with a few of our peers raising significant equity in recent times. This may lead to manpower cost
escalation and put pressure on pricing and other commercial terms.
Financial Performance
The summary of the Company’s financial performance for the FY23 and the FY22, on both stand alone and consolidated
basis, is given below:
Particulars Consolidated APACFS

Years Ended Years Ended
Mar 31, 2023 Mar 31, 2022 Mar 31, 2023 Mar 31, 2022
Loans – Year End 1,051.08 581.27 1,013.63 531.63
Borrowings – Year End 678.30 169.70 678.30 169.70
Net Worth – Year End 488.53 459.51 486.80 460.68
Total Net Revenue 136.97 77.77 129.34 68.74

Total Expenses 88.06 55.38 85.94 53.41
Pre-Provision Operating Profit 48.91 22.39 43.40 15.33
Credit Costs 16.16 10.28 14.37 9.92
Profit Before Tax 32.74 12.11 29.03 5.41
Tax 8.77 0.97 7.99 0.27
Profit After Tax 23.97 11.15 21.04 5.15
APAC had an excellent year, highlighted by growth of 81% in its loan book and revenues, and doubling of its bottom line.
This was achieved in a year of continuing investment in branch manpower, more than infrastructure and technology.
The loan book grew 81% to Rs 1,051.08 crores as on 31st March 2023, on a consolidated basis. Total revenue from
operations showed even stronger growth, rising 109% to Rs 171.19 crores in FY23 from Rs 82.03 crores in the previous
year. While this was mainly due to AUM growth, our focus on the micro business loan segment also improved the overall
yield on our loan book. Borrowings and interest costs increased; hence, net revenues grew 76% yoy. Expense growth
was mostly due to growth in branches and investment in improving our technology stack. As revenue growth of 76%
yoy strongly outpaced expense growth 59% yoy, Pre-Provision Operating Profits grew an impressive 118% to Rs 48.91
crores. While the core portfolio remained robust, the Company provided for/wrote off a major part of its non-core/run-off
book leading to slightly higher credit costs. Profits Before Tax grew 2.7 times to Rs 32.74 crores. In the previous year,
our income tax liability was very low due to deferred tax credits which were not available in FY23 resulting in higher tax
liability for the year estimated at Rs 8.77 crores. Nevertheless, Profits After Tax more than doubled to Rs 23.97 crores
from Rs 11.15 crores in the previous year.
As mentioned earlier, Quality is the key focus for APAC. Having managed its loan portfolio closely through the Covid
affected previous two years, the Company saw an improvement in the quality of its book, with GNPA falling to 1.25%
from 1.38% in the previous year. GNPA on the core book was a very modest 0.70% as on 31st March 2023. Stressed
assets have been more than adequately provisioned. The balance sheet remains strong with net worth of Rs 488.53
crores as on 31st March 2023 and leverage at 1.4.
Asset Liability Management
APAC’s strong governance framework and branch led, secured, granular portfolio has consistently attracted high quality
bank lenders. During FY23, APAC added 9 new lenders and received limit enhancement from 6 existing lenders. As on
31st March 2023, APAC has accepted loan sanctions totaling up to Rs. 882 crores from 15 lenders.
During FY23, your company received rating upgrades from both ICRA and Acuite on the back of superior operating and
financial performance. Our credit ratings currently are [ICRA] A-(Stable) and ACUITE A(Stable). Notably, even though
RBI hiked rates by 250 bps during FY23, APAC’s cost of funds grew significantly lower. Due to rising interest rates,
APAC increased its Prime Lending Rate (PLR) by 50 bps in Q4FY23.
Risk Management
APAC has strong risk management systems and processes, with a high degree of independent oversight. Senior
management has deep domain expertise and experience (semi-urban/rural and MSMEs) across business cycles.
Credit Risk
The Board approves the Credit Risk Policy which sets out the broad guidelines and limits under which various product
credit programs and policies are approved by the APAC Credit Committee. The APAC Credit Committee consists of the
Managing Director, Executive Director, Joint CEOs and two independent members, Smt. Varsha Purandare (ex-Chief
Credit and Risk Officer and Deputy MD, SBI) and Mr. Arijit Chanda, a highly experienced and respected retail finance
professional. All approvals by the APAC Credit Committee need to be mandatorily unanimous. Portfolio reviews are
carried out regularly by the business, credit, and risk functions. Over 99% of the portfolio is secured by property. The
Company is deepening its use of technology and alternate data to improve the quality of its product programs and credit
approval processes. Gross Non-performing assets as on 31st March 2023 were at 1.25%, which have been adequately
provided for.
Way Forward:
It is imperative that the risks are managed by stringent credit processes that encompass the entire gamut of the credit
lifecycle as follows:
i. Sourcing of the right borrowers.
ii. Structuring of product program that would suit the selected markets / geographical and demographic profiles.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 39
iii. Strengthening the credit decision making by templatising the key industries. Templates will ensure parity in the loan
eligibility calculation across industries.
iv. Credit administration processes to provide adequate controls.
Liquidity and Interest Rate Risk
APAC has low leverage which results in low liquidity and interest rate risks. Our treasury investments are conservatively
managed and limited to callable FDs with highly rated banks/FIs and short-term liquid and money market mutual funds.
In an increasing interest rates environment, APAC is able to reprice new loan disbursements to mitigate risks arising
out of adverse movements in interest rates. With interest rates rising, APAC increased the pricing on both its existing
floating rate loans and new fixed rate loans disbursed in FY23.
Operational Risk
Operational risk encompasses business process and change risk, technology failure, financial crimes, legal and regulatory
risk. The governing principles and fundamental components of APAC’s operational risk management approach include
the following mechanisms:
i. Accountability of the individual business lines for management and control of the significant operational risks to
which they are exposed.
ii. Defined internal control procedures as enumerated under various product programs and policies.
iii. Operations functions to maintain requisite checklists to ensure control over disbursements and collections.
iv. Internal audit department to undertake audit of various departments and processes for identifying lapses in various
process flows.
v. An effective organization structure through which operational risk is managed, including:
a. Separation of duties between key functions
b. Maker and checker at critical level of activities
c. Monthly reconciliation of key items
vi. A separate Fraud Control Unit with trained staff.
vii. Business continuity plans.
viii. Continuous training of all staff, like KYC and anti-money laundering training, to make them aware of inherent
operational risks and available mitigants.
Key Elements of Operational Risk Management (ORM)
• ORM Governance: ORM governance structure includes Risk Management Committee of the Board and the
Operations Risk Management Committee (ORMC).
• ORM Policy and Procedures: ORM Policy and related processes are prepared by the Head – Operational Risk
Management and the Chief Risk Officer and cover Risk and Control Self- Assessment (RCSA), Key Risk Indicators
(KRI), Loss Data Management (LDM)
• ORM Organization Structure: APAC’s organizational structure for managing operational risks consists of the
following three lines of defence:
1. First line of defence consists of functions that own and manage risk, which in APAC consists of all the
business units and support functions, through adherence to the laid down procedures.
2. Second line of defence consists of functions that oversee risks, viz. the Risk Management and Compliance
departments.
3. Third line of defence consists of functions that provide independent assurance. The Internal Audit team in
APAC provides independent assurance on the effectiveness of governance, risk management, and internal
controls.
Reputational Risk
APAC is exposed to reputational risks through the actions or lapses of its employees, deliberate or unintentional.
This would include examples like mistreatment of customers/ vendors, poor regulatory compliance, weak governance,
employee misconduct, etc. Managing reputation risks is a key responsibility of the Board and senior management. The
Staff Code of Conduct, staff policies on whistleblowers, prevention of sexual harassment etc., and the Fair Practice
Code and Grievance Redressal Mechanism etc. have been put in place to mitigate such risks.

Customers
Our customers are largely self-employed, underserved micro enterprises in semi-urban and rural India. These are
the businesses that we interact with every day – kirana stores, animal product owners, vegetable and fruit traders,
plumbers, and painters, among many others.
We are building a customer centric organisation that is focused on delivering customized, fair, transparent, and quick
service – whether that is via our well-trained sales teams in the branches, centralised customer service agents or via
our customer mobile app. All our customers are sourced directly via our well-trained on the ground sales teams, who
are empowered by APAC α’s mobility solution.
As a result of our customer centric approach, our customer base has grown very strongly from 9,881 in FY22 to
20,184 in FY23 (104% growth). Beyond extending a loan, APAC has genuinely impacted lives of our customers and
strengthened financial inclusion: 98% of APAC’s loans have women as primary or co-borrowers and for a large number
of APAC’s customers, APAC’s loan is their maiden entry into India’s formal credit system.
We consistently measure our customer satisfaction by our Net Promoter Scores and have maintained a positive trend
on customer satisfaction with an average score of 9+ (out of 10) in FY23 owing to our multiple customer focus initiatives
and sharp product-market fit.
People
Our dedicated and skilled team is the driving force behind APAC’s achievements. As an organization, we recognize
that our people are our most valuable assets, and we take pride in offering a positive work environment that fosters
employee satisfaction, well-being and commitment. APAC’s total workforce as on 31st March 2023 was 1,064, including
969 in the branches.
Learning and Development
We provide continuous learning opportunities to our employees to help them grow professionally and take on new
and challenging roles within the organization. Many of our field employees were promoted to managerial roles during
the year, and we continue to develop learning content that covers product, sales, operations, legal, compliance, and
regulatory matters.
Rewards and Recognition
We believe in recognizing and rewarding high-performing individuals and teams. We have a performance-linked
incentive program that evaluates employees holistically, and we also have a monthly STAR award for high performers.
Additionally, we have an inclusive and employee-friendly Employee Stock Option Scheme (ESOP) program that enables
employees to participate in the Company’s future growth and success. Some of the eligible employees exercised their
vested ESOPs during FY23, which made the ESOP program better appreciated by our employees.
To recognize the dedication of our employees who have worked with APAC for over three to five years, we implemented
Long Service Awards to thank them for their efforts.
Digital HR
We have a completely digitized HR process using Jarvis, a Darwinbox powered HRMS system. All HR processes,
including employee onboarding, offer letters, performance management, leave and attendance, and reimbursements,
are available on a mobile application for employees. All employee records are digitally stored in a central HR repository
on the cloud, accessible to employees on a need basis.
Our organization has implemented an end-to-end digital platform for managing employee stock ownership plans
(ESOPs). This platform provides employees with easy access to their ESOP-related details such as the number of
ESOPs granted, vested and exercised. Additionally, the platform enables employees to view various information related
to ESOP policies and processes.
In addition, we have improved our payroll process by transitioning to an established industry leader, HBS, with expertise
in payroll and related compliance matters.
We remain committed to providing our employees with the support and resources they need to thrive both professionally
and personally, and we are proud of the positive impact they have on our organization’s success.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 41
Technology
Technology is the way of life at APAC. In FY23, APAC stabilised and scaled its in-house built platform APAC α, which
enables paperless customer onboarding, scientific underwriting, and credit decisioning. APAC α enables much faster
scale up of quality business, with progressively lower TAT for customers.
Key capabilities of the platform include:
• Digital onboarding and leveraging API integration with 3rd parties.
• System generated credit memos and sanction letters.
• Geo tagging, uploading documents, collateral etc. using a smart phone.
• Straight through processing with capabilities of initiating e-Stamping and e-signing from the platform.
APAC built an in-house light and easy to use customer app (APACm) with a vision to provide a digital branch experience
to every APAC customer. APACm allows customers to:
• Access their loan details (Language capabilities: English, Hindi, Kannada, Tamil, and Telugu).
• Pay their EMIs through multiple payment modes (including UPI and net banking).
• Digitally sign loan agreements, and much more.
The app allows APAC to remain digitally connected to its customers and helps in sending notifications such as EMI
reminders and cross sell offers, among others. APACm was rolled out actively to new customers in FY23 and had over
4,000 active downloads as of 31st March 2023.
As part of APAC’s drive to achieve its vision of technology enabled business process excellence, APAC has also
implemented the below-mentioned initiatives in FY23:
• An industry leading enterprise resource planning (ERP) solution Oracle Fusion.
• A data lake with associated business intelligence and analytical model building capabilities.
• A matured HRMS, document management and tracking system and a platform to manage centralised quality
control of customer files in digital form.
In FY24, in addition to continuously improving our current systems, APAC’s digital goals would be focused towards
predictive analytics, technology enabled customer servicing and increasing digital marketing efforts for new customer
acquisition.
Outlook for FY24
APAC plans to further expand its branch presence from 122 to 148 branches in FY24 in semi-urban and rural locations
in our existing 6 states. We believe in contiguous expansion and leveraging our local experience and data to carefully
launch new branches. APAC has a scalable, variable-cost driven branch model, which is highly profitable with strong
unit economics. These branches will further boost our AUM growth in FY24 and beyond.
Overall, with the investment already made in branches and employees, alongside significant investment in technology
and a demonstrated successful track record in disbursements, a solid foundation has been laid. With the strong
foundation in place, APAC is targeting its GQP mantra of high growth, strong quality and sustainable profitability in
FY24 and beyond.
Note:
Certain statements in this report may be forward-looking and are, therefore, subject to environmental and market
uncertainties and other risks. Hence, actual results may vary from those expressed or implied.

Corporate Governance Report
As required under RBI Circular dated April 19, 2022, having reference RBI/2022-23/26 DOR.ACC.REC.
No.20/21.04.018/2022-23 (“RBI Circular”), your company presents the Corporate Governance Report for the financial
year 2022-23 as below:
COMPANY’S PHILOSOPY ON GOVERNANCE

APAC Financial Services Private Limited (“APAC” or “the Company”) is committed to the highest standards of corporate
governance and ethics and has endeavored to follow best practices in this sphere. The Board and senior management
of the Company comprise very experienced individuals with a strong track record and demonstrated capabilities.
Business strategy is formulated and approved by the Board with the involvement and approval of the institutional
investor. The Company provides detailed financial and performance data to the Board and the institutional investor
monthly and the same is reviewed in detail. All policies are also approved by the Board and reviewed at least annually.
The involvement of the institutional investor provides strong independent oversight.
The Company is committed to maintaining high ethical standards among its staff through its policies and regular
communication and training. Key areas which are emphasized include avoiding conflicts of interest, related party
transactions, bribery and corruption and prevention of sexual harassment. The Company also has a Fair Practice Code
as prescribed by Reserve Bank of India (“RBI”) which is provided to all its employees and displayed on its website and
its branches.
The Company follows a compensation policy that is transparent and merit-based, including grants of ESOPs.
Your Company, as required under the regulations prescribed by RBI, has Board approved internal guidelines for
Corporate Governance which lays down the disclosures and duties of Directors and terms of reference of various
committees of the Company within which they are expected to discharge their functions.
GOVERNANCE STRUCTURE
Your Company’s corporate governance structure has been designed keeping in view the regulatory and business
requirements, which provides a comprehensive framework to (i) enhance accountability to shareholders and other
stakeholders, (ii) deal fairly with shareholders and other stakeholder interests, and (iii) maintain high standards of
business ethics and integrity.
BOARD OF DIRECTORS
a. Composition of Board, Meetings and Attendance
During the financial year ended March 31, 2023, the Board of Directors consisted of six directors from diverse
fields and substantial NBFC/banking experience. The composition of the Board of Directors represents an optimal
mix of professionalism, qualification, knowledge, skill sets, track record, expertise, and diversity of experience as
required in the financial services business.
Sr Name of Director Capacity (i.e. DIN Number of No. of other Remuneration No. of
No Director Since Executive/ Board meeting Directorships shares and
Non-Executive/ convertible
Chairman/ instruments
Promoter held in the
nominee/ NBFC
Independent)
Held Attended Salary Sitting Commission
and other Fee
compensation
1 Gunit 04/05/2017 Promoter, 00078184 9 9 1 8,91,00,001 - - 159,616,665
Chadha Chairman and
Managing
Director
2 Shankar 01/07/2017 Executive 00056794 9 9 2 14,64,768 - - 1,000,000
Dey Director and CFO
3 Nithya 11/12/2018 Non Executive 03605392 9 9 10$ - - - -
Easwaran Investor Director
4 Sanjay 30/03/2019 Non Executive 02491696 9 3 2 - - - 1,600,000
Maliah Director
5 Sanjay 15/02/2022 Independent 07650678 9 9 3 710,000# - -
Athalye Director
6 Neeraj 15/02/2022 Independent 09342931 9 9 1 690,000# - -
Bhai Director
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 43
$ Ms. Nithya Easwaran is an Individual Partner in Multiples Private Equity Fund II LLP and a Director in Niyo
Solutions Inc. (Foreign Company) which is included in calculation of other directorships
# The sitting fees are calculated basis amount paid/to be paid for all the Board and Committee meetings held
during FY 23
b. Details of change in composition of the Board during the current and previous financial years.
Sr Name of Capacity Nature of change Effective date
No Director (i.e., Executive/ Non-Executive/ (resignation,
Chairman/ Promoter nominee/ appointment)
Independent)
1 Sanjay Athalye Independent Director Re-appointment February 14 ,2023
2 Neeraj Bhai Independent Director Re-appointment February 14 ,2023
The Board of Directors at their meeting held on March 31, 2023, basis recommendation from Nomination and
Remuneration Committee and subject to approval of shareholders approved re-appointment of Mr. Gunit Chadha
as Managing Director of the Company with effect from July 16, 2023.
c. Number of Meetings of the Board
The Company holds at least four meetings of the Board in a year, once in every calendar quarter. The Company
also holds additional meetings of the Board to address its specific requirements, as and when required. Urgent
matters, if any, are approved by way of circular resolutions and are noted at the next meeting of the Board.
Nine meetings of the Board were held during FY 23. The dates on which meetings were held are May 05, 2022,
June 16, 2022, August 16, 2022, September 08, 2022, October 06, 2022, November 23, 2022, January 23, 2023,
February 15, 2023, and March 31, 2023.
The intervening gaps between the meetings of the Board were within the period prescribed under the Companies
Act 2013 read with the applicable Secretarial Standard on meetings of the Board of Directors (SS1).
Further, the quorum was present for all the meetings of the Board held in FY 23.
d. Details of any relationship amongst the directors inter-se shall be disclosed:
None of the present Directors of the Board have any inter-se relationship and each one of them is independent to
each other.
e. A chart or a matrix setting out the skills/ expertise/competence of the Board of Directors:
Name of the Director Special Knowledge / Practical Experience / Skills / Expertise /

Competencies
Mr. Gunit Chadha Commercial, Retail and Corporate Banking including building several new
businesses like retail banking, mortgages, SME financing, asset management,
investment banking and structured finance.
Mr. Shankar Dey Investment, Commercial, Retail and Private Banking including lending, capital
markets, corporate advisory, M&A and private client advisory, general management,
strategy, finance, and corporate governance.
Mr. Sanjay Maliah Highly experienced MSME entrepreneur
Mr. Nithya Easwaran Financial Services, Asset Management, Capital Markets, Wealth Management,
Private Equity
Mr. Sanjay Athalye Risk Management, Collections, Coaching and Consulting
Mr. Neeraj Bhai Computer Science, Networks, IT Strategy, Artificial Intelligence and Emerging
Technology
f. Confirmation about Independence:
Confirmation about independence is already provided in the Statement on Declaration by Independent Directors
in the Directors Report.
g. Terms and Conditions for Appointment of Independent Directors:
A formal Letter of Appointment is addressed to the Independent Director(s) at the time of their appointment.
The terms and conditions of appointment of Independent Directors have been disclosed on the website of the
Company at https://apacfin.com/compliances

h. Directors and Officers Insurance (‘D&O’):
The Company has taken D&O insurance cover for all its Directors and Key Managerial Personnel for such quantum
and for such risks as required.
COMMITTEES OF THE BOARD

In order to focus on strategic and key financial issues, the Company is required to have certain committees. The
Companies Act, 2013 and RBI Regulations mandates the constitution of certain committees. The Company has five
committees constituted in compliance with the aforesaid legal and regulatory requirements and as per the requirement
of the business with specified terms of reference of each of the committees. The committees focus on specific areas
and take informed decisions on the specific responsibilities assigned to them in the best interests of the Company. The
committees also make specific recommendations to the Board on various matters whenever required. All observations,
recommendations and decisions of the committees are placed before the Board for information or for approval.
a. Audit Committee
The constitution and attendance for the meetings of the Audit Committee for FY 23 is given below:
Sr Name of Director Member of Capacity (i.e., Executive/ Number of Meetings No. of
No Committee since Non-Executive/ Chairman/ of the Committee shares
Promoter nominee/ held
Independent) Held Attended in the
NBFC
1 Sanjay Athalye February 15, 2022 Independent Director 5 5 -
2 Neeraj Bhai February 15, 2022 Independent Director 5 5 -
3 Nithya Easwaran February 15, 2022 Non-Executive Investor 5 5 -
Director
The Company holds at least four meetings of the Audit Committee in a year, once in every calendar quarter. The
Company also holds additional meetings of the Audit Committee to address its specific requirements, as and when
required.
Five meetings of the Audit Committee were held during FY 23. The dates on which meetings were held are June
16, 2022, August 16, 2022, October 06, 2022, November 23, 2022, and February 15, 2023.
The intervening gaps between the meetings were within the period prescribed under the Companies Act 2013 read
with the applicable Secretarial Standard on meetings of the Board of Directors (SS1).
Further, the quorum was present for all the above Audit Committee Meetings held in FY 23.
The terms of reference of the Audit Committee duly approved by the Board are given below:
(a) To recommend to the Board approval of the Appointment of Statutory Auditors Policy
(b) To recommend to the Board approval of the Compliance Policy
(c) recommendation for appointment, remuneration and terms of appointment of statutory auditors of the
Company;
(d) approval of appointment of Chief Financial Officer after assessing the qualifications, experience, and
background, etc. of the candidate
(e) review and monitor the auditor’s independence, annual performance, and effectiveness of audit process;
(f) examination of the financial statement and the auditors’ report thereon;
(g) approval or any subsequent modification of transactions of the company with related parties;
(h) disclosure of any related party transactions;
(i) scrutiny of inter ` corporate loans and investments;
(j) valuation of undertakings or assets of the Company, wherever it is necessary;
(k) evaluation of internal financial controls and risk management systems;
(l) review of accounting policy of the Company;
(m) review matters required to be included in the director’s responsibility statement to be included in the board’s
report in terms of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013;
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 45
(n) to review all cases of frauds and attempted frauds;
(o) to recommend appointment and Remuneration of Internal Auditor;
(p) to verify fit and proper criteria and recommend appointment/re-appointment, Remuneration and performance
appraisal of Chief Compliance Officer to the Board;
(q) review of internal audit reports relating to internal control weaknesses;
(r) to review and approve the Internal Audit Policy and amendments thereto;
(s) to review breaches, if any, of covenants in respect of loans availed by the NBFC or debt securities issued by
the NBFC including incidence/s of default.
(t) review any divergence in asset classification and provisioning above a certain threshold to be decided by the
Reserve Bank
(u) establish a vigil mechanism for Directors and employees to report genuine concerns;
(v) annual compliance review;
(w) quarterly one on one meeting of the Chief Compliance Officer with the Committee;
(x) To perform any other functions or duties as stipulated by the Companies Act, Reserve Bank of India, and any
other regulatory authority or under any applicable laws as may be prescribed from time to time.
b. Nomination and Remuneration Committee
The Constitution and attendance for the meetings of the Nomination and Remuneration Committee (“NRC”) for
the FY 23 is given below:
Sr Name of Member of Capacity (i.e., Executive/ Number of No. of
No Director Committee since Non-Executive/ Chairman/ Meetings of the shares
Promoter nominee/ Committee held
Independent) in the
Held Attended NBFC
1 Sanjay Athalye February 15, 2022 Independent Director 6 6 -
3 Nithya Easwaran February 15, 2022 Non Executive Investor Director 6 6 -
4 Gunit Chadha February 15, 2022 Managing Director 6 4# -
# Mr. Gunit Chadha being interested in the agenda items of October 06, 2022, and March 31, 2023, meetings
recused himself from participation
The Company holds NRC meetings at such intervals as required in a year.
Six meetings of the NRC were held during FY 23. The dates on which meetings were held are May 05, 2022,
September 08, 2022, October 06, 2022, November 23, 2022, January 23, 2023, and March 31, 2023.
The intervening gaps between the meetings were within the period prescribed under the Companies Act 2013 read
with the applicable Secretarial Standard on meetings of the Board of Directors (SS1).
Further, the quorum was present for all meetings of NRC held in FY 23.
The terms of reference of the NRC duly approved by the Board are given below:
(a) To recommend to the Board appointment/reappointment of Directors;
(b) To validate ‘fit and proper’ status of all Directors on the Board of the Company in terms of the Guidelines
issued by the RBI;
(c) To identify persons who are qualified to become directors and who may be appointed in senior management
in accordance with the criteria laid down, recommend to the Board their appointment and removal;
(d) To recommend to the Board a Compensation Policy relating to, the remuneration for the directors, key
managerial personnel and other employees including performance/achievement bonus, perquisites, retirals,
sitting fees, etc.;
(e) To recommend to the Board appointment/re-appointment, remuneration and performance appraisal of Key
Managerial Personnel and senior management personnel of the Company;
(f) To formulate/review the criteria for performance evaluation and carry out the performance evaluation of
independent directors and the members of the Board of Directors;

(g) To consider grant of stock options to employees and administer and supervise the Employee Stock Option
Plans;
(h) To work in close coordination with Risk Management Committee (“RMC”) of the Company to achieve effective
alignment between compensation and risks; and
(i) To perform any other functions or duties as stipulated by the Companies Act 2013 , Reserve Bank of India ,
and any other regulatory authority or under any applicable laws as may be prescribed from time to time.
c. Risk Management Committee
The Constitution and attendance for the meetings of the Risk Management Committee (“RMC”) for the FY 23 is
given below:
Sr Name of Member of Capacity (i.e., Executive/ Non- Number of No. of
No Director Committee since Executive/ Chairman/ Promoter Meetings of the shares
nominee/ Independent) Committee held
in the
Held Attended NBFC
1 Sanjay Athalye February 15, 2023 Independent Director 2 1# -
2 Nithya May 05, 2022 Non-Executive Investor Director 2 2 -
Easwaran
3 Gunit Chadha December 04, 2020 Managing Director 2 2 -
4 Shankar Dey December 04, 2020 Executive Director 2 2
# Mr. Sanjay Athalye was inducted as member of RMC on February 15, 2023, hence he was required to attend
only one meeting for FY23
The Company holds at least two meetings of the RMC during a year. The Company also holds additional meetings
of the RMC to address specific requirements, as and when required.
Two meetings of the RMC were held during FY 23. The dates on which meetings were held are November 23,
2022, and March 31, 2023.
Further, the quorum was present for all the above meetings of the RMC held in FY 23.
The terms of reference of the RMC duly approved by the Board are given below:
a) To review and recommend any amendments in Risk Management Policy to the Board;
b) Review various risks as stipulated in the Risk Management Policy along with macroeconomic risks, industry
risks and other related external risks and recommend corrective actions including changes in policy, products,
customer strategies etc;
c) Review the portfolio and the stressed accounts and suggest corrective actions as required;
d) Review collection policy in line with portfolio performance and recommend amendments as required;
e) Review stress testing scenarios and recommend corrective actions as required;
f) To consider and recommend appointment and remuneration of Chief Risk Officer;
g) To work in close coordination with Nomination and Remuneration Committee (NRC) of the Company to
achieve effective alignment between compensation and risks;
h) to review the progress made in putting in place a progressive risk management system and risk management
policy and strategy;
i) To review grant of loans to directors, senior officers and relatives of directors and to entities where directors
or their relatives have major shareholding;
j) Periodic review of the Product Programs, Credit Policy, Operational Risk Management Policy, Collateral
Policy & processes;
k) To review and recommend to the Board the Internal Capital Adequacy Assessment Process;
l) One on one meeting of Chief Risk Officer with the Committee;
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 47
m) To place minutes of Operational Risk Management Committee, APAC CC Quarterly Portfolio Review meetings,
and the Asset Liability Management and Resource Planning Committee meetings to the Board for noting; and
n) To perform any other functions or duties as stipulated by the Companies Act 2013, Reserve Bank of India,
and any other regulatory authority or under any applicable laws as may be prescribed from time to time.
d. Corporate Social Responsibility (CSR) Committee
The Constitution and attendance for the meetings of the Corporate Social Responsibility Committee (“CSR”) for
the FY 23 is given below:
Sr Name of Member of Capacity (i.e., Executive/ Number of Meetings No. of
No Director Committee since Non-Executive/ Chairman/ of the Committee shares
NBFC
1 Sanjay Athalye May 05, 2022 Independent Director 2 2 -
2 Sanjay Maliah September 30, 2020 Non-Executive Director 2 2 -
3 Gunit Chadha September 30, 2020 Managing Director 2 2 -
4 Shankar Dey September 30, 2020 Executive Director 2 2 -
The Company holds meetings of CSR at such intervals as required in a year.
Two meetings of the CSR were held during FY 23. The dates on which meetings of CSR were held were August
16, 2022, and February 15, 2023.
The intervening gaps between meetings of CSR were within the period prescribed under the Companies Act 2013
read with the applicable Secretarial Standard on meetings of the Board of Directors (SS1).
Further, the quorum was present for all meetings of the CSR held in FY 23.
The terms of reference of the CSR duly approved by the Board are given below:
a) To review Corporate Social Responsibility Policy;
b) To identify, segment and recommend the CSR projects/programs/activities to the Board of Directors;
c) To recommend the amount of expenditure to be incurred on the activities as identified for CSR by the
Company;
d) To oversee the implementation of corporate social responsibility projects / programs / activities;
e) To review the annual budgets/expenditure with respect to corporate social responsibility programs;
f) To work with the management to establish and develop the Company’s strategic framework and objectives
with respect to corporate social responsibility matters;
g) To receive reports corporate social responsibility programs / projects / activities of the Company;
h) To establish and review the implementation mechanism for the CSR programs / projects / activities undertaken
by the Company;
i) To establish and review the monitoring mechanism of CSR projects / programs / activities of the Company;
j) To review the CSR Initiatives and Programs/projects/activities undertaken by the Company during the year;
k) To review the Company’s disclosure relating to corporate social responsibility matters in accordance with the
requirements of the regulatory provisions;
l) To obtain legal or other independent professional advice/assistance;
m) To form and delegate authority to any sub-committee or employee(s) of the Company or one or more members
of the committee; and
n) To perform any other functions or duties as stipulated by the Companies Act, 2013, RBI and any other
regulatory authority or under any applicable laws as may be prescribed from time to time.

e. IT Strategy Committee
The Constitution and attendance for the meetings of the IT Strategy Committee (“ITSC”) for FY 23 is given
below:
Sr Name of Member of Capacity (i.e., Executive/ Number of Meetings No. of
No Director Committee since Non-Executive/ Chairman/ of the Committee shares
NBFC
2 Gunit Chadha February 15, 2022 Managing Director 2 2 -
3 Shankar Sastri February 15, 2022 Joint CEO 2 2 -
4 Nikhil Bandi February 15, 2022 Chief Technology, Digital & 2 2 -
Operations Officer
The Company holds meetings of ITSC at such intervals as required in a year.
Two meetings of the ITSC were held during FY 23. The dates on which meetings were held are July 19, 2022, and
January 24, 2023.
The intervening gaps between the meetings were within the period prescribed under the RBI Regulations.
Further, Quorum was present for all meetings of the ITSC held in FY 23.
The terms of reference of the ITSC duly approved by the Board are given below:
a) Approving IT strategy and policy documents and ensuring that the management has put an effective strategic
planning process in place;
b) Ascertaining that the management of the Company has implemented processes and practices that ensure
that the IT function delivers value to the business;
c) Ensuring IT investments represent a balance of risks and benefits and that budgets are acceptable;
d) Monitoring the method that management uses to determine the IT resources needed to achieve strategic
goals and provide high-level direction for sourcing and use of IT resources; and
e) Ensuring proper balance of IT investments for sustaining NBFC’s growth and becoming aware about exposure
towards IT risks and controls.
MEETING OF THE INDEPENDENT DIRECTORS

A meeting of the Independent Directors was held on March 22, 2023, during the financial year. All Independent Directors
were present at the meeting.
GENERAL MEETINGS
Details of General Meetings of the shareholders held by the Company during the financial year 2022-23:
Day/Date/Time Location Resolution passed

Tuesday, July 26, First Floor, Ashford a) To receive, consider, approve, and adopt the Audited Standalone
2022, at 11:30 am Centre, Shankar Rao Financial Statements of the Company for the financial year
(AGM) Naram Marg, Lower ended March 31, 2022, and the report of the Board of Directors
Parel - West, Mumbai and Auditors thereon.
– 400013 b) To receive, consider, approve and adopt the Audited Consolidated
Financial Statements of the Company for the financial year ended
March 31, 2022, together with the Report of the Auditors thereon.
c) To appoint M/s. Borkar & Muzumdar, Chartered Accountant as
Statutory Auditors of the Company
d) To consider and approve regularization of Mr. Sanjay Athalye
(DIN: 07650678) as an Independent Director of the Company
e) To consider and approve regularization of Mr. Neeraj Bhai (DIN:
093429931) as an Independent Director of the Company
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 49
Day/Date/Time Location Resolution passed
Monday, August 29, First Floor, Ashford a) Approval for payment of one - time allowance to Mr. Gunit Chadha
2022, at 5.30 pm Centre, Shankar Rao Managing Director of the Company for the Financial year 2022 -23
(EGM) Naram Marg, Lower
Parel - West, Mumbai
– 400013
Wednesday, February First Floor, Ashford a) To consider and approve re-appointment of Mr. Sanjay Athalye
08, 2023 at 4.00 PM Centre, Shankar Rao (DIN: 07650678) as an Independent Director of the Company
(EGM) Naram Marg, Lower b) To consider and approve re-appointment of Mr. Neeraj Bhai
Parel - West, Mumbai (DIN: 093429931) as an Independent Director of the Company
– 400013
OTHER DISCLOSURES
(a) Loans and advances in the nature of loans to firms/companies in which directors are interested, by name
and amount
During the year under review, the Company did not sanction any loan or advance to firms/companies in which
directors are interested.
(b) Details of non-compliance with requirements of Companies Act, 2013
During the year under review, the Company has been in compliance with the applicable provisions of the Companies
Act 2013 and is also in compliance with accounting and secretarial standards applicable to the Company.
(c) Details of penalties or strictures imposed on the Company by the Reserve Bank or any other statutory
authority
During the year under review, there have been no penalties or strictures imposed on the Company by the Reserve
Bank or any other statutory authority.
(d) Breach of covenants
During the year under review, there were no breaches of any covenants of loan facilities availed from banks and
financial institutions.
(e) Divergence in Asset Classification and Provisioning
During the year under review there was no onsite inspection conducted by the RBI and hence no disclosure on
divergence in asset classification and provisioning for NPAs is required for the year ended March 31, 2023.
(f) Recommendations of any committee not accepted by Board
During the year under review, there were no recommendations of any committee that were not accepted by the
Board of Directors.
(g) Fees paid to Statutory Auditors:
The total fees incurred by the Company and its subsidiaries on a consolidated basis, for services rendered by
Statutory Auditors is given below:
Name Statutory Audit Certification Tax Audit
APACFS 10,00,000 100,000 150,000
APACHF (Wholly owned subsidiary) 125,000 25,000 50,000
(h) Policies of the Bank:
As a part of good corporate governance, the Company has from time to time adopted various policies/ codes
which are hosted on the website of the Company at https://apacfin.com/compliances
GENERAL SHAREHOLDER INFORMATION

(a) Annual General Meeting - date, time and venue;
The date, time and venue of the 6th Annual General Meeting of the Company is as under:
Date: 15/06/2023 Time: 12.30 p.m.
Venue: Through Video Conferencing (VC)/Other Audio Visual Means (OAVM) the deemed venue of the meeting
is the Registered Office of the Company situated at First Floor, Ashford Center, Shankar Rao Naram Marg, Lower
Parel (West), Mumbai – 400013.

