SHRIRAM City

MONEY WHEN you NEED IT MOST

Ref: STEC
Ref: STEC NSEBSE 330/2021
NSE/BSE 330/2021 July 4: 2021
July 4, 2021

The Secretary,
The Secretary, The
The Manager
Manager
BSE Ltd
BSE Ltd National Stock Exchange
National Stock Exchange ofof India Ltd
India Ltd
P
P JJ Towers,
Towers, Exchange
Exchange Plaza, 5th Floor
Plaza, 5th Floor
Dalai st:
Dalal St, Plot
Plot NoC 1, G
No.C/1, G Block
Block
Mumbai 400
Mumbai 400 001 001 Bandra- Kurla Complex
Bandra- Kurla Complex Bandra
Bandra (E)
(E)
Mumbai 400 051
Mumbai 400 051

Sir:
Sir,

ISIN –- INE722A01011
ISIN INE722A01011

Ree scrip Code:

Ref: Scrip BSE -– 532498
Code: BSE 532498 and NSE -– SHRIRAMCIT
and NSE SHRIRXMCIT

As
As required
required under
under Regulation 34 (1)
Regulation 34 (1) of
of the Securities and
the Securities and Exchange
Exchange Board of India
Board of India (Listing
(Listing
Obligations
Obligations and Disclosure Requirements):
and Disclosure Requirements), Regulations:
Regulations, 2015: please find
2015, please find enclosed
enclosed the
the Annual
Annual
Report of the
Report of Company for
the Company for the
the financial
financial year
year ended
endedMarch 31: 2021
March 31, 2021 alongwith
alongwith the
the 35
35thAnnual
th
Annual
General Meeting (“AGM”) Notice together with the explanatory statement which is being sent
General Meeting ("AGNI') Notice together with the explanatory statement which is being sent to
to
the
the members
members ofof the Company by
the Company electronic mode.
by electronic mode.

The 39th AGM

The 35 AGM of
of the Companywill
the Company be held
will be held on Thursday, July
on Thursday, July 29,
29, 2021 at 10.00
2021 at 10_00am 1STat
am IST Chennai
at Chennai
through
through Video Conferencing / Other
Video Conferencing Audio Visual
Other Audio Means.
Visual Means.

We
We request
request you
you to kindly take
to kindly take the above information
the above on records.
information on records.

Thanking
Thanking you
you,

Yours
Yours faithftlly,
faithfully,
For Shriram City
For Shriram City Union
Union Finance Limited,
Finance Limited,
CHITTA
CHITTA Digitally signed by CHITTA RANJAN DASH
DN: c=IN, o=Personal,
pseudonym=253e75881954f0ed60967703

RANJAN
6030e35c529e49b1591ac1efb56a0d4aa0f
RANJAN a45e9, postalCode=600059, st=TAMIL
NADU,
serialNumber=bba80f72467cc10e019f7ab

DASH
1abd4b8bf3ae10e30333e89c7c430fa8dca
DASH 68393b, cn=CHITTA RANJAN DASH
Date: 2021.07.04 21:51:58 +05'30'

Company Secretary
Company Secretary

Encl:a..a

_Shriram City Union Finance Limited—

High — h: 44 4392
Regd.Office: • 2534
E• mail :
Corporate Number
 SHRIRAMCitY

SHRIRAM CITY
SHRIRAM CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED

CIN:
CIN: L65191TN1986PLC012840

Regd.
Regd. office:
office: 123, Angappa Naicken
123, Angeppe Naicken Street,
Street, Chennai
Chennai 600 001,
600 COI,

Tamil Nadu.
Tamil Telephone No + 91 44
Nadu Telephone 44 25341431
25341431

Secretarial
Secretarial Office:
Office: 144,Santhome High Road,
144,S.enthomeHigh Road, Mylapore,
Myiapore, Chennai-600004.
Chennai-6D30:J4.

Telephone No
Telephone No +91
+91 44 43925300
44 43225300

Website: www.shriramcity.in
Website. www.shriremcityin ; Email:
Email: sect@shriramcity.in
sæt@shriramcity.in

NOTICE
NOTICE OF
OF THE THIRTY FIFTH
THE THIRTY FIFTH ANNUAL
ANNUAL GENERAL
GENERAL MEETING
MEETING applicable
applicable for
for the
the financial
financial year
year ended
ended March
Merch 31,
31, 2021
2021 to
to
OF THE
OF THE MEMBERS
MEMBERS those Members whose names appeared in the Register
those Members whose names appeared in the Register
Notice
Notice is
IS hereby
hereby given
given to the members
to the members of of Shriram
Shriram City
City of
of Members
Members or or who
who were
were beneficial
beneficia' owners
owners ofof equity
equity
Union
union Finance
Finance Limited,
Limited, Corporate
Corporate Identification
Identification Number
Number - shares
shares of the Company
of the Company as as on the record
on the record date
date being
being July
duly

L65191TN1986PLC012840
L65191TN1986PLC012840 (“Company”)
("Company) thetthat Thirty
Thirty Fifth
7fth 22,
22, 2021.
2021

Annual General
Annual General Meeting
Meeting (“AGM”)
("AGM') of the members
of the members of of the
the (ii) To
To confirm the payment
confirm the peyment ofof interim
interim dividend
dividend (first
(first and
and
Company will be held on Thursday, July 29, 2021 at 10 aa
Comp-ny will be held on Thursday, duly 2g, 2021 at ID second) @ `10 respectively per equity share of ` 10 each
second)@tl 0 respectively equity shsre of? 10 each
m
m IST through Video
1ST through Video Conferencing
Conferencing (“VC”)
(NOT) // Other
Other Audio
Audio of
of the
the Company
Company andend paid
paid during
during the
the financial
financial year
year ended
ended
Visual Means
Visual Means (“OAVM”)at Chennai
Chennai to
to transact
transact the
the following
following March
March 31,
31, 2021.
2021
business.
business.
“"RESOLVEDTHAT
 RESOLVED THAT the the Members
Members of of the
the Company
Company record
record
ORDINARY
ORDINARY BUSINESS:
BUSINESS:
and
and confirm
confirm payment
payment of of Interim
Interim Dividend
Dividend (first)
(first) of
of
Item
Item no
no -- 1: Adoption of
1: Adoption of standalone financial statements
standalone financial statements ` 10 (Rupees ten only) per equity share of face value of
10 (Rupees ten only) per equity share of face value of
` 10
10 each
each aggregating
aggregating toto an
an amount
amount of of ` 66,00,43,220/-
To receive,
To consider and
receive, consider and adopt
adopt the
the audited
audited standalone
standalone
(Rupees
(Rupees Sixty
Sixty six
six crores
crores forty three thousand
forty three thousand two two
financial statements
financial statements of of the
the Company
Camp-ny for the financial
for the year
financial year
hundred twenty only)
hundred twenty only) subject
subject toto deduction
deduction ofof tax
tax at
at
ended March 31, 2021 together with the Reports of the Board
ended March 31, 2021 together with the Reports of the Baard
source, as applicable for the financial year ended March
source, as applicable for the financial year ended March
of Directors
of Directors and Auditors thereon.
and Auditors thereon.
31,
31, 2021
2021 paid
paid on
on November
November 23, 23, 2020
2020 .
“RESOLVED
"RESOLVED THAT the
THAT the Audited
Audited Standalone
standalone Financial
Financial
“"RESOLVEDTHAT
 RESOLVED THAT the the Members
Members of of the
the Company
Company record
record
Statements
Statements of the Company
of the Compeny forfor the
the financial
financial year
year ended
ended
and
and confirm
confirm payment
payment of of Interim
Interim Dividend
Dividend (second)
(second)
March
March 31,
31, 2021,
2021, together
together with the Reports
with the Reports of the Board
of the Baard
of
of ` 10
10 (Rupees ten only) per
ten only) per equity
equity share
share of of face
face
of Directors and the Auditors thereon be and are hereby
of Directors end the Auditors thereon be and are hereby
value of ` 10 each aggregating to an amount of and
value of 10 esch aggregating to an amount of and
considered and
considered and adopted.”
adopted "
` 66,00,50,220/- (Rupees Sixty six crores fifty lacs two
(Rupees Sixty SIXcrores fifty lacs two
Item
Item no
no -- 2: Adoption of
2: Adoption of consolidated
consolidated financial statements
financial statements
hundred
hundred and
and twenty)
twenty) subject
subjæt to to deduction
deduction of tax at
of tax at
To receive,
To receive, consider
consider and
and adopt the audited
adopt the audited consolidated
consolidated source,
source, as
as applicable
applicable for
for the financial year
the financial year ended
ended March
March
financial statements of the Company for the financial year
financial statements of the Camp-ny for the financia' year 31,
31, 2021
2021 paid
paid on April 19,
on April 19, 2021.”
2021'
ended March
ended March 31,
31, 2021 together with
2021 t„gether with the
the report
report of the Auditors
of the Auditors
Item
Item no-4
n04 :: Retirement
Retirement of
of Director
Director by
by rotation
rotation
thereon.
thereon.
To
To consider
consider and
and ifif thought
thought fit,
fit, to pass
pass the
the following
following resolution
resolution
“RESOLVED
"RESOLVED
THAT the
THAT
the Audited
Audited
Consolidated
consolidated
Financial
Financial
as
es an
an ORDINARY
ORDINARY RESOLUTION.
RESOLUTION.
Statements
Statements of the Company
of the Compeny forfor the
the financial
financial year
year ended
ended
To
To appoint
appoint aa Director
Director in
in place
place of
of Sri
Sri Duruvasan
Duruvasen Ramachandra
Ramachandra
March 31, 2021, together with the Report of the Auditors be
March 31, 2021, together with the Report of the Auditors be
(holding Director Identification Number 00223052) who
(holding Director Identification Number 00228052) who
and are hereby considered and adopted.”
and ere hereby considered end adopted
retires by rotation under Section 152 (6) of the Companies
retires by rotation under Section 152 (6) of the Companies
Item no-3 : Declaration of
Item no-3 : Declaration
of dividend
dividend Act,
Act, 2013
2013 and
end being
being eligible
eligible seeks
seeks re-appointment.
reappointment
(i) 
(i) To
To declare
declare final
final dividend
dividend of
of ` 13/-
13/- per
per equity
equity share
share of
of `
“RESOLVED
"RESOLVEDTHAT THAT the
the approval
approval ofof members
members of
of the
the Company
Company
10 each of the Company.
1Deach of the Company. be
be and
and hereby
hereby accorded,
accorded, pursuant
pursuant to
to Section
Section 152
152 and
and
“"RESOLVED
 RESOLVED THAT
THAT the
the Members
Members of of the
the Company
Company declare
declare other applicable provisions of Companies Act, 2013 to the
other applicable provisions of Companies Act 2013 to the
and authorise payment of final dividend of ` 13/-
and euthorise payment of final dividend of 13/- re-appointment of Sri Duruvasan Ramachandra (holding
re-appointment of Sri Duruvasan Ramachsndra (holding
(Rupees Thirteen only)
(Rupees Thirteen only) per
per equity
equity share of face
share of face value of
value of Director
Cirector Identification
Identification Number
Number 00223052)
00223052) as
as a
e Director
Director of
of the
the
of
of ` 10
10 each
each subject
subjat toto deduction
deduction of tax at
of tax et source,
source, as
as Company
Company liable
liable to
to retire
retire by
by rotation.”
rotation."

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 1
Item
Item no
no -
- 5
5 :: Remuneration
Remuneration of Auditors
of Auditors denominated
denominated bonds,
±nds, off off shore
shore markets,
markets, issuance
issuance of of bond(s)