(b) Financial year;
The Financial Year of the Company starts on April 01 and ends on March 31 of the next year.
(c) Dividend payment date;
As the company is in an early stage, no dividend is proposed for the FY 23.
(d) Registrar and Share Transfer Agent;
The details of the registrar and share transfer agent of the Company is given below:
NSDL Database Management Limited
(CIN U72400MH2004PLC147094)
4th Floor, Trade World A Wing,
Kamala Mills Compound,
Senapati Bapat Marg,
Lower Parel,
Mumbai – 400 013
(e) Category wise distribution of shareholding;
The category wise shareholding distribution of the Company as on March 31, 2023, is given below:
Sr Number of Percentage
Particulars Category
No Shares Holding
1 Mr. Gunit Chadha Promoter 159,616,665 52.39
2 Multiples Private Equity Fund II LLP Institution Investor 11,282,250 3.70
3 Plenty Private Equity Fund I Limited Institution Investor 111,217,750 36.51
4 Management team and Employees Management team and Employees 9,555,920 3.14
5 Other Investors HNI and other Investors 12,983,335 4.26
Total 304,655,920 100.00
(f) Dematerialization of shares
As on March 31, 2023, out of total paid-up equity share capital of the Company, 92.74% is held in dematerialised
form and 7.26 % is held in physical form.
(g) Address for correspondence for investors:
Mr. Akhil Parikh,
Company Secretary and Compliance Officer
First Floor, Ashford Center,
Shankar Rao Naram Marg,
Lower Parel (West),
Mumbai – 400013


Managing Director Director Date: May 05, 2023
(DIN: 00078184) (DIN: 00056794)
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 51
INDEPENDENT AUDITOR’S REPORT ON THE STANDALONE FINANCIAL STATEMENTS
To the Members of APAC Financial Services Private Limited
Opinion
We have audited the accompanying Standalone Financial Statements of APAC Financial Services Private Limited (the
“Company”), which comprise the Balance sheet as at March 31 2023, the Statement of Profit and Loss(including the
statement of Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for
the year then ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information (hereinafter referred to as “standalone financial statements” or as “financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements prepared in accordance with Indian Accounting Standards prescribed under Section 133 of the
Companies Act, 2013 (‘the Act’) read with Companies (Indian Accounting Standards) Rules, 2015, as amended, (‘Ind
AS’), gives the information required by the Act in the manner so required and gives a true and fair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023,
the profits (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of standalone financial statements in accordance with the Standards on Auditing (“SAs”)
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”)
together with the independence requirements that are relevant to our audit of the Standalone Financial Statements under
the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the
information included in the Annual report (which includes the Director’s report), but does not include the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether such other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the financial position, financial
performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial
Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, the Company’s Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Company’s Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate internal financial controls with reference to the Standalone
Financial Statements, in place and the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by Management;
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the Standalone Financial
Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern;
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events
in a manner that achieves fair presentation;
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) Planning the scope of
our audit work and in evaluating the results of our work; and (ii) To evaluate the effect of any identified misstatements in
the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit;
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
Other Matter
The Company is in process of amalgamating its subsidiary APAC Housing Finance Private Limited. The Company has
received a no objection certificate (“NOC”) from the Reserve Bank of India (“RBI”) on 12 May 2022 for the amalgamation
and filed an application for merger with National Company Law Tribunal (“NCLT”) on July 27, 2022 for amalgamation as
a going concern with effect from April 1, 2022. In relation to the application filed by the Company, NCLT on March 30,
2023 issued an order for calling the Shareholders and Creditors meeting within 45 days from the date of the said Order,
for the purpose of considering and, if thought fit, approving with or without modification(s) the Scheme.
Our report is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (the “Order”), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income,
the Cash Flow Statement and Statement of Changes in Equity dealt with by this report are in agreement with
the books of account;
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 53
(d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the
Act;
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record
by the Board of Directors, none of the directors are disqualified as on March 31, 2023 from being appointed
as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to the standalone financial
statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2”
wherein we have expressed an unmodified opinion;
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, in our opinion and to the best of our information and according to the explanations
given to us, the provisions of section 197 of the Act is not applicable to the Company since it is not a “public
company”;
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information
and according to the explanations given to us:
i The Company has does not have any pending litigations as at March 31, 2023 which would impact its
financial positions.
ii The Company did not have any long term contracts including derivative contracts for which there were
any material foreseeable losses;
iii There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
iv a. The Management has represented that, to the best of it’s knowledge and belief, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b. The Management has represented, that, to the best of its knowledge and belief, no funds have
been received by the company from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures that we have considered reasonable and appropriate in the
circumstances; nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) contain any material mis-statement.
v There was no dividend declared or paid during the financial year.
vi As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable to the Company only
w.e.f. 1st April, 2023, reporting under this clause (Rule 11(g)) is not applicable.
For Borkar & Muzumdar

Chartered Accountants
Firm Registration No: 101569W
CA Richa Agarwal
Partner
Membership No: 140606
Place: Mumbai
Date: May 5th, 2023
UDIN: 23140606BGUMLS8816

Annexure 1 to Independent Auditors Report
[Referred to in paragraph 1 of ‘Report on Other Legal and Regulatory Requirements’ in the Independent Auditors’
Report of even date to the members of APAC Financial Services Private Limited (“the Company”) on the Standalone
Financial Statements as of and for the year ended 31st March 2023]
(i) In respect of the Company’s Property Plant and Equipment (“PPE”) and Intangible Assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of the PPE;
The Company has maintained proper records showing full particulars of intangible assets.
(b) As per information and explanations given to us, physical verification of PPE has been carried out by the
Management during the year in accordance with the phased programme of verification of all assets over
three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of
its assets. As informed, no material discrepancies were noticed on such verification;
(c) According to the information and explanations given by the management, there are no immovable properties,
included in PPE of the company and hence reporting under paragraph 3(i)(c) of the Order is not applicable to
the Company.
(d) According to the information and explanations given to us and on the basis of our examination of the records,
the company has not revalued its PPE or Intangible asset during the year.
(e) According to the information and explanations given to us, no proceedings have been initiated or are pending
against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and rules made thereunder.
(ii) (a) Since the Company is a service provider, clause 3(ii)(a) of the Order pertaining to physical verification of
inventory is not applicable to the Company;
(b) Clause 3(ii)(b) pertaining to sanctioning of working capital loan on the basis of security of current assets,
company has submitted Monthly management certified and quarterly independent CA certified receivables to
the banks or financial institutions are in agreement with the books of account of the Company.
(iii) (a) The principal business of the Company is to give loans and hence the reporting under paragraph 3(iii)(a) of
the order is not applicable to the Company.
(b) According to the information and explanations given to us and based on the audit procedures performed by
us, we are of the opinion that, the investments made and the terms and conditions of the grant of all loans
and advances in the nature of loans, if any, during the year are, prima facie not prejudicial to the Company’s
interest;
(c) According to the information and explanations given to us and based on the audit procedures performed by
us, we are of the opinion that in respect of loans and advances in the nature of loans (together referred to
as “loan assets”), the schedule of repayment of principal and payment of interest has been stipulated. Note
No. 3(c)(1) to the financial statements explains the Company’s accounting policy relating to impairment of
financial assets which include loans assets. In accordance with that policy, loan assets with balances as at
March 31, 2023, aggregating Rs. 9.74 crores were categorised as credit impaired (‘Stage 3’) and Rs. 8.98
crores were categorised as those where the credit risk has increased significantly since initial recognition
(‘Stage 2’). Disclosures in respect of such loans have been provided in Note No. 7 to the financial statements.
In all other cases, the repayment of principal and interest is regular. Having regard to the nature of the
Company’s business and the volume of information involved, it is not practicable to provide an itemised list of
loan assets where delinquencies in the repayment of principal and interest have been identified.
(d) According to the information and explanations given to us and based on the audit procedures performed by
us, total amount overdue including interest for more than ninety days, in respect of loans and advances in the
nature of loans, as at the year-end is Rs. 9.74 crores. As informed to us, reasonable steps are being taken by
the Company for recovery of the principal and interest.
(e) The Company’s principal business is to give loans. Accordingly, paragraph 3(iii)(e) of the Order is not
applicable to the Company.
(f) According to the information and explanations given to us and based on the audit procedures performed by
us, the Company has not granted any loans or advances in the nature of loans either repayable on demand or
without specifying any terms or period of repayment during the year. Hence, reporting under paragraph 3(iii)
(f) is not applicable to the Company.
(iv) The Company has not granted any loans or made any investments or provided any guarantees or security to the
parties covered under Section 185 and 186 of the Act, hence reporting under paragraph 3(iv) of the Order is not
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 55
(v) In our opinion the Company has not accepted deposits or the amounts which are deemed to be deposits, within
the meaning of sections 73 to 76 of the Act or any other relevant provisions of the Companies Act, 2013 and the
rules framed there under. Hence reporting under paragraph 3(v) of the Order is not applicable to the Company.
(vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost
records under Section 148(1) of the Act, for the services of the Company.
(vii) (a) According to the information and explanations given to us and the records examined by us, the Company
is regular in depositing undisputed statutory dues, including provident fund, income-tax, cess, Goods and
Service Tax and other statutory dues applicable to the Company with appropriate authorities;
According to the information and explanations given to us, no undisputed amounts payable in respect of
provident fund, income tax, service tax, cess, Goods and Service Tax and any other material statutory dues
applicable to the Company, were outstanding as on the last day of the financial year, for a period of more than
six months from the date they became payable;
(b) According to the information and explanations given to us, there are no dues outstanding in respect of income
tax or service tax or Goods & service tax which has not been deposited on account of any dispute except the
following:
Name of Nature of the dues Period to which the Forum where the Amount
the statute amount relates dispute is pending (Rs. In Lakhs)
Income Tax Commissioner of
Income Tax AY: 2018-19
Act, 1961 Income Tax – Appeals 8.10
(Refer note no. 34 of the Standalone Ind AS Financial Statements)
(viii) According to the information and explanations given to us and on the basis of our examination of the records of
the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income
in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.
(ix) (a) According to the information and explanations given to us and based on the audit procedures performed by
us, we report that the Company has not defaulted in repayment of loans or other borrowings or in the payment
of interest thereon to any lender.
(b) According to the information and explanations given by the management, the company is not declared wilful
defaulter by any bank or financial institution or other lender;
(c) The company has applied the amount raised by it by way of term loans for the purpose for which those loans
were obtained, though surplus funds which were not required for immediate utilization were invested in liquid
assets.
(d) In our opinion and according to the information and explanations given by the management and audit procedures
performed by us, the Company has not utilized the monies raised on short term basis for long term purpose.
(e) According to the information and explanations given to us and based on the records of the Company examined
by us, the Company has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiary and accordingly reporting under this clause is not applicable.
(f) The company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies and hence reporting under this clause is not applicable.
(x) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments)
or by Private placement or preferential allotment of share and hence reporting under paragraph 3(x)(a) to (b) of the
Order is not applicable to the Company.
(xi) (a) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial
statements and according to the information and explanations given by the management, we have neither
come across any instance of fraud by the Company or on the Company noticed or reported during the year
nor have we been informed of any such case by the management except frauds discovered by the Company
aggregating to 14.13 lakhs committed by an employee in case of 6 Loan Accounts and the same was reported
by the company to RBI on 12th August 2022, through FMR-1.
(Refer note no. 51 of the Standalone Ind AS Financial Statements)
(b) No report under sub section (12) of section 143 of the Companies Act, 2013 is required to be filed by the
auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with
the Central Government.
(c) Based on our enquiries and according to the information and explanation given by the management, we have
been informed that no whistle blower complaint has been received during the year.

(xii) The Company is not a Nidhi Company and hence reporting under paragraph 3(xii)(a) to (c) of the Order are not
(xiii) According to the information and explanations given to us and based on our examination of the records of the
Company, all transactions entered into by the Company with the related parties are in compliance with Sections
177 and 188 of Companies Act, 2013 where applicable, and details of such transactions have been disclosed in
the Financial Statements, as required by the applicable Ind-AS.
(xiv) (a) In our opinion and according to the information and explanations given to us, there exists an adequate
internal control system commensurate with the size of the Company and the nature of its business.
(b) The reports of the Internal Auditors for the year under audit have been considered by us during the audit.
(xv) According to the information and explanations given to us and based on our examination of the records, the
Company has not entered during the year into any non-cash transactions with its directors or persons connected
with them and hence reporting under clause 3 (xv) of the Order is not applicable to the Company.
(xvi) (a) According to the information and explanations given to us and audit procedures performed by us, we report
that the Company has registered as required, under section 45-IA of the Reserve Bank of India Act, 1934.
(b) The company has not conducted Non-Banking Financial activities without a valid Certificate of Registration
(CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.
(c) In our opinion, the Company is not a Core Investment Company (CIC) as defined in the Core Investment
Companies (Reserve Bank) Directions, 2016 (“the Regulations”) issued by the Reserve Bank of India.
Accordingly, reporting under paragraph 3(xvi)(c) of the Order is not applicable to the Company.
(d) According to the information and explanation given to us, in the group, there are no companies forming part of
the promoter/promoter group of the Company which are Core Investment Companies (CICs), as defined in
the Regulations.
(xvii) According to the information and explanation given to us, the company has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditor during the year. Accordingly, reporting under clause 3(xviii)
of the Order is not applicable.
(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and
expected dates of realization of financial assets and payment of financial liabilities, other information accompanying
the financial statements, our knowledge of the Board of Directors and management plans and based on our
examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to
believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of
meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from
the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company.
We further state that our reporting is based on the facts up to the date of the audit report and we neither give any
guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date,
will get discharged by the Company as and when they fall due.
(xx) (a) According to the information and explanations given to us and based on our examination of the records of the
Company, there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project
other than ongoing projects as on 31st March 2023. Accordingly, reporting under clause 3(xx)(a) of the Order
is not applicable.
(b) According to the information and explanations given to us and based on our examination of the records of
the Company, there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any
ongoing projects as on 31st March 2023. Accordingly, reporting under clause 3(xx)(b) of the Order is not
applicable.
(xxi) Since this is report on the standalone Financial Statements of the Company hence reporting under paragraph
3(xxi) of the Order is not applicable to the Company.

CA Richa Agarwal
Partner
Place: Mumbai
Date: May 5th, 2023
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 57
ANNEXURE 2 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS
OF APAC FINANCIAL SERVICES PRIVATE LIMTED
Report on the Internal Financial Controls with reference to the Standalone Financial Statements under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the “Act”).
We have audited the internal financial controls with reference to financial statements of APAC Financial Services Private
Limited (the “Company”) as of March 31, 2023 in conjunction with our audit of the financial statements of the Company
for the year ended on that date.
Management’s Responsibility for Internal Financial Controls.
The Company’s Management is responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to the Company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to these financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, as specified under
section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether adequate internal financial controls with reference to these financial
statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to these financial statements and their operating effectiveness. Our audit of internal financial controls
with reference to financial statements included obtaining an understanding of internal financial controls with reference
to these financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the Company’s internal financial controls with reference to these financial statements.
Meaning of Internal Financial Controls with Reference to these Financial Statements
A company’s internal financial controls with reference to financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to
financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorisations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud
may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to
financial statements to future periods are subject to the risk that the internal financial control with reference to financial
statements may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial
statements and such internal financial controls with reference to financial statements were operating effectively as at
March 31, 2023, based on the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note issued by the ICAI.

CA Richa Agarwal
Partner
Place: Mumbai
Date: May 5th, 2023
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 59
APAC FINANCIAL SERVICES PRIVATE LIMITED
CIN NO. U65999MH2017PTC294664
Standalone Balance Sheet as at March 31, 2023
` in ‘000
Note As at As at
Particulars
No. March 31, 2023 March 31, 2022
ASSETS
1. Financial Assets
a. Cash & Cash Equivalents 4 3,01,045 39,611
b. Bank Balance other than (a) above 5 1,05,610 1,52,947
c. Receivables
i. Other Receivables 6 3,832 7,336
d. Loans 7 1,01,59,687 52,54,716
e. Investments 8 9,93,184 8,13,482
f. Other Financial assets 9 1,21,777 1,10,182
1,16,85,135 63,78,274
2. Non-financial Assets
a. Tax Assets (net) 10 3,873 6,566
b. Deferred Tax Assets (net) 11 18,523 31,569
c. Property, Plant and Equipment 12 21,899 15,237
d. Right-of-use asset 12 33,299 30,423
e. Other Intangible assets 13 10,156 11,622
f. Other Non-financial assets 14 30,976 19,741
1,18,726 1,15,158
TOTAL ASSETS 1,18,03,861 64,93,432

LIABILITIES AND EQUITY
A. LIABILITIES
1. Financial Liabilities
a. Payables
Trade Payables
i. Total outstanding dues of micro enterprises and small enterprises 15 3,520 216
ii. Total outstanding dues of creditors other than micro enterprises and small 15 14,161 8,002
enterprises
b. Borrowings (Other than debt securities) 16 67,45,961 16,87,667
c. Lease Liabilities 17 35,031 31,731
d. Other Financial liabilities 18 2,644 68,203
68,01,317 17,95,819
2. Non-Financial Liabilities
a. Provisions 19 74,440 46,862
b. Other Non-financial liabilities 20 60,155 43,899
1,34,595 90,761
B. EQUITY
a. Equity Share capital 21 30,46,559 30,43,500
b. Other Equity 22 18,21,390 15,63,352
48,67,949 46,06,852
TOTAL LIABILITIES AND EQUITY 1,18,03,861 64,93,432
The accompanying notes form an integral part of the financial statements 1-58
Significant accounting policies 3
In accordance with our Report attached For and on behalf of the Board
For M/s Borkar & Muzumdar, APAC Financial Services Private Limited
Firm Registration No. 101569W
CA. Richa Agarwal Gunit Chadha Shankar Dey

Partner Managing Director Director & CFO
Membership No.: 140606 DIN: 00078184 DIN: 00056794
UDIN:
Akhil Parikh
Company Secretary
Membership No.: 41197
Date: May 05, 2023 Date: May 05, 2023

Place: Mumbai Place: Mumbai

CIN NO. U65999MH2017PTC294664
Standalone statement of Profit & Loss for the year ended March 31, 2023
` in ‘000
Note For the year For the year
Particulars
No. 2022-23 2021-22
INCOME
1. Revenue from operations
a. Interest income 23 15,49,518 6,87,586
b. Fees and commission income 24 77,918 33,101
c. Net gain on fair value changes 25 4,705 8,317
Total Revenue from Operations (a+b+c) 16,32,141 7,29,004
2. Other Income 26 25,989 24,911
3. Total Income (1 + 2) 16,58,130 7,53,915
EXPENSES
a. Finance costs 27 3,64,663 66,537
b. Impairment on financial instruments 28 1,43,675 99,179
c. Employee benefits expenses 29 6,87,968 4,33,919
d. Depreciation and amortisation 30 35,213 28,992
e. Other expenses 31 1,36,240 71,143
4. Total Expenses 13,67,759 6,99,770
5. Profit/(Loss) before tax (3 - 4) 2,90,371 54,145
TAX EXPENSE
a. Current tax 32 64,254 13,169
b. Current tax (pertaining to previous years) 32 2,005 -2,330
c. Deferred tax (net) 32 13,637 -8,152
6. Total Tax Expenses (a+b+c) 79,896 2,687
7. Profit/(Loss) for the year (5 - 6) 2,10,476 51,458
OTHER COMPREHENSIVE INCOME

A. Items that will not be reclassified to profit or loss:
a. Re-measurements of the defined benefit plans -2,341 1,674
b. Income tax relating to items that will not be reclassified to profit & loss 590 -457
8. Total comprehensive income (a+b) -1,751 1,217
9. Total Comprehensive Income (7+8) 2,08,724 52,675

EARNING PER EQUITY SHARE
Basic (`) 35 0.69 0.19
Diluted (`) 35 0.69 0.19
Nominal value per share (`) 10.00 10.00

UDIN:
Akhil Parikh
Company Secretary
Date: May 05, 2023 Date: May 05, 2023

APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 61
CIN NO. U65999MH2017PTC294664
Standalone cash flow statement for the year ended March 31, 2023
` in ‘000
Note For the year ended For the year ended
No. March 31, 2023 March 31, 2022
A. Cash flow from operating activities
Net Profit/(Loss) before taxes as per statement of profit and loss 2,90,371 54,145
Adjustments for:
Depreciation and amortisation 30 12,003 7,490
Depreciation on right of use asset 30 23,210 21,502
Loss on sale of fixed assets (net) 31 327 1
Provision for employee stock option plan (ESOP) 29 43,140 27,748
Provision for gratuity 29 3,712 2,641
Provision for leave encashment 29 - -2,579
Provision for gratuity (OCI) -2,341 1,674
Impairment and write off on financial instruments 28 1,43,675 99,179
Interest expense on lease liability 27 2,702 2,037
Interest expenses on borrowings from banks & financial institutions 27 3,61,736 64,408
Income from investments 23 -5,227 -3,722
Notional interest income on security deposit 24 -1,054 -511
Realised gain on fair value changes 25 -4,074 -6,555
Unrealised gain on fair value changes 25 -631 5,77,177 -1,762 2,11,551
Operating profit/(loss) before working capital changes 8,67,549 2,65,695
Decrease / (Increase) in Financial & Other assets -50,66,915 -24,08,640
Increase / (Decrease) in Financial & Other liabilities -15,973 -50,82,888 -1,51,181 -24,59,821
Cash generated from (used in) operations -42,15,339 -21,94,126
Direct taxes paid (net) -63,568 -13,638
Net cash from (used in) operating activities (A) -42,78,906 -22,07,764
B. Cash flow from investing activities

Purchase/sale of property, plant & equipment/ intangible assets 12 & -17,526 -19,758
13
Bank balance other than cash & cash equivalent 5 47,336 2,59,251
ESOPs to employees of wholly owned subsidairy 8 120 -1,496
Purchase/sale of investments 8 -1,69,890 4,07,269
Net cash from (used in) investing activities (B) -1,39,960 6,45,266
C. Cash flow from financing activities

Proceeds from borrowings 16 46,96,558 11,31,985
Lease liabilities payment 12 & -25,487 -23,912
17
Perquisite tax received from employees 174 -
Issue of share capital 3,059 4,50,000
Premium received on share issuance 5,996 -
Net cash from (used in) financing activities (C) 46,80,300 15,58,073
Net increase/(decrease) in cash and cash equivalents (A+B+C) 2,61,434 -4,425

Cash and cash equivalents at the beginning of the year 39,611 44,036
Cash and cash equivalents at the end of the year 3,01,045 39,611
Components of Cash & Cash Equivalents 4
Cash on Hand - -
Balances with Banks :
i. In Current Accounts 1,00,945 39,611
ii. In Deposits (original maturity less than 3 months) 2,00,100 -
Total Cash & Cash Equivalents 3,01,045 39,611
UDIN:
Akhil Parikh
Company Secretary
Date: May 05, 2023 Date: May 05, 2023

CIN NO. U65999MH2017PTC294664
Standalone statement of changes in equity as at March 31, 2023
A: Equity Share Capital ` in ‘000

Particulars No. of Shares Total
Balances as at April 1, 2021 304,350,000 2,593,500
Add: Share issued during the year - -
Add: Shares converted in to fully paid shares - 450,000
Balances as at March 31, 2022 304,350,000 3,043,500
Add: Share issued during the year 305,920 3,059
Balances as at March 31, 2023 304,655,920 3,046,559
B: Other Equity ` in ‘000
Reserves and Surplus OCI
Statutory Securities Employee Retained Re-measurements of
Particulars Reserve Premium stock Earnings the defined benefit Total
option plans
reserve
Balances as at April 1, 2021 30,523 1,411,900 48,887 -7,870 985 1,484,425
Profit / (Loss) for the year - - - 51,458 - 51,458
Transferred to statutory reserve 10,292 - - -10,292 - -
Other comprehensive income - - - - 1,217 1,217
Employee stock options - - 26,252 - - 26,252
Balances as at March 31, 2022 40,815 1,411,900 75,139 33,296 2,202 1,563,352
Profit / (Loss) for the year - - - 210,476 - 210,476
Other comprehensive income - - - - -1,751 -1,751
Security premium on exercise of - 9,349 - - - 9,349
stock options
(Refer Note 42)
Balances as at March 31, 2023 82,910 1,421,249 115,103 201,677 451 1,821,390
Note No.

UDIN:
Akhil Parikh
Company Secretary
Date: May 05, 2023 Date: May 05, 2023

APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 63
CIN NO. U65999MH2017PTC294664
Standalone notes to the financial statements for the year ended March 31, 2023
Note 1: Nature of Operations

APAC Financial Services Private Limited ("Company") was incorporated under the Companies Act, 2013 (“the Act”) on
May 04, 2017. The Company received its Certificate of Registration ("CoR") to carry on the business of Non Banking
Financial Service ("NBFC") without accepting public deposits from Reserve Bank of India ("RBI") on February 21, 2018.
The Company is engaged in lending to individuals, micro and small enterprises in semi urban and rural areas.
Note 2: Basis of Preparation
a. Statement of Compliance
The Company has adopted Indian Accounting Standards (“Ind AS”) as per the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) notified under Section 133 of the Act which confirms the generally accepted
accounting principles in India and other revelent provisions of the Act.
The Company has also complied with the guidelines issued by the RBI vide “Master Direction - Systemically
Important Non-Deposit Taking Company and Deposit Taking Company (Reserve Bank) Directions, 2016."
The financial statements are prepared based on the the notified Schedule III of the Act, as amended from time to
time, for NBFC's that are required to comply with Ind AS.
The financial statements are approved by the Company's Board of Directors on May 05, 2023.
Details of the Company's accounting policies are disclosed in Note 3.
b. Historical cost convention
These financial statements have been prepared on going concern basis following accrual system of accounting
and are in accordance with the Ind AS. Further, the financial statements have been prepared on historical cost
basis except for certain financial assets and financial liabilities which are measured at fair values as explained in
relevant accounting policies.
c. Presentation of financial statements
The Balance Sheet, the Statement of Profit and Loss and Statement of Changes in Equity, are presented in the
format prescribed under Division III of Schedule III to the Act, as amended from time to time, as required for
NBFCs.
The Statement of Cash Flows has been presented as per the requirements of Ind AS 7 "Statement of Cash Flows".
The Company presents its balance sheet in order of liquidity. An analysis regarding recovery or settlement within
12 months from the reporting date (current) and more than 12 months after the reporting date (non–current) is
presented separately.
d. Functional and presentation currency
These financial statements are presented in Indian Rupees (`), which is the Company's functional currency. All
amounts have been rounded-off to the nearest thousands, unless otherwise indicated.
e. Basis of measurement
The financial statements have been prepared on historical cost basis except for the following items:
i. Financial assets and liabilities - Fair value/amortised cost, as applicable.
ii. Liability of ESOP - Fair value.
iii. Net defined benefit (asset)/ liability - Fair value of plan assets less present value of defined benefit obligations.
f. Use of estimates
The preparation of the financial statements in conformity with Ind AS requires management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities as on
date of the financial statements and reported amounts of revenues and expenses during the period. Application
of accounting policies that require critical accounting estimates involving complex and subjective judgments and
the use of assumptions in these financial statements have been disclosed in Note 3. Accounting estimates could
change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates

CIN NO. U65999MH2017PTC294664
are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if material, their
effects are disclosed in the notes to the financial statements.
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognised in the financial statements are
included in the following notes:
1. Business Model Assessment:
The Company determines its business model at the level that best reflects how it manages groups of financial
assets to achieve its business objective. Based on this assessment and future business plans of the Company,
the management has measured its financial assets at amortised cost as the assets are held within a business
model whose objective is to collect contractual cash flows, and the contractual terms of the financial asset
give rise to cash flows that are solely payments of principal and interest (the "SPPI criterion").
2. Impairment losses on financial assets:
The Company has adopted a portfolio approach to compute expected credit loss ("ECL") except for high
value loans more than ` 3 Crore.
3. Defined employee benefit assets and liabilities:
The cost of the defined benefit gratuity plan is the present value of the gratuity obligation as determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future; these include the determination of the discount rate, future salary increases and
mortality rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at the end of
each reporting date.
4. Share-based payments:
Estimating fair value for share-based payment transactions requires determination of the most appropriate
valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires
determination of the most appropriate inputs to the valuation model including the expected life of the share
option, volatility and dividend yield and making assumptions about them. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at the end of each reporting date.
5. Effective Interest rate ("EIR") method:
The Company’s EIR methodology recognises interest income using a rate of return that represents the best
estimate of a constant rate of return over the expected behavioural life of loans and recognises the effect of
potentially different interest rates charged at various stages and other characteristics of the product life cycle
(including prepayments, penalty interest and charges). This estimation, by nature, requires an element of
judgement regarding the expected behaviour and life-cycle of the instruments, as well expected changes to
the Company’s base rate and other fee income/expense that are integral parts of the instrument.
The Company has apportioned the processing fee received and variable operating expenses over 4 to 6
years as per the product category.
6. Income Tax:
The Company’s tax jurisdiction is in India. Significant judgments are involved in determining the provision for
income tax, including the amount expected to be paid/recovered for uncertain tax positions.
Note 3: Significant accounting policies
a. Revenue recognition
1. Interest Income
For all financial assets measured at amortised cost, interest income is recorded using the effective interest
rate (EIR) i.e. the rate that discounts estimated future cash receipts through the expected life of the financial
asset to the net carrying amount of the financial assets.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 65
CIN NO. U65999MH2017PTC294664
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any fees and
costs that are an integral part of the EIR. The Company recognises interest income using a rate of return that
represents the best estimate of a constant rate of return over the expected life of the financial instrument.
Interest on financial assets subsequently measured at fair value through profit and loss, is recognised on
accrual basis in accordance with the terms of the respective contract.
Income on assets classified as non-performing assets (Stage 3) is recognised on cash basis, in accordance
with the guidelines issued by the RBI for NBFCs. Unrealised interest recognised as income is reversed in the
month in which the asset is classified as a non-performing asset ("NPA").
2. Fee Income
Fees/charges on loan assets, other than those considered an adjustment to EIR, are accounted for on accrual
basis.
Processing fees in respect of loans given is recognised on disbursement as per the terms of the contract.
Other charges such as cheque bounce charges, late payment charges, SOA charges etc. are recognised
when there is no significant uncertainty as to determination and realisation.
3. Investment Income
Interest income on fixed deposits with banks are recognised on accrual basis. Income on investments in
NCD/CP is calculated on EIR basis.
4. Net gain on fair value changes
Financial assets are subsequently measured at fair value through profit or loss ("FVTPL") or fair value through
other comprehensive income ("FVOCI"), as applicable. The Company recognises gains/losses on fair value
change of financial assets measured as FVTPL and realised gains/losses on derecognition of financial asset
measured at fair value.
b. Financial instrument
A financial instrument is any contract that gives rise to a financial asset in one entity and a financial liability or an
equity instrument in another entity.
1. Initial recognition and measurement:
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provision of the financial instrument and are measured initially at fair value adjusted for transactions costs,
if any, except for those carried at fair value through profit or loss which are measured initially at fair value.
Subsequent measurement of financial assets and financial liabilities is described below.
2. Classification and subsequent measurement of financial assets:
For the purpose of subsequent measurement, financial assets are classified into the following categories
upon initial recognition:
a) Amortised cost
b) Financial assets at fair value through profit or loss (FVTPL)
c) Financial assets at fair value through other comprehensive income (FVOCI)
All financial assets except for those at FVTPL or equity instruments at FVOCI are subject to review for
impairment at least at each reporting date to identify whether there is any objective evidence that a
financial asset or a group of financial assets is impaired. Different criteria to determine impairment are
applied for each category of financial assets, which are described below.
Amortised cost:
A financial asset is measured at amortised cost using EIR if both of the below conditions are met:
a) the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and

CIN NO. U65999MH2017PTC294664
b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest ("SPPI") on the principal amount outstanding. The Company’s
loans and advances, security deposits, investment, cash and cash equivalents, trade and other
receivables fall in this category.
An impairment loss allowance for expected credit losses is recognised on financial assets carried at
amortised cost.
Modification of cash flows when the contractual cash flows of a financial asset are renegotiated or
otherwise modified and the renegotiation or modification does not result in derecognition of that financial
asset. The Company re-calculates the gross carrying amount of the financial asset and recognises a
modification gain or loss in the Statement of Profit or Loss. The gross carrying amount of the financial
asset is recalculated as the present value of the renegotiated or modified contractual cash flows that are
discounted at the financial asset’s original EIR. Any costs or fees incurred adjust the carrying amount of
the modified financial asset and are amortised over the remaining term of the modified financial asset.
Financial assets at FVTPL:
Financial assets at FVTPL include financial assets that either do not meet the criteria for amortised
cost classification or are equity instruments held for trading or that meet certain conditions and are
designated at FVTPL upon initial recognition. Assets in this category are measured at fair value with
gains or losses recognised in Statement of Profit or Loss. The fair values of financial assets in this
category are determined by reference to active market transactions or using a valuation technique
where no active market exists.
The Company’s investments into mutual funds are used for short-term cash flow management and have
been classified under this category.
Financial assets at FVOCI:
FVOCI financial assets comprise of equity instruments measured at fair value. Gains and losses are
recognised in Other Comprehensive Income ("OCI") and reported within the FVOCI reserve in Statement
of Equity, except for dividend income, which is recognised in Statement of Profit or Loss.
3. De-recognition of financial assets:
De-recognition of financial assets due to substantial modification of terms and conditions - The Company
de-recognises a financial asset, such as a loan to a customer, when the terms and conditions have been
re-negotiated to the extent that, substantially, it becomes a new loan, with the difference recognised as a de-
recognition gain or loss, to the extent that an impairment loss has not already been recorded.
De-recognition of financial assets other than due to substantial modification - Financial assets (or where
applicable, a part of financial asset or part of a group of similar financial assets) are de-recognised (i.e.
removed from the Company’s Balance Sheet) when the contractual rights to receive the cash flows from the
financial asset have expired, or when substantially all the risks and rewards are transferred. The Company
also de-recognises the financial asset if it has transferred the financial asset and the transfer qualifies for de-
recognition.
4. Classification and subsequent measurement of financial liabilities:
Financial liabilities are measured subsequently at amortised cost using the EIR method, except for financial
liabilities held for trading or designated at FVTPL, that are carried subsequently at fair value with gains or
losses recognised in Statement of Profit or Loss.
5. De-recognition of financial liabilities:
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the Statement of Profit or Loss.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 67
CIN NO. U65999MH2017PTC294664
6. Investment in subsidiaries:
Investment in subsidiaries is recognised at cost and are not adjusted to fair value at the end of each reporting
period. Cost of investment represents amount paid for acquisition of the said investment.
The Company assesses at the end of each reporting period, if there are any indications that the said investment
may be impaired. If so, the Company estimates the recoverable value/amount of the investment and provides
for impairment, if any i.e. the deficit in the recoverable value over cost.
c. Impairment of financial assets
1. Loan assets:
The Company follows a "three-stage" model for impairment based on changes in credit quality since initial
recognition as summarised below:
i) Stage 1 includes loan assets that have not had a significant increase in credit risk since initial recognition
or that have low credit risk at the reporting date.
ii) Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition
but that do not have objective evidence of impairment. Loans restructured as per RBI circular are
categorised under Stage 2.
iii) Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.
The ECL is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and
Stage 3 loan assets. ECL is the product of the probability of default, exposure at default and loss given
default, defined as follows:
Probability of default ("PD") - The PD represents the likelihood of a borrower defaulting on its financial
obligation, either over the next 12 months (12 months PD), or over the remaining lifetime (Lifetime PD)
of the obligation.
Loss given default ("LGD") - LGD represents the Company’s expectation of the extent of loss on a
defaulted exposure. LGD varies by type of counterparty, type and preference of claim and availability of
collateral or other credit support.
Exposure at Default ("EAD") - EAD is based on the amount of outstanding exposure as on the
assessment date on which ECL is computed including amount guaranteed by way of letter of credit.
Forward-looking economic information is included in determining the 12-month and lifetime PD, EAD
and LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an
ongoing basis.
2. Other financial assets:
In respect of its other financial assets, the Company assesses if the credit risk on those financial assets
has increased significantly since initial recognition. If the credit risk has not increased significantly since
initial recognition, the Company measures the impairment loss allowance at an amount equal to 12-month
expected credit losses, else at an amount equal to the lifetime expected credit losses.
When making this assessment, the Company uses the change in the risk of a default occurring over the
expected life of the financial asset. To make that assessment, the Company compares the risk of a default
occurring on the financial asset as at the Balance Sheet date with the risk of a default occurring on the
financial asset as at the date of initial recognition and considers reasonable and supportable information,
that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial
recognition. The Company assumes that the credit risk on a financial asset has not increased significantly
since initial recognition if the financial asset is determined to have low credit risk at the Balance Sheet date.
Write-offs:
The Company writes off financial assets basis the following parameters along with requisite internal approvals:
a. For business loans which are secured by hypothecation of current assets of and/or unsecured loans and remain
overdue for more than 180 days;
b. For business loans which are secured by property and/ or any other collateral and remain overdue for more than
455 days.
In exceptional circumstances, the write off can be prior to the above specified period but post requisite internal
approvals only.
CIN NO. U65999MH2017PTC294664
d. Property, plant and equipment ("PPE")

1. Recognition and initial measurement:
PPE are initially recognised at acquisition cost or construction cost, including any costs directly attributable
to bringing the assets to the location and condition necessary for it to be capable of operating in the manner
intended by the Company’s management. Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company beyond one year. Maintenance or servicing costs of PPE
are recognised in Statement of Profit and Loss as incurred.
If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on
disposal of an item of property, plant and equipment is recognised in Statement of Profit or Loss.
2. Subsequent expenditure:
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with
the expenditure will flow to the Company.
3. Depreciation:
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual
values over their estimated useful lives using the written down value method, and is generally recognised in
the Statement of Profit and Loss.
The Company follows estimated useful lives which are given under Part C of the Schedule II of the Companies
Act, 2013. The estimated useful lives of items of property, plant and equipment for the current and comparative
periods are as follows:
Asset category Estimated Useful Life

Leasehold Improvements 3 Years
Furniture and Fixtures 10 Years
Vehicles 5 Years
Office Equipments 5 Years
Computer 3 Years
Server 6 Years
Depreciation on additions to assets or on sale/disposal on assets is calculated pro-rata from the date of such
additions or upto the date of such sale/disposal as the case may be. All fixed assets individually costing
` 5,000 or less are fully depreciated in the year of installation/purchase.
The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.
PPE are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable.
4. De-recognition:
An item of PPE and any significant part initially recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of an item
of PPE is determined as the difference between the net disposal proceeds and the carrying amount of the
asset and is de-recognised in the Statement of Profit and Loss.
e. Capital work-in-progress
The cost of PPE under construction at the reporting date is disclosed as "Capital work-in-progress". The cost
comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing
the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at
the purchase price.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 69
CIN NO. U65999MH2017PTC294664
f. Intangible asset
Intangible assets including those acquired by the Company are initially measured at cost. Such intangible assets
are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands,
is recognised in Statement of Profit or Loss as incurred.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values over their
estimated useful lives using the written down value method, and is included in depreciation and amortisation in
Statement of Profit and Loss.

Software 5 Years
Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted
if appropriate.
g. Employee benefits
1. Short-term employee benefits:
Short-term employee benefits including salaries, profit sharing and bonuses payable within twelve months
after the end of the period in which the employees render the related services and non-monetary benefits for
current employees are estimated and measured on an undiscounted basis.
2. Post-employment benefit plans are classified into defined benefits plans and defined contribution
plans as under:
Defined contribution plan:
The Company's contribution to provident fund are considered as a defined contribution plan and are charged
as an expense as they fall due based on the amount of contribution required to be made and when the
services are rendered by the employees.
Defined benefit plans:
Gratuity:
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company's
net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in the current and prior periods.
The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for the Company, the recognised asset
is limited to the present value of economic benefits available in the form of any future refunds from the plan
or reductions in future contributions to the plan ("the asset ceiling"),if any. In order to calculate the present
value of economic benefits, consideration is given to any minimum funding requirements. The Company has
unfunded defined benefit plans as gratuity for all eligible employees.
Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses and the
effect of the asset ceiling (if any, excluding interest), are recognised in OCI. The Company determines the net
interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount
rate used to measure the defined benefit obligation at the beginning of the annual period to the then net
defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset)
during the period as a result of contributions and benefit payments. Net interest expense and other expenses
related to defined benefit plans are recognised in Statement of Profit or Loss. When the benefits of a plan are
changed or when a plan is curtailed, the resulting change in benefit that relates to past service ("past service
cost" or "past service gain") or the gain or loss on curtailment is recognised immediately in the Statement of
Profit or Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when
the settlement occurs.

CIN NO. U65999MH2017PTC294664
h. Provisions, contingent liabilities and contingent assets

Provisions:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past
events, and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation. When the effect of the time value
of money is material, the Company determines the level of provision by discounting the expected cash flows at a
pre- tax rate reflecting the current rates specific to the liability. The expense relating to any provision is presented
in the Statement of Profit or Loss net of any reimbursement.
Contingent liability:
A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Company or present
obligation that arises from past events where it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient
reliability are disclosed as contingent liability and not provided for.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future events not wholly within the control of the Company;
or
• Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. In those
cases, where the outflow of economic resources as a result of present obligations is considered improbable
or remote, no liability is recognized or disclosure is made.
Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the
obligation (such as from insurance) is recognised as a separate asset. However, this asset may not exceed
the amount of the related provision.
Contingent asset:
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company.
Contingent assets are not recognised. However, when inflow of economic benefits is probable, the related asset is
disclosed.
i. Leases:
The Company’s lease asset classes primarily consist of leases for buildings. The Company assesses whether a
contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Company assesses whether: i) the contract
involves the use of an identified asset, ii) the Company has substantially all of the economic benefits from use of
the asset through the period of the lease and, iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the
Company recognises the lease payments as an operating expense on a straight-line basis over the term of the
lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and
impairment losses.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 71
CIN NO. U65999MH2017PTC294664
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile of these leases.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have
been classified as financing cash flows.
The discounting rate used to compute right to use assets and lease liabilities is the incremental borrowing rate of
Company.
The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in
COVID 19 rent adjustment has been adjusted in "Rent, taxes and energy cost" in Statement of Profit & Loss in
accordance with amendment to Ind AS 116, Leases.
j. Income Tax
Tax expense recognised in Statement of Profit or Loss comprises the sum of deferred tax and current tax. It is
recognised in Statement of Profit and Loss, except when it relates to an item that is recognised in OCI or directly
in equity, in which case, tax is also recognised in OCI or directly in equity.
1. Current Tax:
Current tax is determined as the tax payable in respect of taxable income for the year, using tax rates enacted
or substantively enacted and as applicable at the reporting date, and any adjustments to tax payable in
respect of previous years.
2. Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable income.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply
to their respective period of realisation, provided those rates are enacted or substantively enacted by the end
of the reporting period. Deferred tax assets and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority.
A deferred tax liability is recognised for all taxable temporary differences. A deferred tax asset is recognised
for all deductible temporary differences to the extent that it is probable that future taxable profits will be
available against which the deductible temporary difference can be utilised. Deferred tax assets are reviewed
at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realized.
Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in
Statement of Profit or Loss, except where they relate to items that are recognised in OCI or directly in equity,
in which case the related deferred tax is also recognised in OCI or equity, respectively.
k. Borrowing Cost
Borrowing costs are interest and other costs incurred in connection with the borrowings of funds. Borrowing costs
directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time
to get ready for their intended use are capitalised as part of the cost of the asset. Other borrowings costs are
recognised as an expense in the Statement of Profit and Loss on an accrual basis using the EIR method.
l. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short term, highly
liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value.

CIN NO. U65999MH2017PTC294664
m. Segment reporting- Identification of segments

An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are regularly reviewed by the Management. The Company
has only one reportable business segment, i.e. lending to borrowers, which have similar nature of products and
services, type/class of customers and the nature of the regulatory environment (which is financing).
n. Earnings per share
The Company reports basic and diluted earnings per equity share in accordance with Ind AS 33 (Earnings per
share). Basic earnings per equity share is computed by dividing net profit / loss after tax attributable to the equity
share holders for the year by the weighted average number of equity shares outstanding during the year. Diluted
earnings per equity share is computed and disclosed by dividing the net profit/ loss after tax attributable to the
equity share holders for the year after giving impact of dilutive potential equity shares for the year by the weighted
average number of equity shares and dilutive potential equity shares outstanding during the year, except where
the results are anti-dilutive.
o. Cash flow statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions
of a non–cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows
from regular revenue generating, financing and investing activities of the Company are segregated. Cash flows in
foreign currencies are accounted at the actual rates of exchange prevailing at the dates of the transactions.
p. Fair value measurement
The Company measures financial instruments, such as, derivatives at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable
is unobservable.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 73
CIN NO. U65999MH2017PTC294664
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting
period.
q. Share based payments - Employee Stock Option Scheme ("ESOP")
The fair value of options granted under Employee Stock Option Plan is recognised as an employee benefits
expense with a corresponding increase in equity. The total amount to be expensed is determined by reference
to the fair value of the options. The total expense is recognised over the vesting period, which is the period over
which all of the specified vesting conditions are to be satisfied. At the end of each period, the Company revises
its estimates of the number of options that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if any, in the Statement of Profit or Loss,
with a corresponding adjustment to equity. Upon exercise of share options, the proceeds received are allocated to
share capital up to the par value of the shares issued with any excess being recorded as share premium.
ESOP's granted to employees of the wholly owned subsidiary are accounted as per Ind AS directives.
r. Commitments
Commitments are future liabilities for contractual obligations as of reporting date, classified and disclosed as
follows:
i. Estimated amount of contracts remaining to be executed on capital account and not provided for;
ii. Uncalled liability on shares and other investments partly paid;
iii. Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the
opinion of management.

CIN NO. U65999MH2017PTC294664
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 4: Cash & Cash equivalents
Balances with Banks :
i. In Current Accounts 1,00,945 39,611
ii. In Deposits (original maturity less than 3 months) 2,00,100 -
TOTAL 3,01,045 39,611
Note 5: Bank Balances other than cash and cash equivalents

Fixed deposit with Banks (original maturity more than 3 months) 1,05,610 1,52,947
TOTAL 1,05,610 1,52,947
Note 6: Other Receivables

Receivables considered good - Unsecured 3,832 7,336
(Includes receivables from wholly owned subsidiary - APAC Housing
Finance Private Limited) (Refer Note 38)
TOTAL 3,832 7,336

Note 7: Loans
At amortised cost
a. Based on nature:
Loan assets - term loan #REF!
Loans 1,01,36,305 53,16,289
TOTAL 1,01,36,305 53,16,289
Accrued Interest 1,46,566 64,634
Unamortised fees and expenses -26,819 -8,558
TOTAL (GROSS) 1,02,56,052 53,72,365
Less: Impairment loss allowance 96,365 1,17,649
TOTAL (NET) 1,01,59,687 52,54,716
b. Based on region:
Loans in India
- Public sector - -
- Other 1,02,56,052 53,72,365
Loans outside India - -
TOTAL (GROSS) 1,02,56,052 53,72,365
TOTAL (NET) 1,01,59,687 52,54,716
c. Based on security:
Secured (Against real estate, central government garuntee, etc.) 1,01,31,553 52,78,582
Unsecured 4,752 37,707
TOTAL (GROSS) 1,02,56,052 53,72,365
TOTAL (NET) 1,01,59,687 52,54,716
Note:
a. Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income for
the Company. The carrying value may be affected by changes in credit risk of the counterparties.
b. An analysis of change in the gross carrying amount and the corresponding impairment loss allowance, at un-
discounted value, in relation to lending are as follows:
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 75
APAC FINANCIAL
CIN NO. U65999MH2017PTC294664
ANNUAL
SERVICES
Loans:
` in ‘000
REPORT
As at March 31, 2023 As at March 31, 2022
Particulars
Stage 1 Stage 2# Stage 3 Total Stage 1 Stage 2# Stage 3 Total
2022-2023
Gross carrying amount - Opening Balance 49,10,315 4,09,511 61,097 53,80,923 25,08,910 495,151 15,853 30,19,914
New asset originated / purchased / further increase in 62,83,435 - - 62,83,435 36,80,156 15,457 55 36,95,668
existing asset / interest capitalized
Assets derecognised or repaid (excluding write offs) -12,04,400 -54,874 -14,377 -1,273,651 -12,03,045 -55,382 -1,380 -12,59,807
Amount written off -87 - -1,89,680 -189,767 - - -1,12,609 -1,12,609
Transfers to/(from) Stage 1 -46,975 30,526 16,449 - -1,11,775 1,01,073 10,702 -
Transfers to/(from) Stage 2 58,687 -3,00,828 2,42,141 - 8,622 -63,692 55,070 -
Transfers to/(from) Stage 3 12,421 5,763 -18,184 - -12,348 -81,058 93,406 -
Accrued Interest - Opening -62,002 -2,632 - -64,634 -22,207 -4,670 - -26,877
Accrued Interest - Closing 1,44,256 2,310 - 1,46,566 62,002 2,632 - 64,634
Grand Total* 1,00,95,650 89,776 97,446 1,02,82,872 49,10,315 4,09,511 61,097 53,80,923
*Excluding unamortised fees and expenses.
# Stage 2 includes restructured assets.
Reconciliation of impairment loss allowance is given below: ` in ‘000
Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Impairment Loss allowance - Opening Balance 24,471 83,511 9,667 1,17,649 15,192 80,607 8,321 1,04,120
Additions during the year 44,478 - 16,159 60,637 9,279 2,904 12,244 24,427
Closed cases / Write off / de-recognised / transfers - -77,063 -4,858 -81,921 - - -10,898 -10,898
Impairment Loss allowance - Closing Balance 68,949 6,448 20,968 96,365 24,471 83,511 9,667 1,17,649
76
CIN NO. U65999MH2017PTC294664
Note 8: Investment ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
a. At fair value through P&L
In Mutual Funds 1,37,300 1,61,291
Add: Fair value gains/(losses) 631 1,762
TOTAL 1,37,931 1,63,053
b. At amortised cost
In Corporate Deposit 2,00,000 -
Add: Accrued interest on deposits 4,704 -
TOTAL 2,04,704 -
c. Others (At cost)
Equity shares of Subsidiary Company - Unquoted 6,50,000 6,50,000
(APAC Housing Finance Private Limited)
ESOP to employees of Subsidiary Company 549 429
TOTAL 6,50,549 6,50,429
TOTAL (GROSS) (a+b+c) 9,93,184 8,13,482
Less: Impairment Loss allowance - -
TOTAL (NET) 9,93,184 8,13,482
Out of above
In India 9,93,184 8,13,482
Outside India - -
Note 8.1: As per Para 10 of Ind AS 27, the Company has opted to value the investments in Subsidiary at cost.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 9: Other financial asset
Premises deposits 15,388 8,789
Other deposits 210 32
Fixed deposit with Banks (More than 12 months original maturity) 1,06,179 1,01,361
TOTAL 1,21,777 1,10,182
Note 10: Tax assets (net)

Current tax assets* 3,873 6,566
TOTAL 3,873 6,566
*Includes advance tax and tax deducted at source.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 77
CIN NO. U65999MH2017PTC294664
Note 11 : Deferred tax asset / (liability) (net) ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
Deferred tax assets

Disallowances under section 43B of the Income Tax Act, 1961 2,901 1,370
Impairment of financial instruments 24,735 32,752
Ind AS adjustment (effective interest rate)
a. Unamortised processing fee received (net) 6,750 2,154
b. Amortisation of ROU (Depreciation) 8,380 7,657
Deferred tax liabilities

Difference between books and tax written down value of fixed assets -1,211 -819
a. Amortisation of processing fee paid on borrowing -14,216 -3,558
b. Lease liability (Rent paid & interest on lease liability) -8,817 -7,987
Deferred Tax Asset (net) 18,521 31,569
The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax
expense:
As at March 31, 2023: ` in ‘000
Recognised in
Opening Statement of profit Other Closing
Particulars
balances or loss (Expense) / comprehensive balance
Income income
Impairment of financial instruments 32,752 -8,017 - 24,735
Ind AS adjustment (effective interest rate on fee -1,734 -6,169 - -7,903
income and expense)
Disallowances under section 43B of the Income Tax 1,370 1,531 - 2,901
Act, 1961
Difference between books and tax written down -819 -392 - -1,211
value of fixed assets
OCI: Re-measurements of the defined benefit plans* - -590 590 -
Deferred Tax Asset (net) 31,569 -13,637 590 18,521
As at March 31, 2022: ` in ‘000
Recognised in
Opening Statement of profit Other Closing
Particulars
balances or loss (Expense) / comprehensive balance
Income income
Impairment of financial instruments 21,722 11,030 - 32,752
Ind AS adjustment (effective interest rate on fee 554 -2,288 - -1,734
income and expense)
Disallowances under section 43B of the Income Tax 1,791 -421 - 1,370
Act, 1961
Preliminary expense 24 -24 - -
Difference between books and tax written down 90 -909 - -819
value of fixed assets
OCI: Re-measurements of the defined benefit plans* -307 728 -421 -
Deferred Tax Asset (net) 23,874 8,116 -421 31,569
*Includes DTA adjustments for OCI.

CIN NO. U65999MH2017PTC294664
Note 12: Property, Plant and Equipment (PPE), Right of Use and Capital Work-in-progress ` in ‘000
Lease
Furniture
Office Leasehold premises -
Particulars & Computer Total
Equipment improvements Right of use
Fittings
Asset
Cost or deemed cost (gross carrying amount)
As at March 31, 2021 1,461 11,077 1,542 272 44,151 58,503
Additions / Transfer-in 1,502 6,712 2,233 - 33,156 43,603
Disposals / Transfer-out - 250 - - 22,754 23,004
As at March 31, 2022 2,963 17,539 3,775 272 54,553 79,102
Disposals / Transfer-out - 571 23 151 21,715 22,460
As at March 31, 2023 5,645 24,719 6,458 121 58,975 95,918
Accumulated depreciation
As at March 31, 2021 154 4,124 302 110 23,788 28,478
Depreciation for the year 193 4,165 406 86 21,502 26,352
On Disposals - 228 - - 21,160 21,388
As at March 31, 2022 347 8,061 708 196 24,130 33,442
Depreciation for the year 362 5,184 806 50 23,210 29,612
On Disposals - 515 11 144 21,664 22,334
As at March 31, 2023 709 12,730 1,503 102 25,676 40,720
Carrying amount (net)
As at March 31, 2022 2,616 9,478 3,067 76 30,423 45,660
As at March 31, 2023 4,936 11,989 4,955 19 33,299 55,198
Note 13 :Other Intangible assets ` in ‘000

Pariculars Software
As at March 31, 2021 6,547
Additions / Transfer-in 9,333
Disposals / Transfer-out -
As at March 31, 2022 15,880
Disposals / Transfer-out 714
As at March 31, 2023 19,639
As at March 31, 2021 1,618
Depreciation for the year 2,640
On Disposals -
As at March 31, 2022 4,258
On Disposals 375
As at March 31, 2023 9,483
As at March 31, 2022 11,622
As at March 31, 2023 10,156
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 79
CIN NO. U65999MH2017PTC294664
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 14: Non-financial asset
Prepaid rent 1,047 1,195
Prepaid expenses 7,895 7,543
GST input tax credit 17,382 5,517
Advance to vendors 2,364 1,702
Advance to employees 2,288 3,784
TOTAL 30,976 19,741
Note 15: Payables

Trade payables:
a. Total outstanding dues of micro and small enterprises (Refer Note 36) 3,520 216
Less than 1 year 3,520 216
1 to 2 year - -
2 to 3 year - -
More than 3 years - -
b. Total outstanding dues of creditors other than micro and small 14,161 8,002
enterprises
Less than 1 year 14,161 6,705
1 to 2 year - 1,297
2 to 3 year - -
TOTAL (a+b) 17,681 8,218
Note 16: Borrowing (other than debt securities)

At amortised cost:
a. Term loans (secured)
i. from banks 55,04,819 13,53,683
ii. from financial institution 12,78,201 3,43,333
Accrued interest 19,309 4,788
Unamortised processing fee -56,485 -14,137
b. Repayable on demand (secured)
Accrued interest 117 -
TOTAL (a+b) 67,45,961 16,87,667
Borrowings in India 67,45,961 16,87,667
Borrowings outside India - -
TOTAL 67,45,961 16,87,667
Note 16.1: Borrowings from banks and financial institution are secured by specific charge on identified receivables. The
interest rates on term loan range between 8.03% and 11.10%. (As at March 31, 2022: Between 6.85% and 10.50%).
Note 16.2: The Company has not defaulted in payment of any dues on borrowings in FY 2022-23.
Note 16.3: Cash credit overdraft from IDFC First Bank Limited is available for withdrawal (` 15 Cr.). Current outstanding
balance is NIL.
Note 16.4: Cash credit overdraft from ICICI Bank Limited is available for withdrawal (` 5 Cr.). Current outstanding
balance is NIL.
Note 16.5: Working Capital Demand Loan from IndusInd Bank Limited is available for withdrawal (` 10 Cr.). Current
outstanding balance is NIL.
Note 16.6: Cash credit overdraft from Yes Bank Limited is available for withdrawal (` 5 Cr.). Current outstanding balance
is NIL.

CIN NO. U65999MH2017PTC294664
Note 16.7: Cash credit overdraft from Kotak Mahindra Bank Limited is available for withdrawal (` 2 Cr.). Current
Note 16.8: The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was taken.
Note 16.9: The Company has not breached any borrowing covenants during the FY 2022-23.
Note 16.10: The book debt statements submitted by the Company to banks or financial institutions are in agreement
with the books of accounts.
Note 16.11: Details of terms of redemption/repayment in respect of borrowings:
i. from Banks: ` in ‘000
Earliest As at As at
Particulars Repayment Terms Tenor installment March 31, March 31,
date* 2023 2022
IDFC First Bank Limited Repayable in 48 monthly installments. 48 Months 30 April 2023 1,19,048 1,90,476
IDFC First Bank Limited Repayable in 48 monthly installments. 48 Months 30 April 2023 75,556 1,00,000
IDFC First Bank Limited Repayable in 48 monthly installments. 48 Months 30 April 2023 3,66,667 -
Kotak Mahindra Bank Limited Repayable in 30 monthly installments. 30 Months 01 April 2023 2,06,603 4,13,207
Kotak Mahindra Bank Limited Repayable in 12 quarterly installments. 36 months 01 April 2023 1,87,500 -
IndusInd Bank Limited Repayable in 10 quarterly installments. 36 Months 30 April 2023 1,20,000 1,50,000
IndusInd Bank Limited Repayable in 10 quarterly installments 36 months 30 April 2023 2,25,000 -
after 6 months of moratorium.
ICICI Bank Limited Repayable in 10 quarterly installments. 36 Months 26 April 2023 3,95,000 1,00,000
Federal Bank Limited Repayable in 48 monthly installments. 48 Months 26 April 2023 1,97,860 -
Equitas Small Finance Bank Repayable in 36 monthly installments. 36 months 05 April 2023 1,24,800 -
Limited
Capital Small Finance Bank Repayable in 48 equated monthly 48 months 30 April 2023 1,82,714 -
Limited installments.
Yes Bank Limited Repayable in 33 equated installments 36 months 01 April 2023 4,36,364 -
CSB Bank Limited Repayable in 16 quarterly installments 54 months 30 April 2023 3,00,000 -
DCB Bank Limited Repayable in 33 monthly installments 36 months 30 April 2023 2,50,000 -
Bandhan Bank Limited Repayable in 15 quarterly installments 48 months 01 April 2023 6,00,000 -
HDFC Bank Limited Repayable in 48 monthly installments. 48 months 01 April 2023 2,50,000 -
*Installment may include principal and/or interest as may be due for payment.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 81
CIN NO. U65999MH2017PTC294664
ii. from Financial Institution:
date* 2023 2022
Tata Capital Financial Repayable in 48 monthly installments. 48 Months 15 April 2023 1,04,242 1,43,333
Services Limited
Tata Capital Financial Repayable in 48 monthly installments. 48 Months 10 April 2023 2,23,959 -
Services Limited
STCI Finance Limited Repayable in 48 monthly installments. 48 Months 30 April 2023 2,50,000 -
Small Industrial Development Repayable in 9 monthly installments. 11 Months NA - 2,00,000
Bank of India
Small Industrial Development Repayable in 10 quarterly installments 36 Months 10 April 2023 4,00,000 -
Bank of India after 6 months of moratorium.
Small Industrial Development Repayable in 10 quarterly installments 36 Months 10 April 2023 3,00,000 -
Bank of India after 6 months of moratorium.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 17: Lease liabilities
Lease liabilities 35,031 31,731
TOTAL 35,031 31,731
Maturities of lease liabilities as at year end:

Upto 1 year 1,967 6,425
1 to 3 years 26,301 23,188
3 to 5 years 6,763 2,118
TOTAL 35,031 31,731
Note 18: Other financial liabilities

Book overdrafts - 63,075
Other payables 2,059 1,746
Salary and reimbursement payables 584 3,382
TOTAL 2,644 68,203
Note 19 : Provision
Provision for employee benefits:
a. Bonus 56,994 37,075
b. Gratuity (Refer Note 39) 11,526 5,472
Other provisions 5,353 3,908
Impairment loss allowance on undisbursed loan commitment 567 407
TOTAL 74,440 46,862
Note 20: Other non-financial liabilities

Advance from customers 30,274 27,868
Statutory liabilities 29,881 16,031
TOTAL 60,155 43,899

CIN NO. U65999MH2017PTC294664
` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 21: Equity share capital
Authorised
30,60,00,000 (As at March 31, 2022: 30,60,00,000) Equity shares of ` 10/- 30,60,000 30,60,000
each.
1,75,00,000 (As at March 31, 2022: 1,75,00,000) 0.01% Compulsorily 1,75,000 1,75,000
convertible preference shares of ` 10/- each.
Issued, Subscribed and Fully Paid-up
30,46,55,920 (P.Y. 30,43,50,000) Equity Shares of ` 10/- each 30,46,559 30,43,500
TOTAL 30,46,559 30,43,500
A. Reconciliation of no. of shares and amount outstanding: ` in ‘000
Particulars No. of Amount No. of Amount
Shares Shares
Equity shares at the beginning of the period 30,43,50,000 30,43,500 30,43,50,000 25,93,500
Add: Shares issued during the period (ESOP exercised) 3,05,920 3,059 - -
Add: Shares converted into fully paid shares - - - 4,50,000
Equity shares at the end of the period 30,46,55,920 30,46,559 30,43,50,000 30,43,500
Rights, preferences and restrictions attached to shares:
The Company has one class of equity shares having a par value of ` 10 per share. Each shareholder is eligible for
one vote per share held. The dividend as and when proposed by the Board of Directors is subject to the approval of
the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation,
the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
B. Promoters’ shareholding:
Particulars No. of shares % of total shares % Change
As at March 31, 2023
Gunit Chadha 15,96,16,665 52.39% -0.06%
Gunit Chadha 15,96,16,665 52.45% 8.61%
C. Shareholders holding more than 5% of the equity shares:
Name of Shareholder
No. of Shares held % of Holding No. of Shares held % of Holding
Gunit Chadha 15,96,16,665 52.39% 15,96,16,665 52.45%
Plenty Private Equity Fund I Limited 11,12,17,750 36.51% 11,12,17,750 36.54%
TOTAL 27,08,34,415 88.90% 27,08,34,415 88.99%
` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 22: Other equity
Retained earnings 201,676 33,296
Other comprehensive income 451 2,202
Securities premium reserve 14,21,249 14,11,900
Statutory reserve 82,910 40,815
Employee stock options reserve 1,15,103 75,139
TOTAL 18,21,390 15,63,352
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 83
CIN NO. U65999MH2017PTC294664
i) Statutory reserve:
As per Section 45-IC of the Reserve Bank of India Act, 1934, the Company is required to create a reserve fund of 20%
of the net profit after tax every year.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 40,815 30,523
Transferred from surplus in the Statement of Profit and Loss 42,095 10,292
Closing balance 82,910 40,815
ii) Security premium reserve:
Securities premium is used to record the premium received on the issuance of shares. It can be utilised for limited
purposes in accordance with the provisions of the Companies Act, 2013.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 14,11,900 14,11,900
Preimum received on exercise of employee stock options 9,349 -
Closing balance 14,21,249 14,11,900
iii) Employee stock options:
Employee stock options are created as per the requirements of Ind AS 102 - Share Based Payments. The Company
operates an Employee Stock Option Scheme for its employees in the Group.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Share based payment expense 43,140 27,748
Share based payment expense for employees of group company 177 -1,496
Reserve utilised on exercise of employee stock options -3,353 -
Closing balance 1,15,103 75,139
iv) Retained earnings:
Retained earnings are the accumulated profits of the Company carried forward from earlier years.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 33,296 -7,870
Net profit for the year 2,10,476 51,458
Transfer to statutory reserve -42,095 -10,292
v) Other comprehensive income:
Other comprehensive income comprise of actuarial gain or loss on remeasurement of the net defined benefit liabilities
of the Company.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 2,202 985
Remeasurements of defined benefit asset/ (liability) -1,751 1,217
Closing balance 451 2,202

CIN NO. U65999MH2017PTC294664
` in ‘000
For the year For the year
Particulars
2022-23 2021-22
Note 23: Interest Income
(On financial assets measured at amortised cost)
Interest on loan portfolio 15,30,679 6,59,303
Interest on fixed deposits 13,612 24,561
Interest on Investments 5,227 3,722
TOTAL 15,49,518 6,87,586
Note 23.1: Loan origination income included in "Interest on loan portfolio" is

net of direct incremental cost associated with the origination of the underlying
loans. For the year ended March 31, 2023, ` 1.9 Cr. was adjusted. (For year
ended March 31, 2022: ` 0.8 Cr.).
Note 24: Fee Income

Fees and other charges from customers 77,918 33,101
TOTAL 77,918 33,101
Note 25: Net gain/(loss) on fair value changes

i. Net gain/(loss) on financial instruments at amortised cost
In NCD - 121
ii. Net gain/(loss) on financial instruments at fair value through profit and loss
(FVTPL)
a. On trading portfolio
In Mutual Funds 4,705 8,196
TOTAL 4,705 8,317
Fair value changes
Realised 4,074 6,555
Unrealised - Mark to market gain 631 1,762
TOTAL 4,705 8,317
Note 26: Other Income

Other non-operating income 24,935 24,400
Notional interest income on security deposit 1,054 511
TOTAL 25,989 24,911
Note 27: Finance cost

(On financial liabilities measured at amortised cost)
Interest on borrowings from bank & financial institution 3,61,736 64,408
Interest on lease liability 2,702 2,037
Interest on late payment of statutory liabilities 117 92
Other finance cost 108 -
TOTAL 3,64,663 66,537
Note 28: Impairment and write off on financial instruments

Impairment loss allowance on loans -21,124 13,866
Loans written off (net) 1,64,799 85,313
TOTAL 1,43,675 99,179
Note 29: Employee benefit expense

Salaries, bonus and incentives 5,67,742 3,57,956
Contribution to provident and other funds 55,704 38,828
Share based payments to employee (Refer Note 42) 43,140 27,748
Reimbursements & staff welfare expenses 17,670 9,325
Gratuity (Refer Note 39) 3,712 2,641
Leave salary - -2,579
TOTAL 6,87,968 4,33,919
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 85
CIN NO. U65999MH2017PTC294664
` in ‘000
Particulars
2022-23 2021-22
Note 30: Depreciation and amortisation
Depreciation on right of use asset 23,210 21,502
Depreciation on tangible assets 6,403 4,850
Amortisation on intangible assets 5,600 2,640
TOTAL 35,213 28,992
Note 31: Other expenses

Legal and professional charges 37,201 23,430
Travelling & conveyance costs 21,633 10,313
GST reversal expenses 18,392 8,574
Rent, taxes and energy costs 14,718 4,672
IT related costs 12,068 4,505
CGTMSE fee expenses 6,884 5,112
Printing and stationery 5,380 3,377
Communication costs 5,013 2,381
Housekeeping services 2,509 1,768
Corporate social responsibility (Refer Note 31.2) 1,613 400
Director’s remuneration 1,320 180
Auditors' remuneration (Refer Note 31.1) 1,276 939
Repairs and maintenance 933 807
Shared expenses (Refer Note 38) 1,065 885
ROC filing fees and Stamp duty 716 362
Membership fees 504 629
Loss on sale of assets/Transfer of assets (net) 327 1
Advertisement and publicity 153 49
Miscellaneous expenses 4,535 2,759
TOTAL 1,36,240 71,143
Note 31.1: Auditors’ remuneration

For statutory audit 1,026 701
For taxation audit 150 113
For other services (Certifications, etc.) 100 125
TOTAL 1,276 939
Note 31.2: Corporate social responsibility

Amount required to be spent during the year (i) 1,601 389
Amount of expenditure incurred (ii) 1,613 400
Shortfall at the end of the year - -
Total of previous years shortfall - -
Reason for shortfall NA NA
Nature of CSR activities:
a. Contribution was made to Cuddles Foundation in order to help children
with cancer receive nourishing meals, supplements, counseling and career
training.
b. In order to upskill and enhance the young talent pool, the Government of
India introduced NAPS ("National Apprenticeship Promotion Scheme") in
August 2016. The Company has hired apprentices and paid stipends under
the NAPS during FY 2022-23.
Details of related party transactions - In relation to CSR expenditure as per Ind AS. - -
Where a provision is made with respect to a liability incurred by entering into a - -
contractual obligation, the movements in the provision during the year
Higher of i. or ii. 1,613 400