To fix
To fix remuneration
remuneration of Auditors of
of Auditrs of the
the Company.
Compeny in whatever name called from bank(s), banking company(ies),
in whatever name called from bank(s), banking companytes),
financial institution(s),
financial institution(s), body(ies) corporate(s),
corporate(s), person(s)
person(s)
“RESOLVED
"RESOLVED THAT THAT pursuant
pursuant to to Section
section 142
142 and
and other
other
AND by by way
way of of invitation,
invitation, offer,
offer, issue
Issue and
and allotment
allotment of of
applicable provisions, if any, of the Companies Act, 2013 (“the
applicable provisions, if any, of the Companies Act, 2013 ('the
redeemable non convertible debenture(s), subordinated
redeemable non convertible debenture(s), subordinated
Act”), the
Act), the Companies
Companies (Audit
(Audit and
end Auditors)
Auditors) Rules,
Rules, 2014
2014 , any
any
debt(s),
debt(s), security(ies),
security(ies), debt
debt security(ies),
security(ies), bond(s), anyany paper(s)
paper(s)
statutory
statutory modification(s)
modification(s) or or re-enactment
re-enactment and and subject
subject toto
convertible or
convertible or nonnon convertible
convertible or or partly
pertly convertible
convertible at at
Circular/Guidelines/Regulations of the Reserve Bank of India
Circular/Guidelines/Regulations of the Reserve Benk of India
premium
premium or or at
at discount,
discount, in in one
one or
or more
more onon private
private placement
placement
for
for the time being in
thetimebeing in force, the Company
force,the Companyflxes fixes the
the remuneration
remuneration
basis
basis asas well
well as
as public
public issue
issue from
from any
any or
or all
all the
the Entity(ies)
Entity(ies)
for
for the financial year
the financial year 2021-22
2021-22 of Auditors of
of Auditors the Company,
of the C.ompany,
[the
[the term
term “Entity”
"Entity' shall
shall be
be deemed
deemed to to include,
include, individuals,
individuals,
M/s G D Apte & Co, Chartered Accountants, Firm Registration
M/s G D Apte Ca,Chartered Accountants, Firm Registration
persons,
Frons, Banks,
Banks, Institutional
Institutional Investors,
Investors, Foreign
Foreign Institutional
Institutional
No-100515W (“GDA”) who were appointed as the Auditors
Investors
Investors (“FIIs”),
("Flls'), Foreign
Foreign Portfolio
Portfolio Investors
Investors (“FPIs”),
("FAS'), Qualified
Qualified
of
of the
the Company
Company tto hold office from
hold office from thethe conclusion
conclusion of of
Institutional Buyers (“QIBs”), Financial Institutions (“FIs”),
Institutional Buyers ("Qlas"), Financial Institutions ("Fls"),
32 Annual General Meeting till the conclusion of 36 Annual
nd
32'±Annual General Meeting till the conclusion of th Annusl
Statutory
Statutory Corporations,
Corporations, Statutory
Statutory Bodies, Trusts, Provident
acZies, Trusts, Provident
General
General Meeting
Meeting to to an
an amount
amount totalling
totalling tto ` 33,27,500/-
Funds,
Funds, Pension
Pension Funds,
Funds, Superannuation
Superannuation Funds,Funds, Gratuity
Gratuity
(Rupees
(Rupees thirty
thirty three
three lakhs
lakhs twenty seven thousand
twenty seven thousand and five
and five
Funds, Alternate Investment Funds, Insurance Companies,
Funds, Alternate Investment Funds, Insurance Companies,
hundred only) or such amount on pro-rata basis depending
hundred only) such amount on pro-rats basis depending
Companies,
Companies, Societies,
Sccieties, Educational
Educstional Institutions,
Institutions, Association
Association
on the scope
on the scope ofof work,
war's period
period ofof office
office in
in the
the event
event of
of holding
holding
of Persons,
of Persons, Body of Individuals,
Body of Individuals, Scientific
Scientific and
and Research
Research
such office for
such office for part of the
part of financial year
the financial year 2021-22
2021-22 (excluding
(excluding
Organisations/Associations,
Organisations/Associations, Partnerships,
Partnerships, Firms,
Firms, Limited
Limited
reimbursement of expenses, applicable taxes, remuneration
reimbursement of expenses, applicable taxes, remuneration
Liability Partnerships, Resident Individuals, Non Resident
Liability Partnerships, Resident Individuals, Non Resident
for other services
for other services provided
provided and -nd subject
subject to to deduction
deduction of of
Individuals
Individuals (“NRIs”),
("NRIsO, High
High Net worth Individuals
Net worth Individuals (“HNIs”),
("HNls"),
applicable
applicable taxes
taxes at source )) as
et source as fixed
fixed by the Board
by the Board ofof Directors
Directors
Hindu
Hindu Undivided
undivided Families
Femilies (“HUFs”), Shareholders, Members,
C'HlJFs•),Shareholders, Members,
in
in consultation
consultation with GDA
with GDA .”
Employees, Director(s)/Key Managerial Personnel(s) (“KMP”),
Employees, Man-geriEl Personnel(s) ("KMP"),
SPECIAL
SPECIAL BUSINESS:
BUSINESS: Relation(s) of Director(s)/ KMP(s), Related Party(ies) any
Relation(s) of Director(s)/ {MP(s), *e'ated Psrty(ies) any
person/institution
person/lnstitution as as the
the Board
303rd maymay decide
decide from time to
from time to time]
time]
Item
Item no
no -6:
-6: Borrowing
Borrowing Powers
Powers of
of the
the Board
Board
separately
separately or or any
any combination
combination thereofthereof byby anyany permissible
permissible
To consider
To consider and
and if thought fit,
ifthought fit, to
to pass
pass the
the following
following resolutions
resolutions
methods
methods as as the
the Board
Board maymay decide
decide including
including butbut not
not limited
limited toto
as
as SPECIAL RESOLUTION(S).
SPECIALRESOLUTION(S)
shelf
shelf prospectus,
prospectus, prospectus,
prospectus, information
information memorandum,
memorandum, shelf shelf
“RESOLVED
"RESOLVEDTHAT THAT in in supersession
supersession of of the
the Special resolutions
resolutions disclosure
disclosure document,
document, offeroffer document,
document, any Eny other
other document
dccument or or
passed at the Thirty fourth Annual General Meeting of
pessed at the Thirty fourth Annual General Meeting the
of the otherwise AND by way of acceptance of deposits/loans from
otherwise AND by way of accept-nce Df deposits/loans from
Company
Company held held on
on July
duty 31,
31, 2020
2020 andand pursuant
pursuant to to Section
Section 180
180 any
any or
or all
all of
of the
the Entity(ies)
Entity(ies) referred
referred above,
above, anyany combination
combination
(1)
(1) (c), 42, 62,
(c),42, 62, 71
71 and
end other
other applicable
applicable provisions,
provisions, ifif any, of the
any,of the thereof AND
thereof AND by way of
by way of any
any other
other permissible
permissible instruments
instruments
Companies Act, 2013 (“Act”) and relevant Rules prescribed
Companies Act, 2013 ("Act") and re'evant Ru'es prescribed or methods
or methcZs of of borrowings
borrowings on on such
such terms
terms and conditions as
and conditions es
under
under thethe Act,
Act, (including
(including any any statutory
statutory modifications
modifications end and the Board may deem fit notwithstanding that the monies to
the aoerd may deem fit notwithstanding that the monies to
re-enactment
re-enactment thereof
thereof for for the
the time
time being
being inin force)
force) applicable
applicable be borrowed together with the monies already borrowed by
be ±lrrowed tcgether with the monies alresdy borrowed by
regulations
—ulations of Securities and
of Securities and Exchange
Exchange Board Board of of India,
India, the Company,
the Company, apart apsrt from
from temporary
temporary loansloans obtained
obtEined and/or
and/or
Reserve Bank of India and any other applicable regulations, ifif
Resewe aankof India and any other spplicable regulations, to be obtained from the Company’s bankers in the ordinary
to be obtained from the Compeny's bankers in the ordinary
any, the approval
any,the approval of of the
the Company
Company be be and is is hereby
hereby accorded
accorded course of
course of business
business willwill oror may exceed the
may exceed the aggregate
aggregste of of the
the
tto the
the Board
Board of of Directors
Directors of of the
the Company
Compeny (hereinafter
(hereinafter called
called paid
Eid upup share
share capital,
capital, free
free reserves
reserves andand securities
securities premium
premium
“Board”, which term shall be deemed to include any duly
"Board", which term shall be deemed to include any duly of the
of the Company
Compeny so that the
SDthat the total
total amount
-mount outstanding
outstanding at et any
any
authorised
authorised Committee
Committee thereof, which the
thereof, which the Board
aoerd maymay have
have point of time shall not exceed ` 40,000 crores (Rupees forty
point of time shall not exceed 40,011 crores (Rupes forty
constituted
constituted or or hereinafter
hereinafter constitute
constitute from time to
from time to time
time by
by thousand crores).
thousand crores)
whatever name called to exercise it’s power including the
whatever neme celled to exercise it's power inc'uding the RESOLVED FURTHER THAT for
RESOLVEDFURTHERTHAT for the
the purpose
purpose of of giving
giving effect
effect
power conferred by
power conferred by this
this resolution)
resolution) toto borrow
±rrow for the purpose
for the purpose to the
to the foregoing
foregoing resolution
resolution andand without
without being
±ing required
required
of
of the
the business
business of of the
the Company
Company from time to
from time to time
time any
any sum(s)
sum(s) to seek
to seek further
further consent
consent or or approval
approval of of the
the Members
Members or or
of
of money(s),
money(s), long term or
long term or short
short term,
term, fund
fund based
based or
or non-fund
non-fund otherwise for this purpose that they shall be deemed to
otherwise for this purpose that they shell be deemed to
based, in Indian Rupee or in any foreign currency, unsecured
based, in Indian Rupee or in Eny foreign currency, unsecured have
have given
given their
their approval thereto expressly
approvsl thereto expressly by by authority
authority
or
or secured
secured by
by mortgage,
mortgage, charge,
charge, hypothecation,
Hypothecation, lien,
lien, pledge
pledge of this
of this resolution,
resolution, the
the Board
Board bebe and
and isis hereby
hereby authorised
authorised toto
or otherwise of the Company’s assets and properties for
or otherwise of the Company's assets and properties for do all acts, deeds, matters and things to give full effect to
do all acts, deeds, matters -nd things to give full effect to
and on behalf
and on behalf of the Company
of the Company by by way
way ofof loan(s),
loan(s), financial
financial the aforesaid resolution, settle and clarify any question or
the aforesaid resolution, settle end clarify any question or
assistance(s),
assistance(s), commercial
commercial paper(s),
pager(s), senior
senior note(s),
note(s), rupee
rupee difficulty,
difficulty, finalise the form,
finalise the form, content,
content, extent
extent and
and manner
manner of of

2
2 AGM NOTICE
AGM NOTICE 2020-21
2020-2'
 SHRIRAMCitY

documents
documents and and deeds, whichever applicable
deeds, whichever applicable and
and execute
execute all
all the
the Board
Board authorised
authorised by by itit in
in that
that behalf,
tehelf, except
except in in presence
presence of
of
deeds, documents, instruments and writing, for the purpose
deeds, documents, instruments and writing, for the purpose (i) two Directors, or (ii) the Secretary or (iii) such other person
(i) two Directors, or (li) the Secretary or (iii) such other person
mentioned
mentioned in
in the
the aforesaid
-foresaid resolution
resolution in
in consultation
consultation with
with the
the (s)
(s) as
as the
the Board/Committee
Board/Committee may may appoint
appint for for the
the purpose
purpose of
of
Entities
Entities referred
referred inin aforesaid
aforesaid resolution
resolution and
end for
for reserving
reserving the
the affixing the Seal.
affixing the Seel The two Directors
The two Directors or
or Secretary
Secretary or or such
such other
other
aforesaid
aforesaid right.”
right" person(s)
person(s) as as aforesaid
-foresaid shallshall sign
sign every
every instrument
instrument tto which
which

Item
Item No
No -- 7
7 :: To
To consider
consider and
and ifif thought
thought fit, to pass,
fit, to with
pass, with the Seal is so affixed in their presence.”
the Seel is so affixed in their presence"
or without modification(s) , the following resolution as aa
or without modification(s) , the following resolution as
SPECIAL
SPECIAL RESOLUTION
RESOLUTION
By
ay Order of the
Orderof the Board
Board
“RESOLVED
"RESOLVEDTHATTHAT the
the existing
existing Article
Article number
number 26.2
26.2 of
of the
the
For Shriram City Union Finance Limited
For Shriram City Union Finance Limited
Articles of
Articles of Association
Association of the Company
of the Company bebe substituted/
substituted/
replaced with the
replac4i With the following.
“Seal
"Seel shall
shell not
not be
be affixed
affixed to
to any
any instrument
instrument except
except by
by the
the
Place
Place :: Chennai
Chennai C
C R
R Dash
Dash
authority of a resolution of the Board/or of a Committee of
authority of a resolution of the Board/or of a Committee of Date :: April
April 30,
30, 2021
2021 Company
O)mpany Secretary
Secretary

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 3
EXPLANATORY STATEMENT PURSUANT TO SECTION
EXPLANATORYSTATEMENTPURSUANTTO 102 (1)
SECTION102 (1) OF THE COMPANIES
OFTHE ACT, 2013
COMPANIESACT,2013

ANNEXURE
ANNEXURE

Information
Information required under
under Regulation
Regulation 36
36 (3)
(3) of
of the
the LODR
LODR&& SS2
SS2

Name
Name ofof the
the Director
Director Sri
Sri Duruvasan
Duruvasan Ramachandra
Ramachandra

Citizenship
Citizenship Indian
Indian

Date
Date of
of Birth/
Birth/ Age
Age April
April 12,
12, 1962/58 yrs
1962/58yrs
DIN 00223052
00223052

Date
Date of first appointment
of first appointment on the Board
cr. the aoerd of
of Directors
Directors July
duly 1,
1, 2019
Qualifications
Qualifications B Com
Nature
Neture ofof Expertise
Expertise in
in specific functional
functional areas
areas Financial
Financia'
Service business
Service business

Directorship
Directorship held
held in
in other
other Companies
Companies 1.
1. CES
CES Limited
Limited

2.
2. Shriram
Shriram Life
Life Insurance
Insurance Company
Company Limited
Limited

3.
3 Shriram
Shriram Capital
Capitsl Limited
Limited
Membership/Chairmanship
Membership/Cheirmanship of of Committees
Committees of
of other
other public
public Member
Member of of Audit
Audit Committee
Committee and
and Stakeholders
Stakeholders Relationship
Relationship
companies (includes only Audit
companies Oncludes only Audit Committees and
Committees end Stakeholders Committee - CES Limited
Stakeholders Committee - CES Limited

Relationship
Relationship Committee)
Committee)
Disclosure
Disclosure of
of relationships
relationships between
between directors/Key
directors/Key Managerial
Menagerial There
There is
is no
ro inter-se
inter-se relationship
relationship between
between Sri
Sri Duruvasan
Durwasan
Personnel inter-se
Personnel inter-se Ramachandra and the directors on the Board of Directors of
Remschandra and the directors on the Board of Directors of

the
the Company
Company and
and Key
Key Managerial
Managerisl Personnel
Personnel
Terms and
Terms end conditions
conditions of
of re-appointment
re-appintment Sri
Sri Duruvasan
Curuvasen Ramachandra
Rsmechandra is is liable
liable to
to retire
retire by
by rotation
rotation
Number of Meetings
Number of Metings attended
attended 7
7 out
out of 7 meetings
of 7 meetings held
held during
during 2020-21
2020-21
Shareholding
Shareholding in the Company
in the Company Nil
Remuneration
Remuneration Paid
Paid during
during 2020-21
2020-21 (`
(t in
in lacs)
lacs) NA
Remuneration
Remuneration payable
payable (`in
Rin lacs)
lacs) NA

Item
Item No.
No. 5
5 The RBI
The vide its
RBI vide its guidelines/circular
guidelines/circular no
no RBI/ 2021-22/ 25 Ref.
831/2021-22/25 Refl
Pursuant to the
Pursuant to the provisions
provisions of
of Section
Section 139
13S of
of the
the Companies
Companies No. DoS. CD. ARG/ SEC.01/ 08.91.001/ 2021-22 dated April
No SECT-II,' 2021-22 dated April

Act, 2013 (“the Act”) and the Companies (Audit and Auditors)
Act, 2013 ("fre Act'3 and the Companies (Audit end Auditors) 27,
27, 2021
2021 has
has specified the criteria
specified the criteria for
for appointment ofof Auditors
Auditors
Rules, 2014 M/s G D Apte & Co, Chartered Accountants, Pune,
Rules,2014 Ws G D Apte & CEO,Chartered Accountsnts, Pune, by
by Non-Banking
Non-aanking Financial
Financial Company
Comp-ny (“NBFC”)
("N3FC") from
from FY22. The
The
Firm
Firm Registration
Registration No-100515W
No- 1 SW were
were appointed as Statutory
sppo.nted es Statutory RBI, has given flexibility to NBFCs to adopt these guidelines
has given flexibility to NFCs to adopt these guidelines
Auditors of
Auditors of the
the Company
Company at the 32
at the nd
Annual General
327±Annuel General Meeting
Meeting from second
from second
half of the Financial Year
half of the Financial
2021-22 (“H2FY22”)
Year 2021-22

(“AGM”) of the Company held on June 30, 2017 to hold office

("AGMA)of the Company held on June 30, 2017 to hold offce in
in order
order toto ensure
ensure nono disruption.
disruption Accordingly,
Accordingly, the the NBFCs
NEFCsshsll shall
from the conclusion
from the conclusion of
of the
the 32 AGM until
32'±nd AGM until the conclusion of
the conclusion of appoint Statutory Auditors for a continuous period of three
appoint Statutory Auditors for a continuous period of three
the 36 AGM
the th
AGM of
of the
the Company.
Company. years from
years from FY22.
Ff22 GDA, the Statutory
GDA,the Auditors of
Statutory Auditors of the
the Company
Company

The Company
The Compeny seeks seeks approval
approval of of Members
Members every year
every year has
h's conducted
conducted audit
sudit of
of the
the accounts
eccounts of of the
the Company
Company for four
for four

at the AGM
at the AGM for for payment
payment of of remuneration
remuneration (exclusive
(exclusive of
of consecutive financial years ending March 31, 2021. In the
consecutive financial years ending March 31, 2021. In the
reimbursement of expenses, applicable taxes, remuneration
reimbursement of expenses, applicable taxes, remuneration event RBI
event RBI modifies/changes
mc.difies/changes above above stated
stated regulation,
regulation, thenthen
for other services
for other services provided
provided and
and subject
subject toto deduction
deduction ofof modified/changed
modified,fchsnged regulation
regulation would vzuld apply
apply to to the
the Company
Company
applicable taxes at
applicable taxes at source) to the
source) to the Statutory
Stetutory Auditors
Auditors .In the
In the from such
from such date
dete asss may
may be be mentioned.
mentionei Due Cue toto the
the application
spplication
ensuing
ensuing AGM, the the Company seeks the
Compa ryseeks the approval
approval ofcf members for
members for of the said guidelines, if GDA continues as the auditor of
of the said guidelines, if GDA continues as the auditor of the
the
the fees (exclusive of reimbursement of expenses, applicable
the fees (exclusive Df reimbursement of expenses, applicable Company
Company for for part
Ert of
of FY22,
3<22, then
then itit need
need to to be remunerated
remunerated for for
taxes, remuneration
taxes, remuneration for for other
other services
services provided
provide: and
and subject
subject that. It is proposed that GDA, the Statutory Auditors of the
that It is prop3sed that GDA, the Statutory Auditors of the
tto deduction
deduction ofof applicable
Epplicab'e taxes
taxes at at source)
source) payable to GDA
peyeble to GDA Company
Company will will continue
continue to to hold their office
hold their office till
till such
such period
period as es
for
for the financial year
the financial year 2021-22
2021-22 based
based on on recommendation
recommendation of of may
msy be be permitted
*rmitted by by law.
law. IfIf GDA continues as
GDAcontinues as the
the auditor
auditor of of
the Audit and Risk Management Committee (“ARMC”) and
the Audit and Risk Msnegement Committee ("ARMC) end the Company for full FY22, then it is proposed to pay their
the Company for full FY22, then it is proposed t pay their
approval
approval ofof the
the Board
Board of
of Directors
Directors pursuant
pursuant to
to Section
Section 142
142 remuneration
remuneration for for conducting
conducting audit audit ofof Company’s
Company's accountsaccounts
of the Act.
of the Act
for full
for full financial year ending
financial year ending MarchMarch 31, 31, 2022.
2022 In In the
the event,
event,