CIN NO. U65999MH2017PTC294664
Note 32: Tax Expense ` in ‘000

Particulars
2022-23 2021-22
Income tax 64,254 13,169
Changes in estimates related to prior years 2,005 -2,330
Deferred tax (Refer Note 11) 13,637 -8,152
TOTAL 79,896 2,687
Profit/ (Loss) before tax 2,90,371 54,145
Tax at applicable tax rate @ 25.17% 73,086 13,628
Tax on non-deductible expenditure 650 284
Utilisation of previously unrecognised tax 2,005 -2,330
Tax on Others 4,155 -8,895
Tax expense 79,896 2,687
Effective tax rate 27.52% 4.96%
Note 33: Maturity analysis of assets and liabilities

The table below shows the maturity analysis of assets and liabilities according to when they are expected to be recovered
or settled.
` in ‘000
Particulars Non- Non-
Current Total Current Total
current current
Financial assets
Cash & Cash Equivalents 3,01,045 - 3,01,045 39,611 - 39,611
Bank Balance other than (a) above 1,05,610 - 1,05,610 1,52,947 - 1,52,947
Receivables 3,832 - 3,832 7,336 - 7,336
Loans 12,91,910 88,67,777 1,01,59,687 7,72,659 44,82,057 52,54,716
Investments 3,42,635 6,50,549 9,93,184 1,63,052 6,50,429 8,13,481
Other Financial assets 1,12,115 9,662 1,21,777 1,01,361 8,821 1,10,182
Non financial assets
Tax assets - 3,873 3,873 - 6,566 6,566
Deferred tax Assets - 18,523 18,523 - 31,569 31,569
Property, Plant and Equipment - 21,899 21,899 - 15,237 15,237
Right-of-use asset 1,697 31,602 33,299 6,201 24,222 30,423
Other Intangible assets - 10,156 10,156 - 11,622 11,622
Other non-financial assets 29,974 1,002 30,976 19,135 606 19,741
Total Asset 21,88,818 96,15,043 1,18,03,861 12,62,302 52,31,129 64,93,430
Liabilities
Financial Liabilities
Payables
i. Total outstanding dues of micro 3,520 - 3,520 216 - 216
enterprises and small enterprises
ii. Total outstanding dues of creditors 14,161 - 14,161 8,002 - 8,002
other than micro enterprises and
small enterprises
Borrowings (Other than Debt 22,27,506 45,18,455 67,45,961 6,72,620 10,15,047 16,87,667
Securities)
Lease Liability 1,968 33,064 35,032 6,426 25,305 31,731
Other financial liabilities 2,644 - 2,644 68,203 - 68,203
Non financial Liabilities

Provisions 64,391 10,049 74,440 41,276 5,586 46,862
Other non-financial liabilities 60,155 - 60,155 43,899 - 43,899
Total Liabilities 23,74,345 45,61,568 69,35,913 8,40,642 10,45,938 18,86,580
Note: Classification of financial asset and liabilities are based on Management estimates and assumptions and auditors
have relied on it.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 87
CIN NO. U65999MH2017PTC294664
Note 34: Contingent Liability & Commitments ` in '000

As at March 31, As at March 31,
Particulars
2023 2022
a. Contingent Liability 810 -
b. Capital Commitments
Undrawn committed sanctions to borrowers 95,022 81,403
Total 95,833 81,403
Note 35: Earning per equity share

Basic and diluted earnings per share is calculated by dividing the net profit or loss for the year attributable to the equity
shareholders, by the weighted average number of equity shares outstanding as at the end of the year.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Profit for the year (` in '000) 2,10,476 51,458
Weighted average number of equity shares outstanding during the year for
calculation of basic EPS
30,43,65,086 27,31,58,219
Face value per share (In `) 10.00 10.00
Basic earning per share (In `) 0.69 0.19
Diluted earning per share (In `) 0.69 0.19
Note 36: Details of dues to micro, small and medium enterprises

In accordance to the Micro, Small and Medium Enterprises Development Act, 2006, (“MSMED”), disclosure in respect
of amounts payable to Micro, Small and Medium enterprises as on 31st March 2023 has been made in the Financial
Statements.
The Company has sent emails to suppliers to confirm whether they are covered under Micro, Small and Medium
Enterprises Development Act 2006 (MSMED Act, 2006), as well as whether they have filed required return with
prescribed authorities. Based on the confirmations received, the outstanding amounts payable to vendors covered
under Micro, Small and Medium Enterprises Development Act 2006 are given below.
The company has also made a provision of interest at 18% for amounts payable beyond 45 days.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
The principal amount and the interest due thereon (to be shown separately)
remaining unpaid to any supplier as at the end of each accounting period
-Principal 3,520 216
-Interest 108 -
The amount of interest paid by the buyer in terms of section 16 of the Micro, - -
Small and Medium Enterprises Development Act, 2006, along with the amount
of the payment made to the supplier beyond the appointed day during each
accounting year;
The amount of interest due and payable for the period of delay in making - -
payment (which have been paid but beyond the appointed day during the year)
but without adding the interest specified under the Micro, Small and Medium
Enterprises Development Act, 2006;
The amount of interest accrued and remaining unpaid at the end of each - -
accounting year; and
The amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues above are actually
paid to the small enterprise, for the purpose of disallowance of a deductible
expenditure under section 23 of the Micro, Small and Medium Enterprises
Development Act, 2006.
Total 3,628 216

CIN NO. U65999MH2017PTC294664
Note 37: Segment Information

An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses relating to transactions with other components of
the same entity), whose operating results are regularly reviewed by the Company’s Chief Operating Decision Maker
(“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for
which discrete financial information is available. All operating segments’ operating results are reviewed regularly by the
Company’s Managing Director (“MD”) to make decisions about resources to be allocated to the segments and assesses
their performance. MD is considered to be the CODM within the purview of Ind AS 108 - Operating Segments.
The Company is primarily engaged in the business of lending which has similar nature of products and services, type/
class of customers and the regulatory environment. The CODM reviews the operating results of the Company on a
holistic basis; therefore there is only one reportable segment to be disclosed as per Ind AS 108 - Operating Segments.
The Company does not operate in any seperate geographical segment other than India and as such has only one
reportable segment under Ind AS 108 - Operating Segments.
Note 38: Related Party Transaction
S. No. Nature of Relationship Name of Related Party

A Subsidiary Company APAC Housing Finance Private Limited
Mr. Gunit Chadha, Managing Director
B Key Management Personnel ("KMP")
Mr. Akhil Parikh, Company Secretary (From September 5, 2022)
Mr. Anand Asawa, Company Secretary (Till September 2, 2022)
Mr. Sanjay Pushpendra Maliah, Director
Ms. Nithya Easwaran, Director
C Non Executive Directors
Mr. Sanjay Arvind Athalye, Independent Director
Mr. Neeraj Bhushan Bhai, Independent Director
D Relatives of KMP Ms. Mehak Chadha
` in ‘000
As at As at
S. No. Particulars
March 31, 2023 March 31, 2022
Nature of transactions:
a. Loan given/(Repaid) (Net)
APAC Housing Finance Services Private Limited - -60,500
` in ‘000
As at As at
S. No. Particulars
March 31, 2023 March 31, 2022
a. Remuneration to KMP (including perqusites and retirement benefits) 96,806 43,001
b. Remuneration to Non Executive Directors (Sitting fees to Independent 1,320 180
Directors)
c. Interest income:
APAC Housing Finance Private Limited - 1,538
d. Shared income:
APAC Housing Finance Private Limited 3,276 3,225
e. Shared expenses:
APAC Housing Finance Private Limited 1,065 885
f. Amount payable:
APAC Housing Finance Private Limited 666 -
Remuneration to Non Executive Directors (Sitting fees to Independent 270 -
Directors)
g. Amount receivable:
APAC Housing Finance Private Limited 2,427 1,432
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 89
CIN NO. U65999MH2017PTC294664
Note:
1. The remuneration to the key managerial personnel does not include the provisions made for gratuity benefits, as
they are determined basis actuarial valuation for the Company as a whole.
2. Related party relationship is identified by the Company and relied upon by the auditors.
3. The transactions with related parties are disclosed only till the relationship exists.
4. As per the Related Party Transactions Policy, all transactions are in the ordinary course of business and at arms
length.
5. Intra-group exposure:
` in ‘000
As at As at
S. No. Particulars
March 31, 2023 March 31, 2022
i. Total amount of intra-group exposures - -
ii. Total amount of top 20 intra-group exposures - -
iii. intra-group exposures to total exposure of the Company on - -
borrowers/customers (%)
Note 39: Employee Benefits

39.1 Defined contribution plan:
The Company makes a contribution, determined as a specified percentage of employees salaries, towards Employees’
Provident Fund (“PF”) and Employees’ State Insurance Scheme (“ESIS”) which are defined contribution plans, for
qualifying employees. The Company has no obligation other than to make specified contributions. The contributiuons
are charged to Statement of Profit & Loss as and when they accrue. The amount recognised towards PF contributions
for the year 2022-23 is ` 5.21 Cr. (for the year 2021-22 is ` 3.62 Cr.) and towards contribution to ESIS for the year 2022-
23 is ` 0.36 Cr. (for the year 2021-22 is ` 0.26 Cr.).
39.2 Defined benefit plan - Gratuity:
The Company operates a defined benefit plan covering eligible employees. The plan is governed under the Payment of
Gratuity Act, 1972. As per the Act, an employee who has completed five years of continued service is entitled to specific
benefit. The level of benefit depends on the member’s length of service and salary at retirement age/ resignation date.
The liability under the Payment of Gratuity Act, 1972 is determined on the basis of an actuarial valuation made at the
end of each financial year using the Projected Unit Credit Method.
Valuation is performed on a certain basic set of predetermined assumptions and other regulatory frameworks which
may vary over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as
follows:
Interest rate risk: The plan exposes the Company to the risk of downward movement in interest rates. A downturn
in interest rates will result in an increase in the ultimate cost of providing the above benefit and will in turn result in an
increase in the value of the liability (as shown in financial statements).
Liquidity risk: This is the risk that the Company will not able to meet its short-term gratuity payouts. This may arise
due to non-availabilty of cash/cash equivalents to meet the liabilities or the Company’s unability to dispose of its illiquid
assets in time or exit of employees with higher salary and/or long durations.
Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in obligation at a rate that is higher than expected.
Demographic risk: The Company has used a mortality and attrition assumptions in valuation of its liability. This exposes
the Company to the risk of actual experience turning out to be worse then assumed causing an increase in the obligation.
Regulatory risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in
the maximum limit on gratuity of ` 20,00,000).

CIN NO. U65999MH2017PTC294664
Details of acturial valuation of gratuity pursuant to Ind AS 119:

The following table shows a reconciliation from the opening balance to the closing balance for the net defined benefit
asset/ (liability) and its components:
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Balance Sheet position:
Present value of obligation 11,526 5,472
Fair value of plan assets - -
Surplus/(Deficit) -11,526 -5,472
Effects of asset ceiling, if any - -
Net asset/(liability) -11,526 -5,472
Changes in Present value of obligations:

Present value of obligation at the beginning 5,472 4,535
Current service cost 3,409 2,385
Interest cost 304 256
Re-measurement (or Actuarial) (gain)/loss arising from:
- change in demographic assumptions 502 -3,421
- change in financial assumptions -641 2,851
- experience variance (i.e. actual experience vs assumptions) 2,480 -1,104
Past service cost - -
Benefits paid - -30
Present value of obligation as at the end 11,526 5,472
Expenses to be recognised in Statement of Profit & Loss

Losses/(gain) on settlement - -
Net interest cost/(income) on the net defined benefit obligation/(asset) 304 256
Expenses recognised in Statement of Profit & Loss 3,713 2,641
Remeasurements recognised in Other Comprehensive Income:

- experience variance (i.e. actual experience vs assumptions) 2,480 -1,104
Amount recognised in Other Comprehensive Income 2,341 -1,674
Assumptions:
Discounting rate 7.15% 5.55%
Salary growth rate 10.00% 10.00%
Attrition/Withdrawal rates, based on age (per annum)
Sales 50.00% 50.00%
Non-sales 25.00% 30.00%
Normal retirement age 60 Years 60 Years
Mortality table 100% of IALM 2012-14
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 91
CIN NO. U65999MH2017PTC294664
Sensitivity Analysis:
The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions
occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity
analysis is given below:
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Discount rate:
1% increase 11,083 5,251
1% decrease 12,002 5,709
Salary growth rate:
1% increase 11,985 5,697
1% decrease 11,090 5,258
Attrition rate:
20% increase 10,608 4,611
20% decrease 12,666 6,540
Mortality rate:
20% increase 11,539 5,482
20% decrease 11,513 5,463
Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
Effect of plan on Company’s future cash flow:
a) Funding arrangements and funding policy:
The scheme is managed on unfunded basis.
b) Expected contribution during the next annual reporting period:
The Company's best estimate of contribution during the next year* -

*Since the scheme is unfunded, the next years’ contribution is taken as NIL.
c) Maturity profile of defined benefit obligation:
Weighted average duration (based on discounted cashflows) 4 years
Expected cash flows over the next (valued on undiscounted basis): ` in ‘000
1 year 2,044
2 to 5 years 8,155
6 to 10 years 4,003
More than 10 years 1,688
39.3 The Parliament has approved the Code on Social Security, 2020 (‘Code’) which may impact the contribution by
the Company towards Provident Fund & Gratuity. The effective date from which the Code and its provision would be
applicable is yet to be notified and the rules which would provide the details based on which the financial impact can
be determined are yet to be framed after which the financial impact can be ascertained. The Company will complete its
evaluation and will give appropiate impact, if any, in the financial results following the Code becoming effective and the
related rules being framed and notified.

CIN NO. U65999MH2017PTC294664
Note 40: Fair Value Measurement

The following table combines comparable information about:
a. classes of financial instruments based on their nature and characteristics.
b. the carrying amounts of financial instruments.
c. fair values of financial instruments (except financial instruments when carrying amount approximates their fair
value) and
d. fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed.
The carrying value and fair value of financial instruments by categories as of March 31, 2023 were as follows: ` in ‘000
Amortised Fair value through Total carrying
Particulars Other
cost profit and loss value
Assets:
Cash and cash equivalents 4,06,655 - - 4,06,655
Other Receivables 3,832 - - 3,832
Loans 1,01,59,687 - - 1,01,59,687
Investments 8,55,253 1,37,931 - 9,93,184
Other Financial assets 1,21,777 - - 1,21,777
Total 1,15,47,204 1,37,931 - 1,16,85,135
Liabilities:
Trade Payables 17,681 - - 17,681
Borrowings (Other than Debt Securities) 67,45,961 - - 67,45,961
Other financial liabilities 2,644 - 2,644
Total 67,66,286 - - 67,66,286
The carrying value and fair value of financial instruments by categories as of March 31, 2022 were as follows: ` in ‘000
Amortised Fair value through Total carrying
Particulars Other
cost profit and loss value
Assets:
Loans 52,54,716 - - 52,54,716
Investments 6,50,428 1,63,053 - 8,13,481
Total 62,15,219 1,63,053 - 63,78,272
Liabilities:
Other financial liabilities 68,203 - - 68,203
Total 17,64,088 - - 17,64,088
The Company determines fair values of its financial instruments according to the following hierarchy:
Level 1: Valuation based on quoted market price - Financial instruments with quoted prices for identical instruments in
active markets that the Company can access at the measurement date.
Level 2: Valuation based on using observable inputs - Financial instruments with quoted prices for similar instruments
in active markets or quoted prices for identical or similar instruments in inactive markets or financial instruments valued
using models where all significant inputs are observable.
Level 3: Valuation technique with significant unobservable inputs – Financial instruments valued using valuation
techniques where one or more significant inputs are unobservable.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 93
CIN NO. U65999MH2017PTC294664
Quantitative disclosures of fair value measurement hierarchy for assets as at March 31, 2023: ` in ‘000
Quoted prices Significant Significant
Date of in observable unobservable
Particulars
Valuation active markets inputs inputs
(Level 1) (Level 2)* (Level 3)
Investments at amortised cost March 31, 2023 - 2,04,704 -
Investments held for trading under FVTPL March 31, 2023 1,37,931 - -
*The amount shown is corporate deposit with short term maturity, the carrying amount is a reasonable approximation
of fair value.
Quantitative disclosures of fair value measurement hierarchy for assets as at March 31, 2022: ` in ‘000
Particulars
(Level 1) (Level 2) (Level 3)
Note 41: Disclosure as required under Ind AS 116 - Leases

1. Amount recognised in Balance Sheet: ` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Right of use assets (net) 33,299 30,423
Lease liabilities
Current 1,968 6,426
Non-current 33,064 25,305
2. Amount recognised in Statement of Profit and Loss: ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
Depreciation charge for right of use asset 23,210 21,502
Interest expense (included in finance cost) 2,702 2,037
Expense related to short term leases 9,273 360
3. Cash Flows ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
Total cash outflow on leases 30,898 22,292
Note 42: Stock Options

The Company has institutionalised the Employee Stock Option Plan (“ESOP”) with an objective to all employees for their
association with the Company and its subsidiary, their performance, as well as to attract, retain and reward employees
to contribute towards the growth and profitability of the Company.
The Company views its ESOP as an instrument that would enable the employees to get a share (or cash, at the
discretion of the Board), in the value they created and will continue to create in the years to come.
The “APAC Employee Stock Option Plan 2018” (“ESOP 2018”) was approved in the Compnay’s First Annual General
Meeting (“AGM”) held on July 19, 2018. Stock options under this scheme were also granted to employees of its subidiary
to attract, reward, and retain them, as per the terms of this scheme. The Company uses fair value to account for the
compensation cost of stock options to employees in the financial statement.

CIN NO. U65999MH2017PTC294664
A. Summary of the ESOP Scheme:

The position of the existing schemes is summarised as under:
S.No. Particulars APAC Employee Stock Option Plan 2018
1 Date of shareholder's approval July 19, 2018
2 Total number of options approved Maximum 10% of the paid up capital
under the plan
3 Vesting requirement Time based vesting
4 Exercise price or pricing formulaExercise Price of Pool I and Pool II are fixed as ` 10 and ` 20,
respectively. Exercise Price of options granted in Pool III is ` 29.60.
5 Maximum term of options granted 7 years from the date of grant
6 Source of shares Primary
7 Variation in terms of the plan Not applicable
8 Method used to account for ESOP Fair value method
9 Other details Annexure 1
B. Option movement during the year:

` in ‘000
Weighted Weighted
S. Avg. Avg.
Particulars FY 2022-23 FY 2021-22
No. Exercise Exercise
Price Price
1 Options outstanding at the beginning of the year 1,17,30,000 27.37 98,50,000 24.15
2 Number of options granted during the year 35,21,000 34.52 48,90,000 32.95
3 Options forfeited/surrendered during the year 9,40,000 31.56 30,10,000 26.13
4 Options vested during the year 4,29,750 29.60 - NA
5 Options exercised during the year 3,00,670 29.60 - NA
6 Options lapsed during the year - NA - NA
7 Total number of shares arising as a result of 3,00,670 29.60 - NA
exercise of options
8 Money realised by exercise of options 88,99,832 29.60 - NA
9 Options outstanding at the end of the year 1,40,10,330 29.15 1,17,30,000 27.37
10 Options exercisable at the end of the year 1,15,580 29.60 - NA
11 Weighted average remaining life 3.37 3.51
The weighted average Market Price of options 31.22 NA

exercised during the year
C. Weighted average exercise price of options granted during FY 2022-23 whose:

a. Exercise price equals market price (Rs.) 34.50
b. Exercise price is greater than market price NIL
c. Exercise price is less than market price NIL
D. Weighted average fair value of options granted during 2022-23 whose:

APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 95
CIN NO. U65999MH2017PTC294664
E. Method and assumptions used to estimate the fair value of options granted during the year:
a. The fair value has been calculated using the Black Scholes Option Pricing model.
b. The assumptions used in the model are as follows:
S. "ESOP 2018
Variables
No. (Weighted Avg.)”
1. Risk free interest rate 6.94%
2. Expected life 4.25
3. Expected volatility 44.37%
4. Dividend yield NIL
5. Price of the underlying share in market at the time of the option grant.(Rs.) 34.50
Other Assumptions:
a. Stock price: The stock price as on the date of grant is based on the Share Valuation Report of an Independent
Valuer (as per information provided by the Company).
b. Volatility: The historical volatility over the expected life has been considered to calculate the fair value.
c. Risk-free rate of return: The risk-free interest rate being considered for the calculation is the interest rate applicable
for a maturity equal to the expected life of the options based on the zero-coupon yield curve for Government
Securities.
d. Exercise price: Exercise price of each specific grant has been considered.
e. Time to Maturity: Time to maturity/Expected life of options is the period for which the Company expects the
options to be live.
f. Expected divided yield: Expected dividend yield has been calculated as an average of dividend yields for five
financial years preceding the date of the grant.
Note 43: Capital Management

“The primary objectives of the Company’s capital management policy is to ensure that the Company has adequate
funds to support its growth plans, ensure compliance with externally imposed capital requirements (including regulatory
requirements), maintaining strong credit rating and healthy capital ratios.
The Company manages its capital structure and makes adjustments to it according to changes in economic conditions
and the risk characteristics of its activities. No changes have been made to the objectives, policies and processes from
the previous year, however, they are constantly reviewed by the Board.”
Debt to Net Worth ratio:

“The Company monitors its capital using debt to net worth ratio (also known as leverage ratio).
Net worth for this purpose is computed as owned fund less excess of 10% of owned funds over investment in subsidiary.
Owned funds is computed as shareholders funds’ less intangible asset less deferred tax asset less unrealised gain on
financial instruments.”
` in ‘000
Particulars As at As at
March 31, 2023 March 31, 2022
Debts* 68,02,329 17,01,804
Net worth 46,63,269 43,59,362
Debt to Net worth 1.46 0.39
* includes interest accrued but not due.

CIN NO. U65999MH2017PTC294664
Capital adequacy ratio (“CRAR”):

The Company is required to comply with the capital adequacy requirements stipulated by RBI from time to time. RBI has
set a floor of 15% to be maintained by all NBFCs as their capital adequacy ratio.
This ratio is computed by dividing the Company’s Tier I & Tier II capital with risk weighted assets. Tier I capital comprises
of the Company’s net owned funds while Tier II capital comprises of the provision on standard asset (Stage 1). Risk
weighted assets represents the weighted sum of the Company’s credit exposure On & Off balance sheet.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Tier I 46,63,269 43,59,363
Tier II 69,516 24,878
TOTAL Capital Funds 47,32,785 43,84,241
Risk Weighted asset 1,06,94,432 56,16,048
CRAR % 44.25% 78.07%
CRAR - Tier I Capital % 43.60% 77.62%
CRAR - Tier II Capital % 0.65% 0.44%
Note 44: Operational Risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from
external events. Operational risk is associated with human error, system failures and inadequate procedures and
controls. It is the risk of loss arising from the potential that inadequate information system; technology failures, breaches
in internal controls, fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or
reputation problems.
Operational risk exists in all products and business activities. The Company cannot expect to eliminate all operational
risks, but it endeavours to manage these risks through a control framework and by monitoring and responding to
potential risks. Controls include effective segregation of duties, access, authorisation and reconciliation procedures,
staff education and assessment processes.
Note 45: Financial risk management

The Company’s activities exposes it to variety of financial risks, as listed below apart from various operating and
business risks:
a. Credit risk,
b. Liquidity risk and
c. Interest rate risk.
This note explains the sources of risk which the Company is exposed to and how it manages these risks.
A. Credit Risk: Credit risk is the possibility of loss resulting from diminution of borrower’s credit quality leading to failure
of borrowers to make repayment of their outstanding loan obligations, in full or in part.
The Company manages the credit risks by assessing each proposal using an approved product program under a Board
approved credit risk policy. These product programs are approved by the APAC Credit Committee which consists of
the Managing Director, Executive Director, Group General Counsel, Joint CEOs, an Independent Member, Smt. Varsha
Purandare (Ex-Chief Credit & Risk Officer and Dy MD, State Bank of India) and Senior Advisor and Independent
Member, Mr. Arijit Chanda, a highly experienced and respected retail finance professional and consultant. Approvals
by APAC Credit Committee needs to be unanimous. Portfolio reviews are carried out regularly by the Business, Risk
and Credit functions. Each product program caters to specific targeted customer segments and have been built around
the 5 C’s of prudent lending norms, i.e. Character, Capacity, Capital, Conditions and Collateral. The product programs
further define an approval matrix, credit & risk parameters, processes, customer selection criteria, deviation reporting
and loan caps among other things. The Company also relies on the Credit Bureaus for fraud checks and credit records
of each borrower.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 97
CIN NO. U65999MH2017PTC294664
The Company is deepening its use of technology and alternate data to improve the quality of its product programs and
credit approval processes.”
B. Liquidity Risk: Liquidity risk is the risk of incurring losses resulting from the inability to meet payment obligations in
a timely manner when they become due or from being unable to do so at a sustainable cost.
The Company is required to comply with the Asset Liability Management (“”ALM””) guidelines/directions issued by RBI,
which places key emphasis on short term liquidity management.
The Company has an Asset Liability Management and Resource Planning Policy approved by the Board and has
constituted an Asset Liability Management and Resource Planning Committee (“”ALRPCO””) to oversee the liquidity risk
management function. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have
sufficient liquidity to meets its liabilities, as and when they become due, under both in normal and stressed conditions,
without incurring losses or risking damage to the Company’s reputation.
The principal source of Company’s liquidity is borrowings, cash and cash equivalents and cash flow generated from
operations.
As at March 31, 2023, the Company believes that the cash and cash equivalents and undrawn term loan (“”TL””), cash
credit (“”CC””) and working capital; demand loan (“”WCDL””) are sufficient to meets its short term requirements and
does not foresee any liquidity stress. Below are the list of undrawn facilities that are available at Company’s disposal:
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Term loans 4,50,000 3,50,000
Cash credit facilities* 2,70,000 2,00,000
Working capital demand loans 1,00,000 3,50,000
TOTAL 8,20,000 9,00,000
*CC facilities may be drawn anytime and may be withdrawn anytime.
Exposure to liquidity risk:
` in ‘000
Carrying Less than More than
Particulars 1 - 3 years 3 - 5 years
amount 1 year 5 years
Financial liabilities
Payables 17,681 17,681 - - -
Borrowings (Other than debt 67,45,961 22,27,506 37,79,512 7,38,943 -
securities)
Other financial liabilities 2,645 2,645 - - -
TOTAL 67,66,287 22,47,832 37,79,512 7,38,943 -
Financial assets
Cash and cash equivalents 3,01,045 3,01,045 - - -
Bank balance other than (a) above 1,05,610 1,05,610 - - -
Receivables 3,832 3,832 - - -
Loans 1,01,59,687 12,91,909 30,28,700 35,89,722 22,49,354
Investments 9,93,184 3,42,635 - - 6,50,549
Other financials assets 1,21,777 1,21,777 - - -
TOTAL 1,16,85,135 21,66,808 30,28,700 35,89,722 28,99,905
C. Interest Rate Risk: The interest rate risk primarily arises from borrowings at floating rate/variable rate. The Company’s
borrowing’s are carried at amortised cost. No interest rate risk arise on borrowings carried at fixed rate as defined in
Ind AS 107 since both the carrying amount and future cash flows will not fluctuate with change in market interest rate.

CIN NO. U65999MH2017PTC294664
During FY23, Company received rating upgrades from both ICRA and Acuite on the back of superior operating
performance, without any large equity infusion. Our credit ratings currently are [ICRA] A- (Stable) and ACUITE A (Stable).
Notably, even though RBI hiked rates by 250 bps during FY23, Company’s cost of funds reduced by approx. 55-60 bps
as compared to FY22. Due to rising interest rates, Company increased its Prime Lending Rate (PLR) by 50 bps in Q4
FY23.
The interest rate profile of the Company’s interest bearing financial liabilties is as follows: ` in ‘000
Particulars As at
March 31, 2023
Fixed rate instrument:
Financial Liabilities 5,11,270
Floating rate instrument:
TOTAL 67,83,020
Interest rate sensitivity analysis for floating rate instruments: ` in ‘000

Profit/Loss Equity (net of tax)
Particulars 100 bps 100 bps 100 bps 100 bps
increase decrease increase decrease
Variable rate instruments 29,465 29,465 22,048 22,048
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 99
APAC FINANCIAL
CIN NO. U65999MH2017PTC294664
ANNUAL
SERVICES
Note 46: Disclosure pursuant to RBI Circular - RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 “Implementation of
REPORT
Indian Accounting Standard”
For FY 2022-23: ` in ‘000
Loss Difference
Asset
2022-2023
Gross carrying allowances Provisions between
Assets Classification Classification Net carrying
amount as per (provisions) as required as per Ind AS 109
(as per RBI Norms) (as per Ind AS amount
Ind AS required under IRACP norms provisions and
109)
Ind AS 109 IRACP norms
Performing assets
Standard Stage 1 1,00,95,650 68,949 1,00,26,701 39,806 29,144
Stage 2 89,776 6,448 83,329 3,070 3,378
Subtotal 1,01,85,426 75,397 1,01,10,030 42,876 32,522
Non performing assets ("NPA")
Substandard Stage 3 80,823 18,596 62,227 8,396 10,200
Doubtful - upto 1 year 16,610 2,370 14,240 3,324 -954
Doubtful - 1 to 3 years 12 1 11 4 -2
Doubtful - More than 3 years - - - - -
Subtotal 16,622 2,371 14,251 3,328 -956
Loss Stage 3 - - - - -
Subtotal for NPA Stage 3 97,445 20,967 76,478 11,724 9,244
Other items such as guarantees, loan commitments,
etc. which are in the scope of Ind AS 109 but not Stage 1 95,022 567 94,456 - 567
covered under current Income Recognition, Asset
Classification and Provisioning (IRACP) norms Stage 2 - - - - -
Stage 3 - - - - -
Stage 1 1,01,90,672 69,516 1,01,21,156 39,806 29,710
Stage 2 89,776 6,448 83,329 3,070 3,378
Total
Stage 3 97,446 20,968 76,478 11,724 9,244
Total 1,03,77,894 96,932 1,02,80,963 54,600 42,332
100
CIN NO. U65999MH2017PTC294664
APAC FINANCIAL
ANNUAL
For FY 2021-22: ` in ‘000
SERVICES
Loss Difference
REPORT
Asset
109)
2022-2023
Performing assets
Standard Stage 1 49,10,288 24,471 48,85,817 19,424 5,046
Stage 2 4,09,512 83,511 3,26,001 13,717 69,794
Subtotal 53,19,800 1,07,982 52,11,818 33,141 74,840
Doubtful - upto 1 year - - - - -
Doubtful - 1 to 3 years - - - - -
Subtotal - - - - -
Other items such as guarantees, loan commitments, Stage 1 81,403 407 80,996 - 407
etc. which are in the scope of Ind AS 109 but not Stage 2 - - - - -
Stage 1 49,91,691 24,878 49,66,813 19,424 5,453

Stage 2 4,09,512 83,511 3,26,001 13,717 69,794
Total
Stage 3 61,096 9,667 51,429 6,128 3,540
Total 54,62,299 1,18,056 53,44,243 39,269 78,787
101
CIN NO. U65999MH2017PTC294664
Note 47: Disclosure pursuant to RBI Circular - RBI/2020-21/17 DOR.No.BP.BC/4/21.04.048/2020-21 dated August
6, 2020 “Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances”
` in ‘000
No. of accounts restructured Amount
15 52,598
6, 2020 “Resolution Framework for COVID-19-related Stress”
` in ‘000
Type of Exposure to accounts Of (A), Of (A) amount Of (A) amount Exposure to
borrower classified as Standard aggregate written off paid by the accounts classified
consequent to debt that during the borrowers as Standard
implementation of slipped into current year during the year consequent to
resolution plan – NPA during implementation of
Position as at the end the current resolution plan –
of the previous year year Position as at the
(A) end of this year
Personal loans - - - - -
Corporate 1,67,616 - 1,67,616 - -
persons*
Of which, - - - - -
MSMEs
Others - - - - -
Total 1,67,616 - 1,67,616 - -
*As defined under section 3(7) of the Insolvency and Bankruptcy Code, 2016.
Note 49: Disclosure pursuant to RBI Circular - RBI/2018-19/203/DBR.No.BP.BC.45/21.04.048/2018-19 dated June

7, 2019 “Prudential Framework for Resolution of Stressed Assets”
i. Other than Corporate Debt Restructuring (CDR):
` in ‘000
Restructured Fresh Recoveries Closure/Write Restructured
as on restructuring during the off during the as on
April 1, 2022 during the year year (post year March 31, 2023
restructure)
Asset Classification Doubtful Doubtful Doubtful Doubtful
No. of borrowers - 1 1 - 1
Amount - 4,792 62 - 4,730
Outstanding
Provision there on - 1,198 NA - 1,182
Note 50: Disclosure pursuant to RBI circular - RBI/2019-20/88 DOR. NBFC (PD) CC. No. 102/03.10. 001/2019-20
dated November 04, 2019 “Liquidity Risk Management Framework for Non-Banking Financial Companies”
1. Fund Concentration based on significant counterparty (both deposits and borrowings):
No. of Significant Amount % of Total Deposits % of Total Liabilities
counterparties (₹ in '000)
15 6,783,020 NA 97.80%
Note:
a. Total liabilities have been computed as Total Liabilities less Shareholders Funds.
b. Above excludes unutilised CC limits of ` 37 Cr. and undrawn term loan sanction of ` 45 Cr. as of March 31, 2023.