4
4 AGM NOTICE
AGM NOTICE 2020-21
2020-2'
 SHRIRAMCitY

GDA continues to
GDAcontinues to be
te auditor
auditor of
of the
the Company
Compeny for
for part
part of
of FY22,
Ff22, capital
capital adequacy
a*uecy ratio,
ratio, which
which is
is related
related to
to borrowings,
borrowings, as
as per
per
then it is proposed to pay remuneration to GDA, the Statutory
then it is proposed to pay remuneretion to GDA,the Statutory the regulatory requirement of Reserve Bank of India (“RBI”).
the regulatory requirement of Reserve Bank of India ("881")
Auditors on
Auditors on pro-rata
pro-rate basis
basis as
-s may
may be
be fixed
fixed by
by the
the Board of
Board of
As
As per
per Section
Section 180180 (1)
(1) (c)
(c) of
of the
the Act,
Act, the
the approval
approval of
of
Directors
Directors of the Company
of the Company depending
depending upon
upon scope
scope of their
of their
members
members isis required
required to
to borrow
trorrow funds
funds exceeding
exceeding aggregate
egg—ate of of
work, time
work, time consumed
consumed forfor holding the office
Holding the office of the Statutory
of the Statutory
paid
paid up
up capital, free reserves
capital, free reserves and
and securities
securities premium
premium ofof the
the
Auditors for part of FY22. The fees of ` 33,27,500/- (Rupees
Auditors for part of The fees (Rupees
Company.
Company TheThe borrowings
borrowings are
are proposed
proposed to
to be not exceeding
not exceeding
thirty three
thirty three lakhs
lakhs twenty
twenty seven thousand and
seven thousand end five
five hundred
hundred
` 40,000 crores,
crores, which
which is is in
in excess
excess of the limit
ofthe 'imit set
set under
under Section
Section
only) (excluding
only) (excluding reimbursement
reimbursement of of expenses,
expenses, applicable
applicable 180
180 (1)
(1) (c)
(c) of
of the
the Act.
Act Each
Each borrowing
borrowing would
would have terms and
have terms and
taxes, remuneration for other services provided and subject
taxes, remuneration for other services provided and subject conditions.
conditions Different
Different borrowings
borrowings may may be withwith different
different terms
terms
to deduction of applicable taxes at source) is proposed to
to deduction of applicable taxes at source) is proposed to and
end conditions.
conditions. TheThe availing
avai'ing of of borrowings
borrowings typetype of
of borrowing,
borrowing,
be
te paid
paid for
for being
±ing in in office
office for
for full
full FY22 or
or such
such amount
emount onon the lender to borrow from the amount of borrowing within
the 'ender to tcrrow from the amount of borrowing within
pro-rata
pro-rate basis
basis depending
de#nding on on the
the scope of work,
scope of work, period of
pericd of the specified limit, time of borrowing, terms and conditions
the limit, time of borrowing, terms and conditions
office been in office for part of FY22. The ARMC and Board
office been in office for part of The ARMC and Board of
of each
each borrowing
borrowing and and other
other matters
matters related
re'ated thereto
thereto are
are
have
have recommended
recommended passing
passing of of this
this resolution.
resolution proposed
proposed to to be
be left
left to
to the
the Board
3aard and
and Committee
Committee or or any
any person
person
None
None ofof the
the Directors,
Directors, Key
Key Managerial
Managerial Personnel
Personnel ofof the
the authorised
authorised by by the
the Board/
Board/ Committee.
Committee The The Borrowings
aorrcwings would
enuld
Company
Comp-ny and their relatives
and their relatives thereof
thereof areare interested
interested oror require
require execution
execution of of different
different agreements
agreements with the LENDER(S)
with the LENDER(S)
concerned financial
concerned financial or
or otherwise
otherwise inin the
the proposed
proposed resolution
resolution by
by the
the Company.
Company LENDER(S)
LENCER(S)enuld would require
require securities
securities for
for such
such
except to
except the extent
to the of their
extent of their holdings
holdings inin securities
securities ofof the
the borrowings.
borrowings. The
The overall
overall securities
securities toto be
be offered
offered are
are expected
expected
Company, if any. The Audit Committee and the Board of
Compeny, if anyt The Audit Committee and the Board of to
to be
be 1.25 times of
125 times the borrowings,
of the borrowings, which
which would
would amount
amount to to
Directors
Directors recommend
recommend passing
passing of
of the
the resolution
resolution as
es set
set out
out in
in ` 50,000
50030 crores
crores in in favour
fsvour ofcf the
the LENDER(S).
LENDER(S) Each Each borrowing
byrowing
No
No 5
5 of the Notice.
of the Notice may
may bebe with
with different
different kind
kind and
end amount
amount of of securities.
securities TheThe
Item
Item No: 6
No: 6 securities
securities offered
offered byby the
the Company
Company for for such
such borrowings
±rrowings may may
require registration
registration of charge with
of charge with Registrar
Registrar of of Companies
Companies
The Company
The Company is a Non-Banking
is e Non-aanking Finance
Finance Company
Company and end
or any other authority or Government. The borrowings and
any other authority or Government The ±rrowings and
provides
provides loans
loans under
under various
various products
products toto its
its borrowers.
±lrrowers
creation
creation oror registration
registration of of charge
charge would
would require
require different
different
Borrowing
Borrowing is
is one
one of
of the
the source
source of
of raising
raising funds
funds for
for the
the
documents
documents to to bebe executed
executed withwith such
such LENDER(S)
LENDER(S) by by the
the
Company
Compeny for for onward
onward lending
lending and
end other
other purposes.
purposes At At the
the
Company. The documents to be executed for the purpose
Company The documents to be executed for the purpose
34th
34th Annual
Annual General
General Meeting
Meeting (“AGM”)
("AGMA)heldheld onon July
duly 31,
31, 2020
2020
may
may contain
contain aa provision
provision toto take
take over
over the
the substantial
substantial assets
assets of
of
Board
Board of cf Directors
Directors was
was authorised
authorised under
under Section
Section 180
180 (1)
(1) (c)
(c)
the
the Company
C.ompanyin in certain
certain events.
events.
of the
of Act to
the Act to borrow
±rrow upto upto aa limit
limit of
of?` 40,000
40,003 crores
crores apart
apart from
from
temporary loans
temporary loans obtained/to
obtsined/tcbe be obtained
obtEined from
from the
the bankers
bankers (by(by As
As per Circular
Circular no.
no SEBI/HO/DDHS/CIR/P/2018/144
SEBI,'HO/DDHS/CIR/P/2D18/144 dated
dated

way of cash credit limits and working capital demand loans)

way of cash credit limits and vnrking capital demand loans) November
November 26, 26, 2018
2018 issued
issued by the Securities
by the Securities and end Exchange
Exchange
in the ordinary
in the ordinary course
course of of business.
business Section
Section 180130 (1)
(1) (c)
(c) of
of the
the Board of India (“SEBI Circular”), a Large Corporate is
aoerd of India ("SEBI Circular'}, a Large Corporate is
Act provides
Act provides that
that the
the Board
Board ofof Directors
Directors of of aa Company
C.ompanyshallshall mandatorily required to raise at least 25% of its incremental
mandatorily required to reise at least of its incremental
only with
only with the
the consent
consent of the Company
of the Company by by a
e special
special resolution
resolution borrowing
borrowing during
during the financial year
the financial year subsequent
subsequent to to the
the
borrow money together with money already borrowed (apart
&zrrow money tæether with money steady borrowed (apart financial
financial year
year in
in which
which it it is
is identified
identified asas aa Large
Large Corporate,
Corporate,
from temporary
from temporary loans
loans obtained
obtained andand /or
/or to
to be
be obtained
obtained from
from by
by way
way ofof issuance
issuance of of debt
debt securities.
securities The The Company
Company is is ae
Company’s
Compeny's bankers
benkers in in ordinary
ordinery course
course ofof business)
business) in excess
in excess Large Corporate and thus the Circular of SEBI applies to the
Large Corporate and thus the Circular of SES' applies to the
of share
of share capital,
capital, free
free reserves
reserves andand securities
securities premium.
premium In In Company.
Company The The Company
Company is is required
required toto file
file an
an initial
initial disclosure
disclosure
addition to the Act, Regulations of SEBI and Regulations
addition to the Act, Regulations of SE81 end Regulations and
end annual
annual disclosure
disclosure tc to this
this effect
effect with
with Exchanges
Exchenges everyevery
of RBI
of RBI may
mey apply
apply for
for borrowing. The The expression
expression temporary
temporary financial year before April 30 every year and within 45 days
financial year before April 3D every year and within 45 days
loans
loans for
for this
this purpose
purpose means
means loans
bens payable
payable on on demand
demand or or from
from the
the end
end of of financial
financial year year respectively. The The annual
annual
within six
within six months
months from
from date
date of
of loan
loan such
such as
as short term, cash
short term, cash disclosure
disclosure confirmation
confirmation would
would be
be filed
filed inin due
due course.
course The
The

credit arrangements,
credit the discounting
arrangements, the discounting of
of bills,
bills, etc.
etc incremental
increments' borrowing
borrowing may may be be in
in excess
excess of of prescribed
prescribed limit
limit

The borrowings
The ±rrowings by the Company
by the depend upon
C.ompanydepend upon many
many factors
factors depending
depending upon upon thethe requirement
requirement of of funds
funds by the Company.
by the Company.

and may be done under different methods including Public

and may be done under different methods inc'uding The Company may also issue the NCDs at discount or
The Company may also issue the NCOs Et discount or

Issue
Issue of
of NCDs/Securities. The Board
NCOs/Securities. The Board proposes
proposes toto have
have the
the premium
premium depending
de#nding upon upon debtdebt market
market conditions
conditions prevailing
prevailing

borrowing limits
limits at 40,000 crores
at ` 40,011' crores with
with no
no increase
increase inin the
the on the
the date
date ofof issue
issue of the NCDs
cf the NCDs and and relevant
relevant regulatory
regulatory
borrowing limits
limits as
as approved
approved by by the
the members
members at at 34th
34th AGM
AGM requirements,
requirements, i.e. le number
number of of ISINs
ISAs maturing
maturing per per financial
financial year.
year.
of the Company apart from the temporary loans obtained/
of the Company apart from the temporary 'osns obtained/ The funds raised through proceeds of the issue of NCDs will
The funds reised through proceeds cf the issue Df NCDs will

to be
to be obtained from the
obtained from the Company’s
Compeny's bankers
bankers in in the
the ordinary
ordinary be
be utilised for vericus
utilised for various financing,
financing, lending,
lending, and and investments,
investments,

course of
course of business.The
businessThe Company will continue
Company will continue to to maintain
maintain repaying
repaying the the existing
existing liabilities/loans,
liabilities/loans, business
business operations,
operations,

SHRIRAM
SHRIRAM CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 5
5
capital expenditure, working
capital ex#nditure, working capital
capital requirements,
requirements, issueissue Board
Board may
may appoint
appoint for
for the
the purpose
purpose of
of affixing
affixing the
the Seal
Seal and
and
expenses and general corporate purposes of the Company
expenses end general corporate purposes of the Compeny those two Directors and Secretary or other person aforesaid
those two Directors Secret-ry or other person aforesaid
and for the
and for the purposes
purposes mentioned
mentioned in the Shelf
in the Shelf Prospectus,
Prospectus, shall
shell sign every instrument
Sign every instrument to
to which
which the
the Seal
Seal isis so
so affixed
affxed in
In
Prospectus, Tranche Prospectus,
Prospectus, Trenche Prospectus, Shelf
Shef Disclosure
Disclosure Document,
Document their presence.”
their presence"
Information
Information Memorandum
Memorandum and end any
any other
other document
dccument under
under
The Seal
The Seel is
is the
the official
official seal
seal of
of the
the Company.
Company TheThe Article
Article no
no
which issue is made. Further, passing of this resolution is
which issue is made Further, passing of this resolution is 26.2
26.2 of
of the
the existing Articles of
existing Articles of Association
Assaiation is
is proposed
proposed to
to be
be
also
also necessary
necessary in in order
order toto enable
enab'e the
the Company
Company to comply
to comply
replaced with the
replac4i with the following.
with
with the
the SEBI Circular. Borrowings
SE31Circular Borrowings by the Company
by the Company may may be
be
“Seal
"Seal shall
shell not
not be
be affixed
affixed to to any
any instrument
instrument except
except byby the
the
for the purpose
for the purpose ofof financing,
financing, lending,
lending, investments,
investments, repaying
repaying
authority of a resolution of the Board/or of a Committee of
authority of a resolution of the 3ærd/or of a Committee of
the existing
the existing liabilities/loans,
liabilities/læns, business
business operations,
operations, capital
capitsl
the Board
the Board authorised
authorised by by itit in
in that
that behalf,
behalf, except
except in In presence
presence of
of
expenditure,
expenditure, revenue
revenue expenditure, working capital
expenditure, working capital and
and general
general
(i) two Directors,
(i) two Directors, or (ii)
(ii) the
the Secretary
Secretary or
or (iii)
(iii) such
such other
other person
Frson
corporate
corporate purposes
purposes of of the
the Company.
C.ompany.
(s)
(s) as
as the
the Board/Committee
Board/Committee may may appoint
appoint for for the
the purpose
purpose of
of
None
None of the Directors,
of the Directors, Key
Key Managerial
Managerial Personnel
Personnel of the
of the affixing the Seal. The two Directors or Secretary or such other
affixing the Seal The two Directors or Secretary Drsuch other
Company
Company and their relatives
and their thereof are
reletives thereof are interested
Interested oror person(s) as as aforesaid
aforesaid shall
shall sign
sign every
every instrument
instrument to which
to which
concerned financial or otherwise in the proposed resolution
concerned financial or othemise in the prop3se.d resolution
the Seal
the Seal is
is so
so affixed
affixed in their presence.”
in their presence"
except to the
except to the extent
extent of
of their
their holdings
ho'dings inin securities
securities of the
of the
The change
The change in the said
in the said clause
clause is
is proposed
proposed for
for more
rmre clarity
clarity
Company,
Company, ifif any.
anyt The
The Board of Directors
Board of Directors recommend
recommend passing
passing
purpose. This clause was amended at the AGM held on July
purpose This clause was smended st the AGM held on July
of
of the
the Resolution(s)
Resolution(s) set
set out
out in
in item
item no
no -6
-6 of
of the
the Notice
Notice as
as
28,
28, 2015
2015 and
end itit requires
requires more
mue clarity.
clarity This
This is
is an
an alteration
alteration to
to
Special Resolution(s).
Special Resolution(s).
the Articles
the Articles of Associations of
of Associations of the
the Company
Company As As per
per Section
Section
Item
Item No.
No. 7:
7:
14
14 of the Companies
of the Compenies Act,Act, 2013
2013 any
any alteration
alteration in
in the Articles of
the Articles of
The common
The common seal
seel of the Company
of the Company is is required to be
requir4i to be affixed to
affixed to Association of the Company requires approval of shareholders
Association of the Company requires approval of shareholders
different documents/Agreements (including but not limited
different documents/Agreements (ncluding but not to
limited to by
by way
way of
of special
special resolution.
resolution
loan
loan documents)
dccuments) entered
entered into
into by
by or
or on behalf of
DntehEIf of the
the Company
Compeny
None
None ofof the
the Directors,
Directors, Key
Key Managerial
Managerial Personnel
Personnel of of the
the
from time to
from time time. The
to time. The documents
documents required
required tto be
be affixed
affixed
Company
Company and end their
their relatives
relatives thereof
thereof are
are interested
interested oror
with Seal of the Company are provided in the Companies
with Seal of the Company are provided in the Companies
concerned financial
concerned financial or
or otherwise
otherwise inin the
the proposed
proposed resolution.
resolutiom
Act 2013
Act 2013 and
and are
-re asked
asked by
by the
the other
other party
party to the agreement/
to the agreement/
The Board
The Board ofof Directors
Directors recommend
recommend passing
passing of
of the
the Resolution
Resolution
document.
document These
These documents
documents may may or
or may
mey not
not be
be registered
registered
set out in item no-7 of the Notice as Special Resolution.
set out in item no-7 of the Notice as Special Resolutiom
with
with registering
registering authority. The existing
authoritb{ The existing clause
clsuse no
no 26.2
26.2 in the
in the
Articles of
Articles
of Association
Assccietion
states
states
about affixation of
about affixation
of Common
Common

seal of the Company as under.

seal of the Company as under. By
ay Order
Order of
of the
the Board
Board
“The
"The Seal shall not
Seel shall rot be
be affixed
affixed to
to any
any instrument except by
instrument except the
by the For
For Shriram
Shriram City
City Union
union Finance
Finance Limited
Limited
authority
authority of a resolution
of e resolution of of the
the Board
3aard or of a Committee
Drof Committee of the
of the
Board
Baard authorised
suthDrised by by itit in that behalf,
in that except in
behalf, except in presence
presence of
of (i)
(i) Place
Place
: Chennai
Chennai
C R Dash
C R Dash

two Directors and the Secretary, (ii) such other person as the
two Dire:trs and the Secretary, (ii) such other person as the Date
Date : April
April 30,
30, 2021
2021 Company
Company Secretary
Secretary

6 AGM NOTICE
AGM NOTICE 2020-21
2020-2'
 SHRIRAMCitY

NOTES
NOTES FORMING
FORMING A
A PART
PART OF
OF THE
THE NOTICE:
NOTICE: 6. 
6. Additional information,
Additional information, pursuant
pursuant toto regulation
regulation 36
36 ofof
1. The explanatory statement
The explanatory statement as
as required
required under
under Section
Section LODR in respect of the director(s) seeking appointment/
LODRin respect of the dirEtor(s) seeking appointment/

102 of the Companies Act, 2013 (“Act”) with respect to

102 of the Companies Act, 2013 ("Act') with respect to re-appointment
re-appointment at at the AGM forms
the AGM forms a part
part of
Df this
this Notice.
Notice.
ordinary/special
ordinary/special business
business set
set out
out in
in item
item no.5,
no.5, 6
6 and
and 7of
70f The
The director(s)
director(s) have
have furnished
furnished consent/declaration
consent/declaration forfor
the
the Notice
Notice is annexed hereto.
is annexed hereto their appointment/re-appointment
their appointment/re-appointment as as required
required under
under the
the
Act and
Act the Rules
and the Rules thereunder.
thereunder
2. 
2 In
In view
view of the continuing
of the continuing Covid-19
Covid-lg global
globel pandemic,
pandemic,
the
the General
General Meetings
Meetings of of the
the Companies
Companies shall
shell be
be 7. 
7. The Notice
The Notice along
along with
with the
the Annual
Annual Report
Report for
for the
the
conducted as per the guidelines issued by the Ministry
conducted as per the guidelines issued by the Ministry year ended March 31, 2021will be sent to all the
year ended March 31, 2021will be sent to ell the
of
of Corporate
Corporate Affairs
Affsirs (MCA) vide Circular
(MCA vide Circular No
No 14/20
14/20 dated
dated Members
Members by electronic mode,
by electronic mode, whose
whose names
nemes appear
Eppeer

April 8, 2020, No 17/2020 dated April 13, 2020, Circular

April 8, 2020, No 17/2020 April 2020, circular in
in the
the Register
Register of
of Members
Members asas on
on June
June 30,
30, 2021.
2021

No
No 20/2020
20/2020 dated
dated May 5, 5, 2020
2020 and
-nd Circular
Circu'ar no
no 2/2021
2/2021 This Notice
This Notice can
can be
be accessed
accessed on the web
on the web site
site of
of the
the

dated
dated January
January 13,
18, 2021
2021 (MCA
(MCA circulars)
circulars) and
and Circular
Circular no
no Company
Compeny at
et https://nseprimeir.com/ir_download/
httpswnseprimeircom/ir_download/

SEBI/HO/CFD/CMD1/CIR/P/2020/May 12, 2020 and

SEBI/HO/CFD/CMD1/CIR/P/2D20,'May 12, 2020 end PPN_Corp_Announcements/AGM_NOTICE_ANNUAL_
no
no SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated dated January
January REPORT_2021.pdf,
REPORT_2021pdf, websites of the
websites of the Stock
Stock Exchanges
Exchanges

15,
15, 2021
2021 issued
issued byby SEBI permitted the
SE31permitted the holding
holding ofof the
the i.e.
Le BSE
BSE Limited
Limited and
and National
National Stock
Stock Exchange
Exchange of
of India
Indie

Annual
Annuel General
General Meeting
Meeting (“AGM”)
("AGM") through VC/OAVM. In
through VC/CAVW In Limited
Limited at
at www.bseindia.com
mvw.trseindie.com and
and www.nseindia.com
wwunseindiacom

compliance with the

compliance with the MCA
MCA and
and SEBI circulars, the
SEEIcirculars, the AGM
AGM ofof respectively,
respectively, and
and on the website
on the website of
of CDSL
CDSL https://www.
httpsflwww.

the
the Company
Compeny will
will be
be held through VC/ÜVAM
held through VC/OVAM without
without the
the evotingindia.com
evotingindiacom

physical presence of the Members at a common venue.

physic-I presence of the Members at s common venue Members
Members who
who have
have not
not registered their
their email
email

The
The regulatory
regulatory authorities
authorities (MCA
(MCA & & SEBI)
SEBOhavehave permitted
permitted addresses and in consequence could not be served
addresses and in consequence could not be served
conducting the Annual
conducting the Annual General
General Meeting
Meeting through
through video
video the Annual
the Annual Report
Report forfor 2020-21
2020-21 and
end notice
notice of
Df 35th AGM
AGM
conferencing
conferencing (“VC”)
('VC") or or Other Audio Visual
Other Audio Visual Means
Means may
mey temporarily get get themselves
themselves withwith Company’s
Company's
(“OVAM”) upto
upto December
December 31, 31 2021. Registrar
Registrer and
and Transfer
Trensfer Agent,
Agent, M/s
Ws Integrated
Integreted Registry
Registry

3. 
3 Pursuant
Pursuant to to the
the provisions
provisions of Section 108
of Section 108 of of the
the Management Services Private Limited by clicking the
Management Services Private Limited by Sicking the

Companies Act, 2013 read with Rule 20 of the

Companies Act, 2013 reed with Rule 20 of the link: https://integratedindia.in/EmailUpdation.aspx for
link: https://intagratedindiajn/EmaillJ#atiomaspx for

Companies
Companies (Management
(Management and -nd Administration)
Administration) Rules Rules receiving the same.
r4:eiving the same.

2014
2014 (as
(as amended)
amended) and and Regulation
Regulation 44 44 of
of SEBI (Listing
SE81(Listing 8. 
8.
Members
Members attending
attending the AGM through
the AGM through VC/OAVM
VC/OAVM shall
shell be
be
Obligations
Obligations & & Disclosure
Disclosure Requirements)
Requirements) Regulations
Regulations counted
counted for the purpose
for the purpose of
of reckoning
rckoning the
the quorum
quorum under
under
2015 (as amended), in relation to e-voting facility
2015 (as emended), in relation to e-voting facility and
end Section 103 of the Act.
Section 103 of the Act

MCA circulars dated April

MCAcirculars April 8,
8, 2020, April 13,
2020, April 13, 2020,
2020, MayMay 5,
5, 9. The
The members
members can can cast
cest their votes by
their votes by way
way ofof remote
remote
2020 and January
2020 end January 13, 13, 2021,
2021 the the Members
Members are ere provided
provided e-voting
a-voting provided
provided by by the
the Company
Company in in proportion
prv:rtiDn to to
the
the facility
facility toto cast
cast their
their vote
vote electronically, through the
e'ectronicelly, through the their shares of the paid up equity share capital of the
their shares of the paid up equity share c,spital of the
remote e-voting services. For this purpose, the Company
remote a-voting services For this purpose, the Company Company
Compeny as es on
on the
the cut-off
cut-off date
date July
July 22,
22, 2021.
2021. Any
Any
has
has entered
entered intointo an
an agreement
agreement with with Central
Central Depository
Depository person,
person, whowho acquires
ecguires shares
shares of of the
the Company
Company and and
Services (India) Limited (CDSL). The facility of
Services (Indie) Limited (CC'SLI The fscility of casting
casting becomes
becomes a a Member
Member of of the
the Company
Company afterafter sending
sending ofof the
the
votes
votes byby aa member
member usingusing remote
remote e-voting
a-voting as ss well
well as
as Notice
Notice and
and holding
holding shares
shares as as of
of the
the cut-off
cut-off date,
date, may
may
e-voting facility on
e-voting facility on the
the date
date of AGM will
of AGM will be
be provided
provid± to to obtain the login
obtain the login IDD and
and password
password by by sending
sending aa request
request
the members by CDSL for facilitating voting through
the members by CDSL for facilitating voting through at csdstd@integratedindia.in. However, if he/she is
at csdstd@integretedindie.im However, if he/she is
electronic
electronic means
means as -s the
the authorised e-voting agency.
authorised e-voting agency already
already registered with CDSL
registered with CDSL forfor remote
remote e-voting
e-voting then
then
4. As
As this
this AGM
AGM isis being
±ing held
held through VC/OAVM pursuant
through VC/OAVM to
pursuant to he/she
he/she can
can use
use his/her
his/her existing
existing User
User IDID and
and password
password
as
as per etc,'e
above said
Eid MCA circulars, the
MCA circulars, facility to
the fecility to appoint
Eppa.nt for
for casting
casting the vote.
the vote
proxy(is)
proxy(s) to
to attend
attend and
and cast
c-st vote
vote for the members
for the members will
will 10. Pursuant to section
Pursuant to section 91
gl of the Act
of the Act and
end Regulation
Regulation 4242 of
of
not
not be
be available for this
available for this AGM
AGM andand hence
hence the
the proxy
proxy form
form the LODR, the Register of Members and Share Transfer
the LODR,the Register cf Members Share Transfer
and
and attendance
attendance slip
slip are
are not
not annexed
annexed to this Notice.
to this Notice Books
Books will
will remain
remain closed
closed from
from Friday,
Fridey July
duly 23,
23, 2021
2021 to
to
5. Authorised
Authorised representatives
representatives of of corporate
corporate members
members ereare Thursday, July 29, 2021 (both days inclusive) for the
Thursdsy, duty 2g, 2021 (bath days inclusive) for the
requested to send certified copies of such authorisation
requested to send certified copes of such authorisation purpose
purpose of
of AGM
AGM and
and payment
payment of
of final
final dividend.
dividend.
of
of their
their Board
Board to to the
the Company,
Company, authorising their
authorising their 11. Subject to the
Subject to the provisions
provisions ofof the
the Act, the dividend,
Act, the dividend, ifif
representative to attend
representative to attend thethe AGM
AGM through VC/OAVM on
through VC/OAVM on declared
declared at
at the
the AGM
AGM shall
shsll be
be paid
paid on
on or
or after
after August
August 2,2,
its
its behalf and to
behalf end vote through
to vote through remote
remote e-voting
e-voting tto the
the 2021 to the demat account holders or holders of physical
2021 to the demataccount holders or holders of physical
scrutiniser
scrutiniser by
by email
email at sriram@prowiscorporate.com
at srirem@prowiscorgoratecom shares
shares as
as at the end
at the end of the day
ofthe day on
on July 22, 2021
July22, 2021 provided
provided
with a copy marked to helpdesk.evoting@cdslindia.com.
with a copy marked to helpdeskevoting@cdslindie.com by
by DP or RTA
DPor RTAasas the
the case
case may
mey be
be .

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 7
12. In terms of
In terms of the
the provisions
provisions of of the
the Income-tax
Income-tex Act, Act, Notice
Notice areare open
open for
for inspection
insp42tion by the Members
by the Members atat the
the
1961, (“the Act”) as amended by the Finance Act,
1961, ("the Act") es emended by the Finance Act, Registered Office of the Company during business hours
Registered Office of the O)mpany during business hours
2020,
2020, dividend
dividend paidpaid oror distributed
distributed by by a e company
company on on till
till the
the date
dete of
of the AGM.
the AGU