CIN NO. U65999MH2017PTC294664
c. There were no deposits placed with APAC Financial Services Private Limited as of March 31, 2023.
2. Top 20 large deposits (amount (In Rs. Crore) and % of total deposits): Not Applicable
3. Top 10 Borrowings:
Amount (₹ in '000) % of Total Borrowings
57,77,646 85%
4. Funding concentration based on significant instrument/product:
Significant Intrument Amount (₹ in '000) % of Total Deposits % of Total Liabilities
Term loan 67,83,020 NA 97.80%
Note: Total liabilities have been computed as Total Liabilities less Shareholders Funds.
5. Stock Ratios:
a. Commercial papers as a % of total public funds, total liabilities and total assets: Not Applicable
b. Non-convertible debentures (original maturity of less than one year) as a % of total public funds, total liabilities and
total assets: Not Applicable
c. Other short-term liabilities, if any, as a % of total public funds, total liabilities and total assets: Not Applicable
Note:
b. Short term liabilities have been computed as borrowings with an original maturity less than 12 months. Currently
there are no borrowings with residual maturity of less than 12 months.
c. Public funds includes borrowings from banks & financial institutions.
6. Institutional set-up for liquidity risk management:
The Board of Directors have approved the formation of the Asset-Liability Management and Resource Planning
Committee (“ALRPCO”) comprising of Managing Director, Executive Director, Joint CEOs, Head of Group Treasury and
Group Financial Controller.
Note: The Company is not required to compute and disclose the LCR ratio since it falls below the threshhold as
prescribed in Annex B of this circular.
Note 51: Disclosure pursuant to RBI circular - RBI/DNBS/2016-17/49/Master Direction DNBS. PPD.01/66.15.001/
2016-17 dated September 29, 2016 “Master Direction - Monitoring of Frauds in NBFCs (Reserve Bank) Directions,
2016”
Instances of fraud for the year ended March 31, 2023 (March 31, 2022: NIL)
Nature of fraud No. of cases Amount Amount written off
(₹ in '000) (₹ in '000)
Misappropriation and
1 1413 -
criminal breach of trust
During the year, 1 fraud was detected and reported to RBI, aggregating to ` 14.13 lakhs in the nature of misappropriation
and criminal breach of trust.
Current status:
“Above fraud case impacted 6 LANs of which as on March 31, 2023, 2 LANs were foreclosed, 3 LANs are standard and
1 LAN is sub-standard. The sub-standard LAN was fully provided for.
The Board in its meeting dated Februray 15, 2023, approved the closure of the fraud cases. “
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 103
CIN NO. U65999MH2017PTC294664
Note 52: Regulatory disclosures

I. Disclosure pursuant to Annexure XVI of RBI Circular - RBI/DNBR/2016-17/45/Master Direction DNBR.
PD.008/03.10.119/2016-17 dated September 01, 2016 (Updated as on December 29, 2022) - Master Direction
- Non-Banking Financial Company - Systemically Important Non-Deposit taking Company (Reserve Bank)
Directions, 2016.
II. Disclosure pursuant to Section I of RBI Circular - RBI/2022-23/26/DOR.ACC.REC.No.20/21.04.018/2022-23 dated
April 19, 2022 - Disclosures in Financial Statements- Notes to Accounts of NBFCs.
1. Capital to Risk-Assets Ratio ("CRAR"): ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
i) CRAR (%) 44.25% 78.07%
ii) CRAR - Tier I Capital (%) 43.60% 77.62%
iii) CRAR - Tier II Capital (%) 0.65% 0.44%
iv) Amount of subordinated debt raised as Tier-II capital - -
v) Amount raised by issue of Perpetual Debt Instruments - -
2. Investments: ` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
1. Value of investments
i) Gross value of investments
(a) In India 9,93,184 8,13,482
(b) Outside India - -
ii) Provisions for depreciation
a) In India - -
b) Outside India - -
iii) Net value of investments
(a) In India 9,93,184 8,13,482
2. Movement of provisions held towards depreciation on investments
a) Opening balance - -
b) Add: Provisions made during the year - -
c) Less: Write-off / write-back of excess provisions during the year - -
d) Closing balance - -
3. Derivatives:
The Company has not entered into any derivative contracts during the year.
4. Exposure to Real Estate Sector and Capital Market:
The Company does not have any direct or indirect exposure to the real estate sector other than properties mortgaged
as collateral by its customers.

CIN NO. U65999MH2017PTC294664
Expsoure to Real Estate Sector: ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
a) Direct Exposure
i) Residential Mortgages:
Lending fully secured by mortgages on residential property that is or will 3,86,836 2,97,240
be occupied by the borrower or that is rented. Exposure would also include
non-fund based (NFB) limits.
ii) Commercial Real Estate:
Lending secured by mortgages on commercial real estate (office buildings, - -
retail space, multipurpose commercial premises, multifamily residential
buildings, multi tenanted commercial premises, industrial or warehouse
space, hotels, land acquisition, development and construction, etc.).
Exposure would also include non-fund based (NFB) limits.
iii) Investments in Mortgage Backed Securities (MBS) and other
securitised exposures:
a. Residential - -
b. Commercial Real Estate - -
b) Indirect Exposure
Fund based and non-fund-based exposures on National Housing Bank and 10,000 10,000
Housing Finance Companies.
Total Exposure to Real Estate Sector 3,96,836 3,07,240
Exposure to Capital Market:
The Company did not have any exposure to capital market during the year.
4. Details of financing of parent company products:

Since the Company is a standalone company the requirement is not applicable.
5. Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the Company:
The Company did not exceed the single borrower limit (SGL) / Group borrower limit (GBL) during the year.
6. Unsecured Advances
` in ‘000
March 31, 2023 March 31, 2022
Unsecured advances 4,752 37,707
4,752 37,707
7. Registrations obtained from other financial regulators:

The Company has not obtained registrations from any other financial regulators.
8. Disclosure of penalties imposed by RBI and other regulators:

No penalties have been imposed by RBI and/or any other regulator on the Company during the year.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 105
CIN NO. U65999MH2017PTC294664
9. Ratings assigned by credit rating agencies and migration of ratings during the year:
Credit rating details of the Company as at March 31, 2023 are as below: ` in ‘000
Rating Agency Term Type Rating Outlook Amount
ICRA Limited Long Term Bank Lines A- Stable 90,00,000
Acuite Rating & Research Limited Long Term Bank Lines A Stable 12,50,000
Credit rating details of the Company as at March 31, 2022 are as below: ` in ‘000
ICRA Limited Long Term Bank Lines BBB+ Stable 40,00,000
Acuite Rating & Research Limited Long Term Bank Lines A- Stable 5,00,000
10. Provisions & Contigencies made during the year: ` in ‘000

Break up of 'Provisions and Contingencies' shown under the head As at As at
Expenditure in Statement of profit and loss March 31, 2023 March 31, 2022
Provisions for depreciation on Investment - -
Provision towards NPA 11,301 1,346
Provision made towards Income tax 79,896 2,687
Other provisions & contingencies:
Provision for gratuity 3,712 2,641
Provision for leave salary - -2,579
Provision for bonus 44,071 23,163
Provision for expenses 5,353 3,908
Provision for standard assets -32,425 12,520
11. Drawdown from reserves:

The Company has not drawn down its reserves during the year.
12. Concentration of Deposits, Advances, Exposures and NPA:

A. Concentration of deposits (For deposit taking NBFC) ` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Total deposits to twenty largest depositors. NA NA
Percentage of deposits to twenty largest depositors to total deposits of the NA NA
taking NBFC.
B. Concentration of advances ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
Total advances to twenty largest borrowers. 3,93,621 6,66,606
Percentage of advances to twenty largest borrowers to total advances of the 3.88% 12.54%
applicable NBFC.

CIN NO. U65999MH2017PTC294664
C. Concentration of exposures ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
Total exposure to twenty largest borrowers/customers. 3,93,621 6,66,606
Percentage of exposures to twenty largest borrowers/customers to total 3.85% 12.35%
exposure of the applicable NBFC on borrowers/customers.
D. Concentration of NPAs ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
Total exposure to top four NPA accounts 59,295 33,839
13. Sector-wise NPAs: ` in ‘000

Total Gross Percentage Total Gross Percentage
Exposure NPAs of Gross Exposure NPAs of Gross
Sector (includes NPAs to total (includes NPAs
on balance exposure in on balance to total
sheet and off- that sector sheet and off- exposure in
balance sheet balance sheet that sector
exposure) exposure)
1. Agriculture & allied 24,52,744 1,431 0.06% 12,29,730 485 0.04%
activities
2. Industry
i. Corporate Borrowers - - - - - -
ii. Auto Loans - - - - - -
iii. Renewable energy - - - 81,966 - -
Total of Industry - - - 81,966 - -
3. Services
i. MSME 41,07,496 2,202 0.05% 10,40,203 - -
ii. Loans to educational 8,92,034 27,147 3.04% 7,13,913 12,421 1.74%
institution
iii. Loan to retail sector 6,35,546 11,459 1.80% 7,42,001 6,749 0.91%
iv. Computer Software 6,500 - - 1,220 - -
v. Tourism, hotel and 2,41,785 47,963 19.84% 2,69,224 36,296 13.48%
restaurants
vi. Professional services 1,48,563 386 0.26% 1,14,944 - -
vii. Transport operators 2,81,763 1,314 0.47% 1,63,640 - -
viii. Other Services 10,79,938 3,664 0.34% 7,43,591 4,618 0.62%
Total of Services 73,93,625 94,136 1.27% 37,88,736 60,083 1.59%
4. Personal Loans
i. Unsecured personal loans - - - - - -
ii. Other personal loans 3,86,836 1,877 0.49% 2,97,240 528 0.18%
(Home Loans)
Total of Personal Loans 3,86,836 1,877 0.49% 2,97,240 528 0.18%
5. Others (if any) - - - - - -
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 107
CIN NO. U65999MH2017PTC294664
14. Movement of NPAs ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
i) Net NPAs to Net Advances (%) 0.75% 0.98%
ii) Movement of NPA's (Gross)
a) Opening balance 61,096 15,853
b) Additions during the year 2,58,590 1,59,233
c) Reductions during the year -2,22,241 -1,13,990
d) Closing balance 97,445 61,096
iii) Movement of Net NPAs
b) Additions during the year 2,42,431 45,277
c) Reductions during the year -2,17,383 -1,380
iv) Movement of provisions for NPAs (excluding provisions on standard
assets)
b) Provisions made during the year 16,159 1,13,956
c) Write-off / write-back of excess provisions -4,858 -1,12,609
15. Overseas Investments:

The Company has no overseas investments as at March 31, 2023. (As at March 31, 2022: NIL)
16. Off balance sheet SPV Sponsored:

The Company does not have off balance sheet SPV sponsored as at March 31, 2023. (As at March 31, 2022: NIL)
17. Unhedged foreign currency exposure:

The Company does not have any foreign currency exposure as at March 31, 2023. (As at March 31, 2022: NIL)
18. Disclosure of Complaints:

1. Summary information on complaints received by the Company from customers and from the Offices of Ombudsman
Complaints received by the Company from its customers
As at As at
Particulars
March 31, 2023 March 31, 2022
No. of complaints pending at the beginning of the year - -
No. of complaints received during the year 28 34
No. of complaints disposed during the year 28 34
Of which, no. of complaints rejected by the Company - -
No. of complaints pending at the end of the year - -

CIN NO. U65999MH2017PTC294664
Maintainable complaints received by the Company from Office of Ombudsman
As at As at
Particulars
March 31, 2023 March 31, 2022
No. of maintainable complaints received by the Company from Office of 2 2
Ombudsman, of which
No. of complaints resolved in favour of the Company by Office of Ombudsman 2 2
No. of complaints resolved through conciliation/mediation/advisories issued by 2 2
Office of Ombudsman
No. of complaints resolved after passing of Awards by Office of Ombudsman - -
against the Company
Number of Awards unimplemented within the stipulated time (other than those - -
appealed)
2. Top five grounds of complaints received by the NBFC from customers
% increase/ Number of
Number of Number of Number of
decrease in complaints
Grounds of complaints complaints complaints
the number pending at
complaints, (i.e. pending at the received pending at
of complaints the end of the
complaints relating to) beginning of during the the end of the
received over the year (beyond
the year year year
previous year 30 days)
NACH Deduction Issue - 2 -87% - -
Cash collection - 7 100% - -
NDC not received - 1 -75% - -
CIBIL Issue - 5 67% - -
Employee Behaviour - 4 0% - -
Loan details not shared - 3 100% - -
Refund issue - 2 100% - -
Foreclosure charges - 1 100% - -
RBI Ombudsman - 1 100% - -
Loan cancellation - 1 100% - -
Documents not received - 1 -75% - -
% increase/ Number of
Number of Number of Number of
decrease in complaints
Grounds of complaints complaints complaints
the number pending at
complaints, (i.e. pending at the received pending at
of complaints the end of the
complaints relating to) beginning of during the the end of the
received over the year (beyond
the year year year
previous year 30 days)
NACH Deduction Issue - 15 -38% - -
Legal Notices - 4 100% - -
NDC not received - 4 100% - -
CIBIL Issue - 3 100% - -
Documents not received - 4 100% - -
19. Divergence in Asset Classification and Provisioning:

Since there is no inspection conducted in FY 2022-23 by RBI, there are no additional provisioning requirements ot
Gross NPAs assessed.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 109
APAC FINANCIAL
CIN NO. U65999MH2017PTC294664
ANNUAL
SERVICES
Note 52A: Disclosure pursuant to Annexure XVI of RBI Circular - RBI/DNBR/2016-17/45/Master Direction DNBR.PD.008/03.10.119/2016-17 dated September
01, 2016 (Updated as on December 29, 2022) - Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company
REPORT
and Deposit taking Company (Reserve Bank) Directions, 2016
1. Asset Liability Management Maturity pattern of certain items of Assets and Liabilities: ` in ‘000
over 1 over 2 over 3 over 6
15 to Over 1 Over 3
2022-2023
As at 1 to 7 8 to 14 month month month month Over 5
30/31 Year upto Year upto Total
March 31, 2023 Days Days upto 2 upto 3 upto 6 upto 1 Year
Days 3 Year 5 Year
month month month Year
Deposit - - - - - - - - - - -
Advance# 1,51,477 53,078 18,428 91,567 87,388 2,78,232 6,11,740 30,28,700 35,89,722 22,49,354 1,01,59,686
Investment 1,37,931 - 1,02,896 - - - 1,01,808 - - 6,50,549 9,93,184
Borrowing* 33,664 11,376 77,105 1,49,553 1,81,535 5,49,858 12,24,416 37,79,512 7,38,943 - 67,45,960
Foreign Currency - - - - - - - - - - -
Assets
Liabilities
* Net of unamortised processing fees paid and inclusive of interest accrued but not due.
# Net of unamortised processing fees paid and received and provision for impairment loss and inclusive of accrued interest.
Note: Classification of financial assets and liabilities are based on Management estimates and assumptions and auditors have relied on it.
` in ‘000
15 to Over 1 Over 3
Days 3 Year 5 Year
Deposit - - - - - - - - - - -
Advance# 46,050 41,636 25,332 52,132 68,190 1,77,068 3,62,251 16,38,079 18,78,054 9,65,924 52,54,716
Investment 1,63,053 - - - - - - - - 6,50,429 8,13,482
Borrowing* 3,277 22,439 27,499 50,649 53,982 1,78,614 3,36,159 8,63,431 1,51,616 - 16,87,666
Assets
Liabilities
110
CIN NO. U65999MH2017PTC294664
Note 53: Disclosure pursuant to Para 19 of RBI Circular - RBI/DNBR/2016-17/45/Master Direction DNBR.
PD.008/03.10.119/2016-17 dated September 01, 2016 (Updated as on December 29, 2022) - Master Direction -
Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions,
2016
` in ‘000
Particulars As at March 31, 2023 As at March 31, 2022
Amount Amount Amount Amount
Liabilities side
Outstanding Overdue Outstanding Overdue
1) Loans and advances availed by the non-
banking financial company inclusive of
interest accrued thereon but not paid :-
a Debentures:
Secured - - - -
Unsecured (other than failing within the - - - -
meaning of public deposits*)
b Deferred credits - - - -
c Term loans 55,17,960 - 13,57,206 -
d Inter-corporate loans and borrowing 12,84,368 - 3,44,598 -
e Commercial paper - - - -
f Public deposits (Refer note 1) NA NA NA NA
g Other loans (specify nature) - - - -
2) Break-up of (1) (f) above (Outstanding
public deposits inclusive of interest accrued
thereon but not paid):
1 In the form of unsecured debentures NA NA NA NA
2 In the form of partly secured debentures NA NA NA NA
i.e. debentures where there is a shortfall in
the value of security
3 Other public deposits NA NA NA NA
` in ‘000
Amount outstanding
Asset Side As at As at
March 31, 2023 March 31, 2022
3) Break-up of Loans and Advances including bills receivables (other
than those included in (4) below):
1 Secured (Includes accrued interest) 1,01,82,982 52,33,872
2 Unsecured (Includes accrued interest) 3,524 29,402
(Impact of EIR has not been considered in above numbers)
4) Break-up of leased assets and stock on hire and other assets
counting towards asset financing activities:
1 Lease assets including lease rentals under sundry debtors:
a. Financial lease - -
b. Operating lease - -
2 Stock on hire including hire charges under sundry debtors:
a. Assets on hire - -
b. Repossesse assets - -
3 Other loans towards asset financing activities:
a. Loans where assets have been repossessed - -
b. Loans other than (a) above - -
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 111
CIN NO. U65999MH2017PTC294664
` in ‘000
Amount outstanding
March 31, 2023 March 31, 2022
5) Break-up of Investments:
Current Investments:
1 Quoted:
a. Shares:
a. Equity
b. Preference - -
b. Debentures and Bonds - -
c. Units of mutual funds 1,37,931 1,63,053
d. Government securities - -
e. Others - -
2. Unquoted:
a. Shares:
a. Equity
b. Preference - -
c. Units of mutual funds - -
e. Others - Deposit with corporates 2,04,704 -
Long term investments:
1 Quoted:
a. Shares:
a. Equity - -
b. Preference - -
e. Others - -
2. Unquoted:
a. Shares
a. Equity (Investment in wholly owned subsidairy) 6,50,549 6,50,429
b. Preference - -
e. Others - -
6) Borrower group-wise classification of assets financed as in (2) and (3) above (Refer note 2): ` in ‘000
Amount (net of provisions) Amount (net of provisions)
Category As at March 31, 2023 As at March 31, 2022
Secured Unsecured Total Secured Unsecured Total
1. Related Parties**
a. Subsidiaries - - - - - -
b. Companies in the same - - - - - -
group
c. Other related parties - - - - - -
2. Other than related parties 1,01,82,982 3,524 1,01,86,506 52,33,872 29,402 52,63,274
Total 1,01,82,982 3,524 1,01,86,506 52,33,872 29,402 52,63,274

CIN NO. U65999MH2017PTC294664
7) Investor group-wise classification of all investments (current and long term) in shares
and securities (both quoted and unquoted) (Refer note 3): ` in ‘000
Market Value/ Book Value Market Value/ Book Value
Break up or fair (Net of Break up or fair (Net of
value or NAV Provisions) value or NAV Provisions)
a. Subsidiaries 6,50,549 6,50,549 6,50,429 6,50,429
b. Companies in the same group - - - -
c. Other related parties - - - -
2. Other than related parties 3,42,635 3,42,635 1,63,053 1,63,053
Total 9,93,184 9,93,184 8,13,482 8,13,482
**As per Accounting Standard of ICAI (Refer note 3)
8) Other Information:
As at As at
Particulars
March 31, 2023 March 31, 2022
i. Gross non performing assets
a. Related parties - -
b. Other than related parties 97,446 61,097
ii. Net non performing assets
iii. Assets acquired in satisfaction of debt - -
Notes :
1 As defined in paragraph xxvii of paragraph 3 of Chapter II of these Master Direction - Systemically Important Non-
Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016
2 Provisioning norms shall be applicable as prescribed in the Master Direction - Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016.
3 All notified Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of
investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect
of quoted investments and break up / fair value / NAV in respect of unquoted investments shall be disclosed
irrespective of whether they are classified as long term (amortised cost in the case of Ind AS) or current (at fair
value in the case of Ind AS) in (5) above.
Note 54A: The Company has not undertaken any benami transactions. The Company has also not traded or invested
in any crypto or virtual currency.
Note 54B: The group does not have any transactions with companies struck off by the Registrar of Companies (‘RoC’)
under section 248 of the Act, or under section 560 of the Companies Act, 1956.
Note 55: The Company is in process of amalgamating with APAC Financial Services Private Limited, holding company.
The Company has received a No Objection Certificate (“NOC”) from the Reserve Bank of India (“RBI”) on 12 May
2022 for the amalgamation and filed an application for merger with National Company Law Tribunal (“NCLT”) on July
27, 2022. In relation to the application filed by the Company, NCLT on March 30, 2023 issued an order for calling the
Shareholders and Creditors meeting in relation to Merger and Amalgamation of APAC Housing Finance Private Limited
with APAC Financial Services Private Limited. Accordingly, the meeting of Shareholders and Creditors is being called
on May 12, 2023. The merger is being conducted on a going concern basis.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 113
CIN NO. U65999MH2017PTC294664
Note 56: Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current
year’s classification/disclosures.

UDIN:
Date: May 05, 2023
Place: Mumbai
Akhil Parikh
Company Secretary
Date: May 05, 2023

Place: Mumbai

INDEPENDENT AUDITOR’S REPORT On The Consolidated Financial Statements
To the Members of APAC Financial Services Private Limited
1. Opinion
We have audited the accompanying Consolidated Financial statements of APAC Financial Services Private
Limited (‘Holding Company’) and its subsidiary APAC Housing Finance Private Limited (the Company and its
subsidiary together referred to as ‘the Group’), which comprise the Consolidated Balance Sheet as at March 31,
2023, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated
Statement of Cash Flows and the Consolidated Statement of Change in Equity for the year then ended, and notes
to the Consolidated Financial statements, including a summary of the significant accounting policies and other
explanatory information (hereinafter referred to as “Consolidated Financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Consolidated Financial statements give the information required by the Companies Act, 2013 (“the Act”) in the
manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
(“Ind AS”) and other accounting principles generally accepted in India, of the consolidated state of affairs of the
Group as at March 31, 2023, and its consolidated profit (including other comprehensive income), consolidated
changes in equity and its consolidated cash flows for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the Consolidated Financial statements in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in
the Auditor’s Responsibility for the Audit of the Consolidated Financial statements section of our report. We are
independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants
of India (ICAI) together with the ethical requirements that are relevant to our audit of the Consolidated Financial
statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit
evidence obtained by us along with the consideration of the financial statements/financial information referred to
in the “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the
Consolidated Financial statements.
3. Information Other than the Consolidated Financial statements and Auditor’s Report thereon
The Holding Company’s management and Board of Directors are responsible for the other information. The other
information comprises the information included in Holding Company’s Annual report but does not include the
Consolidated IND AS Financial statements and our auditor’s report thereon.
Our opinion on the Consolidated IND AS Financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the Consolidated IND AS Financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent with the
Consolidated Financial statements or our knowledge obtained during the course of our audit, or otherwise appears
to be materially misstated. If, based on the work performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to state in this regard.
4. Responsibilities of Management and Those Charged with Governance for the Consolidated Ind AS
Financial Statements
The Holding Company’s Management and Board of Directors are responsible for the matters stated in section
134(5) of the Act with respect to the preparation and presentation of these Consolidated Financial statements that
give a true and fair view of the consolidated state of affairs and consolidated profit (including other comprehensive
income), consolidated changes in equity and consolidated cash flows of the Group in accordance with the Ind AS
and other accounting principles generally accepted in India. The respective Management and Board of Directors
of the companies included in the Group are responsible for maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the each company and for preventing
and detecting frauds and other irregularities; the selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the Consolidated Financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have
been used for the purpose of the preparation of the Consolidated Financial statements by the Management and
Directors of the Holding Company, as aforesaid.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 115
In preparing the Consolidated Financial statements, Management and respective Board of Directors of the
Companies included in the Group are responsible for assessing the ability of each company to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless respective Management and Board of Directors either intends to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
The respective Board of Directors included in the Group are also responsible for overseeing the Group’s financial
reporting process of each company.
5. Auditor’s Responsibilities for the Audit of the Consolidated Financial statements
Our objectives are to obtain reasonable assurance about whether the Consolidated Financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Consolidated Financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Holding Company and its subsidiary companies which is company
incorporated in India, has internal financial controls with reference to Consolidated Financial statements and
the operating effectiveness of such controls based on our audit.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management and Board of Directors.
• Conclude on the appropriateness of Management’s and Board of Director’s use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the Consolidated Financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Consolidated Financial statements, including
the disclosures, and whether the Consolidated Financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the Consolidated Financial statements. We are responsible
for the direction, supervision and performance of the audit of the financial statements of such entities included
in the Consolidated Financial statements of which we are independent auditors. For the other entities included
in the Consolidated Financial statements, which have been audited by other auditors, such other auditors
remain responsible for the direction, supervision and performance of the audits carried out by them. We
remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the Consolidated Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Consolidated
financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) Planning
the scope of our audit work and in evaluating the results of our work; and (ii) To evaluate the effect of any identified
misstatements in the Consolidated financial statements.
We communicate with those charged with governance of the Holding Company regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

6. Other Matters
We did not audit the financial statements of the subsidiary; whose financial statements reflect total assets of Rs.
67.46 crores as at March 31, 2023 and total revenues of Rs. 8.11 crores (including other income) for the year
ended on that date, as considered in the consolidated financial statements. These financial statements have been
audited by other auditors whose reports have been furnished to us by the Management and our opinion on the
consolidated financial statements, in so far as it relates to the amounts and disclosures included in
respect of these subsidiary and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far
as it relates to the aforesaid subsidiary, is based solely on the report of the other auditor.
Our opinion on the consolidated financial statements, and our report on other legal and regulatory requirements
below, is not modified in respect of the above matters with respect to our reliance on the work done and the report
of the other auditor.
7. Report on Other Legal and Regulatory Requirements
a. With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s Report) Order,
2020 (the ‘Order’/’CARO’) issued by the Central Government in terms of Section 143(11) of the Act, to be
included in the Auditor’s report, according to the information and explanations given to us and based on the
consideration of CARO report issued by auditor of subsidiary Company which is included in the consolidated
financial statements of the Company, we report that there are no qualifications or adverse remarks in these
CARO reports.
b. As required by section 143(3) of the Act, based on our audit and on the consideration of audit reports of the
other auditors on separate financial statements of subsidiary, as audited by other auditor, as noted in the
‘Other matters’ paragraph, we report, to the extent applicable, that:
i.
We have sought and obtained, all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit of the Consolidated Financial statements.
ii.
In our opinion, proper books of account as required by law relating to preparation of the aforesaid
Consolidated Financial statements have been kept so far as it appears from our examination of those
books and the reports of the other auditors.
iii.
The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other
Comprehensive Income, the Consolidated Cash Flow Statement and Consolidated Statement of Changes
in Equity dealt with by this Report are in agreement with the relevant books of account maintained for the
purpose of preparation of Consolidated Financial statements.
iv.
In our opinion, the aforesaid Consolidated Financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Companies (India Accounting Standards) Rules, 2015,
as amended.
v.
On the basis of the written representations received from the Directors of the Holding Company as on
March 31, 2023 taken on record by the Board of Directors of the Holding Company and the report of
the statutory auditors of its subsidiary company incorporated in India, none of the directors of the Group
Companies incorporated in India is disqualified as on March 31, 2023 from being appointed as a director
in terms of Section 164 (2) of the Act.
vi.
With respect to the adequacy of the internal financial controls with reference to Consolidated Financial
statements of the Group and the operating effectiveness of such controls, refer to our separate Report
in ‘Annexure A’ which is based on the auditor’s reports of the Holding Company and its subsidiary
companies incorporated in India.
vii. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our
information and according to the explanations given to us:
a)
The Group does not have any pending litigations as at March 31, 2023 which would impact its
financial position.
b)
The Group did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses.
c)
There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Group.
c. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, in our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in accordance with the
provisions of section 197 of the Act.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 117
d. (i) The Group management has represented that to the best of its knowledge and belief, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Group to or in any other person(s) or entity(ies) including foreign entities
(intermediaries) with the understanding, whether recorded in writing or otherwise, that the intermediary
shall, whether directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Group (ultimate beneficiaries) or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.
(ii) The Group management has represented that to the best of its knowledge or belief, other than as
disclosed in the notes to the accounts, no funds have been received by the Group to or in any other
person(s) or entity(ies) including foreign entities (funding parties) with the understanding, whether
recorded in writing or otherwise, that the Group shall, whether directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate
beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures considered reasonable and appropriate in the circumstances carried out
by us and by the auditors of the subsidiary
Company, nothing has come to our notice that has caused us to believe that the representations under
sub clause (i) and (ii) of Rule ll(e) as provided under clause (d) and (e) above contain any material
misstatements
e. The Group has not declared or paid any dividend during the year and as such the compliance of section 123
of the Act has not been commented upon.

CA Richa Agarwal
Partner

Place: Mumbai
Date: May 5th,2023
UDIN: 23140606BGUMME7280

Annexure A to the Independent Auditor’s report on the Consolidated Financial statements of APAC Financial
Services Private Limited for the year ended 31 March 2023 Report
(Referred to in paragraph 8(b)(vi) under ‘Report on Other Legal and Regulatory Requirements’ section of our Independent
Auditor’s report of even date)
Report on the Internal Financial Controls with reference to Consolidated Financial statements, of APAC
Financial Services Private Limited (‘Holding Company’), under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
Opinion
We have audited the internal financial controls with reference to financial statement of APAC Financial Services Private
Limited (‘the Holding Company’) and its subsidiary company, which is a company incorporated in India, as of March 31,
2023, in conjunction with our audit of the Consolidated Financial statements of the Group for the year ended on that date.
In our opinion, to the best of our information and according to the explanations given to us, the Holding Company and its
subsidiary company, which is a company incorporated in India, have, in all material respects, an adequate internal financial
controls with reference to financial statement and such internal financial controls with reference to financial statement were
operating effectively as at March 31, 2023, based on the internal controls over financial reporting criteria established by the
respective Companies considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Holding Company and its subsidiary company, which is a company incorporated in India,
are responsible for establishing and maintaining internal financial controls based on the internal control with reference
to Consolidated Financial statements based on the internal controls over financial reporting criteria established by the
respective companies considering the essential components of internal control stated in the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective
Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information, as required under the
Act.
Auditors’ Responsibility
Our responsibility is to express an opinion on the internal financial controls with reference to Consolidated financial
statement of the Holding Company and its subsidiary company, which is a company incorporated in India, based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing prescribed under section 143(10) of
the Act to the extent applicable to an audit of internal financial controls with reference to Consolidated financial statement.
Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statement
was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to Consolidated Financial statements and their operating effectiveness. Our audit of internal financial
with reference to Consolidated Financial statements includes obtaining an understanding of internal financial controls
with reference to financial statement, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on
the auditor’s judgement, including the assessment of the risks of material misstatement of the Consolidated Financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the internal financial controls system over financial reporting of the Holding Company and its subsidiary company, which
is a company incorporated in India.
Meaning of Internal Financial Controls with reference to Financial Statement
A company’s internal financial control with reference to Consolidated Financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference
to Consolidated Financial statements includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Consolidated
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 119
Financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of
the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statement
Because of the inherent limitations of internal financial controls with reference to Consolidated Financial statements,
including the possibility of collusion or improper management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to
Consolidated Financial statements to future periods are subject to the risk that the internal financial control with reference
to Consolidated Financial statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Holding Company and its subsidiary company incorporated in India, have, in all material respects, an
adequate internal financial controls with reference to the consolidated financial statements and such internal financial
controls were operating effectively as at March 31, 2023, based on the internal financial controls with reference to
consolidated financial statements criteria established by such companies considering the essential components of such
internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India (the ‘Guidance Note’).
OTHER MATTERS
Our aforesaid report under Section 143 (3) (i) of the Act on the adequacy and operating effectiveness of the internal financial
controls over financial reporting with reference to Consolidated Financial Statements in so far as it related to subsidiary
company, is based on the corresponding report of auditors of subsidiary company

CA Richa Agarwal
Partner

Place: Mumbai
Date: May 5th, 2023
UDIN: 23140606BGUMME7280

CIN NO. U65999MH2017PTC294664
Consolidated Balance Sheet as at March 31, 2023
` in ‘000
As at As at
Particulars Note No.
March 31, 2023 March 31, 2022
ASSETS
1. Financial Assets
a. Cash & Cash Equivalents 4 3,07,651 52,386
b. Bank Balance other than (a) above 5 2,03,774 1,79,077
c. Receivables
i. Other Receivables 6 5,028 5,904
d. Loans 7 1,05,21,678 57,47,010
e. Investments 8 5,35,442 2,66,142
f. Other Financial assets 9 1,23,135 1,16,641
1,16,96,708 63,67,160
2. Non-financial Assets
a. Tax Assets (net) 10 4,223 6,327
b. Deferred Tax Assets (net) 11 23,974 32,780
c. Property, Plant and Equipment 12 23,097 16,976
d. Right-of-use asset 12 34,115 34,091
e. Other Intangible assets 13 10,811 12,989
f. Other Non-financial assets 14 32,496 21,541
1,28,716 1,24,704
TOTAL ASSETS 1,18,25,424 64,91,864
LIABILITIES AND EQUITY

LIABILITIES
1. Financial Liabilities
a. Payables
Trade Payables
i. Total outstanding dues of micro enterprises and small enterprises 15 3,795 235
ii. Total outstanding dues of creditors other than micro enterprises and small 15 15,344 8,576
enterprises
b. Borrowings (Other than debt securities) 16 67,45,961 16,87,667
c. Lease Liabilities 17 35,854 35,781
d. Other Financial liabilities 18 2,955 71,582
68,03,909 18,03,841
2. Non-Financial Liabilities
a. Provisions 19 75,516 47,495
b. Other Non-financial liabilities 20 60,667 45,434
1,36,183 92,929
3. EQUITY
a. Equity Share capital 21 30,46,559 30,43,500
b. Other Equity 22 18,38,773 15,51,594
48,85,332 45,95,094
TOTAL LIABILITIES AND EQUITY 1,18,25,424 64,91,864


UDIN:
Akhil Parikh
Company Secretary
Date: May 05, 2023 Date: May 05, 2023

APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 121
CIN NO. U65999MH2017PTC294664
Consolidated statement of Profit & Loss for the year ended March 31, 2023
` in ‘000
Particulars Note No.
2022-23 2021-22
INCOME
1. Revenue from operations
a. Interest Income 23 16,22,705 7,70,618
b. Fees and Commission Income 24 80,532 34,579
c. Net gain on derecognition of financial instruments 25 - 4,648
d. Net gain on fair value changes 26 8,648 10,462
Total Revenue from Operations 17,11,885 8,20,308
2. Other Income 27 22,970 24,556
3. Total Income (1 + 2) 17,34,855 8,44,864
EXPENSES
a. Finance Costs 28 3,65,148 67,124
b. Net loss on derecognition of financial instruments 29 1,913 -
c. Impairment on Financial Instruments 30 1,61,602 1,02,774
d. Employee Benefits Expenses 31 6,96,483 4,43,059
e. Depreciation and Amortisation 32 37,597 32,130
f. Other Expenses 33 1,44,665 78,631
4. Total Expenses 14,07,408 7,23,718
5. Profit/(Loss) before tax (3 - 4) 3,27,447 1,21,145
TAX EXPENSE
a. Current Tax 34 75,814 19,571
b. Current Tax (for earlier years) 2,523 -2,330
c. Deferred Tax (net) 34 9,420 -7,561
6. Total Tax Expenses (a+b+c) 87,757 9,680
7. Profit/(Loss) for the year (5 - 6) 2,39,689 1,11,465
OTHER COMPREHENSIVE INCOME

A. Items that will not be reclassified to profit or loss:
a. Re-measurements of the defined benefit plans -2,437 1,541
b. Income tax relating to items that will not be reclassified to profit & loss 613 -392
8. Total comprehensive income (a+b) -1,824 1,149
9. Total Comprehensive Income (7 + 8) 2,37,866 1,12,614
EARNING PER EQUITY SHARE

Basic (`) 37 0.79 0.41
Diluted (`) 37 0.78 0.41
Nominal value per share (`) 10.00 10.00

UDIN:
Akhil Parikh
Company Secretary
Date: May 05, 2023 Date: May 05, 2023


CIN NO. U65999MH2017PTC294664
Consolidated cash flow statement for the year ended March 31, 2023
` in ‘000
For the year ended For the year ended
Particulars Note No. 2022-23 2021-22
A. Cash flow from operating activities
Net Profit/(Loss) before taxes as per statement of profit and loss 3,27,447 1,21,145
Adjustments for:
Depreciation and amortisation 32 13,954 9,648
Depreciation on right of use asset 32 23,643 22,482
Loss on sale of fixed assets 33 355 1
Provision for employee stock option plan (ESOP) 31 43,318 26,252
Provision for gratuity 31 3,771 2,682
Provision for leave encashment 31 - -2,613
Provision for gratuity (OCI) -2,437 1,541
Impairment and write off on financial instruments 30 1,61,602 1,02,774
Interest expense on lease liability 28 2,827 2,399
Interest expenses on borrowings from banks & financial institutions 28 3,61,736 64,632
Income from investments 23 -8,921 -3,722
Realised gain on fair value changes 26 -7,706 -6,611
Unrealised gain on fair value changes 26 -942 5,91,200 -3,851 2,15,614
Operating profit/(loss) before working capital changes 9,18,647 3,36,759
Decrease / (Increase) in Financial & Other Assets -49,52,846 -2,347,837
Increase / (Decrease) in Financial & Other Liabilities -18,816 -49,71,662 -60,474 -24,08,311
Cash generated from (used in) operations -40,53,015 -20,71,552
Direct taxes paid (net) -76,233 -18,706
Net cash from (used in) operating activities (A) -4,129,247 -20,90,258
B Cash flow from investing activities

Purchase/sale of property, plant & equipment/ intangible assets 12 & 13 -18,252 -19,787
Bank balance other than cash & cash equivalent 5 -24,697 2,38,936
Purchase/sale of investments 8 -2,51,730 3,04,828
Net cash from (used in) investing activities (B) -2,94,680 5,23,977
C Cash flow from financing activities

Proceeds from borrowings 16 46,96,557 11,21,761
Lease liability payment 12 & 17 -26,423 -25,325
Issue of share capital 3,059 4,50,000
Premium received on share issuance 5,996 -
Net cash from (used in) financing activities (C) 46,79,190 15,46,435
Net increase/(decrease) in cash and cash equivalents (A+B+C) 2,55,263 -19,846
Cash and cash equivalents at the beginning of the year 52,388 72,235
Cash and cash equivalents at the end of the year 3,07,651 52,386
Components of Cash & Cash Equivalents 4
1,07,551 41,633
2,00,100 10,753
Total Cash & Cash Equivalents 3,07,651 52,386

UDIN:
Akhil Parikh
Company Secretary
Date: May 05, 2023 Date: May 05, 2023

APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 123
CIN NO. U65999MH2017PTC294664
Consolidated statement of changes in equity as at March 31, 2023
A: Equity Share Capital ` in '000
Particulars No. of Shares Total
Balance as at April 1, 2021 30,43,50,000 25,93,500
Add: Share issued during the year (Fully paid up) - -
Add: Shares converted in to fully paid shares - 4,50,000
Balance as at March 31, 2022 30,43,50,000 30,43,500
Add: Share issued during the year (Fully paid up) 3,05,920 3,059
Add: Shares converted in to fully paid shares - -
Balances as at March 31, 2023 30,46,55,920 30,46,559
B: Other Equity ` in '000
Reserves and Surplus OCI
Statutory Securities Employee stock Retained Re-measurements
Particulars Total
Reserve Premium option reserve Earnings of the defined
benefit plans
Balance as at April 1, 2021 32,189 14,11,900 48,887 -81,405 1,160 14,12,731
Profit / (Loss) for the year - - - 1,11,465 - 1,11,465
Other comprehensive income - - - - 1,149 1,149
Balance as at March 31, 2022 54,523 14,11,900 75,139 7,726 2,309 15,51,597
Profit / (Loss) for the year - - - 2,39,689 - 2,39,689
Security premium on exercise of - 9,349 - - - 9,349
stock options
Other comprehensive income - - - - -1,824 -1,824
Balances as at March 31, 2023 1,02,461 14,21,249 1,15,104 1,99,477 485 18,38,777
The accompanying notes form an integral part of the financial Note No.
statements 1-58

UDIN:
Akhil Parikh
Company Secretary
Date: May 05, 2023 Date: May 05, 2023


CIN NO. U65999MH2017PTC294664
Consolidated notes to the financial statements for the year ended March 31, 2023
Note 1: Nature of Operations

APAC Financial Services Private Limited ("the parent Group/holding Group/APAC FS") was incorporated under the
Companies Act, 2013 (“the Act”) on May 04, 2017. The parent Group received its Certificate of Registration ("CoR") to
carry on the business of Non Banking Financial Service ("NBFC") without accepting public deposits from Reserve Bank
of India ("RBI") on February 21, 2018.
APAC Housing Finance Private Limited ("the subsidiary/APAC HFC") was incorporated under the Companies Act, 2013
(“the Act”) on May 01, 2017. The subsidiary received its Certificate of Registration ("CoR") to carry on the business of
Hosuing Finance Institution ("HFC") without accepting public deposits from National Housing Bank ("NHB") on May 3,
2018.
The parent Group is engaged in lending to individuals, micro and small enterprises in semi urban and rural areas while
the subsidiary is engaged in lending and advancing for purchase or erection of residential house or building and loan
against property.
Note 2: Basis of Preparation
a. Statement of Compliance
The Group has adopted Indian Accounting Standards (“Ind AS”) as per the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) notified under Section 133 of the Act which confirms the generally accepted
accounting principles in India and other revelent provisions of the Act.
The Group has also complied with the guidelines issued by the RBI vide “Master Direction - Systemically Important
Non-Deposit Taking Group and Deposit Taking Group (Reserve Bank) Directions, 2016."
The consolidated financial statements are prepared based on the notified Schedule III of the Act, as amended from
time to time, for NBFC's that are required to comply with Ind AS.
The consolidated financial statements are approved by the Group's Board of Directors on May 05, 2023.
Details of the Group's accounting policies are disclosed in Note 3.
b. Historical cost convention
These consolidated financial statements have been prepared on a going concern basis following accrual system
of accounting and are in accordance with the Ind AS. Further, the consolidated financial statements have been
prepared on historical cost basis except for certain financial assets and financial liabilities which are measured at
fair values as explained in relevant accounting policies.
c. Presentation of consolidated financial statements
The Balance Sheet, the Statement of Profit and Loss and Statement of Changes in Equity, are presented in the
format prescribed under Division III of Schedule III to the Act, as amended from time to time, as required for
NBFCs.
The Group presents its balance sheet in order of liquidity. An analysis regarding recovery or settlement within
12 months from the reporting date (current) and more than 12 months after the reporting date (non–current) is
presented separately.
The consolidated financial statements comprise of consolidated financial statements of the parent company and its
subsidiary as at March 31, 2023. A Company consolidates a subsidiary when its control exists. Control is achieved
when the Company is exposed, or has rights, to variable returns from its involvement with the investee and can
affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting
rights result in control. To support this presumption and when the Company has less than a majority of the voting
or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether
it has power over an investee, including:
i. The contractual arrangement with the other vote holders of the investee,
ii. Rights arising from other contractual arrangements,
iii. The Company’s voting rights and potential voting rights and
iv. The size of the Company’s holding of voting rights relative to the size and dispersion of the holdings of the
other voting rights holders.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 125
CIN NO. U65999MH2017PTC294664
The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more elements of control. Consolidation of a subsidiary begins when the Company obtains control
over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and
expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements
from the date the Company gains control until the date the Company ceases to control the subsidiary.
Consolidated financial statements are prepared using uniform accounting policies for like transactions and other
events in similar circumstances. If a member of the Company uses accounting policies other than those adopted in the
consolidated consolidated financial statements for like transactions and events in similar circumstances, appropriate
adjustments are made to that Company member’s consolidated financial statements in preparing the consolidated
financial statements to ensure conformity with the Company’s accounting policies.
The consolidated financial statements of all entities used for the purpose of consolidation are drawn up to the same
reporting date as that of the parent company, i.e., year ended on March 31.
d. Functional and presentation currency
These consolidated financial statements are presented in Indian Rupees (Rs.), which is the Group's functional
currency. All amounts have been rounded-off to the nearest thousands, unless otherwise indicated.
e. Basis of measurement
The consolidated financial statements have been prepared on historical cost basis except for the following items:
i. Financial assets and liabilities - Fair value/amortised cost, as applicable.
ii. Liability of ESOP - Fair value.
iii. Net defined benefit (asset)/ liability - Fair value of plan assets less present value of defined benefit obligations.
f. Use of estimates
The preparation of the consolidated financial statements in conformity with Ind AS requires management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of
accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and
liabilities as on date of the consolidated financial statements and reported amounts of revenues and expenses
during the period. Application of accounting policies that require critical accounting estimates involving complex
and subjective judgments and the use of assumptions in these consolidated financial statements have been
disclosed in Note 3. Accounting estimates could change from period to period. Actual results could differ from
those estimates. Appropriate changes in estimates are made as management becomes aware of changes
in circumstances surrounding the estimates. Changes in estimates are reflected in the consolidated financial
statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the
consolidated financial statements.
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognised in the consolidated financial
statements are included in the following notes:
1. Business Model Assessment:
The Group determines its business model at the level that best reflects how it manages groups of financial
assets to achieve its business objective. Based on this assessment and future business plans of the Group,
the management has measured its financial assets at amortised cost as the assets are held within a business
model whose objective is to collect contractual cash flows, and the contractual terms of the financial asset
give rise to cash flows that are solely payments of principal and interest (the "SPPI criterion").
2. Impairment losses on financial assets:
The Group has adopted a portfolio approach to compute expected credit loss ("ECL") except for high value
loans more than Rs. 3 Crores.
3. Defined employee benefit assets and liabilities:
The cost of the defined benefit gratuity plan is the present value of the gratuity obligation as determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual

CIN NO. U65999MH2017PTC294664
developments in the future; these include the determination of the discount rate, future salary increases and
mortality rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at the end of
each reporting date.
4. Share-based payments:
Estimating fair value for share-based payment transactions requires determination of the most appropriate
valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires
determination of the most appropriate inputs to the valuation model including the expected life of the share
option, volatility and dividend yield and making assumptions about them. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at the end of each reporting date.
5. Effective Interest rate ("EIR") method:
The Group’s EIR methodology recognises interest income using a rate of return that represents the best
estimate of a constant rate of return over the expected behavioural life of loans and recognises the effect of
potentially different interest rates charged at various stages and other characteristics of the product life cycle
(including prepayments, penalty interest and charges). This estimation, by nature, requires an element of
judgement regarding the expected behaviour and life-cycle of the instruments, as well expected changes to
the Group’s base rate and other fee income/expense that are integral parts of the instrument.
The Group has apportioned the processing fee received and variable operating expenses over 4 to 7 years
as per the product category.
6. Income Tax:
The Group’s tax jurisdiction is in India. Significant judgments are involved in determining the provision for
income tax, including the amount expected to be paid/recovered for uncertain tax positions.
Note 3: Significant accounting policies
a. Revenue recognition
1. Interest Income
For all financial assets measured at amortised cost, interest income is recorded using the effective interest
rate (EIR) i.e. the rate that discounts estimated future cash receipts through the expected life of the financial
asset to the net carrying amount of the financial assets.
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any fees and
costs that are an integral part of the EIR. The Group recognises interest income using a rate of return that
represents the best estimate of a constant rate of return over the expected life of the financial instrument.
Interest on financial assets subsequently measured at fair value through profit and loss, is recognised on
accrual basis in accordance with the terms of the respective contract.
Income on assets classified as non-performing assets (Stage 3) is recognised on cash basis, in accordance
with the guidelines issued by the RBI for NBFCs. Unrealised interest recognised as income is reversed in the
month in which the asset is classified as a non-performing asset ("NPA").
2. Fee Income
Fees/charges on loan assets, other than those considered an adjustment to EIR, are accounted for on accrual
basis.
Processing fees in respect of loans given is recognised on disbursement as per the terms of the contract.
Other charges such as cheque bounce charges, late payment charges, SOA charges etc. are recognised
when there is no significant uncertainty as to determination and realisation.
3. Investment Income
Interest income on fixed deposits with banks are recognised on accrual basis. Income on investments in
NCD/CP is calculated on EIR basis.
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4. Net gain on fair value changes

Financial assets are subsequently measured at fair value through profit or loss ("FVTPL") or fair value through
other comprehensive income ("FVOCI"), as applicable. The Group recognises gains/losses on fair value
change of financial assets measured as FVTPL and realised gains/losses on derecognition of financial asset
measured at fair value.
b. Financial instrument
A financial instrument is any contract that gives rise to a financial asset in one entity and a financial liability or an
equity instrument in another entity.
1. Initial recognition and measurement:
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provision of the financial instrument and are measured initially at fair value adjusted for transactions costs,
if any, except for those carried at fair value through profit or loss which are measured initially at fair value.
Subsequent measurement of financial assets and financial liabilities is described below.
2. Classification and subsequent measurement of financial assets:
For the purpose of subsequent measurement, financial assets are classified into the following categories
upon initial recognition:
a) Amortised cost
b) Financial assets at fair value through profit or loss (FVTPL)
c) Financial assets at fair value through other comprehensive income (FVOCI)
All financial assets except for those at FVTPL or equity instruments at FVOCI are subject to review for
impairment at least at each reporting date to identify whether there is any objective evidence that a financial
asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each
category of financial assets, which are described below.
Amortised cost:
A financial asset is measured at amortised cost using EIR if both of the below conditions are met:
a) the financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows; and
b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest ("SPPI") on the principal amount outstanding. The Group’s loans and
advances, security deposits, investment, cash and cash equivalents, trade and other receivables fall in
this category.
An impairment loss allowance for expected credit losses is recognised on financial assets carried at amortised
cost.
Modification of cash flows when the contractual cash flows of a financial asset are renegotiated or otherwise
modified and the renegotiation or modification does not result in derecognition of that financial asset. The
Group re-calculates the gross carrying amount of the financial asset and recognises a modification gain or
loss in Statement of Profit or Loss. The gross carrying amount of the financial asset is recalculated as the
present value of the renegotiated or modified contractual cash flows that are discounted at the financial
asset’s original EIR. Any costs or fees incurred adjust the carrying amount of the modified financial asset and
are amortised over the remaining term of the modified financial asset.
Financial assets at FVTPL:
Financial assets at FVTPL include financial assets that either do not meet the criteria for amortised cost
classification or are equity instruments held for trading or that meet certain conditions and are designated
at FVTPL upon initial recognition. Assets in this category are measured at fair value with gains or losses
recognised in Statement of Profit or Loss. The fair values of financial assets in this category are determined
by reference to active market transactions or using a valuation technique where no active market exists.

CIN NO. U65999MH2017PTC294664
The Group’s investments into mutual funds are used for short-term cash flow management and have been
classified under this category.
Financial assets at FVOCI:
FVOCI financial assets comprise of equity instruments measured at fair value. Gains and losses are
recognised in Other Comprehensive Income ("OCI") and reported within the FVOCI reserve in Statment of
Equity, except for dividend income, which is recognised in Statement of Profit or Loss.
3. De-recognition of financial assets:
De-recognition of financial assets due to substantial modification of terms and conditions - The Group de-
recognises a financial asset, such as a loan to a customer, when the terms and conditions have been re-
negotiated to the extent that, substantially, it becomes a new loan, with the difference recognised as a de-
recognition gain or loss, to the extent that an impairment loss has not already been recorded.
De-recognition of financial assets other than due to substantial modification - Financial assets (or where
applicable, a part of financial asset or part of a group of similar financial assets) are de-recognised (i.e.
removed from the Group’s Balance Sheet) when the contractual rights to receive the cash flows from the
financial asset have expired, or when substantially all the risks and rewards are transferred. The Group also
de-recognises the financial asset if it has transferred the financial asset and the transfer qualifies for de-
recognition.
4. Classification and subsequent measurement of financial liabilities:
Financial liabilities are measured subsequently at amortised cost using the EIR method, except for financial
liabilities held for trading or designated at FVTPL, that are carried subsequently at fair value with gains or
losses recognised in Statement of Profit or Loss.
5. De-recognition of financial liabilities:
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the Statement of Profit or Loss.
c. Impairment of financial assets
1. Loan assets:
The Group follows a "three-stage" model for impairment based on changes in credit quality since initial
recognition as summarised below:
i) Stage 1 includes loan assets that have not had a significant increase in credit risk since initial recognition
or that have low credit risk at the reporting date.
ii) Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition
but that do not have objective evidence of impairment. Loans restructured as per RBI circular are
categorised under Stage 2.
iii) Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.
The ECL is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and
Stage 3 loan assets. ECL is the product of the probability of default, exposure at default and loss given
default, defined as follows:
Probability of default ("PD") - The PD represents the likelihood of a borrower defaulting on its financial
obligation, either over the next 12 months (12 months PD), or over the remaining lifetime (Lifetime PD)
of the obligation.
Loss given default ("LGD") - LGD represents the Group’s expectation of the extent of loss on a defaulted
exposure. LGD varies by type of counterparty, type and preference of claim and availability of collateral
or other credit support.
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Exposure at Default ("EAD") - EAD is based on the amount of outstanding exposure as on the
assessment date on which ECL is computed including amount guaranteed by way of letter of credit.
Forward-looking economic information is included in determining the 12-month and lifetime PD, EAD
and LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an
ongoing basis.
2. Other financial assets:
In respect of its other financial assets, the Group assesses if the credit risk on those financial assets has
increased significantly since initial recognition. If the credit risk has not increased significantly since initial
recognition, the Group measures the impairment loss allowance at an amount equal to 12-month expected
credit losses, else at an amount equal to the lifetime expected credit losses.
When making this assessment, the Group uses the change in the risk of a default occurring over the expected
life of the financial asset. To make that assessment, the Group compares the risk of a default occurring on the
financial asset as at the Balance Sheet date with the risk of a default occurring on the financial asset as at
the date of initial recognition and considers reasonable and supportable information, that is available without
undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Group
assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the
financial asset is determined to have low credit risk at the Balance Sheet date.
Write-offs:
The Group writes off financial assets basis the following parameters along with requisite internal approvals:
a. For business loans which are secured by hypothecation of current assets of and/or unsecured loans and
remain overdue for more than 180 days;
b. For business loans which are secured by property and/ or any other collateral and remain overdue for
more than 455 days.
In exceptional circumstances, the write off can be prior to the above specified period but post requisite
internal approvals only.
d. Property, plant and equipment ("PPE")
1. Recognition and initial measurement:
PPE are initially recognised at acquisition cost or construction cost, including any costs directly attributable
to bringing the assets to the location and condition necessary for it to be capable of operating in the manner
intended by the Group’s management. Subsequent costs are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Group beyond one year. Maintenance or servicing costs of PPE are
recognised in Statement of Profit and Loss as incurred.
If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on
disposal of an item of property, plant and equipment is recognised in Statement of Profit or Loss.
2. Subsequent expenditure:
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with
the expenditure will flow to the Group.
3. Depreciation:
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual
values over their estimated useful lives using the written down value method, and is generally recognised in
The Group follows estimated useful lives which are given under Part C of the Schedule II of the Companies
Act,2013. The estimated useful lives of items of property, plant and equipment for the current and comparative
periods are as follows:

CIN NO. U65999MH2017PTC294664

Leasehold Improvements 3 Years
Furniture and Fixtures 10 Years
Vehicles 5 Years
Office Equipments 5 Years
Computer 3 Years
Server 6 Years
Depreciation on additions to assets or on sale/disposal on assets is calculated pro-rata from the date of such
additions or upto the date of such sale/disposal as the case may be. All fixed assets individually costing Rs.
5,000 or less are fully depreciated in the year of installation/purchase.
The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.
PPE are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable.
4. De-recognition:
An item of PPE and any significant part initially recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of an item
of PPE is determined as the difference between the net disposal proceeds and the carrying amount of the
asset and is de-recognised in the Statement of Profit and Loss.
e. Capital work-in-progress
The cost of PPE under construction at the reporting date is disclosed as "Capital work-inprogress". The cost
comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing
the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at
the purchase price. Advances paid for the acquisition/construction of PPE which are outstanding at the Balance
Sheet date are classified under "Capital Advances."
f. Intangible asset
Intangible assets including those acquired by the Group are initially measured at cost. Such intangible assets are
subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands,
is recognised in Statement of Profit or Loss as incurred.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values over their
estimated useful lives using the written down value method, and is included in depreciation and amortisation in
Statement of Profit and Loss.
Software 5 Years
Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted
if appropriate.
g. Employee benefits
1. Short-term employee benefits:
Short-term employee benefits including salaries, profit sharing and bonuses payable within twelve months
after the end of the period in which the employees render the related services and non-monetary benefits for
current employees are estimated and measured on an undiscounted basis.
2. Post-employment benefit plans are classified into defined benefits plans and defined contribution
plans as under:
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Defined contribution plan:

The Group's contribution to provident fund are considered as a defined contribution plan and are charged
as an expense as they fall due based on the amount of contribution required to be made and when the
services are rendered by the employees.
Defined benefit plans:
Gratuity:
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The
Group's net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in the current and prior periods.
The calculation of defined benefit obligation is performed annually by a qualified actuary using the
projected unit credit method. When the calculation results in a potential asset for the Group, the
recognised asset is limited to the present value of economic benefits available in the form of any future
refunds from the plan or reductions in future contributions to the plan ("the asset ceiling"),if any. In order
to calculate the present value of economic benefits, consideration is given to any minimum funding
requirements. The Group has unfunded defined benefit plans as gratuity for all eligible employees.
Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses and the
effect of the asset ceiling (if any, excluding interest), are recognised in OCI. The Group determines the
net interest expense (income) on the net defined benefit liability (asset) for the period by applying the
discount rate used to measure the defined benefit obligation at the beginning of the annual period to
the then net defined benefit liability (asset), taking into account any changes in the net defined benefit
liability (asset) during the period as a result of contributions and benefit payments. Net interest expense
and other expenses related to defined benefit plans are recognised in Statement of Profit or Loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service ("past service cost" or "past service gain") or the gain or loss on curtailment is
recognised immediately in the Statement of Profit or Loss. The Group recognises gains and losses on
the settlement of a defined benefit plan when the settlement occurs.
h. Provisions, contingent liabilities and contingent assets
Provisions:
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past
events, and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation. When the effect of the time value
of money is material, the Group determines the level of provision by discounting the expected cash flows at a pre-
tax rate reflecting the current rates specific to the liability. The expense relating to any provision is presented in the
Statement of Profit or Loss net of any reimbursement.
Contingent liability:
A possible obligation that arises from past events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group
or present obligation that arises from past events where it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with
sufficient reliability are disclosed as contingent liability and not provided for.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future events not wholly within the control of the Group; or
• Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. In those
cases, where the outflow of economic resources as a result of present obligations is considered improbable
or remote, no liability is recognized or disclosure is made.

CIN NO. U65999MH2017PTC294664
Any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation
(such as from insurance) is recognised as a separate asset. However, this asset may not exceed the amount of
the related provision.
Contingent asset:
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group.
Contingent assets are not recognised. However, when inflow of economic benefits is probable, the related asset is
disclosed.
i. Leases:
The Group’s lease asset classes primarily consist of leases for buildings. The Group assesses whether a contract
contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Group assesses whether: i) the contract
involves the use of an identified asset, ii) the Group has substantially all of the economic benefits from use of the
asset through the period of the lease and, iii) the Group has the right to direct the use of the asset.
At the date of commencement of the lease, the Group recognises a right-of-use asset (“ROU”) and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or
less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognises
the lease payments as an operating expense on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile of these leases.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have
been classified as financing cash flows.
The discounting rate used to compute right of use assets and lease liabilities is the incremental borrowing rate of
the Group.
j. Income Tax
Tax expense recognised in Statement of Profit or Loss comprises the sum of deferred tax and current tax. It is
recognised in Statement of Profit and Loss, except when it relates to an item that is recognised in OCI or directly
in equity, in which case, tax is also recognised in OCI or directly in equity.
1. Current Tax:
Current tax is determined as the tax payable in respect of taxable income for the year, using tax rates enacted
or substantively enacted and as applicable at the reporting date, and any adjustments to tax payable in
respect of previous years.
2. Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the consolidated financial statements and the corresponding tax bases used in the computation of taxable
income.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply
to their respective period of realisation, provided those rates are enacted or substantively enacted by the end
of the reporting period. Deferred tax assets and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority.
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CIN NO. U65999MH2017PTC294664
A deferred tax liability is recognised for all taxable temporary differences. A deferred tax asset is recognised
for all deductible temporary differences to the extent that it is probable that future taxable profits will be
available against which the deductible temporary difference can be utilised. Deferred tax assets are reviewed
at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realized.
Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in
Statement of Profit or Loss, except where they relate to items that are recognised in OCI or directly in equity,
in which case the related deferred tax is also recognised in OCI or equity, respectively.
k. Borrowing Cost
Borrowing costs are interest and other costs incurred in connection with the borrowings of funds. Borrowing costs
directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time
to get ready for their intended use are capitalised as part of the cost of the asset. Other borrowings costs are
recognised as an expense in the Statement of Profit and Loss on an accrual basis using the EIR mothod.
l. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short term, highly
liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value.
m. Segment reporting- Identification of segments
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are regularly reviewed by the Management. The Group
has only one reportable business segment, i.e. lending to borrowers, which have similar nature of products and
services, type/class of customers and the nature of the regulatory environment (which is financing).
n. Earnings per share
The Group reports basic and diluted earnings per equity share in accordance with Ind AS 33 (Earnings per share).
Basic earnings per equity share is computed by dividing net profit / loss after tax attributable to the equity share
holders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings
per equity share is computed and disclosed by dividing the net profit/ loss after tax attributable to the equity share
holders for the year after giving impact of dilutive potential equity shares for the year by the weighted average
number of equity shares and dilutive potential equity shares outstanding during the year, except where the results
are anti-dilutive.
o. Cash flow statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions
of a non–cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows
from regular revenue generating, financing and investing activities of the Group are segregated. Cash flows in
foreign currencies are accounted at the actual rates of exchange prevailing at the dates of the transactions.
p. Fair value measurement
The Group measures financial instruments, such as, derivatives at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group.

CIN NO. U65999MH2017PTC294664
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant
to the fair value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
is directly or indirectly observable
is unobservable.
For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the
Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.
q. Share based payments - Employee Stock Option Scheme ("ESOP")
The fair value of options granted under Employee Stock Option Plan is recognised as an employee benefits
expense with a corresponding increase in equity. The total amount to be expensed is determined by reference
to the fair value of the options. The total expense is recognised over the vesting period, which is the period over
which all of the specified vesting conditions are to be satisfied. At the end of each period, the Group revises
its estimates of the number of options that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if any, in Statement of Profit or Loss, with a
corresponding adjustment to equity. Upon exercise of share options, the proceeds received are allocated to share
capital up to the par value of the shares issued with any excess being recorded as share premium.
ESOP's granted to employees of the wholly owned subsidiary are accounted as per Ind AS directives.
r. Commitments
Commitments are future liabilities for contractual obligations as of reporting date, classified and disclosed as
follows:
i. Estimated amount of contracts remaining to be executed on capital account and not provided for;
ii. Uncalled liability on shares and other investments partly paid;
iii. Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the
opinion of management.
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CIN NO. U65999MH2017PTC294664
` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 4: Cash & Cash equivalents
Balances with banks:
i. In current accounts 1,07,551 41,633
ii. In deposits (original maturity less than 3 months) 2,00,100 10,753
TOTAL 3,07,651 52,386
Note 5: Bank Balances other than Cash & Cash equivalents

Fixed deposit with banks 2,03,774 1,79,077
TOTAL 2,03,774 1,79,077
Note 6: Receivables
Other Receivables 5,028 5,904
TOTAL 5,028 5,904
Note 7: Loans
At amortised cost
a. Based on nature
Loan assets - Term Loan #REF!
Loans 1,05,10,851 58,12,702
TOTAL 1,05,10,851 58,12,702
TOTAL (GROSS) 1,06,34,499 58,74,888
Less: Impairment loss allowance 1,12,821 1,27,878
TOTAL (NET) 1,05,21,678 57,47,010
b. Based on region
Loans in India
- Public Sector - -
- Other 1,06,34,499 58,74,888
Loans outside India - -
TOTAL (GROSS) 1,06,34,499 58,74,888

CIN NO. U65999MH2017PTC294664
` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
TOTAL (NET) 1,05,21,678 57,47,010
c. Based on security:
Secured (Against real estate, central government garuntee, etc.) 1,05,06,099 57,74,995
Unsecured 4,752 37,707
TOTAL (GROSS) 1,06,34,499 58,74,888
TOTAL (NET) 1,05,21,678 57,47,010
Note:
a. Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income for
the Company. The carrying value may be affected by changes in credit risk of the counterparties.
b. Disclosure for transferred financial assets.
The company has derecognised certain financial assets on account of assignment without recourse. However,
the Company has retained 15% of the financial assets and below are the disclosures of assets and liabilities
associated with the continuing involvement in the financial assets
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Carrying amount of the assets that represent the Company’s continuing 31,017 45,693
involvement in the derecognised financial assets (representing 85% of the
outstanding amount)
Carrying amount of associated liabilities - -
Fair value of the assets that represent the Company’s continuing 31,017 45,693
involvement in the derecognised financial assets (representing 85% of
the outstanding amount)
Fair value of associated liabilities - -
Net position at FV - -
Gain or loss recognised for the year ended 31 March, 2023 -1,913 4,648
i. Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income
for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.
ii. The Company has not granted any loans against gold jewellery as collateral.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 137
APAC FINANCIAL
CIN NO. U65999MH2017PTC294664
ANNUAL
c. An analysis of change in the gross carrying amount and the corresponding impairment loss allowance, at un-discounted value, in relation to lending are as
SERVICES
follows:
REPORT
Loans
` in ‘000
Particulars
2022-2023
Stage 1 Stage 2 * Stage 3 Total Stage 1 Stage 2 * Stage 3 Total
Gross carrying amount - Opening Balance 53,55,389 4,47,590 80,354 58,83,333 30,40,327 5,29,076 18,034 35,87,436
New asset originated / purchased / further increase in existing 62,92,544 - - 62,92,544 37,38,825 15,457 55 37,54,336
asset / interest capitalized
Assets derecognised or repaid (excluding write offs) -13,18,823 -59,586 -14,472 -13,92,881 -13,23,824 -58,012 -1,432 -13,83,267
Amount written off -87 - -2,01,400 -2,01,487 - -41 -1,12,609 -112,650
Transfers to/(from) Stage 1 -63,157 37,150 26,007 - -1,37,528 1,23,577 13,951 -
Transfers to/(from) Stage 2 60,877 -3,20,716 2,59,839 - 10,955 -82,034 71,079 -
Transfers to/(from) Stage 3 13,438 5,763 -19,201 - -12,348 -78,929 91,277 -
Accrued Interest - Opening -66,923 -3,736 - -70,659 -27,941 -5,239 - -33,180
Accrued Interest - Closing 147,707 2,893 - 150,600 66,923 3,736 - 70,659
Grand Total 1,04,20,965 1,09,358 1,31,127 1,06,61,450 53,55,389 4,47,590 80,354 58,83,333
* Stage 2 includes Restructured Accounts
# This does not include unamortised fees and expenses
Reconciliation of impairment loss allowance is given below:
` in ‘000
Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Impairment Loss allowance - Opening Balance 26,395 87,001 14,482 1,27,878 17,718 84,150 8,921 1,10,789
Additions during the year 44,830 - 25,787 70,617 9,683 5,105 1,18,770 1,33,558
Closed cases / Write off / de-recognised / transfers - -78,154 -7,520 -85,674 -1,006 -2,254 -1,13,209 -1,16,469
Impairment Loss allowance - Closing Balance 71,225 8,847 32,749 1,12,821 26,395 87,001 14,482 1,27,878
138
CIN NO. U65999MH2017PTC294664
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 8: Investment
a. At fair value through P&L
In Mutual Funds 1,69,015 2,64,380
Add: Fair value gains/(losses) 942 1,762
TOTAL 1,69,957 2,66,142
b. At amortised cost
In Corporate Deposit 3,60,000 -
Add: Accrued interest 5,485 -
TOTAL 3,65,485 -
TOTAL (GROSS) (a+b) 5,35,442 2,66,142

Less: Impairment Loss allowance - -
TOTAL (NET) 5,35,442 2,66,142
Out of above
In India 5,35,442 266,142
Outside India - -
Note 8A: As per Para 10 of Ind AS 27, the Company has opted to value the investments in Subsidiary at cost.
Note 9: Other Financial asset

Premises deposit 16,668 10,151
Other deposit 288 111
Receivable from customers - 5,018
Fixed deposit with banks (More than 12 months original maturity) 1,06,179 1,01,361
TOTAL 1,23,135 1,16,641
Note 10: Tax Assets

Current tax assets* 4,223 6,327
TOTAL 4,223 6,327
*Includes tax deducted at source.
Note 11 : Deferred Tax Asset / (Liability) (net)

Deferred Tax Asset
Disallowances under section 43B of the Income Tax Act, 1961 2,970 1,357
Impairment of financial instruments 29,242 34,996
Derecognition of financial instruments 481 -
OCI - Re-measurements of the defined benefit plans - 34
a. Unamortized Processing Fee Received (net) 6,783 2,132
b. Amortization of ROU (Depreciation) 8,586 8,580
Deferred Tax Liability

Difference between books and tax written down value of fixed assets -847 -586
Derecognition of financial instruments - -1,170
a. Lease Liability - Rent Expenses -9,024 -9,005
b. Amortisation of processing fee paid on borrowing -14,216 -3,558
Deferred Tax Asset 23,975 32,780
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 139
CIN NO. U65999MH2017PTC294664
The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:
As at March 31, 2023:
Recognised in Recognised
Opening profit or loss in other Closing
Deferred tax asset / (liability)
balances (Expense) / comprehensive balances
Income income
Impairment of financial instruments 34,996 -5,754 - 29,242
Ind AS adjustment (effective interest rate on fee income -1,851 -6,020 - -7,871
and exp.)
Disallowances under section 43B of the Income Tax Act, 1,357 1,613 - 2,970
1961
Difference between books and tax written down value of -586 -261 - -847
fixed assets
Derecognition of financial instruments -1,170 1,651 - 481
OCI - Re-measurements of the defined benefit plans 34 -600 566 -
Deferred tax Asset 32,780 -9,371 566 23,975
As at March 31, 2022:
Recognised in Recognised
Opening profit or loss in other Closing
Deferred tax asset / (liability)
balances (Expense) / comprehensive balances
Income income
Impairment of financial instruments 23,478 11,518 - 34,996
Ind AS adjustment (effective interest rate on fee income 509 -2,360 - -1,851
and exp.)
Disallowances under section 43B of the Income Tax Act, 1,827 -470 - 1,357
1961
Preliminary expense 90 -90 - -
Difference between books and tax written down value of 45 -631 - -586
fixed assets
Derecognition of financial instruments - -1,170 - -1,170
OCI - Re-measurements of the defined benefit plans -338 728 -356 34
Deferred tax Asset 25,611 7,525 -356 32,780
Note 12: Property, Plant and Equipment (PPE), Right of Use and Capital Work-in-progress
Lease premises
Furniture Office Leasehold
Particulars Computer - Right of use Total
& Fittings Equipment improvements
Asset
As at March 31, 2021 2,549 12,802 2,894 2,111 58,962 79,318
Disposals / Transfer-out - 294 - - 22,754 23,048
As at March 31, 2022 4,050 19,220 5,158 2,111 71,304 1,01,843
Disposals / Transfer-out - 761 23 151 25,906 26,841
As at March 31, 2023 6,732 26,210 7,841 1,960 73,307 1,16,050

CIN NO. U65999MH2017PTC294664
Lease premises
Furniture Office Leasehold
Particulars Computer - Right of use Total
& Fittings Equipment improvements
Asset
As at March 31, 2021 338 5,223 826 1,590 33,966 41,943
Depreciation for the 296 4,571 669 320 24,407 30,263
year
On Disposals - 270 - - 21,160 21,430
As at March 31, 2022 634 9,524 1,495 1,910 37,213 50,776
Depreciation for the 465 5,315 1,069 83 23,643 30,575
year
On Disposals - 695 11 143 21,664 22,513
As at March 31, 2023 1,099 14,144 2,553 1,850 39,192 58,838
As at March 31, 2022 3,416 9,696 3,663 201 34,091 51,067
As at March 31, 2023 5,633 12,066 5,288 110 34,115 57,212
Note 13 :Other Intangible assets

Pariculars Software
As at March 31, 2021 13,772
Disposals / Transfer-out -
As at March 31, 2022 23,105
Disposals / Transfer-out 1,304
As at March 31, 2023 27,011
As at March 31, 2021 6,324
On Disposals -
As at March 31, 2022 10,116
On Disposals 936
As at March 31, 2023 16,200
As at March 31, 2022 12,989
As at March 31, 2023 10,811
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 141
CIN NO. U65999MH2017PTC294664
` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 14: Other Non Financial asset
Prepaid rent 1,077 1,385
Prepaid expenses 7,895 7,554
GST Input tax credit 18,728 7,036
Advance to vendors 2,376 1,702
Advance to employees 2,420 3,864
TOTAL 32,496 21,541
Note 15: Payables

Trade Payables
a. Total outstanding dues of micro and small enterprises 3,795 235
Less than 1 year 3,795 235
1 to 2 year - -
2 to 3 year - -
b. Total outstanding dues of creditors other than micro and small 15,344 8,576
enterprises
Less than 1 year 15,344 7,279
1 to 2 year - 1,297
2 to 3 year - -
TOTAL (a+b) 19,139 8,811
Note 16: Borrowing (other than debt securities)

At amortised cost
a. Term loans (secured)
i. from banks 55,04,819 13,53,683
ii. from financial institution 12,78,201 3,43,333
Accrued interest 19,309 4,788
Unamortised Processing Fee -56,485 -14,137
b. Repayable on demand (secured)
Accrued interest 117 -
TOTAL (a+b) 67,45,961 16,87,667
Borrowings in India 67,45,961 16,87,667
Borrowings outside India - -
TOTAL 67,45,961 16,87,667
Note 16.1: Borrowings from banks and financial institution are secured by specific charge on identified receivables.
The interest rates on term loan range between 8.03% and 11.1%. (As at March 31, 2022: Between 6.85% and 10.5%).
Note 16.2: The Company has not defaulted in repayment of any borrowings in FY 2022-23.
Note 16.3: Cash credit overdraft from IDFC First Bank Limited is available for withdrawal (` 15 Cr.). Current outstanding
balance is NIL.
Note 16.4: Cash credit overdraft from ICICI Bank Limited is available for withdrawal (` 5 Cr.). Current outstanding
balance is NIL.
Note 16.5: Working Capital Demand Loan from IndusInd Bank Limited is available for withdrawal (` 10 Cr.). Current
Note 16.6: Cash credit overdraft from Yes Bank Limited is available for withdrawal (` 5 Cr.). Current outstanding balance
is NIL.