or after April 1,
after April 1, 2020
2020 is is taxable
taxable in the hands
in the hsnds of of the
the
16. 
16. As
As per
per Regulation
Regulation 40 40 of
of SEBI
SE31 LODR,
LODR, as as amended,
amended
shareholders.
shareholders The The Company
Company shallshall therefore
therefore be be required
required
securities
securities ofof listed
listed companies
companies can can be be transferred
transferred only
only
to deduct tax at source (“TDS”) from the dividend to
to deduct tax at source ("TDS•) from the dividend in
in dematerialised
dematerialised form form with effect from
with effect from April
April 1,
1, 2019,
2019,
be
be paid
paid to the members
to the members et at the
the time
time of of payment
payment of of
except
except inin case
case ofof request
request received
received forfor transmission
transmission or or
dividend.
dividend A A separate email will
separate emal will be
be sent
sent at the registered
et the rægistered
transposition
transposition of of securities.
securities InIn view
view of this and
ofthis and to
to eliminate
eliminate
email
email idid of
of the
the members
members describing
describing the the deduction
deduction of of all
all risks
risks associated
associated withwith physical
physical shares
shares and for ease
and for ease
tax at source of the final equity dividend payout. The
tax et source cf the final a;uity dividend payout The
of
of portfolio
portfolio management,
management, membersmembers holdingHolding shares
shares in In
intimation will also be uploaded
intimation will uploaded on on the
the website
website of of the
the
physical form are requested to consider converting
physical form ere requested to consider converting
Company
Company www.shriramcity.in.
wwwshriramcityin. A Resident
A Resident individual
individual
their
their holdings
holdings to to dematerialised
dematerialised form. form. Shareholders
Shareholders
shareholder
shareholder with with PAN
PAN and who is
end who is not
not liable
liable toto pay
pay
holding
holding shares
shares in in physical
physica' form
form under
under multiple
multiple folios
folios are
ere
income tax can submit a yearly declaration in Form
income tex can submit e yearly declaration in Form
requested
requested to to consolidate their holdings
consolidEte their holdings in in a
a single
single folio
folio
No
No 15H/15G,
158/15G, to
to avail the benefit
avail the benefit of
of non-deduction
non-deduction ofof
enabling the Company
enabling the Company to to serve
serve effectively.
effectively
tax
tax at
at source
source in
in the
the link
link https://www.integratedindia.
https://wwwintegratedindiå
17. 
17.
Please
Please address
address all
all correspondence
correspondence including
including dividend
dividend
in/ExemptionFormSubmission.aspx
in/ExemptionFormSubmissiom aspx on or or before
before
matters to the RTA.
matters to the RTA
July 22, 2021.
July 22, 2021
18. 
18. Pursuant
Pursuant toto the
the provisions
provisions ofof section
section 124
124 and
and 125
125 of
of
13. 
13. Shareholders
Shareholders holding
holding shares
shares inin physical
physical form
form under
under
the
the Companies
Companies Act,
Act, 2013,
2013 the
the dividends
dividends which
which remain
remain
multiple
multiple folios
folios are
are requested
—jested to
to consolidate
consolidate their
their
unclaimed
unclaimed forfor a
a period
period of
of 7 years will
7 years will be transferred by
be transferred by
holdings
holdings in
in aa single
single folio
folio enabling the Company
enabling the Company toto serve
sewe
the Company to the “Investor Education and Protection
the Company to the "Investor Education and Protection
effectively.
effectively.
Fund”
Fund" (“IEPF”)
("IEP?) established
estab'ished by by the
the Central
Centrel Government
Government as es
14. 
14. Please
Please update
update Bank
Bank Account
Account numbers,
numbers, Income Tax
Income Tax and
and when they fall
when they fall due
due for
for transfer.
trensfer Shareholders
Shsrehclders who who
Permanent Account Number (“PAN”) and other details
Permanent Account Number ("PAN') and other details
have
have notnot encashed their dividend
encashed their dividend warrants/payment
warrants/peyment
by
by submitting
submitting the
the relevant documents to
relevantdocuments to your
your DP
D? or
or RTA.
RTA
instrument(s)
instrument(s) sosc far
fer are
are requested
ra;uested to to make their claim
make their claim
15. 
15.
The Statutory Registers
The Statutory Registers will
will be
be available
available for
for inspection
inspection to the RTA before transfer to IEPF. The following table
to the RTA before transfer to IEPF The following table
by
by the
the Members
Members through electronic mode
through electronic mode atat the AGM.
the AGM shows the details
shows the details of
of due
due date
date of
of transfer
transfer of
of unclaimed
unclaimed

Relevant
Relevant documents
documents and statements
end statements referred
referred to
to in
in this
this dividend
dividend to
to IEPF.
IEPF

Year ending
Year ending Due
Due Date
Date of Transfer to
of Transfer to IEPF
IEPF Year
Year ending
ending Due
Due Date
Date of
of Transfer to IEPF
Transfer to IEPF
on
on March 31
March 31
Final
Final Dividend
Dividend Interim
Interim Dividend
Dividend March
March 31
31
Final
Final Dividend
Dividend Interim
Interim Dividend
Dividend

2014 September
Septem±r 1,
1, 2021
2021 2018
2018 August
August 27,
27, 2025
2025 December
December 4,
4, 2024
2024

2015
201 5 September
Septem&r 1,
1, 2022
2022 December
December 5,
5, 2021
2021 2019
2019 September
September 2,
2, 2026
2026 November
November 29,
2g, 2025
2025

2016
2016 September
Septem±r 2,
2, 2023
2023 December
December 4,
4, 2022
2022 2020
2020 - November
November 29,
2g, 2026
2026

2017
2017
August
August 4,
4, 2024
2024 December
December 1,
1, 2023
2023 2021 1.December
1 7,
7, 2027
2027

(I Interim)
(l Interim)

2.April
2ApriI 29,
29 2028
2028
(II Interim)
(II Interim)

The Company
The Company is is required
—uired to to transfer
transfer the
the shares
shares to
to IEPF
IEPF 21. 
21. Shareholders
Shareholders seeking
seeking any
any information
information withwith regard
regard
Authority, the shares in respect of which the dividend is not
Authority, the shares in respect of which the dividend is not to accounts are requested to write to the Company
to accounts are —jested to write to the Company
claimed/remains unpaid for seven consecutive years or
claimed/remains unpaid for seven consecutive yesrs or Secretary
Secretary of
of the
the Company
Company at the Secretarial
at the Secretarial Office
Office of
of the
the
more
more and
and such
such dividend/shares
dividend/shares can
can be
be claimed
claimed by
by respective
respective Company
Company atat least
'east 7
7 days
days in
in advance
'dvance of cf the
the date
dete of
of the
the
members
members from
from IEPF
IEPF authority
authority by following the
by following the prescribed
prescribed AGM, so as
AGMIso as to
to keep the information
keep the information ready
reedy at
et the
the AGM.
AGM.
procedures.
procedures
22. 
22. IfIf any
any votes
votes are
ere cast
cast by
by the
the shareholders through remote
shareholders through remote
19. Members
Members can
cen update their nominations
update their nominations by
by submitting
submitting e-voting and if same shareholders have participated in
e-voting and if same shsrehclders have participat± In
respective forms to RTA or DP as the case may be.
res*ive forms to RTAor DP es the case may be. the meeting through VC/OAVM, then cast their votes
the meeting through VC/OAVM, then cast their votes

20. 
20.
Since the AGM
Since the AGM will
will be
be held through VC/OAVM,
held through the route
VC/OAVM,the route during
during thethe live
live session
session of
of AGM
AGM then
then the
the votes
votes cast
cast by
by
map
map is
is not
not furnished
furnished in this Notice.
in this Notice such
such shareholder
shareholder through
through remote
remote e-voting
a-voting shall
shall be
be

8 AGM NOTICE
AGM NOTICE 2020-21
2020-2'
 SHRIRAMCitY

considered
considered valid end
valid and the
the vote
vote casted
casted at the live
at the session
live session 6. 
6. Pursuant
Pursuant toto abovesaid
atrovesaid SEBI
SEBI Circular,
Circular, Login
Login method
method
of the AGM shall be considered invalid.
of the AGM shall te considered invalid for e-Voting and joining virtual meetings for Individual
for e-Voting end joining virtual meetings for Individual

23. 
23. Sri
Sri P
P Sriram
Sriram (Membership
(Mern±rship No No FCS
FCS 4862)
4362) a
e practicing
practicing shareholders
shareholders holding
holding securities
securities in
in Demat
Demat mode is given
mcndeis given
Company
Company Secretary,
Secretary, Chennai
Chennai as
as consented
consented byby him
him below:
below

was
was appointed
appointed by the Company
by the Company as as the
the scrutiniser
scrutiniser for
for
conducting
conducting the
the e-voting
e-voting process
process in
in accordance
accordance with
with the
the TYPE
TYPE OF
OF SHAREHOLDERS
SHAREHOLDERS

provisions
provisions of
of law
lew and
and rules
rules made
made thereunder.
thereunder I. Individual
Individual Shareholders
Shareholders holding securities in
holding securities in Demat
mode with CDSL
mode with CDSL
INSTRUCTIONS
INSTRUCTIONS TO SHAREHOLDERS
TO SHAREHOLDERS FOR
FOR REMOTE
REMOTE

E-VOTING AND E-VOTING DURING AGM AND JOINING

E-VOTING AND E-VOTING DURING AGM AND JOINING Login Method
Method

MEETING
MEETING THROUGH
THROUGH VC/OAVM
VC/OAVM ARE AS
ARE AS UNDER:
UNDER: 1) 
1) Users
Users who who have
have opted
opted forfor CDSL
CDSL Easi
Easi // Easiest
Easiest

1. The
The Members
Members can join the
can Join AGM in
the AGM the VC/OAVM
in the VC/OAVM modemcZe facility,
facility, can
can login through their
login through their existing
existing user
user id
id and
and

15
15 minutes
minutes before
before and after
Efter the
the scheduled
scheduled time
time ofof the
the password.
password. Option
Option will
will be
be made
made available
available to
to reach
reach

commencement of the Meeting by following the procedure

commencement of the Meeting byfollowing thepræedure e-Voting
e-Voting page
page without
without any
any further
further authentication.
authentication.

mentioned
mentioned in in the
the Notice.
Notice TheThe facility
faci'ity of
of participation
partici#tion at at The URL for users to login to Easi // Easiest
The LIRL for users to login to Easi Easiest are
are

the AGM through

the AGM through VC/OAVM
VC/OAVM willwill be made
made available
available toto https://web.cdslindia.com/myeasi/home/login
https://webcdslindiacom/myeasi/home/lcæin or
or

members
members
on first come first served basis. This will not
on first come first served basis This will not visit
Visit www.cdslindia.com
www.cdslindiacom and and click
click on
on Login
Login icon
icon

include large Shareholders

include large Shareholders (Shareholders
(Shareholders holding
holding 2% or
or and
end select
select New
New System
System Myeasi.
MyeasL

more
more shareholding),
sherehclding), Promoters,
Promoters, Institutional
'nstituticnal Investors,
Investors, 2) 
2) After
After successful
successful login the Easi
login the Easi // Easiest
Easiest user
user will
will
Directors,
Directors, Key Managerial Personnel,
KeyManagerisl the Chairpersons
Personnel,the of
Chairpersons of be able to see the e-Voting option for eligible
be able to see the e-Voting option for eligible
the
the Audit
Audit and
and Risk
Risk Management
Management Committee,
Committee, Nomination
Nomination companies
companies wherewhere thethe e-Voting
e-Voting is is in
in progress
progress as as
and
and Remuneration
Remuneration Committee
Committee and
and Stakeholders
Stakeholders per
per the
the information
information provided
provided by by company.
company On On
Relationship Committee, Auditors etc. who are
Relationship Committee, Auditors etc who are allowed
allowed clicking
clicking the
the e-voting
e-voting option, the user
option, the will be
user will be able
able to
to
to
to attend
attend the
the EGM/AGM without restriction
EGM/AGM without restriction on
on account
account see e-Voting page of the e-Voting service provider
e-Voting page of the e-VDting service provider
of first come
of first first served
come first served basis.
basis for
for casting your vote
casting your vote during the remote
during the remote e-Voting
a-voting

2. 
2 The
The remote
remote e-voting
e-voting period
peilcd shall
shall commence
commence from from period
period or joining virtual
or joining virtual meeting
meeting & voting
voting during
during the
the

Monday, July 26, 2021 at 10 a m and shall close of

Monday, duly 26, 2021 at 10 e m and shall close of meeting. Additionally, there is also links provided to
Additionally, there is -Isc 'inks provided to

Wednesday,
Wednesday, July
July 28,
28, 2021
2021 at
at 5
5p p m.
m During this period
During this pericd access the system of all e-Voting Service Providers
access the system Df all e-Voting Service Providers

of
of remote
remote e-voting,
*voting, thethe Members
Members of of the
the Company,
Company, as as on
on i.e.
i.e. CDSL/NSDL/KARVY/LINKINTIME, so so that
that

July
July 22,
22, 2021
2021 i.e.
i.e. cut-off
cut-off date,
date, holding
ho'ding shares either in
shares either in the
the user
user can visit the
cen visit the e-Voting
a-voting service
service providers’
providers'

physical form or in dematerialised form may cast their

physic-I form or in dematerialised form may cast their website directly.
website dirætly

vote electronically. The

vote electronically The remote
remote e-voting
a-voting module
module will
will be
be 3) 
3) If the user
If the user isis not
not registered
registered for
for Easi/Easiest,
Easi/Easiest, option
option
disabled
disabled for voting thereafter.
for voting thereafter to register is available at https://web.cdslindia.
to register is available at https-l/web.cdslindia.

3. 
3 The
The members
members who who have
have casted their vote
casted their vote by
by remote
remote com/myeasi/Registration/EasiRegistration
corn/myeasl/Registration/EesiRegistretion

e-voting
e-voting prior to the
prior to the AGM
AGM may
mey also
also attend/participate
Ettend/psrtici#te in in 4) 
4) Alternatively,
Alternatively, the
the user
user can
can directly
dirætly access
access e-Voting
e-Voting
the AGM through VC/OAVM but shall not be entitled to
the AGM through VC/OAVM but shall not be entitled to page
page byby providing
providing Demat
Cemet Account
Account Number
Number and
and
cast their vote
cast their again.
vote again PAN
PAN No.
ND from
from a a e-Voting
e-Voting link
link available on www.
available on www.

4. Institutional
Institutional investors
investors who are members
who ere members of the Company
ofthe Company cdslindia.com
cdslindiacom homehome page
page oror click
click on
on https://
https•J/

are
are encouraged
encouragad to to attend and vote
attend end vote at the 35 AGM
at the th AGM of
of the
the evoting.cdslindia.com/Evoting/EvotingLogin
evoting.cdslindiacom/Evoting/EvotingLogin .. The The
Company.
Companyt system
system will
will authenticate
authenticate the
the user
user by
by sending
sending OTP
OTP
on
cr. registered
registered Mobile
Mobile &
& Email
Email as
-s recorded
recorded in
in the
the
5. In terms of
In terms of SEBI circular no.
SEBI circular SEBI/HO/CFD/CMD/
no. SEBI/HO/CFÜ/CMD/
Demat Account. After
Demat Account After successful
successful authentication,
authentic-tian,
CIR/P/2020/242 dated December 9,
CIR/P/202D/242 cecember g, 2020
2020 on
on e-Voting
e-voting
user will be able to see the e-Voting option
user will be able to see the e-Voting where
option where
facility provided by Listed Companies, Individual
facility provided by Listed Compames, Individual
the
the e-voting
e-voting is
is in
in progress
progress andend also
also able to directly
able to directly
shareholders
shareholders holding securities in
holding securities in demat
demat mode
mode ereare
access the system
access the system of of all
ell e-Voting
e-Voting Service
Service Providers.
Providers.
allowed
allowed to vote through
to vote through their
their demat
demat account
account maintained
maintained
with
with Depositories
Depositones and end Depository
ærsitDry Participants.
Participants II. Individual
Individual Shareholders
Shareholders holding
holding securities
securities in
in demat
demat
Shareholders are advised to update their mobile number
Shareholders are advised to update their mobile number mode with NSDL
mode with NSDL

and
and email
email Id
ld in their demat
in their demat accounts
accounts in
in order
order to
to access
access
i) 
i) IfIf you
pu areere already
already registered forfor NSDL
NSDL IDeAS
IDEAS
e-Voting
e-Voting facility.
facility facility, please visit the e-Services website of NSDL.
facility, please visit the a-Services website of NSW