CIN NO. U65999MH2017PTC294664
Note 16.7: Cash credit overdraft from Kotak Mahindra Bank Limited is available for withdrawal (` 2 Cr.). Current
Note 16.8: The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was taken.
Note 16.9: The Company has not breached any borrowing covenants during the FY 2022-23.
Note 16.10: The book debt statements submitted by the Company to banks or financial institutions are in agreement
with the books of accounts.
Note 16.11: Details of terms of redemption/repayment and security provided in respect of borrowings:
i. from Banks:
date * 2023 2022
IDFC First Bank Limited Repayable in 48 monthly installments. 48 Months 30 April 2023 75,556 1,00,000
Kotak Mahindra Bank Limited Repayable in 30 monthly installments. 30 Months 29 April 2023 2,06,603 4,13,207
Kotak Mahindra Bank Limited Repayable in 12 quarterly 36 months 30 June 2023 1,87,500 -
installments.
Kotak Mahindra Bank Limited Repayable in 12 quarterly 36 months 30 May 2023 2,08,333 -
installments.
Kotak Mahindra Bank Limited Repayable in 12 quarterly 48 months 28 June 2023 2,50,000 -
installments.
IndusInd Bank Limited Repayable in 10 quarterly 36 Months 31 May 2023 1,20,000 1,50,000
installments.
IndusInd Bank Limited Repayable in 10 quarterly installments 36 months 30 June 2023 2,25,000 -
IndusInd Bank Limited Repayable in 10 quarterly installments 36 months 31 May 2023 1,00,000 -
ICICI Bank Limited Repayable in 10 quarterly 36 Months 26 April 2023 3,95,000 1,00,000
installments.
Federal Bank Limited Repayable in 48 monthly installments. 48 Months 26 April 2023 1,97,860 -
Equitas Small Finance Bank Repayable in 36 monthly installments. 36 months 05 April 2023 1,24,800 -
Limited
Capital Small Finance Bank Repayable in 48 equated monthly 48 months 30 April 2023 1,82,714 -
Limited installments.
Yes Bank Limited Repayable in 33 equated installments 36 months 01 April 2023 4,36,364 -
CSB Bank Limited Repayable in 16 quarterly installments 54 months 25 October 3,00,000 -
after 6 months of moratorium. 2023
DCB Bank Limited Repayable in 33 monthly installments 36 months 31 May 2023 2,50,000 -
Bandhan Bank Limited Repayable in 15 quarterly installments 48 months 01 October 6,00,000 -
after 3 months of moratorium. 2023
HDFC Bank Limited Repayable in 48 monthly installments. 48 months 27 April 2023 2,50,000 -
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 143
CIN NO. U65999MH2017PTC294664
ii. from Financial Institution:
date * 2023 2022
Tata Capital Financial Repayable in 48 monthly 48 Months 10 April 2023 2,23,959 -
Services Limited installments.
STCI Finance Limited Repayable in 48 monthly 48 Months 30 April 2023 2,50,000 -
installments.
Small Industrial Repayable in 9 monthly 11 Months NA - 2,00,000
Development Bank of installments.
India
Small Industrial Repayable in 10 quarterly 36 Months 10 June 2023 4,00,000 -
Development Bank of installments after 6 months of
India moratorium.
Small Industrial Repayable in 10 quarterly 36 Months 10 July 2023 3,00,000 -
Development Bank of installments after 6 months of
India moratorium.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Note 17: Lease Liabilities
Lease Liabilities 35,854 35,781
TOTAL 35,854 35,781
Maturities of lease liabilities as at year end:
Upto 1 year 2,083 8,226
1 to 3 years 27,008 25,048
3 to 5 years 6,763 2,507
TOTAL 35,854 35,781
Note 18: Other Financial liabilities

Book Overdrafts - 62,590
Other Payables 2,364 5,113
Salary, Bonus and Reimbursement Payable 591 3,878
TOTAL 2,955 71,582
Note 19: Provision
Provision for employee benefits:
a. Gratuity 11,800 5,592
b. Bonus 57,494 37,560
Other Provisions 5,647 3,908
Impairment loss allowance on undisbursed loan commitment 575 435
TOTAL 75,516 47,495
Note 20: Other Non Financial liabilities
Advance from Customers 30,781 29,145
Statutory Liabilities 29,886 16,289
TOTAL 60,667 45,434

CIN NO. U65999MH2017PTC294664
Note 21: Equity Share Capital ` in ‘000

As at As at
Particulars
March 31, 2023 March 31, 2022
Authorised
30,60,00,000 (As at March 31, 2022: 30,60,00,000) Equity shares of ` 10/- 30,60,000 30,60,000
each.
175,00,000 (As at March 31, 2022: 175,00,000) 0.01% Compulsorily 1,75,000 1,75,000
convertible preference shares of ` 10/- each.
Issued, Subscribed and Fully Paid-up
30,46,55,920 (P.Y. 30,43,50,000) Equity Shares of ` 10/- each 30,46,559 30,43,500
TOTAL 30,46,559 30,43,500
A. Reconciliation of no. of shares and amount outstanding: ` in ‘000
Particulars
No. of Shares Amount No. of Shares Amount
Equity shares at the beginning of the period 30,43,50,000 30,43,500 30,43,50,000 25,93,500
Add: Shares issued during the period (ESOP 3,05,920 3,059 - -
exercised)
Add: Shares converted into fully paid shares - - - 4,50,000
Equity shares at the end of the period 30,46,55,920 30,46,559 30,43,50,000 30,43,500
Rights, preferences and restrictions attached to shares:
The Company has one class of equity shares having a par value of ` 10 per share. Each shareholder is eligible for
one vote per share held. The dividend as and when proposed by the Board of Directors is subject to the approval of
the shareholders in the ensuing Annual Ze the remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
B. Promoters’ shareholding:
Particulars No. of shares % of total shares % Change
Gunit Chadha 15,96,16,665 52.39% -0.06%
Gunit Chadha 15,96,16,665 52.45% 8.61%
C. Shareholders holding more than 5% of the equity shares:

Name of Shareholder No. of Shares No. of Shares
% of Holding % of Holding
held held
Gunit Chadha 15,96,16,665 52.39% 15,96,16,665 52.45%
Plenty Private Equity Fund I Limited 11,12,17,750 36.51% 11,12,17,750 36.54%
TOTAL 27,08,34,415 88.90% 27,08,34,415 88.99%
Note 22: Other Equity ₹ in '000

As at As at
Particulars
March 31, 2023 March 31, 2022
Retained earnings 1,99,474 7,723
Other comprehensive income 485 2,309
Securities premium reserve 14,21,249 14,11,900
Statutory reserve 1,02,461 54,523
Employee stock options 1,15,104 75,139
TOTAL 18,38,773 15,51,594
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 145
CIN NO. U65999MH2017PTC294664
i) Statutory reserve:
As per Section 45-IC of the Reserve Bank of India Act, 1934, the Company is required to create a reserve fund at the
rate of 20% of the net profit after tax every year.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Transferred from surplus in the Statement of Profit and Loss 47,938 22,334
ii) Security premium reserve:
Securities premium is used to record the premium received on the issuance of shares. It can be utilised for limited
purposes in accordance with the provisions of the Companies Act, 2013.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 14,11,900 14,11,900
Preimum received on exercise of employee stock options 9,349 -
Closing balance 14,21,249 14,11,900
iii) Employee stock options:
Employee stock options are created as per the requirements of Ind AS 102 - Share Based Payments. The Company
operates an Employee Stock Option Scheme for the employees in the Group.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Net profit for the year 43,318 26,252
Transfer to statutory reserve -3,353 -
iv) Retained earnings:

Retained earnings are the accumulated profits of the Company carried forward from earlier years. These reserves are
free reserves which can be utilised for any purpose as may be required.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening balance 7,723 -81,405
Net profit for the year 2,39,689 1,11,462
Transfer to statutory reserve -47,938 -22,334
v) Other comprehensive income:
Other comprehensive income comprise of actuarial gain or loss on remeasurement of the net defined benefit liabilities
of the Company.
` in ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
Remeasurements of defined benefit asset/ (liability) -1,824 1,149
Closing balance 485 2,309

CIN NO. U65999MH2017PTC294664
` in ‘000
Particulars
2022-23 2021-22
Note 23: Interest Income
(On financial assets measured at amortised cost)
Interest on loan portfolio 15,96,168 7,41,569
Interest on fixed deposits 17,616 25,327
Interest on investment 8,921 3,722
TOTAL 16,22,705 7,70,618
Note 23.1: Loan origination income included in “Interest on loan portfolio” is

net of loan origination cost associated with the origination of the underlying
loans. For the year ended March 31, 2023, ` 1.9 Cr. was adjusted. (For year
ended March 31, 2022: ` 0.9 Cr.)
Note 24: Fee Income

Fees and other charges from customers 80,532 34,579
TOTAL 80,532 34,579
Note 25: Net gain on derecognition of financial instruments

(On financial asset measured at amortised cost)
On assignment of portfolio - 4,648
TOTAL - 4,648
Note 26: Net gain/(loss) on fair value changes

i.Net gain/(loss) on financial instruments at amortised cost In NCD - 121
ii.Net gain/(loss) on financial instruments at fair value through profit and
loss (FVTPL)
On trading portfolio
In Mutual Funds 8,648 10,341
TOTAL 8,648 10,462
Fair value changes
Realised 7,706 6,611
Unrealised - Mark to market gain 942 3,851
TOTAL 8,648 10,462
Note 27: Other Income

Other non-operating income 21,703 23,962
Notional interest income on security deposit 1,234 594
Interest on income tax refund 33 -
TOTAL 22,970 24,556
Note 28: Finance Cost

Interest on borrowings from bank & financial institution 3,61,736 64,632
Interest on lease liabilities 2,827 2,399
Interest on late payment of statutory liabilities 472 93
Other finance cost 113 -
TOTAL 3,65,148 67,124
Note 29 : Net loss on derecognition of financial instruments

On assignment of portfolio 1,913 -
TOTAL 1,913 -
Note 30: Impairment on financial instruments

Loans written off (net) 1,76,519 85,354
Impairment loss allowance on loans -14,917 17,420
TOTAL 1,61,602 1,02,774
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 147
CIN NO. U65999MH2017PTC294664
` in ‘000
Particulars
2022-23 2021-22
Note 31: Employee Benefit Expense
Salaries, bonus and incentives 5,75,571 3,66,946
Contribution to provident and other funds 56,085 39,485
Share based payments to employee (Refer Note No. 44) 43,318 26,252
Reimbursements & staff welfare expenses 17,738 10,307
Gratuity (Refer Note No. 41) 3,771 2,682
Leave salary - -2,613
TOTAL 6,96,483 4,43,059
Note 32: Depreciation & Amortisation Expense

Depreciation on right of use asset 23,643 22,482
Amortisation on intangible assets 7,021 3,792
Depreciation on tangible assets 6,933 5,856
TOTAL 37,597 32,130
Note 33: Other Expenses

Legal and professional charges 39,497 26,152
Travelling & conveyance costs 21,759 10,487
GST reversal expenses 19,561 8,574
IT related costs 16,487 5,982
Rent, taxes and energy costs 15,212 5,619
CGTMSE fee expenses 6,884 5,112
Printing and stationery 5,405 3,685
Communication costs 5,033 3,841
Housekeeping services 2,665 1,951
Director’s remuneration 1,805 625
Corporate social responsibility (Refer Note 33.2) 1,778 400
Auditors' remuneration (Refer Note 33.1) 1,506 1,185
Repairs and maintenance 1,221 807
ROC filing fees and Stamp duty 724 537
Membership fees 514 634
Loss on sale of assets/Transfer of assets 355 5
Advertisement and publicity 153 75
Miscellaneous expenses 4,106 2,960
TOTAL 1,44,665 78,631
Note 33.1: Other Expenses

For statutory audit 1,131 802
For taxation audit 200 163
For other services (Certifications, etc.) 175 220
TOTAL 1,506 1,185

CIN NO. U65999MH2017PTC294664
` in ‘000
Particulars
2022-23 2021-22
Note 33.2: Corporate social responsibility
(i) Amount required to be spent during the year 1,764 389
(ii) Amount of expenditure incurred 1,778 400
(iii) Shortfall at the end of the year - -
(iv) Total of previous years shortfall - -
(v) Reason for shortfall NA NA
(vi) Nature of CSR activities:
i. Contribution was made to Cuddles Foundation in order to help children
with cancer receive nourishing meals, supplements, counseling and career
training.
ii. In order to upskill and enhance the young talent pool, the Government of
India introduced NAPS (""National Apprenticeship Promotion Scheme"") in
August 2016. The Company has hired apprentices and paid stipends under
the NAPS during FY 2022-23.
(vii)Details of related party transactions - -
(viii)Where a provision is made with respect to a liability incurred by entering - -
into a contractual obligation, the movements in the provision during the year
Higher of i. or ii. 1,778 400
Note 34: Tax Expense

Income tax 75,814 19,571
Changes in estimates related to prior years 2,523 -2,330
Deferred tax (Refer Note 11) 9,420 -7,561
TOTAL 87,757 9,680
Profit/ (Loss) before tax 3,27,447 1,21,145

Tax at applicable tax rate @ 25.17% 82,418 30,492
Tax on non-deductible expenditure 782 -20,811
Utilisation of previously unrecognised tax 2,523 -2,330
Tax on Others 2,033 2,329
Tax expense 87,756 9,680
Effective tax rate 26.80% 7.99%
Note 35: Maturity analysis of assets and liabilities

The table below shows the maturity analysis of assets and liabilities according to when they are expected to be recovered
or settled.
` in '000
Particulars
Current Non-current Total Current Non-current Total
Financial assets
Cash & Cash Equivalents 3,07,651 - 3,07,651 52,386 - 52,386
Bank Balance other than (a) 2,03,774 - 2,03,774 1,79,077 - 1,79,077
above
Receivables 2,293 2,735 5,028 5,904 - 5,904
Loans 13,19,156 92,02,522 1,05,21,678 8,03,472 49,43,538 57,47,010
Investments 5,35,442 - 5,35,442 2,66,142 - 2,66,142
Other Financial assets 1,13,245 9,890 1,23,135 1,01,810 14,831 1,16,641
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 149
CIN NO. U65999MH2017PTC294664
` in '000
Particulars
Current Non-current Total Current Non-current Total
Non financial assets
Tax assets - 4,223 4,223 - 6,327 6,327
Deferred tax Assets - 23,975 23,975 - 32,780 32,780
Property, Plant and - 23,098 23,098 - 16,976 16,976
Equipment
Right-of-use asset 1,796 32,319 34,115 9,869 24,222 34,091
Other Intangible assets - 10,809 10,809 - 12,989 12,989
Other non-financial assets 31,494 1,002 32,496 20,935 606 21,541
Total Asset 25,14,851 93,10,573 1,18,25,424 14,39,595 50,52,269 64,91,864
Liabilities
Financial Liabilities
Payables
i. Total outstanding dues of 3,795 - 3,795 235 - 235
micro enterprises and small
enterprises
ii. Total outstanding dues 15,344 - 15,344 8,576 - 8,576
of creditors other than
micro enterprises and small
enterprises
Borrowings (Other than Debt 22,27,506 45,18,455 67,45,961 6,72,620 10,15,047 16,87,667
Securities)
Lease Liability 2,083 33,771 35,854 8,226 27,555 35,781
Other financial liabilities 2,955 - 2,955 71,582 - 71,582
Non financial Liabilities

Provisions 65,226 10,290 75,516 41,909 5,586 47,495
Other non-financial liabilities 60,667 - 60,667 45,434 - 45,434
Total Liabilities 23,77,576 45,62,516 69,40,092 8,48,582 10,48,188 18,96,770
Note: Classification of financial asset and liabilities are based on Management estimates and assumptions and auditors
have relied on it.
Note 36: Contingent Liability & Commitments
` in '000
Particulars
2023 2022
a. Contingent Liability 810 -
b. Capital Commitments
Undrawn committed sanctions to borrowers 96,173 91,433
Total 96,984 91,433

CIN NO. U65999MH2017PTC294664
Note 37: Earning per equity share

Basic and diluted earnings per share is calculated by dividing the net profit or loss for the year attributable to the equity
shareholders, by the weighted average number of equity shares outstanding as at the end of the year.
Particulars
2023 2022
Profit for the year (Rs. in '000) 2,39,689 1,11,465
Weighted average number of equity shares outstanding during the year for 30,43,65,086 27,31,58,219
calculation of basic EPS
Face value per share (In Rs.) 10.00 10.00

Basic earning per share (In Rs.) 0.79 0.41
Diluted earning per share (In Rs.)* 0.78 0.41
Note 38: Details of dues to micro, small and medium enterprises

“Micro, Small and Medium Enterprises Development Act, 2006, (“”MSMED Act””) came into force from October 2, 2006.
The act requires certain disclosures relating to amount due to Micro, Small and Medium enterprises.
The Company has sent letters to suppliers to confirm whether they are covered under MSMED Act and have filed
required returns with the prescribed authorities. Based on the confirmations received, the outstanding amounts payable
to vendors covered under Micro, Small and Medium Enterprises Development Act 2006 are given below:”
` in '000
As at March As at March
Particulars
31, 2023 31, 2022
The principal amount and the interest due thereon (to be shown separately) remaining
unpaid to any supplier as at the end of each accounting period
-Principal 3,795 235
-Interest 113 -
The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and - -
Medium Enterprises Development Act, 2006, along with the amount of the payment
made to the supplier beyond the appointed day during each accounting year;
The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under the Micro, Small and Medium Enterprises
Development Act, 2006;
The amount of interest accrued and remaining unpaid at the end of each accounting - -
year; and
The amount of further interest remaining due and payable even in the succeeding - -
years, until such date when the interest dues above are actually paid to the small
enterprise, for the purpose of disallowance of a deductible expenditure under section
23 of the Micro, Small and Medium Enterprises Development Act, 2006.
Total 3,908 235
Note 39: Segment Information

“An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses relating to transactions with other components of
the same entity), whose operating results are regularly reviewed by the Company’s Chief Operating Decision Maker
(“”CODM””) to make decisions about resources to be allocated to the segment and assess its performance, and for
which discrete financial information is available. All operating segments’ operating results are reviewed regularly by
the Company’s Managing Director (“”MD””) to make decisions about resources to be allocated to the segments and
assesses their performance. MD is considered to be the CODM within the purview of Ind AS 108 - Operating Segments.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 151
CIN NO. U65999MH2017PTC294664
The Company is primarily engaged in the business of lending which has similar nature of products and services, type/
class of customers and the regulatory environment. The CODM reviews the operating results of the Company on a
holistic basis; therefore there is only one reportable segment to be disclosed as per Ind AS 108 - Operating Segments.
The Company does not operate in any seperate geographical segment other than India and as such has only one
reportable segment under Ind AS 108 - Operating Segments.”
Note 40: Related Party Transaction
S.
Nature of Relationship Name of Related Party
No.
A Holding Company APAC Financial Services Private Limited
B Key Management Personnel ("KMP") Mr. Gunit Chadha, Managing Director
Mr. Akhil Parikh, Company Secretary (From September 5, 2022)
Mr. Anand Asawa, Company Secretary (Till September 2, 2022)
C Non Executive Directors Mr. Sanjay Pushpendra Maliah, Director
Ms. Nithya Easwaran, Director
Mr. Sanjay Arvind Athalye, Additional Independent Director
Mr. Neeraj Bhushan Bhai, Additional Independent Director
D Relatives of KMP Ms. Mehak Chadha
` in '000
S. As at March 31, As at March 31,
Particulars
No. 2023 2022
a. Remuneration to KMP (including perqusites and retirement benefits) 98,606 43,001
b. Remuneration to Non Executive Directors (Sitting fees to Independent 1,805 625
Directors)
c. Amount payable:
Remuneration to Non Executive Directors (Sitting fees to Independent -270 -
Directors)
Note:
1. The remuneration to the key managerial personnel does not include the provisions made for gratuity benefits, as
they are determined basis actuarial valuation for the Company as a whole.
2. Related party relationship is identified by the Company and relied upon by the auditors.
3. The transactions with related parties are disclosed only till the relationship exists.
4. As per the Related Party Transactions Policy, all transactions are in the ordinary course of business and at arms
length.
Note 41: Employee Benefits

41A. Defined contribution plan:
The Company makes a contribution, determined as a specified percentage of employees salaries, towards Employees’
Provident Fund (“PF”) and Employees’ State Insurance Scheme (“ESIS”) which are defined contribution plans, for
qualifying employees. The Company has no obligation other than to make specified contributions. The contributiuons
are charged to Statement of Profit & Loss as and when they accrue. The amount recognised towards PF contributions
for the year 2022-23 is ` 5.22 Cr. (for the year 2021-22 is ` 3.67 Cr.) and towards contribution to ESIS for the year 2022-
23 is ` 0.36 Cr. (for the year 2021-22 is ` 0.27 Cr.).

CIN NO. U65999MH2017PTC294664
41B. Defined benefit plan - Gratuity:

“The Company operates a defined benefit plan covering eligible employees. The plan is governed under the Payment of
Gratuity Act, 1972. As per the Act, an employee who has completed five years of continued service is entitled to specific
benefit. The level of benefit depends on the member’s length of service and salary at retirement age/ resignation date.
The liability under the Payment of Gratuity Act, 1972 is determined on the basis of an actuarial valuation made at the
end of each financial year using the Projected Unit Credit Method.
Valuation is performed on a certain basic set of predetermined assumptions and other regulatory frameworks which
may vary over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as
follows:”
Interest rate risk: The plan exposes the Company to the risk of downward movement in interest rates. A downturn
in interest rates will result in an increase in the ultimate cost of providing the above benefit and will in turn result in an
increase in the value of the liability (as shown in financial statements).
Liquidity risk: This is the risk that the Company will not able to meet its short-term gratuity payouts. This may arise
due to non-availabilty of cash/cash equivalents to meet the liabilities or the Company’s unability to dispose of its illiquid
assets in time or exit of employees with higher salary and/or long durations.
Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in obligation at a rate that is higher than expected.
Demographic risk: The Company has used a mortality and attrition assumptions in valuation of its liability. This exposes
the Company to the risk of actual experience turning out to be worse then assumed causing an increase in the obligation.
Regulatory risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in
the maximum limit on gratuity of ` 20,00,000).
Details of acturial valuation of gratuity pursuant to Ind AS 119:
The following table shows a reconciliation from the opening balance to the closing balance for the net defined benefit
asset/ (liability) and its components:
` in '000
Particulars
2023 2022
Balance Sheet position:
Present value of obligation 11,800 5,592
Fair value of plan assets - -
Surplus/(Deficit) -11,800 -5,592
Effects of asset ceiling, if any - -
Net asset/(liability) -11,800 -5,592
Changes in Present value of obligations:

Present value of obligation at the beginning 5,592 4,649
Interest cost 309 261
- experience variance (i.e. actual experience vs assumptions) 2,527 -969
Benefits paid - -199
Present value of obligation as at the end 11,800 5,592
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 153
CIN NO. U65999MH2017PTC294664
` in '000
Particulars
2023 2022
Expenses to be recognised in Statement of Profit & Loss
Losses/(gain) on settlement - -
Net interest cost/(income) on the net defined benefit obligation/(asset) 309 261
Expenses recognised in Statement of Profit & Loss 3,771 2,683
Remeasurements recognised in Other Comprehensive Income:

- experience variance (i.e. actual experience vs assumptions) 2,527 -969
Amount recognised in Other Comprehensive Income 2,437 -1,541
Assumptions:
Discounting rate 7.15% 5.55%
Salary growth rate 10.00% 10.00%
Attrition/Withdrawal rates, based on age (per annum)
Sales 50.00% 50.00%
Non-sales 25.00% 30.00%
Normal retirement age 60 Years 60 Years
Mortality table 100% of IALM 100% of IALM
2012-14 2012-14
Sensitivity Analysis-
The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions
occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity
analysis is given below:
` in '000
Particulars As at March 31, As at March 31,
2023 2022
Discount rate:
1% increase 11,344 5,367
1% decrease 12,290 5,833
Salary growth rate:
1% increase 12,272 5,821
1% decrease 11,351 5,374
Attrition rate:
20% increase 10,863 4,705
20% decrease 12,974 6,694
Mortality rate:
20% increase 11,813 5,602
20% decrease 11,787 5,583

CIN NO. U65999MH2017PTC294664
Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
Effect of plan on Company’s future cash flow:
a) Funding arrangements and funding policy:
The scheme is managed on unfunded basis.
b) Expected contribution during the next annual reporting period:
The Company's best estimate of contribution during the next year* -

*Since the scheme is unfunded, the next years’ contribution is taken as NIL.
c) Maturity profile of defined benefit obligation:
Weighted average duration (based on discounted cashflows) 4 years

Expected cash flows over the next (valued on undiscounted basis): ` in '000
1 year 2,084
2 to 5 years 8,322
6 to 10 years 4,137
More than 10 years 1,758
41C. The Parliament has approved the Code on Social Security, 2020 (‘Code’) which may impact the contribution by
the Company towards Provident Fund & Gratuity. The effective date from which the Code and its provision would be
applicable is yet to be notified and the rules which would provide the details based on which the financial impact can
be determined are yet to be framed after which the financial impact can be ascertained. The Company will complete its
evaluation and will give appropiate impact, if any, in the financial results following the Code becoming effective and the
related rules being framed and notified.
Note 42: Fair Value Measurement
The following table combines comparable information about:
a. classes of financial instruments based on their nature and characteristics.
b. the carrying amounts of financial instruments.
c. fair values of financial instruments (except financial instruments when carrying amount approximates their fair
value) and
d. fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed.
The carrying value and fair value of financial instruments by categories as of March 31, 2023 were as
follows:
` in '000
Fair value
Total
Amortised through
Particulars Other carrying
cost profit and
value
loss
Assets:
Loans 1,05,21,678 - - 1,05,21,678
Investments 3,65,486 1,69,957 - 5,35,443
Total 1,15,26,752 1,69,957 - 1,16,96,709
Liabilities:
Total 67,68,055 - - 67,68,055
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 155
CIN NO. U65999MH2017PTC294664
The carrying value and fair value of financial instruments by categories as of March 31, 2022 were as
follows:
` in '000
Fair value
Total
Amortised through
Particulars Other carrying
cost profit and
value
loss
Assets:
Loans 57,47,010 - - 57,47,010
Investments - 2,66,142 - 2,66,142
Total 61,01,017 2,66,142 - 63,67,159
Liabilities:
Total 17,68,060 - - 17,68,060
The Company determines fair values of its financial instruments according to the following hierarchy:
Level 1: Valuation based on quoted market price - Financial instruments with quoted prices for identical instruments in
active markets that the Company can access at the measurement date.
Level 2: Valuation based on using observable inputs - Financial instruments with quoted prices for similar instruments
in active markets or quoted prices for identical or similar instruments in inactive markets or financial instruments valued
using models where all significant inputs are observable.
Level 3: Valuation technique with significant unobservable inputs – Financial instruments valued using valuation
techniques where one or more significant inputs are unobservable.
Quantitative disclosures of fair value measurement hierarchy for assets as at March 31, 2023:
` in '000
Particulars
(Level 1) (Level 2)* (Level 3)
Investments at amortised cost March 31, 2023 - 3,65,485 -
*The amount shown is corporate deposit with short term maturity, the carrying amount is a reasonable approximation
of fair value.
Quantitative disclosures of fair value measurement hierarchy for assets as at March 31, 2022:
` in '000
Particulars
(Level 1) (Level 2) (Level 3)

CIN NO. U65999MH2017PTC294664
Note 43: Disclosure as required under Ind AS 116 - Leases

1. Amount recognised in Balance Sheet: ` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Right of use assets (net) 34,113 34,089
Lease liabilities
Current 2,083 8,226
Non-current 33,771 27,556
2. Amount recognised in Statement of Profit and Loss: ` in '000

March 31, 2023 March 31, 2022
Depreciation charge for right of use asset 23,643 22,482
Interest expense (included in finance cost) 2,827 2,399
Expense related to short term leases 9,629 360
3. Cash Flows ` in '000

March 31, 2023 March 31, 2022
Total cash outflow on leases 32,120 23,704
Note 44: Stock Options

The Group has institutionalised the Employee Stock Option Plan (“”ESOP””) with an objective to reward employees for
their association with the Group and its subsidiary, their performance, as well as to attract, retain and reward employees
to contribute towards the growth and profitability of the Group.
The Group views its ESOP as an instrument that would enable the employees to get a share (or cash, at the discretion
of the Board), in the value they created and will continue to create in the years to come.
The “APAC Employee Stock Option Plan 2018” (“ESOP 2018”) was approved in the Company’s First Annual General
Meeting (“AGM”) held on July 19, 2018. Stock options under this scheme were also granted to employees of its subidiary
to attract, reward, and retain them, as per the terms of this scheme. The Company uses fair value to account for the
compensation cost of stock options to employees in the financial statement.
A. Summary of the ESOP Scheme:
The position of the existing schemes is summarised as under:
S.No. Particulars APAC Employee Stock Option Plan 2018
1 Date of shareholder's approval July 19, 2018
2 Total number of options approved under the plan Maximum 10% of the paid up capital
3 Vesting requirement Time based vesting
4 Exercise price or pricing formula Exercise Price of Pool I and Pool II are fixed as ` 10 and
` 20, respectively. Exercise Price of options granted in
Pool III is ` 29.60.
5 Maximum term of options granted 7 years from the date of grant
6 Source of shares Primary
7 Variation in terms of the plan Not applicable
8 Method used to account for ESOP Fair value method
9 Other details Annexure 1
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 157
CIN NO. U65999MH2017PTC294664
B. Option movement during the year: ` in ‘000

Weighted
Weighted Avg.
S.No. Particulars FY 2022-23 FY 2021-22 Avg. Exercise
Exercise Price
Price
1 Options outstanding at the beginning of the 1,17,95,000 27.38 1,03,00,000 19.76
year
2 Number of options granted during the year 35,63,500 34.52 48,90,000 32.95
3 Options forfeited/surrendered during the year 9,65,000 22.71 33,95,000 25.70
4 Options vested during the year 14,65,500 29.60 - NA
5 Options exercised during the year 3,05,920 29.60 - NA
6 Options lapsed during the year - NA - NA
7 Total number of shares arising as a result of 3,05,920 29.60 - NA
exercise of options
8 Money realised by exercise of options 90,55,232 29.60 - NA
9 Options outstanding at the end of the year 1,40,87,580 29.16 1,17,95,000 27.38
10 Options exercisable at the end of the year 1,17,830 29.60 - NA
11 Weighted average remaining life 3.37 NA 3.50
The weighted average Market Price of options exercised 31.22 NA
during the year
C. Weighted average exercise price of options granted during FY 2022-23 whose:

D. Weighted average fair value of options granted during 2022-23 whose:

E. Method and assumptions used to estimate the fair value of options granted during the year:
a. The fair value has been calculated using the Black Scholes Option Pricing model.
b. The assumptions used in the model are as follows:
ESOP 2018
S.No. Variables
(Weighted Avg.)
1. Risk free interest rate 6.94%
2. Expected life 4.25
3. Expected volatility 44.37%
4. Dividend yield NIL
5. Price of the underlying share in market at the time of the option grant.(Rs.) 34.50
Other Assumptions:
a. Stock price: The stock price as on the date of grant is based on the Share Valuation Report of an Independent
Valuer (as per information provided by the Company).
b. Volatility: The historical volatility over the expected life has been considered to calculate the fair value.
c. Risk-free rate of return: The risk-free interest rate being considered for the calculation is the interest rate applicable
for a maturity equal to the expected life of the options based on the zero-coupon yield curve for Government
Securities.
d. Exercise price: Exercise price of each specific grant has been considered.
e. Time to Maturity: Time to maturity/Expected life of options is the period for which the Company expects the
options to be live.
CIN NO. U65999MH2017PTC294664
f. Expected divided yield: Expected dividend yield has been calculated as an average of dividend yields for five
financial years preceding the date of the grant.
Note 45: Capital Management

The primary objectives of the Group’s capital management policy is to ensure that the Group has adequate funds
to support its growth plans, ensure compliance with externally imposed capital requirements (including regulatory
requirements), maintaining strong credit rating and healthy capital ratios.
The Group manages its capital structure and makes adjustments to it according to changes in economic conditions and
the risk characteristics of its activities. No changes have been made to the objectives, policies and processes from the
previous year, however, they are constantly reviewed by the Board.
Debt to Net Worth ratio:
The Group monitors its capital using debt to net worth ratio (also known as leverage ratio).
Net worth for this purpose is computed as shareholders funds’ less intangible asset less deferred tax asset less
unrealised gain on financial instruments less prepaid expenses.
` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Debts* 68,02,446 17,01,804
Net worth 48,38,975 45,33,274
Debt to Net worth 1.41 0.38
* includes interest accrued but not due.
Capital adequacy ratio (“CRAR”):
The Group is required to comply with the capital adequacy requirements stipulated by RBI from time to time. RBI has
set a floor of 15% to be maintained by all NBFCs as their capital adequacy ratio.
This ratio is computed by dividing the Group’s Tier I & Tier II capital with risk weighted assets. Tier I capital comprises of
the Group’s net owned funds while Tier II capital comprises of the provision on standard asset (Stage 1). Risk weighted
assets represents the weighted sum of the Group’s credit exposure On & Off balance sheet.
` in '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Tier I 48,38,975 45,33,274
Tier II 71,225 26,395
Total Capital Funds 49,10,200 45,59,669
Risk Weighted asset 1,12,65,383 62,33,979
CRAR % 43.59% 73.14%
CRAR - Tier I Capital % 42.95% 72.72%
CRAR - Tier II Capital % 0.63% 0.42%
Note 46: Operational Risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from external
events. Operational risk is associated with human error, system failures and inadequate procedures and controls. It is the
risk of loss arising from the potential that inadequate information system; technology failures, breaches in internal controls,
fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or reputation problems.
Operational risk exists in all products and business activities. The Group cannot expect to eliminate all operational
risks, but it endeavours to manage these risks through a control framework and by monitoring and responding to
potential risks.Controls include effective segregation of duties, access, authorisation and reconciliation procedures, staff
education and assessment processes.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 159
CIN NO. U65999MH2017PTC294664
Note 47: Financial risk management

The Company’s activities exposes it to variety of financial risks, as listed below apart from various operating and
business risks:
a. Credit risk,
b. Liquidity risk and
c. Interest rate risk.
This note explains the sources of risk which the Company is exposed to and how it manages these risks.
A. Credit Risk: Credit risk is the possibility of loss resulting from diminution of borrower’s credit quality leading to failure
of borrowers to make repayment of their outstanding loan obligations, in full or in part.
The Group manages the credit risks by assessing each proposal using an approved product program under a Board
approved credit risk policy. These product programs are approved by the APAC Credit Committee which consists of the
Managing Director, Executive Director, Group General Counsel, Joint CEOs, an Independent Member, Smt. Varsha
Purandare (Ex-Chief Credit & Risk Officer and Dy MD, State Bank of India) and Senior Advisor and Independent Member,
Mr. Arijit Chanda, a highly experienced and respected retail finance professional and consultant. Approvals by APAC
Credit Committee needs to be unanimous. Portfolio reviews are carried out regularly by the Business, Risk and Credit
functions. Each product program caters to specific targeted customer segments and have been built around the 5 C’s of
prudent lending norms, i.e. Character, Capacity, Capital, Conditions and Collateral. The product programs further define
an approval matrix, credit & risk parameters, processes, customer selection criteria, deviation reporting and loan caps
among other things. The Group also relies on the Credit Bureaus for fraud checks and credit records of each borrower.
The Group is deepening its use of technology and alternate data to improve the quality of its product programs and
credit approval processes.
B. Liquidity Risk: Liquidity risk is the risk of incurring losses resulting from the inability to meet payment obligations in
a timely manner when they become due or from being unable to do so at a sustainable cost.
The Group is required to comply with the Asset Liability Management (“”ALM””) guidelines/directions issued by RBI,
which places key emphasis on short term liquidity management.
The Group has an Asset Liability Management and Resource Planning Policy approved by the Board and has
constituted an Asset Liability Management and Resource Planning Committee (“”ALRPCO””) to oversee the liquidity
risk management function. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have
sufficient liquidity to meets its liabilities, as and when they become due, under both in normal and stressed conditions,
without incurring losses or risking damage to the Group’s reputation.
The principal source of Group’s liquidity is borrowings, cash and cash equivalents and cash flow generated from
operations.
As at March 31, 2023, the Group believes that the cash and cash equivalents and undrawn term loan (“”TL””), cash
credit (“”CC””) and working capital; demand loan (“”WCDL””) are sufficient to meets its short term requirements and
does not foresee any liquidity stress. Below are the list of undrawn facilities that are available at Group’s disposal:
` in '000
March 31, 2023 March 31, 2022
Term loans 4,50,000 3,50,000
Cash credit facilities* 2,70,000 2,00,000
Working capital demand loans 1,00,000 3,50,000
Total 8,20,000 9,00,000
*CC facilities may be overdrawn anytime and may be withdrawn anytime.