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 9
 Open
Open webweb browser
browser by by typing
typing thethe following
following URL:
URL:
Login type
Login type Helpdesk
Hel*k details
details
https://eservices.nsdl.com either on a Personal
https-l/eservices.nsdl.com either on a Personal
Computer
Computer or or on
cr. ae mobile.
mobile. Once
Cnce the the home
home pagepage Individual
Individual Shareholders
Shareholders Members
Members facing
facing any technical
any technical
of
of e-Services
a-Services isis launched,
launched, click
click on the “Beneficial
on the "Beneficial holding securities in
holding securities in issue in login can contact
issue in login cen contact NSDL
NSDL
Owner”
mner" iconicon under
under “Login” which is
"Lcgin" which is available
available under
under Demat mode with NSDL
Cenat made with NSDL helpdesk
helpdesk by
by sending
sending aa request
request at
at
‘IDeAS’
'IDEAS section.
section A A new screen will
new screen will open. You will
Dp„emYou will evoting@nsdl.co.in
evoting@nsdlco.in or
or call
call at
at toll
toll
have to enter your User ID and Password. After
have to enter your user ID and Password After free
free no.: 1800 1020
1020 990 and
and 1800
1800

successful
successful authentication,
authentication, youyou will
will be
be able
able toto see
see 22 44 30
22 44 30

e-Voting
a-voting services.
services. Click
Click on
on “Access
"Access to to e-Voting”
e-Voting•
III. Login method
method for for e-Voting
e-Voting and joining virtual
and joining virtual meeting
meeting
under
under e-Voting
e-Voting services
services and you will
and you will be
be able
able to
to see
see
for
for shareholders
shareholders other
other than
than individual
individual shareholders
shareholders
e-Voting
a-voting page.
page Click
Click on
on company
company name name or or e-Voting
e-Voting
holding
holding in
in Demat
Demat form
form & & physical
physical shareholders.
shareholders.
service
service provider
provider name
name andand you
you will
will be
be re-directed
re-directed tto
e-Voting
a-voting service
service provider
provider website
website for for casting
casting your
your In
In order
order to
to e-vote,
e-vote, you
you need to Log
need to Log in
in and
and then vote. The
then vote The
vote during
vote during the
the remote
remote e-Voting
a-voting period
period or joining
or joining followings state the Login process.
followings state the Login præess
virtual meeting
virtual meeting & & voting
voting during
during the
the meeting.
meeting. (i) Log
Log on
on to
to the
the e-voting
e-voting website
website : www.evotingindia.
wuw evotingindia
ii) If
If the
the user
user is is not
not registered
registered for
for IDeAS e-Services,
IDEASe-Services, com
option
option to to register
register is
is available
available at
at https://eservices.
https://eservices (ii) Clickon“Shareholders/Member” tab.
tab

nsdl.com.
nsdl.com SelectSelect “Register
"Register Online for IDeAS
Zn'ine for “Portal
IDEAS"Portal
(iii) Enter
Enter following
following user
user ID
ID and the Capcha
and the Capcha
or click at https://eservices.nsdl.com/SecureWeb/
or click at https•J/eservicesnsdIcom/SecureWeb/
CDSL
CDSL Demat
Demat account
account holder
holder (16
(16 digit
digit beneficiary
beneficiary
IdeasDirectReg.jsp
IdeasüirectReg jsp
ID), NSDL Demat
10),NSDL Demet account
sccount holder
holder (8
(8 character
character DP ID ID
iii) Visit the
iii) Visit the e-Voting website of
e-Voting website of NSDL.
NSDI_ Open
Open web
web
followed
followed byby 8
8 digit
digit client
client ID), shares
sheres held
held in
in physical
physical
browser
browser byby typing the following
typing the following URL:
URL: https://www.
https://www
form
form (EVSN followed by
(EVSN followed by registered folio number
registered folio number
evoting.nsdl.com/
evoting nsdl com/ either
either oncn aa Personal
Personal Computer
Computer
with the Company)
with the Company)
or on a mobile. Once the home page of e-Voting
or on a mobile. Cnce the home page of e-Voting
system is launched, click on the icon “Login” which
system is launched, click on the icon "Login" which iv) 
iv) Next enter the
Next enter the image
image verification
verification as
es displayed
displayed and
and

is
is available
available under
under ‘Shareholder/Member’
'Shsrehclder/Mem±r' section.
section click
click on
on Login
Login

A new
A new screen
screen will
will open.
open YouYou will
will have
have to to enter
enter v) 
v) If
If you
you are
are holding
holding shares
shares in
in demat
demat form
form and
and had
had
your User ID
•youruser ID (i.e. your sixteen
(Le your sixteen digit
digit demat
demat account
account logged
logged oncr. tto wwwentingindiecom
www.evotingindia.com andend voted
voted onon
number
number hold hold with
with NSDL),
NSÜL), Password/OTP
Password/OT? and and a a earlier
earlier e-voting
e-voting ofof any
any Company,
Company, then
then your
your existing
existing
Verification Code as shown on the screen. After
Verification Code as shown on the screen After password
password is is to
to be
be used.
used.
successful
successful authentication,
authentication, youyou will
will bebe redirected
redirected
vi) Enter
Enter your
your Password(existing
Password(existing password
password ifif already
already
to NSDL
to NSDL Depository site site wherein
wherein youyou cancen see
see
registered
registered for
for e-voting,
e-voting, PAN
PAN and and Bank
3ank Account
Account
e-Voting
a-voting page.
page Click
Click on
on company
comp-ny name
name or or e-Voting
e-Voting
Number
Number or or Date
Date of
of Birth
Birth ifif e-voting for first
e-voting for time
first time
service
service provider
provider name
name andand you
you will
will be redirected
red.rected tto
with
with password
password of
of your
your choice
choice in in the
the new
new password
password
e-Voting service provider website for casting
a-voting service provider website for casting your
your
field).
field)
vote during
vote during the
the remote
remote e-Voting
a-voting period
period or joining
or joining
vii) 
vii) If
If you
you are
are aa first-time
first-time user
user follow
follow the
the steps
steps given
given
virtual meeting
virtual meeting & voting
voting during
during the
the meeting
meeting
below.
below.
Important
Important note:
note: Members
Members whowho are
ere unable
unable to
to retrieve
retrieve User
user
For
For PAN
PAN - Please
Please enter your 10
enter your 10 digit
digit alpha-
alpha
ID/
'D/ Password
Pessvnrd are
are advised
advised to
to use
use Forget
Forget User
user ID
10 and
and Forget
Forget
numeric
numeric PAN
PAN issued
issued by
by Income Tax // Reference
Income Tax Reference
Password
Password option available et
option evaileble at abovementioned website.
abovementioned website
Number
Number provided
provided in
in the
the communication
communication sent
sent to
to
Helpdesk
Hel*k for Individual
for Individual Shareholders
Shareholders holding securities
holding securities shareholders.
shareholders

in demat mode
in demat mode for
for any
any technical
technical issues
issues related to login
related to
Kindly
K indly note that the
note that the Members
Members whowho have
have not
not updated
updated their
their
through Depository i.e. CDSL and NSDL
through Depository i_e_CDSL and NSDL
PAN
PAN with
with the
the Company/
Company/ Depositories
Depositories are
are requested toto use
use
Login
Login type
type Helpdesk
Hel#esk details
details the Reference Number which has been generated by using
the Reference Number which has been generated by using

Individual
Individusl Shareholders
Shereholders Members
Members facing
facing any
sny technical
technica' first two
first two letters
letters of their name
of their name followed
followed by
by a
a88 digit
digit number.
number.

holding
holding securities
securities in
In issue
issue in
in login
login can
can contact
contact CDSL
CDSL IIff Demat
Demat account
account holder
holder has forgotten the
has forgotten the login
login password
password
Demat mode with CDSL
Demat mc.de with CDSL helpdesk by sending a request
helpdesk by sending a request then Enter
then Enter the
the User
User ID
10 and the image
and the imege verification
verification code
code and
and
at helpdesk.evoting@cdslindia.
helpdeskevoting@cdslindie. click on
click on Forgot
Forgot Password
Password && enter the details
enter the details as
as prompted
prompted by
by
comor
comor contact
contact at
at 022-
022- 23058738
23058738 the system
the system
and 22-23058542-43.
and 22-23058542-43

10
10 AGM NOTICE
AGM NOTICE 2020-21
2020-2'
 SHRIRAMCitY

(viii) 
(viii) A fter entering
After entering these
these details
details appropriately,
appropriately, click on“
click on" INSTRUCTIONS
INSTRUCTIONS FOR
FOR SHAREHOLDERS
SHAREHOLDERS ATTENDING THE
ATTENDING THE
SUBMIT” tab.
SUBMIT" teb AGM THROUGH VC/OAVM & E-VOTING DURING MEETING
AGM THROUGH VC/OAVM & E-VOTING DURING MEETING

Click on the
Click on the number
number below
below EVSN for Shriram
EVSNfor Shriram City
City Union
union ARE
ARE AS
AS UNDER:
UNDER:

Finance Limited.
Finance Limited 1. The
The procedure for attending
procedure for attending meeting
meeting && e-Voting
e-Voting on
on the
the

(ix) 
(ix) Resolution
Resolution Description,
Description, Choice
Choice etc.
etc. will
will be
be displayed.
displayed day of the
dey of AGM is
the AGM is same
same as the instructions
as the instructions mentioned
mentioned

Against
Against each
each resolution
resolution both
both the
the choices
choices “YES/NO”
YES/NO" above
above for
for Remote
Remote e-voting.
e-voting.

would
would be there for
bethere voting. Select
for voting. Select the option YES
the option YESoror NO
NO asas 2. 
2. The link
The link for VC/OAVM to attend
for VC/OAVMto attend meeting
meeting will
will be
be available
available
desired. The option YES implies that you assent to the
desired The option YES implies that you Essent to the where
where the
the EVSN
EVSN ofof Company
Company willwill be
be displayed
displeyed after
Efter
Resolution
Resolution and
and option
option NO
NO implies
implies that
that you
you dissent
dissent to
to the
the successful login as per the instructions mentioned
successful login es per the instructions mentioned
Resolution.
Resolutiom above
above for
for Remote
Remote e-voting.
e-voting.

(x) 
(x) Click
Click on the “Resolutions
on the "Resolutions File
71e Link”
Line for
for resolution
resolution details,
details, 3. Shareholders
Shareholders who who have
have voted
voted through
through Remote
Remote e-Voting
a-voting
if you desire.
if you desire will
will be
te eligible
eligible to
to attend
sttend the
the meeting. However, they will
However,they will

(xi) 
(xi) After
After selecting
selecting the the resolution
resolution you
you have
have decided
decided toto not
not be
be eligible
eligible to vote at
to vote at the
the AGM.
A&M.

vote on, click on “SUBMIT”. A confirmation box will be

vote on, click on A confirmation box will be 4. 
4. Shareholders
Shareholders are encouraged to
areencouraged to join
join the
the Meeting
Meeting through
through
displayed.
displayed. If you wish
If you wish to
to confirm your vote
confirm your vote click
click on
on “OK”,
"0K", Laptops
Laptops // IPads
IPads for
for better experience.
better experience
else
else click
click on
on “CANCEL”
"CANCEL"and and modify
madi#/ your
pur vote.
vote. 5. Further
Further shareholders
shareholders will
will be
be required to allow
required to allow Camera
Camere
(xii) 
(Xid After
After “CONFIRM” the vote
"CONFIRM' the vote on the resolution
on the resolution will
will not
not be
be and use Internet with a good speed to avoid any
and use Internet with a t avoid any
allowed to modify.
allowed to mdfy. disturbance during the meeting.
disturbance during the meeting

(xiii) 
(xiii) “"Click
Click here to print”
here to print" option
option will
will print
print voting
voting done.
done. 6. 
6. Please
Please note
note that
that Participants
Participants Connecting
Connecting from
from Mobile
Mobile
Devices
Devices or
or Tablets
Tablets oror through
through Laptop
Leptop connecting
connecting vie via
(xiv) 
(xiv) V otes can
Votes can also
also be casted by
be casted by using
using mobile
mobile app
app ofof
Mobile
Mobile Hotspot
Hotspot maymay experience
experience Audio/Video
Audio/Vid43 lossloss due
due
CDSL
CDSL by downloading mobile
by downloading mobile app
app from
from Google
Google Play
Play
tto Fluctuation
Fluctuation in
in their
their respective
respective network.
net',vcre It
It is
is therefore
therefore
Store,
Store, Windows
Windows and
and Apple
Apple smart
smart phones
phones by
by following
following
recommended
recommended to
to use
use Stable
Stable Wi-Fi
Wi-Fi or
or LAN
LAN Connection
Connection to
to
instructions as prompted
instructions es prompted therein.
therein
mitigate any kind of aforesaid glitches.
mitigate any kind of aforesaid glitches
(xv) 
(w) Institutional
Institutional Members
Members (i.e.
(l e other than individuals,
other than individuals, HUF,
HI-IF,
7. 
7. Shareholders
Shareholders who
who would
would like to express
like to their views/ask
express their views/ask
NRI
NRI etc.)
etc) who
who wish
wish to
to cast
cast their
their votes
votes through
through remote
remote
questions
questions during
during the
the meeting
meeting may
may register
register themselves
themselves
e-voting
e-voting should
should send
send aa scanned
scanned copy copy of
of the
the Registration
Registration
as
as aa speaker
speaker by
by sending their request
sending their request in
in advance
advance atleast
atleast
form bearing the stamp and signature of the authorised
form be-ring the stamp and signature of the authorised
10 days prior to meeting mentioning their name, demat
10 days prior to meting mentioning their name, demat
person of the entity, the list of accounts and scanned
person of the entity, the list Df accounts and scanned
account
account number/folio
num±r/folio number,
number, email
email id,
id mobile
mobile number
number at
at
copy
copy (PDF format) of
(PDF format) the relevant
of the relevant Board
Board Resolution
Resolution
sect@shriramcity.in.
sect@shriramcity.in. The
The shareholders
shereholders whowho do
do not wish
not wish
and
and Power
Power of of Attorney
Attorney (POA)
(POA) etc etc to
to helpdesk.evoting@
helpdeskevoting@
to speak
to speak during
during the
the AGM
AGM but
but have
have queries
queries may
msy send their
send their
cdslindia.com.
cdslindia.com
queries
queries in
in advance
advance 10 days
dsys prior
prior to
to meeting
meeting mentioning
mentioning
(xvi) 
(xvi) Y ou may
You may refer
refer the
the Frequently
Frequently Asked
Asked Questions
Questions (“FAQs”)
("FAQs")
their name,
their name, demat
demet account
account number/folio
numter/fDlic number,
number, email
email
and e-voting manual available at www.evotingindia.
and e-voting manual available at wwwevotingindlö
id,
id. mobile
mobile number
number at Et sect@shriramcity.in.
sect@shriramcityim These
These queries
queries
com
com under
under help
help section
section or
or by
by writing
writing email
email to
to helpdesk.
helpdesk
will
will be
be replied
replied to
to by
by the
the Company
Company suitably
suitably by
by email.
email.
evoting@cdslindia.com
evoting@cdslindiacom or or contact
contact Sri
Sri Nitin
Nitin Kunder
Kunder (022-
(022-
8. 
8. Those shareholders
Those shareholders who
who have
have registered themselves as
registered themselves es
23058738) or Sri Mehboob Lakhani (022-23058543) or
23058738) or sri Mehta-ob Lakhani (022-23058543) or
aa speaker
speaker will
will only
only be
be allowed
sllowed to express their
to express views/ask
their views/esk
Sri Rakesh Dalvi (022-23058542).
sri Rakesh Dalvi (022-23058542)
questions
questions during
during the
the meeting.
The
The Scrutiniser
Scrutiniser shall
shall after the conclusion
after the conclusion of the voting
of the voting
9. Only
Only those
those shareholders,
shareholders, who
who are
are present
present inin the
the AGM
AGM
at
at the AGM, first count
the AGM,first count the
the votes
votes casted
casted during
during the AGM,
the AGMI
through VC/OAVM facility and have not casted their vote
through VC/OAVM faci'ity and have not casted their vote
thereafter
thereafter unblock the votes
unblock the votes casted through remote
casted through remote
on the Resolutions through remote e-Voting and are
on the Resolutions through remote a-voting and are
e-voting and make
e-voting end make not
not later
later than
than 48
48 hours of conclusion
hours of conclusion
otherwise not barred from doing so, shall be eligible to
otherwise not ±rred from doing so, shall be e'igible to
of the AGM, Scrutiniser’s Report to the Chairperson or
of the AGM, Scrutiniser's Report to the Chairperson or aa
vote through
vote through e-Voting
e-Voting system
system available
available during
during the
the AGM.
A&M.
person authorised by
person euthorised by him.
him.
10. If
If any
any Votes
Votes are
are cast
cast by the shareholders
by the shareholders through
through the
the
 The
The results
results of the voting
of the voting along
along with
with the
the report
report of of the
the
e-voting
a-voting available
eveileble during the AGM
during the AGM and and ifif the
the same
same
Scrutiniser
Scrutiniser would
would bebe declared
dec'ared by
by displaying
displaying itit on
on the
the
shareholders
shareholders haveeve notnot participated
partici#ted in the meeting
in the meeting
website of the Company on or before July 31, 2021
website of the Compeny on before July 31, 2021
through VC/OAVM facility, then the votes cast by
through VC/OAVM facility, then the votes cast by such
such
and
and will also be
will also be intimated to Stock
intimated to Stock Exchanges
Exchanges after
after
shareholders
shareholders shall
shall be
be considered
considered invalid
invalid as
ss the
the facility
facility
declaration
declaration of results.
of resu'ts The
The resolutions
resolutions shall
shall be
be deemed
deemed
of
of e-voting
e-voting during
during the
the meeting
meting is is available
available only
only to
to the
the
to
to be
be passed at the
passed et the 35th AGM
AGM of
of the
the Company.
Compeny
shareholders
shareholders attending
attending the
the meeting.

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 11
PROCESS FOR FOR THOSE SHAREHOLDERS
SHAREHOLDERS WHOSE EMAIL/
EMAIL/ email to
email to helpdesk.evoting@cdslindia.com
helpdeskevoting@cdslindiacom or contact
contact at
at 022-
022-
MOBILE NO ARE NOT REGISRERED WITH THE COMPANY/
MOBILE NO ARE NOT REGISRERED WITH THE COMPANY/ 23058738 and 022-23058542/43.
23058738 and 022-2305854&'43

DEPOSITORIES
DEPOSITORIES FOR
FOR OBTAINING
OBTAINING LOGIN
LOGIN CREDENTIALS
CREDENTIALS FOR
FOR
All grievances
All grievances connected with the
connected with the facility
facility for
for voting
voting by
by
E-VOTING
E-VOTING
electronic means
electronic means may
mey betre addressed
addressed to
to Mr.
Mr Rakesh
Rakesh Dalvi,
Dalvi,
i. Physical shareholders –
Physical shareholders — Please
Please provide
provide necessary
necessary Sr.
Sr Manager,
Manager, (CDSL,
(COSC )) Central
Centrel Depository
Depository Services
Services (India)
(India)
details
details like
like Folio
Folio No,
No, Name
Neme of of shareholder,
shareholder, scanned
scanned Limited, A Wing,
Limited, A Wing, 25th
25th Floor,
Floor, Marathon
Marathon Futurex,
Futurex, Mafatlal
Mafatlal Mill
Mill
copy of the share certificate (front and back), PAN (self-
copy of the share certificate (front and Osco PAN(self- Compounds,
Compunds, N NM M Joshi
dashi Marg,
Marg, Lower
Lower Parel
Parel (East), Mumbai --
(EESt),Mumbai
attested
attested scanned
scanned copy
copy ofof PAN),
PAN), Aadhar
Aadhar (self-attested
(self-attested 400013
13 or
or send
send an
an email to helpdesk.evoting@cdslindia.com
email to helpdesk.nting@cdslindiacom
scanned
scanned copy)copy) to
to the
the email
email address
address ofof the
the Company/
Company/ or call
or cell on
on 022-23058542/43.
022-23058542/43.

RTA. If
If you
you have
have any
any queries
queries or
or issues
issues regarding
regarding attending
attending AGM
AGM & &
ii. For
For shareholders
shareholders holding shares in
holding shares in Demat
Demat form
form – e-Voting from
e-Voting from the
the CDSL
CDSL e-Voting
e-Voting System, you can
System, yau write an
can write an
Please update your email id and mobile no with your
Please update your em-il id and mobile no with your email to
email to helpdesk.evoting@cdslindia.com or contact
contact at
at 022-
022-

respective Depository Participant (DP)

res*ive Depository Participant 23058738 and 022-23058542/43.
23058738 and 022-2305854&'43

iii. For
For Individual
Individual Demat
Demat shareholders
shareholders – Please update
—Please update your
your
email
email id'd & mobile
mobile no.
n. with
with your
pur respective
respective Depository
Depository
By
ay Order
Order of
of the
the Board
Board
Participant
Participant (DP) which
which isis mandatory while e-Voting
mandatory while e-Voting &&
For
For Shriram
Shriram City
City Union
union Finance
Finance Limited
Limited
joining virtual meeting through Depository.
joining virtual meting through Depsitory

If
If you
pu have
have any
any queries
queries or
or issues
issues regarding
regarding attending AGM &
attending AGM & Place
Place
: Chennai
Chennai
C R Dash
C R Dash

e-Voting from the CDSL e-Voting System, you can write an

a-voting from the CDSL e-Voting System, you can write an Date
Date : April
April 30,
30, 2021
2021 Company
Company Secretary
Secretary

12
12 AGM NOTICE
AGM NOTICE 2020-21
2020-2'
 SHRIRAM

PERSISTENCE
AND

PROGRESS

Shriram City union Finance Ltd.

Annual Report
2020-21
 READ
READ THROUGH…
THROUGH...

1-14 CORPORATE
ORPORATE
1-14
OVERVIEW
OVERVIEW

Performance
Performance Indicators
Indicators 1
About us – Vision-Mission
About us - Vision-Mission
2
Persistence
Persistence &
& Progress
Prcgress Through All-Encompassing Product
Through All-Encompassing Product 4
4

Contributions
Contributions

Persistence
Persistence &
& Progress Through Tech-Backed
Prcvess Through Architecture and
Tech-Backed Architecture and 6
Systems
Systems

Persistence
Persistence &
& Progress Through 32und
Progress Through Sound Business
Business Model
Mcn±el and
and 8
Asset Mix
Asset Mix

Persistence
Persistence &
& Progress
Progress Through
Through Robust
Robust Human
Human Capital
Capital 10
Key
Key Financial
Financial Highlights
Highlights 12
Corporate
Coworate Information
Information 14

15-81 STATUTORY
STATUTORY

REPORTS
REPORTS

Report
Report of the Board
of the Board of
of Directors
Directors 15
Report
Report on
on Corporate
Cor;nyate Governance
Governance 24
Management
Management Discussion
Discussion and Analysis
and Analysis 41

82-314 FINANCIAL
INANCIAL
82-314
STATEMENTS
TATEMENTS

Standalone
Standalone
82

Consolidated
Consolidated 205

Disclaimer Statement
This document contains statements about expected
Investor
Investor Information
Information

future events and financials of Shriram City

'f9Ti@T City Union Finance Market
Market Capitalisation
Cepitalisation as
as on
on ` 9,002
9,002 crores
crores
Limited,
Limited which are forward-looking. By their nature,
forward-looking statements require the Company to
March
March 31,
31, 2021
2021
make assumptions and are subject to inherent risks risks and CIN L65191TN1986PLC012840
TN1986PLC012840

uncertainties. There is significant risk that the assumptions,

BSE Code
BSE Code
532498
5324gg
predictions and other forward-looking statements may
not prove to be accurate. Readers are cautioned not to NSE
NSE Symbol
sy,-nftl SHRIRAMCIT
SHRIRAMCIT
place undue reliance on forward-looking statements as
a number of of factors could cause assumptions, actual Bloomberg
Bloomberg Code
Code SCUF:IN
SCUF:IN

future results and events to differ materially from from

those Dividend
Dividend Declared
Declared and
and Paid
Paid Interim
Interim dividend
dividend ` 10/-
10/- per
per share;
snare; Second
expressed in the forward-looking statements. Accordingly,
this document is subject to the disclaimer and qualified
interim dividend ` 10/- per share
interim dividend 10/- snare

in its entirety by the assumptions, qualifications and risk AGM Date

AGM Date
July 29, 2021
July 29, 2021
factors referred to in the Management Discussion and
Analysis of
of this
this
Annual Report.
AG Mode
AG Mode Video
Video Conferencing
Conferencing
PERSISTENCE
PERSISTENCE

AND
AND PROGRESS
PROGRESS
Covid-19
Covid-1 9 pandemic
pandemic creaked
creaked havoc
havoc on
on the
the world
world around
around us.
us. Amidst
Amidst
this mayhem,
this mayhem, the
the resilient
resilient and
and agile
agile enterprises
enterprises with
with adaptive
adaptive
business
business model
model and
and inclusive
inclusive corporate
corporate culture
culture ‘Persisted
Persisted
and Progressed’
and Progressed' to
to achieve
achieve success through leveraging
success through their
leveraging their
technological prowess.
technological prowess.

Shriram City
Shriram continues to
City continues to drive
drive forward
forward its
its growth
growth momentum
momentum in
in domestic
domestic NBFC
N3FC space
space through
through
its
its unique
unique business
business model,
mc.de:L decades
decades of ot strong experience and
strong experience end patronage
patronage of the promoter
ot the promoter group,
group,

all-encompassing
all-encompassing product
product portfolio,
portfolio, robust
robust network
network base
base across
ecross regions,
regions, customer-centric
customer-centric product
product
solutions
solutions & service and
& service end performance
performance driven
driven corporate
corporate culture. Amidst these
culture Amidst these challenging
chellenging times
times of of
pandemic also, we have demonstrated solid persistence through optimal and innovative usage of our
gandernic also, we nave demonstrated salid persistence through optimal end innovative usage of our

29,571
digital
digital platforms
platforms to to adapt to the
Zdept tc the new
new normal
normel and and progressed
prcgressed ahead
ahead toto create
create a a much
much more
more resilient
resilient
organisation to
organisation to thrive
thrive with
with its
its full
full potential
gotential for
for generations
generations to to come
come ` 29,571
crores
crores

Assets Under
7.64
Assets Under
7.64 % Management
Management (AUM)
t 5,738.43
(AUM)
` 5,738.43
Pre-Provision
Pre-provision
Profits
Profits
crores
Total Income
Total Income
` 3,604.55
3,604.55
crores
crores

19.57
19.57% % Net
Net Interest
Interest

Income
Income (NII)
(NII)
Yield
Yield

` 1,389.39
1,389.39
crores
crores

Profit
Profit Before
Before Tax
Tax

12.29
12.29% %
Net
Net Interest
Interest Margin
Margin

3.08
3.08
%
Net
Net Non-Performing
Non-performing
Assets (NPA)
Assets (NPA)

KPI’s
KA's ofof

28.64
28.64% % 2020-21
2020-21
Capital Adequacy
Capital Adequacy
Ratio
Ratio (CAR)
(CAR)
M
*SHRIRA

Vision
Vision

Serving the under-served

Serving the under-sewed

Creating
Creating value
value at the
at the
bottom
bottom of the pyramid
of the pyramid

Mission
Mission

Striving to
Striving to serve the
serve the
largest
lergest number
number of
of
common
common people
people through
through
quality
gutlity non-banking
nan-banking
financial services
financial services

ABOUT US
ABOUT US

Shriram
Shriram City
City Union
Union Finance
Finance (SCUF)
(SCUF) is is one
one of
of the
the premier
premier financial
financial
corporations
corporations in the NBFC
in the NBFC space
space and
and is
is a
a part
part of the prestigious
of the prestigious Shriram
Shriram
Group.
Group. It
It provides
provides wide
wide gamut
gamut of
of services
services through
through diversified
diversified product
product mix
mix
and
and robust
robust distribution
distribution network
network to
to the
the under-served
under-served section
section ofof the
the society.
society.

Since
Since its
ts inception
inception in the year
in the year 1986,
1986, SCUF
EUF persisted
E-rsisted and
and performed throughout the
performed throughout the ages
ages toto serve
serve the
the unbanked
unbanked and
and

under-served
under-served section
section ofot the
tte society
scciety and
end has
Gs emerged
emerged as as a
a preferred
preferred partner
partner in the NBFC
in the NSFC space
space by by understanding
understanding the
the
customer needs and serving them through its wide-ranging product offering across asset classes.
customer needs and serving them through its wide-ranging prcCuct offering across asset classes.

The Company
The Company is
is engaged
engaged in
in retail
retail financing
financing spectrum
sXrum with significant
with significant presence
presence across
across Micro,
Micro, small
small and
and Medium
Medium
Enterprise
Enterprise (MSME)
(MSE financing, two-wheeler loans,
finencing, t'.vc•.vnee'er dans, gold
got loan, personal loan
loan,personal loan and
and auto
euto loan
loan business
business among
among others.
others SCUF
SCUF
has
Gs emerged
emerged as es one
one of
ot the
tte best
best small
smell enterprise finance company
enterprise finance company in in the
the country
country and
ant is
is dedicated
dediceted to to continuously
continuously

serve the under-served

sene the under-served section
section of
ot the
the society through its
society through its state-of-the-art
state-of-the-art technology,
technology, widespread
widespread distribution
distribution network
network
and ‘inclusive’ workforce, in years to come.
and 'inclusive workforce, in years to come.