CIN NO. U65999MH2017PTC294664
Exposure to liquidity risk: ` in '000

Carrying Less than 1 More than 5
Particulars 1 - 3 years 3 - 5 years
amount year years
Financial liabilities
Payables 19,139 19,139 - - -
Borrowings (Other than debt securities) 67,45,961 22,27,506 37,79,512 7,38,943 -
Other financial liabilities 2,955 2,955 - - -
Total 67,68,055 22,49,600 37,79,512 7,38,943 -
Financial assets
Cash and cash equivalents 3,07,651 3,07,651 - - -
Bank balance other than (a) above 2,03,774 2,03,774 - - -
Receivables 5,028 5,028 - - -
Loans 1,05,21,678 13,19,157 30,82,576 36,69,606 24,50,339
Investments 5,35,442 5,35,442 - - -
Other financials assets 1,23,135 1,23,135 - - -
Total 1,16,96,708 24,94,187 30,82,576 36,69,606 24,50,339
C. Interest Rate Risk: The interest rate risk primarily arises from borrowings at floating rate/variable rate. The Group’s
borrowings are carried at amortised cost. No interest rate risk arise on borrowings carried at fixed rate as defined in
Ind AS 107 since both the carrying amount and future cash flows will not fluctuate with change in market interest rate.
“During FY23, Company received rating upgrades from both ICRA and Acuite on the back of superior operating
performance, without any large equity infusion. Our credit ratings currently are [ICRA] A- (Stable) and ACUITE A (Stable).
Notably, even though RBI hiked rates by 250 bps during FY23, Company’s cost of funds reduced by approx. 55-60 bps
as compared to FY22. Due to rising interest rates, Company increased its Prime Lending Rate (PLR) by 50 bps in Q4
FY23.”
The interest rate profile of the Company’s interest bearing financial liabilties is as follows:
` in '000
As at
Particulars
March 31, 2023
Fixed rate instrument:
Floating rate instrument:
Total 67,83,020
Interest rate sensitivity analysis for floating rate instruments:
` in '000
Profit/Loss Equity (net of tax)
Particulars 100 bps 100 bps 100 bps 100 bps
increase decrease increase decrease
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 161
APAC FINANCIAL
CIN NO. U65999MH2017PTC294664
ANNUAL
Note 48: Disclosure pursuant to RBI Circular - RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 “Implementation of
SERVICES
Indian Accounting Standard”
REPORT
For FY 22-23 `. in '000
Loss Difference
Asset
2022-2023
109)
Performing assets
Standard Stage 1 1,04,20,965 71,225 1,03,49,740 41,093 30,132
Stage 2 1,09,358 8,847 1,00,511 3,724 5,123
Subtotal 1,05,30,323 80,072 1,04,50,251 44,817 35,255
Substandard Stage 3 1,14,505 30,377 84,128 13,445 16,932
Doubtful - upto 1 year 16,610 2,370 14,240 3,324 -954
Doubtful - 1 to 3 years 12 1 11 4 -3
Subtotal 16,622 2,371 14,251 3,328 -957
Subtotal for NPA Stage 3 1,31,127 32,748 98,379 16,773 15,975
Other items such as guarantees, loan commitments,
etc. which are in the scope of Ind AS 109 but not Stage 1 96,173 575 95,598 - 575
Stage 3 - - - - -
Stage 1 1,05,17,138 71,800 1,04,45,338 41,093 30,707
Stage 2 1,09,358 8,847 1,00,511 3,724 5,123
Total
Stage 3 1,31,127 32,748 98,379 16,773 16,932
Total 1,07,57,623 1,13,395 1,06,44,228 61,590 52,762
162
CIN NO. U65999MH2017PTC294664
APAC FINANCIAL
ANNUAL SERVICES
For FY 21-22 `. in '000
REPORT
Loss Difference
Asset
2022-2023
109)
Performing assets
Standard Stage 1 53,55,389 26,395 53,28,994 21,185 5,210
Stage 2 4,47,590 87,001 3,60,589 15,050 71,951
Subtotal 58,02,979 1,13,396 56,89,583 36,235 77,161
Doubtful - upto 1 year - - - - -
Doubtful - 1 to 3 years - - - - -
Subtotal - - - - -
Other items such as guarantees, loan commitments, Stage 1 91,433 435 90,997 - 435
etc. which are in the scope of Ind AS 109 but not Stage 2 - - - - -
Stage 1 54,46,822 26,830 54,19,991 21,185 5,645

Stage 2 4,47,590 87,001 3,60,589 15,050 71,951
Total
Stage 3 80,354 14,482 65,873 9,016 5,466
Total 59,74,766 1,28,313 58,46,453 45,251 83,062
163
CIN NO. U65999MH2017PTC294664
6, 2020 “Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances”
` in '000
No. of accounts restructured Amount
27 67,268
6, 2020 “Resolution Framework for COVID-19-related Stress”
` in '000
Exposure to accounts Of (A), Of (A) Of (A) Exposure to accounts
classified as Standard aggregate amount amount classified as Standard
consequent to implementation debt that written off paid by the consequent to
Type of borrower of resolution plan – Position slipped into during the borrowers implementation of
as at the end of the previous NPA during current year during the resolution plan –
year (A) the current year Position as at the end
year of this year
Personal loans - - - - -
Corporate persons* 1,67,616 - 1,67,616 - -
Of which, MSMEs - - - - -
Others - - - - -
Total 1,67,616 - 1,67,616 - -
* As defined in section 3(7) of the Insolvency and Bankruptcy Code, 2016.
Note 51: Disclosure pursuant to RBI Circular - RBI/2018-19/203/DBR.No.BP.BC.45/21.04.048/2018-19 dated June

7, 2019 “Prudential Framework for Resolution of Stressed Assets”
i. Other than Corporate Debt Restructuring (CDR): ` in '000
Restructured Fresh Recoveries Closure/Write Restructured
as on restructuring during the year off during the as on
April 1, 2022 during the year (post restructure) year March 31, 2023
Asset Classification Doubtful Doubtful Doubtful Doubtful
No. of borrowers - 1 1 - 1
Amount Outstanding - 4,792 62 - 4,730
Provision there on - 1,198 NA - 1,182
Note 52: Disclosure pursuant to RBI circular - RBI/2019-20/88 DOR. NBFC (PD) CC. No. 102/03.10. 001/2019-20
dated November 04, 2019 “Liquidity Risk Management Framework for Non-Banking Financial Companies”
1. Fund Concentration based on significant counterparty (both deposits and borrowings):
No. of Significant Amount % of Total Deposits % of Total Liabilities

counterparties (₹ in '000)
15 67,83,020 NA 97.74%
Note:
b. Above excludes unutilised CC limits of ` 37 Cr. and undrawn term loan sanction of ` 45 Cr. as of March 31, 2023.
c. There were no deposits placed with APAC Financial Services Private Limited as of March 31, 2023.

CIN NO. U65999MH2017PTC294664
2. Top 20 large deposits (amount (In Rs. Crore) and % of total deposits): Not Applicable
3. Top 10 Borrowings:
Amount % of Total Borrowings

(Rs. in '000)
57,77,646 85%
4. Funding concentration based on significant instrument/product:
Amount
Significant Intrument % of Total Deposits % of Total Liabilities
(Rs. in '000)
Term loan 67,83,020 NA 97.74%
Note: Total liabilities have been computed as Total Liabilities less Shareholders Funds.
5. Stock Ratios:
a. Commercial papers as a % of total public funds, total liabilities and total assets: Not Applicable
b. Non-convertible debentures (original maturity of less than one year) as a % of total public funds, total liabilities
and total assets: Not Applicable
c. Other short-term liabilities, if any, as a % of total public funds, total liabilities and total assets: Not Applicable
Note:
b. Short term liabilities have been computed as borrowings with an original maturity less than 12 months. Currently
there are no borrowings with residual maturity of less than 12 months.
c. Public funds includes borrowings from banks & financial institutions.
6. Institutional set-up for liquidity risk management:
The Board of Directors have approved the formation of the Asset-Liability Management and Resource Planning
Committee (“ALRPCO”) comprising of Managing Director, Executive Director, Joint CEOs, Head of Treasury and Group
Risk and Group Financial Controller.
Note: The Company is not required to compute and disclose the LCR ratio since it falls below the threshhold as
prescribed in Annex B of this circular.
Note 53: Disclosure pursuant to RBI circular - RBI/DNBS/2016-17/49/Master Direction DNBS PPD.01/66.15.001/2016
17 dated September 29, 2016 “Master Direction - Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016”
Instances of fraud for the year ended March 31, 2023 (March 31, 2022: NIL)
Amount Amount written off

Nature of fraud No. of cases
(₹ in '000) (₹ in '000)
Misappropriation and 1 1,413 -
criminal breach of trust
During the year, 1 fraud was detected and reported to RBI, aggregating to ` 14.13 lakhs in the nature of misappropriation
and criminal breach of trust.
Current Status:
Above fraud case impacted 6 LANs of which as on March 31, 2023, 2 LANs were foreclosed, 3 LANs are standard and
1 LAN is sub-standard. The sub-standard LAN was 100% provided for.
The Board in its meeting dated Februray 15, 2023, approved the closure of the fraud cases.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 165
CIN NO. U65999MH2017PTC294664
Note 54: Regulatory disclosures

1. Disclosure pursuant to Annexure XVI of RBI Circular - RBI/DNBR/2016-17/45/Master Direction DNBR.
PD.008/03.10.119/2016-17 dated September 01, 2016 (Updated as on December 29, 2022) - Master Direction
- Non-Banking Financial Company - Systemically Important Non-Deposit taking Company (Reserve Bank)
Directions, 2016.
2. Disclosure pursuant to Section I of RBI Circular - RBI/2022-23/26/DOR.ACC.REC.No.20/21.04.018/2022-23
dated April 19, 2022 - Disclosures in Financial Statements- Notes to Accounts of NBFCs.
1. Capital to Risk-Assets Ratio ("CRAR"):

` In ‘000
As at As at
Particulars
March 31, 2023 March 31, 2022
i) CRAR (%) 43.59% 73.14%
ii) CRAR - Tier I Capital (%) 42.95% 72.72%
iii) CRAR - Tier II Capital (%) 0.63% 0.42%
iv) Amount of subordinated debt raised as Tier-II capital - -
v) Amount raised by issue of Perpetual Debt Instruments - -
2. Investments: ` In '000
As at As at
Particulars
March 31, 2023 March 31, 2022
1. Value of investments
i) Gross value of investments
(a) In India 5,35,442 2,66,142
ii) Provisions for depreciation
a) In India - -
b) Outside India - -
iii) Net value of investments
(a) In India 5,35,442 2,66,142
2. Movement of provisions held towards depreciation on investments
a) Opening balance - -
b) Add: Provisions made during the year - -
c) Less: Write-off / write-back of excess provisions during the year - -
d) Closing balance - -
3. Derivatives:
The Group has not entered into any derivative contracts during the year.
4. Exposure to Real Estate Sector and Capital Market:

The Group does not have any direct or indirect exposure to the real estate sector other than properties mortgaged as
collateral by its customers.

CIN NO. U65999MH2017PTC294664
Exposure to Real Estate Sector: ` In '000

As at As at
Particulars
March 31, 2023 March 31, 2022
a) Direct Exposure
i) Residential Mortgages:
Lending fully secured by mortgages on residential property that is or will be occupied 6,35,248 5,97,149
by the borrower or that is rented. Exposure would also include non-fund based (NFB)
limits.
ii) Commercial Real Estate:
Lending secured by mortgages on commercial real estate (office buildings, retail - -
space, multipurpose commercial premises, multifamily residential buildings,
multi tenanted commercial premises, industrial or warehouse space, hotels, land
acquisition, development and construction, etc.). Exposure would also include non-
fund based (NFB) limits.
iii) Investments in Mortgage Backed Securities (MBS) and other securitised
exposures:
a. Residential - -
b. Commercial Real Estate - -
b) Indirect Exposure
Fund based and non-fund-based exposures on National Housing Bank and Housing 70,000 -
Finance Companies.
Total Exposure to Real Estate Sector 7,05,248 5,97,149
Exposure to Capital Market:
The Group did not have any exposure to capital market during the year.
4. Details of financing of parent company products:

Since the Group is a standalone Group the requirement is not applicable.
5. Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the Company:
The Group did not exceed the single borrower limit (SGL) / Group borrower limit (GBL) during the year.
6. Unsecured Advances
` In '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Unsecured advances 4,752 37,707
4,752 37,707
7. Registrations obtained from other financial regulators:

The Group has not obtained registrations from any other financial regulators.
8. Disclosure of penalties imposed by RBI and other regulators:

No penalties have been imposed by RBI and/or any other regulator on the Group during the year.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 167
CIN NO. U65999MH2017PTC294664
9. Ratings assigned by credit rating agencies and migration of ratings during the year:
Credit rating details of the Company as at March 31, 2023 are as below: ` In '000
ICRA Limited Long Term Bank Lines A- Stable 90,00,000
Acuite Rating & Research Limited Long Term Bank Lines A Stable 12,50,000
Credit rating details of the Company as at March 31, 2022 are as below: ` In '000
ICRA Limited Long Term Bank Lines BBB+ Stable 40,00,000
Acuite Rating & Research Limited Long Term Bank Lines A- Stable 5,00,000
10. Provisions & Contigencies made during the year: ` In '000

Break up of 'Provisions and Contingencies' shown under the head As at As at
Expenditure in Statement of profit and loss March 31, 2023 March 31, 2022
Provisions for depreciation on Investment - -
Provision towards NPA 18,267 5,561
Provision made towards Income tax 87,757 9,680
Other provisions & contingencies:
Provision for gratuity 3,771 2,649
Provision for leave salary - -2,613
Provision for bonus 44,490 23,559
Provision for expenses 5,646 4,253
Provision for standard assets -33,184 11,585
11. Drawdown from reserves:

The Group has not drawn down its reserves during the year.
12. Concentration of Deposits, Advances, Exposures and NPA:

A. Concentration of deposits (For deposit taking NBFC) ` In '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Total deposits to twenty largest depositors. NA NA
Percentage of deposits to twenty largest depositors to total deposits of the NA NA
taking NBFC.
B. Concentration of advances ` In '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Total advances to twenty largest borrowers. 3,93,621 6,66,606
Percentage of advances to twenty largest borrowers to total advances of the 3.74% 11.47%
applicable NBFC.

CIN NO. U65999MH2017PTC294664
C. Concentration of exposures ` In '000

As at As at
Particulars
March 31, 2023 March 31, 2022
Total exposure to twenty largest borrowers/customers. 3,93,621 6,66,606
Percentage of exposures to twenty largest borrowers/customers to total 3.71% 11.29%
exposure of the applicable NBFC on borrowers/customers.
D. Concentration of NPAs ` In '000
As at As at
Particulars
March 31, 2023 March 31, 2022
Total exposure to top four NPA accounts 59,295 33,839
13. Sector-wise NPAs: ` In '000

Total Gross Percentage Total Gross Percentage
Exposure NPAs of Gross Exposure NPAs of Gross
(includes NPAs (includes NPAs
Sector on balance to total on balance to total
sheet and exposure in sheet and exposure in
off-balance that sector off-balance that sector
sheet sheet
exposure) exposure)
1. Agriculture & allied activities 24,66,225 1,459 0.06% 12,70,658 4,401 0.35%
2. Industry
i. Corporate Borrowers - - - - - -
ii. Auto Loans - - - - - -
iii. Renewable Energy - - - 81,966 - -
Total of Industry - - - 81,966 - -
3. Services
i. MSME 41,07,496 2,202 0.05% 10,40,203 - -
ii. Loans to educational institution 8,92,034 27,147 3.04% 7,13,913 12,421 1.74%
iii. Loan to retail sector 6,68,572 13,570 2.03% 7,81,340 6,749 0.86%
iv. Computer Software 6,500 - - 1,220 - -
v. Tourism, hotel and restaurants 2,48,311 48,877 19.68% 2,77,440 36,296 13.08%
vi. Professional services 1,62,034 5,213 3.22% 1,29,179 - -
vii. Transport operators 2,89,384 2,845 0.98% 1,73,080 581 0.34%
viii. Other Services 11,31,220 11,691 1.03% 8,37,987 5,218 0.62%
Total of Services 75,05,551 1,11,545 1.49% 39,54,362 61,265 1.55%
4. Personal Loans
i. Unsecured personal loans - - - - - -
ii. Other personal loans (Home 6,35,248 18,125 2.85% 5,97,149 14,689 2.46%
Loans)
Total of Personal Loans 6,35,248 18,125 2.85% 5,97,149 14,689 2.46%
5. Others (if any) - - - - - -
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 169
CIN NO. U65999MH2017PTC294664
14. Movement of NPAs ` In '000

As at As at
Particulars
March 31, 2023 March 31, 2022
i) Net NPAs to Net Advances (%) 0.94% 1.15%
ii) Movement of NPA's (Gross)
b) Additions during the year 2,66,645 1,76,362
c) Reductions during the year -2,15,872 -1,14,041
d) Closing balance 1,31,127 80,354
iii) Movement of Net NPAs
b) Additions during the year 2,40,858 57,592
c) Reductions during the year -2,08,352 -832
iv) Movement of provisions for NPAs (excluding provisions on standard
assets)
b) Provisions made during the year 25,787 1,18,770
c) Write-off / write-back of excess provisions -7,520 -1,13,209
15. Overseas Investments:

The Group has no overseas investments as at March 31, 2023. (As at March 31, 2022: NIL)
16. Off balance sheet SPV Sponsored:

The Group does not have off balance sheet SPV sponsored as at March 31, 2023. (As at March 31, 2022: NIL)
17. Unhedged foreign currency exposure:

The Group does not have any foreign currency exposure as at March 31, 2023. (As at March 31, 2022: NIL)
18. Disclosure of Complaints:
1. Summary information on complaints received by the Company from customers and from the Offices of Ombudsman Complaints
received by the Company from its customers
As at As at
Particulars
March 31, 2023 March 31, 2022
No. of complaints pending at the beginning of the year - -
No. of complaints received during the year 29 36
No. of complaints disposed during the year 29 36
Of which, no. of complaints rejected by the Company - -
No. of complaints pending at the end of the year - -

CIN NO. U65999MH2017PTC294664
Maintainable complaints received by the Company from Office of Ombudsman

As at As at
Particulars
March 31, 2023 March 31, 2022
No. of maintainable complaints received by the Company from Office of 2 2
Ombudsman, of which
No. of complaints resolved in favour of the Company by Office of 2 2
Ombudsman
No. of complaints resolved through conciliation/mediation/advisories issued 2 2
by Office of Ombudsman
No. of complaints resolved after passing of Awards by Office of Ombudsman - -
against the Company
Number of Awards unimplemented within the stipulated time (other than those - -
appealed)
2. Top five grounds of complaints received by the NBFC from customers
% increase/
Number of
Number of decrease
Number of Number of complaints
complaints in the
complaints complaints pending
Grounds of complaints, pending number of
received pending at at the end
(i.e. complaints relating to) at the complaints
during the the end of of the year
beginning of received over
year the year (beyond 30
the year the previous
days)
year
Nach Deduction Issue - 2 -87% - -
Cash collection - 7 100% - -
NDC not received - 1 -75% - -
Cibil Issue - 5 67% - -
Loan details not shared - 3 100% - -
Refund issue - 2 100% - -
Foreclosure charges - 1 100% - -
RBI Ombudsman - 1 100% - -
Loan cancellation - 1 100% - -
PMAY - 1 100% - -
Documents not received - 1 -83% - -
% increase/
Number of
Number of decrease
Number of Number of complaints
complaints in the
complaints complaints pending
Grounds of complaints, pending number of
received pending at at the end
(i.e. complaints relating to) at the complaints
during the the end of of the year
beginning of received over
year the year (beyond 30
the year the previous
days)
year
Nach Deduction Issue - 15 -38% - -
Legal Notices - 4 100% - -
NDC not received - 4 100% - -
Cibil Issue - 3 100% - -
Documents not received - 6 100% - -
19. Divergence in Asset Classification and Provisioning:
Since there is no inspection conducted in FY 2022-23 by RBI, there are no additional provisioning requirements on Gross NPAs
assessed.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 171
APAC FINANCIAL
CIN NO. U65999MH2017PTC294664
ANNUAL
Note 54A: Disclosure pursuant to Annexure XVI of RBI Circular - RBI/DNBR/2016-17/45/Master Direction DNBR.PD.008/03.10.119/2016-17 dated September
SERVICES
01, 2016 (Updated as on March 03, 2022) - Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and
REPORT
Deposit taking Company (Reserve Bank) Directions, 2016
1. Asset Liability Management Maturity pattern of certain items of Assets and Liabilities: ` In '000
15 to Over 1 Over 3
2022-2023
Days 3 Year 5 Year
Deposit - - - - - - - - - - -
Advance# 1,52,759 57,810 18,428 93,441 89,147 2,83,807 6,23,765 30,82,576 36,69,606 24,50,339 1,05,21,678
Investment 1,69,957 - 1,02,896 - - 1,60,781 1,01,808 - - - 5,35,442
Borrowing* 33,664 11,376 77,105 1,49,553 1,81,535 5,49,858 12,24,416 37,79,512 7,38,943 - 67,45,962
Foreign Currency Assets - - - - - - - - - - -
Foreign Currency Liabilities - - - - - - - - - - -
` In '000
15 to Over 1 Over 3
Days 3 Year 5 Year
Deposit - - - - - - - - - - -
Advance# 49,967 45,553 25,332 54,164 70,047 1,83,006 3,75,405 17,00,050 19,49,612 1,293,874 57,47,010
Investment 2,66,142 - - - - - - - - - 2,66,142
Borrowing* 3,277 22,439 27,499 50,649 53,982 1,78,614 3,36,160 8,63,431 1,51,616 - 16,87,667
Foreign Currency Assets - - - - - - - - - - -
Foreign Currency Liabilities - - - - - - - - - - -
172
CIN NO. U65999MH2017PTC294664
Note 55: Disclosure pursuant to Para 19 of RBI Circular - RBI/DNBR/2016-17/45/Master Direction DNBR.
PD.008/03.10.119/2016-17 dated September 01, 2016 (Updated as on March 03, 2022)- Master Direction -
Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions,
2016
` In '000
Particulars As at March 31, 2023 As at March 31, 2022
Amount Amount Amount Amount
Liabilities side
Outstanding Overdue Outstanding Overdue
1) Loans and advances availed by the non-
banking financial company inclusive of
interest accrued thereon but not paid :-
a Debentures:
Secured - - - -
Unsecured (other than failing within the - - - -
meaning of public deposits*)
b Deferred credits - - - -
c Term loans 55,17,960 - 13,57,206 -
d Inter-corporate loans and borrowing 12,84,368 - 3,44,598 -
e Commercial paper - - - -
f Public deposits* NA NA NA NA
g Other loans (specify nature) - - - -
*Refer note 1
2) Break-up of (1) (f) above (Outstanding
public deposits inclusive of interest accrued
thereon but not paid):
1 In the form of unsecured debentures NA NA NA NA
2 In the form of partly secured debentures NA NA NA NA
i.e. debentures where there is a shortfall
in the value of security
3 Other public deposits NA NA NA NA
*Refer note 1
` In '000
Amount outstanding
March 31, 2023 March 31, 2022
3) Break-up of Loans and Advances including bills receivables (other
than those included in (4) below):
1 Secured* 1,03,94,518 56,54,123
2 Unsecured* 3,513 30,701
(Impact of EIR has not been considered in above numbers)
*Includes accrued interest.
4) Break-up of leased assets and stock on hire and other assets
counting towards asset financing activities:
1 Lease assets including lease rentals under sundry debtors:
a. Financial lease - -
b. Operating lease - -
2 Stock on hire including hire charges under sundry debtors:
a. Assets on hire - -
b. Repossesse assets - -
3 Other loans towards asset financing activities:
a. Loans where assets have been repossessed - -
b. Loans other than (a) above - -
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 173
CIN NO. U65999MH2017PTC294664
` In '000
Amount outstanding
March 31, 2023 March 31, 2022
5) Break-up of Investments:
Current Investments:
1 Quoted:
a. Shares
a. Equity - -
b. Preference - -
c. Units of mutual funds 1,69,957 2,66,142
e. Others - -
2. Unquoted:
a. Shares
a. Equity - -
b. Preference - -
e. Others - Deposit with corporates 3,65,485 -
Long term investments:
1 Quoted:
a. Shares
a. Equity - -
b. Preference - -
e. Others - -
2. Unquoted:
a. Shares
a. Equity - -
b. Preference - -
e. Others - -
6) Borrower group-wise classification of assets financed as in (2) and (3) above (Refer note 2): ` In '000
Amount (net of provisions) Amount (net of provisions)
Secured Unsecured Total Secured Unsecured Total
a. Subsidiaries - - - - - -
b. Companies in the same - - - - - -
group
c. Other related parties - - - - - -
2. Other than related parties 1,03,94,518 3,513 1,03,98,030 56,54,123 30,701 56,84,824
Total 1,03,94,518 3,513 1,03,98,030 56,54,123 30,701 56,84,824

CIN NO. U65999MH2017PTC294664
7) Investor group-wise classification of all investments (current and long term) in shares and securities (both
quoted and unquoted) (Refer note 3):
` In '000
Category Market Value/ Book Value Market Value/ Book Value
Break up or fair (Net of Break up or fair (Net of
value or NAV Provisions) value or NAV Provisions)
a. Subsidiaries - - - -
b. Companies in the same group - - - -
c. Other related parties - - - -
2. Other than related parties 5,35,441 5,35,441 2,66,142 2,66,142
Total 5,35,441 5,35,441 2,66,142 2,66,142
Other Information:
As at As at
Particulars
March 31, 2023 March 31, 2022
i. Gross non performing assets
b. Other than related parties 1,31,127 80,354
ii. Net non performing assets
iii. Assets acquired in satisfaction of debt - -
Notes :
1 As defined in paragraph xxvii of paragraph 3 of Chapter II of these Master Direction - Systemically Important Non-
Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016
2 Provisioning norms shall be applicable as prescribed in the Master Direction - Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016.
3 All notified Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of
investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect
of quoted investments and break up / fair value / NAV in respect of unquoted investments shall be disclosed
irrespective of whether they are classified as long term (amortised cost in the case of Ind AS) or current (at fair
value in the case of Ind AS) in (5) above.
Note 56A: The Group has not undertaken any benami transactions. The Group has also not traded or invested in any
crypto or virtual currency.
Note 56B: The Group does not have any transactions with companies struck off by the Registrar of Companies (‘RoC’)
under section 248 of the Act, or under section 560 of the Companies Act, 1956.
Note 57: The Company is in process of amalgamating with APAC Financial Services Private Limited, holding company.
The Company has received a no objection certificate (“NOC”) from the Reserve Bank of India (“RBI”) on May 12,
2022 for the amalgamation and filed an application for merger with National Company Law Tribunal (“NCLT”) on July
27, 2022. In relation to the application filed by the Company, NCLT on March 30, 2023 issued an order for calling the
Shareholders and Creditors meeting in relation to Merger and Amalgamation of APAC Housing Finance Private Limited
with APAC Financial Services Private Limited. Accordingly, the meeting of Shareholders and Creditors is being called
on May 12, 2023. The merger is being conducted on a going concern basis.
APAC FINANCIAL
ANNUAL SERVICES
REPORT 2022-2023 175
CIN NO. U65999MH2017PTC294664
Note 58: Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current
year’s classification/disclosures.

UDIN:
Date: May 05, 2023

Place: Mumbai
Akhil Parikh
Company Secretary
Date: May 05, 2023

Place: Mumbai

202309011118fy22 23

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3 Our Customers & Process 09

9 Management Discussion & Analysis 37

10 Corporate Governance Report 43

11 Independent Auditors Report (Standalone) 52

12 Standalone Financial Statement 60

13 Independent Auditors Report (Consolidated) 115

14 Consolidated Financial Statement 121

APAC FINANCIAL SERVICES

APAC FINANCIAL SERVICES

DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAS

LEGAL AND COMPLIANCE MATTERS

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

HUMAN RESOURCE DEVELOPMENT

APAC FINANCIAL SERVICES

DIRECTORS, KEY MANAGERIAL PERSONNEL AND SENIOR MANAGEMENT PERSONNEL

PERFORMANCE EVALUATION OF THE BOARD

NUMBER OF MEETINGS OF THE BOARD AND IT’S VARIOUS COMMITTEES

DIRECTORS’ RESPONSIBILITY STATEMENT

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

PARTICULARS OF CONTRACTS OR ARRANGEMENTS ENTERED INTO WITH RELATED PARTIES

AUDITORS AND AUDITORS REPORT

APAC FINANCIAL SERVICES

INTERNAL FINANCIAL CONTROLS

EXTRACT OF ANNUAL RETURN

MATERIAL ORDERS OF REGULATORS/COURTS/TRIBUNALS/JUDICIAL BODIES

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

CORPORATE SOCIAL RESPONSIBILITY (CSR)

DISCLOSURE AS PER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

INTERNAL COMPLAINTS COMMITTEE

MAINTENANCE OF COST RECORDS

APAC FINANCIAL SERVICES

SAFETY, HEALTH & ENVIRONMENT

GENDER DIVERSITY INITIATIVE

For and on behalf of the Board of Directors

Gunit Chadha Shankar Dey Place: Mumbai

Form No. Aoc – 1

Sr. No Particulars Details

APAC FINANCIAL SERVICES

For and on behalf of the Board of Directors

Gunit Chadha Shankar Dey Place: Mumbai

Form No. Aoc -2

Gunit Chadha Shankar Dey

APAC FINANCIAL SERVICES

Annual Report On CSR Acitivities

Total Amount Spent for Amount Unspent (in Rs.)

If Yes, enter the number of Capital assets created/ acquired NA

Sr. Short Pin code Date of Amount Details of entity/ Authority/

For and on behalf of the Board of Directors

Gunit Chadha Shankar Dey

APAC FINANCIAL SERVICES

For and on behalf of the Board of Directors

Gunit Chadha Shankar Dey

APAC FINANCIAL SERVICES

For Manish Ghia & Associates

For Manish Ghia & Associates

APAC FINANCIAL SERVICES

Particulars Consolidated APACFS

APAC FINANCIAL SERVICES

APAC FINANCIAL SERVICES

APAC FINANCIAL SERVICES

COMPANY’S PHILOSOPY ON GOVERNANCE

Name of the Director Special Knowledge / Practical Experience / Skills / Expertise /