2 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-21
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

` 17,154 How
How have
and
have we
we persisted
persisted
and progressed?
progressed?
crores
crores

Loan disbursed in
Loan disbursed in
Business
Business leadership
leadership in the under-served
in the under-sewed
FY2020-21
retail loan segment
retail loan segment

Sturdy
Sturdy business
business model
model with
with diversification
diversification

926
926 across segments and asset classes
across

Strong
Strong
segments and

parentage
parentage
asset classes

and
and established
established
No.
No. of
ot branches
branches
performance track record
*rformance track record

Adequate capitalisation
Adequate capitalisation and
and robust
robust balance
Oalance

` 41.52
sheet
sheet with
with appropriate
appropriate liquidity
liquidity
?41.52
Robust
Robust technological architecture
technological architecture with
witn
Lac increased
increased use
use of of digitised
digitised methods
methods for
for

Active Customer
Active Customer Base
Base cashless collection and disbursements
cashless collection and disbursements

Competent
Competent and
and enthusiastic
enthusiastic workforce
workforce
depicting ‘inclusive’ work culture
depicting 'inclusive' work culture

24,963
24,963
Employees
Employees as
es on
on Geographic
Geographic break-up
break-up of
of
March
March 31,
31, 2021
2021 South
South West North

Branch
Branch Network
Network

Validating our
Validating our credentials through
credentials through
strong credit ratings
strong credit ratings

Our
Our credentials
credentials are
are validated through our
validated through our strong
strong credit
credit ratings
ratings provided
provided by
by
%
all
all leading
leading credit
credit rating
rating agencies
agencies in the country.
in the country

Long Term Rating

Long Term Rating
CRISIL
Ratings
67 21 12
Crisil
Crisil AA/
AAI ICRA
'CRA AA/ India AA/
India AAI Care
Stable
Stable Stable Stable
Stable AA/
AN,' Stable
stable
AUMs
AUMS

2019-20
2019-20 2020-21
2020-21
Short Term Rating
Short Term Rating
CRISIL

Crisil A1
crisil
A1++
ICRA
'CRA
A1+ Care A1+
Care A1 +
` `
in crores in crores

FD
FD Rating
Rating Bank
Bank Loan
Loan Rating
Rating

ICRA
'CRA MAA+
MAA+ //
India AA/
India AN 16,435
16,435 9,995
»g,ggs » 17,125
17,125 9,484
Stable Stable 2,655
2,655 2,962

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 3
M
*SHRIRA

PERSISTENCE
PERSISTENCE &
&

PROGRESS
PROGRESS THROUGH
THROUGH

ALL-ENCOMPASSING
ALL-ENCOMPASSING

PRODUCT
PRODUCT CONTRIBUTIONS
CONTRIBUTIONS
We are
We are believed toto be
be one of the most
ot the most trusted
trusted NBFC
N3FC brands
brands in
in India.
India We
We are
are committed
committed to serve
to serve unbanked and and under-served
under-serv€

sections
sections ofof the
the society
sxiety by timely providing
by timely financing options
providing finencinp through our
options through our MSME
VSVE loans, two-wheeler loans,
loans, two-wheeler lcns, gold
gclt loans
loans and
and other
other
comprehensive
comprehensive loan lcn offerings
offerings from
tram our
our exclusive
exclusive product
pro±uct suite.
suite. With
Witt long
long standing
standing relationships
relationships with with our
cur customers,
customers, providing the
providing the
much-needed
much-needed moneymoney at at right time has
right time has become
tecarne our our forte, thus creating
forte, thus creating a a ‘win-win’
Win-win' situation
situation for for both. Our
Our customers
customers havehave become
become
our
our dedicated
dedicated partners
partners driving
driving our
our nation-wide
nation-wide growth to reach
grov.<h to reach thethe last
last mile
mile needed.
needed Amidst
Amidst this tis challenging
challenging pandemic
pandemic times,
times, wewe
showed
showed astonishing
astonishing persistence
*rsistence translated through our
translated through our vigorous
vigorous progress,
progress, enabled
enabled byby our
our ‘all-inclusive’
'all-inclusive product
product portfolio
gorttolio

Small
Small Enterprise
Enterprise Finance
Finance
50.96 %
50.96 %
SCUF
SCUF is is one
one of the leading
ot the leading small
small enterprise
enterprise
AUM in FY2020-21
finance company
finance company

Year of
Year of Establishment
Establishment 2006
Target segment
Target segment Serves the
Serves the underserved
underserved micro,
micro, small
small and
and medium
medium enterprises
enterprises mostly
mostly 88%
through collateral
through cal'eteral backed
decked loans
dans
Regional
Regional Presence
Presence Strong presence
Strong presence in
in Andhra
Andhra Pradesh,
Pradesh, Maharashtra,
Maharashtra, Tamil
Tamil Nadu
Nadu and
and Telangana
Telangana
Ticket size
Ticket size ` 10 to 15 lacs
lacs

Tenor
Tenor
36 to 60 months
36 to 60 months

Yield Range
Yield Range 14-22%
14-22%

Two-Wheeler
Two-Wheeler
23.28
23.28 %
Loans
Loans AUM in
AUM in FY2020-21
+12020-21

Year of
Year of Establishment
Establishment 2002
Target
Terget segment
seg ment Mainly
Mainly self-employed customers from
self-employed customers tram rural
rural and
and semi-urban
semi-uroan areas
areas
Regional
Regional Presence
Presence Pan
Pan India
India presence
presence Market
Market leader
leader in
in South
Sout India with high
Indit with nigh penetration
penetration in
in West,
West, North
North
and Central
and Centrel India
Indie

Ticket size
Ticket size ` 50,000 - 75000
50,000 -75000
Tenor
Tenor
24 to 36 months
24 to 86 months

Yield Range
Yield Range 21-26%
21-26%

Loan-to-Value
Loan-to-Value (LTV)
(LTV) 75% - 90%

Personal
Personal Loans
Loans
6.79
6.79
%
SCUF
SCUF provides
provides personal
personal loans to salaried
loans to salaried
AUM in
AUM in FY2020-21
+12020-21
and self-employed personnel
and self-employed personnel

Year of
Year
Establishment
of Establishment
2002
2002

Target
Terget segment
seg ment Cross-sell
Cross-sell toto existing
existing customers
customers with
with good track record
gccd track record
Regional
Regional Presence
Presence Pan India
Pan India

Ticket size
Ticket size ` 50000 -- 75000
75000

Tenor
Tenor 18 to 36
18 to 36 months
months

Yield Range
Yield Range 22-28%
22-28%

4 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-21
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Loan Against Gold

Loan Against Gold
12.81
12.81 %
%
SCUF offers
SCUF offers this
this product
product leveraging
leveraging its
its
AUM
AUM in
in FY2020-21
FY2020-21
existing infrastructure,
existing infrastructure, network and controls
network end controls

Year of
Year ot Establishment
Establishment 2007
2007

Target segment
Target segment Offers
Offers loans
loans against
against gold
gold ornaments
ornaments to
to individuals
individuals

Regional
Regional Presence
Presence Well-known
Well-known player
player in Tamil Nadu,
in Tamil Nadu Maharashtra,
Maharashtra, Telangana,
Telangana, Andhra
Andhra Pradesh
Pradesh and
and
Karnataka
Karnataka

Ticket size
Ticket size ` 45,000 to 50,000
45,000 to sc,cm

Tenor
Tenor Upto
Upto 12
12 months
months

Yield Range
Yield Range 14-18%
14-18%

Loan-to-Value
Loan-to-Value (LTV)
(LTV) Upto
upto 75%

Auto Loans
Auto Loans
1.85 %
SCUF does
SCUF does relationship-based
relationship-based lending to the
lending to the
AUM in FY2020-21
AUM in FY2020-21
current and
current and repeat
re*at customers
customers

Year of
Year ot Establishment
Establishment 2006
2006

Target segment
Target segment Provides
Provides loan
loan to
to purchase
purchase new
new and
and used
used passenger
passenger and
and commercial
commercial four
tour

wheelers
wheelers

Regional
Regional Presence
Presence Telangana,
Telangana, Andhra
Andhra Pradesh,
Pradesh, Maharashtra
Maharashtra and
and Tamil
Tamil Nadu
Nadu

Ticket size
Ticket size
` 1,50,000 to 2,00,000
Tenor
Tenor 24 to 48
24 to 48 months
months

Yield Range
Yield Range 18-24%
18-24%

Loan-to-Value
Loan-to-Value (LTV)
(LTV) 60-80%

Pre-Owned
Pre-Owned Two wheelers
Two wheelers Loan
Loan
3.68
3.68 %
SCUF
SCUF does
does relationship-based
re'ationsfip-baset lending to the
lending to the
AUM
AUM in
in FY2020-21
FY2020-21
current and
current and repeat
re*at customers
customers

Year of
Year ot Establishment
Establishment 2021
2021

Target segment
Target segment Provides
Provides loans
loans for
for used Two Wheelers
used Two Wheelers

Regional
Regional Presence
Presence Pan India
Pan India

Ticket size
Ticket
size ` 35000 –
- 50,000
50,000

Tenor
Tenor 24 to 48
24 to 48 months
months

Yield Range
Yield Range 22-28%
22-28%

Loans
Loans against
against Property
Property
0.63
0.63 %
%
SCUF
SCUF is is offering the Loans
ottering the against
Loans against
AUM
AUM in
in FY2020-21
FY2C20-21
Property
Property

Year of
Year ot Establishment
Establishment 2021
2021

Target segment
Target segment Provides
Provides loan to Individuals,
loan to Individuals, Firms
Firms and
and Companies
Companies

Regional
Regional Presence
Presence Largely
Largely Gujarat,
Gujarat, Karnataka,
Karnataka, Maharashtra,
Maharashtra, Rajasthan
Rajasthan &
& Tamil
Tamil Nadu
Nadu

Ticket size
Ticket size
` 10 to 75
75
lacs
Tenor
Tenor
84 to 144 months
84 to 144 months

Yield Range
Yield Range 12-16%
12-16%

**Ticket size,
siæ tenor &
& yield range are average figures

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 5
M
*SHRIRA

PERSISTENCE
PERSISTENCE &
&

PROGRESS
PROGRESS THROUGH
THROUGH

TECH-BACKED
TECH-BACKED

ARCHITECTURE AND
ARCHITECTURE AND SYSTEMS
SYSTEMS

[-2

6 ANNUAL
NUAL REPORT
REPO 2020-21
2020 1
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS STATEMENTS
STATEMENTS

Digital technological evolution

Digital technological evolution remains
remains oneone of
of the
the major
major critical
critical factors
factors forfor
the NBFC
the NBFC lending
lending space
space toto sail through Covid-19
sail through Covid-1 9 pandemic
pandemic and and helps
helps to to us
us
drive
drive growth
growth momentum
momentum for for financial
financial inclusion
inclusion of the under-served
ofthe under-served people.
people.
With
With rapid
rapid development
development in in the
the Information
Information Technology
Technology (IT)(IT) framework
framework
and adoption
and adoption of of online
online methods
methods of of operations,
operations, we have upgraded
we have upgraded our our
processes to
processes to higher
higher technology
technology platforms
platforms enabling
enabling usus holistically
holistically integrate
integrate
our
our operational parameters, optimize
operational parameters, optimize cost
cost configuration
configuration and and leverage
leverage
synergies.
synergies. Increasing
Increasing usage
usage of
of high-end tech-architecture based
high-end tech-architecture based operations
operations
during this pandemic
during this pandemic situation
situation helped
helped us us demonstrate
demonstrate persistence
persistence and and
our
our growth
growth momentum
momentum continued
continued to to progress
progress towards
towards a a contented
contented future.
future.

Our
Our strong
strong processes
prccesses and
and framework
framework help
help in de-risk our
in de-risk our portfolio while augmenting
gortfolio while augmenting our credit penetration
our credit genetration across
across

the markets.
the markets Our
Our adaptive
adaptive lending
lending assessment
essessment criteria
criteria and
end models
motels enables
enables faster
faster credit
credit churn
churn out while maintaining
out while maintaining
our liquidity
our liquidity position
position subsequently
subse;uentty leading to lower
leading ta 'ouver NPAs. We take
NPAs_ We take every
every opportunity to consistently
opportunity to consistently upgrade
uwade our
our

technology platforms
technology platforms like the following
like the following which
which empowers
empowers us
us sail through the
sail through the pandemic.
pandemic

IT
IT Infrastructure
Infrastructure

Upgradation
Upgradation Initiatives
Initiatives

Enabled
Enabled work
work from
from remote
remote location
læation by
by Secured
Secured all
all devices
devices with
with Endpoint
Endpoint Detection
Detection

mounting
mounting VDI solutions
VOI solutions to all
to all employee
employee and
and Response
Response (EDR)(EDR) and Anti-malware
and Anti-malware
devices. solutions to confirm
solutions to confirm data
data privacy.
privacy.

Provided
Provided Wi-Fi facilities
facilities and end-point devices
and end-nnt devices
Reduced
Reduced number
number ofof physical
physical servers
servers through
through
(like
(like laptops,
laptops, hard
hard drives
drives etc.) to employees
etc) to employees
Server
Sen'er Virtualisation
Virtualisation solution
solution (VMware).
(VMware)
for
for smoother work from
smcotner work from home operations.
home operations.

Increased
Increased usage of SIEM
usage of SIEM tool
tool to track logs
to track lcgs
Enable
Enable automated
automated monitoring
monitoring of
ot branch
branch
and monitored events in the server and
and monitored events in the server and
network, firewall and ISPs across all regions.
network, firewall and ISPs across all regions.
firewall.
firewall.

Protected our digital

Protected cur digital platforms
platforms (like
(like e-mail
e-mail gateways
gateways and
and network
network frames) with end-to-end
frames) witn end-to-end encryption
encryption methods
metncCs
to
to shield against any
shield against any security threats of
security threats advanced cyber-attacks.
ot advanced cyber-attacks.

These apart,
These we have
apart, we have taken
taken several
several initiatives
initietives for
for faster
faster payment
payment and
and KYC
KYC check for customers
check tor customers enabling
enabling reduced
reduced hassles
hassles and
and
turnaround times
turnaround times (like
(like integration
integration with
with Bharat
Bharat Bill
Bill Payment
Payment System
System and
and UPI
UPI facility
facility partnering
partnering with
with leading
leading banks,
banks, digital
digital document
document
uploading
uploading facility
facility for
for customers
customers etc.)
etc )

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 7
M
*SHRIRA

PERSISTENCE
PERSISTENCE &
&

PROGRESS
PROGRESS THROUGH
THROUGH

SOUND
SOUND BUSINESS
BUSINESS

MODEL
MODEL AND
AND ASSET
ASSET MIX
MIX

We
We are
are one
one of the largest
of the largest and
and most
most trusted
trusted
NBFCs
NBFCs inin the
the country
country over the years.
overthe years. This
This coveted
coveted
achievement
achievement became
became possible through optimal
possible through optimal
usage
usage ofof our
our ‘hub-and-spoke’
'hub-and-spoke' model,model, facilitating
facilitating
decentralisation
decentralisation of of routine jobs throughout
routine jobs throughout the the
organisation
organisation resulting faster turnaround
resulting faster turnaround times.
times.
This
This enables
enables ourour top
top management
management to to engage
engage
themselves in
themselves in strategic
strategic decision
decision making
making and and
policy
policy formulations.
formulations.

At SCUF,
At SCLIF, serving the unbanked
serving the unbanked and
and under-served
under-served people
*ogle with
with holistic
holistic
development
development of
of their
tteir socio-economic
socic-econamic position
position is is nucleus
nucleus to to our
our business
business

philosophy. Our Asset Under Management grew in view of our tccused

philosoph'/ Cur Asset Under Menegement grew in view of our focused
business
business strategy
strategy to to serve the customers
serve the customers through
through our our niche,
niche, granular
granular and end
diversified
diversified product
product portfolio.
mfolio. We
We continued
continued our our growth
growth momentum
momentum despite
despite

the disruption
the disruption of of operation
0*ration and related
and related challenges
challenges posed by by COVID-19
COVID-1g

pandemic. We monitored entire process of operation through our branch

pandemic. We monitored entire process ot operation through our branch
officials
offvcials who
who are specialized in
ere specielize± in providing
providing best
best afof the
the services
services through
through local
local

knowledge
knowledge of their customers.
ot their customers. With With decentralised
decentralised creditcredit approval
approval and and loan
loan

processing in place, customers get their fund in lesser time resulting in

prccessing in place, customers get their tund in lesser time resulting in
long term relationship and trust building. The philosophy of winning the
bong term relationship and trust building The philosophy ot winning the

trustworthiness of
trustworthiness ot customers
customers over the edges
over the edges helped
nel*d us
us show
show ‘Persistence
Persistence

&
& Progress’
Progress' ahead
ahead to to superior future amidst
superior future amidst the challenging pandemic.
the challenging gandemic

8 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-21
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS STATEMENTS
STATEMENTS

We
We believe
believe that to build
that to build aa strong
strong business
business fortress,
fortress, robust
robust business
business model
model
is
is of
of prime
prime importance.
importance. We We spread
spread our
our network
network through
through ‘hub-and–spoke’
'hub-and—spoke'
model facilitating
model greater productivity
facilitating greater productivity and
and implementing
implementing tighter
tighter control
control on
on
all
all facets
facets ofof operation,
operation, whilst
whilst being
being centrally
centrally controlled
controlled byby our
our headquarters
headquarters
in Chennai.
in Chennai. The The entire
entire functional
functional architecture
architecture is is successfully
successfully controlled
controlled on
on
aa real-time
real-time basis
basis through
through ourour ERP
ERP software
software platform.
platform.

We
We have
have transformed
transformed ourselves
ourselves from
from a a mere
mere NBFC
NBFC to
to a
a special
special friend
friend in
in need
need
for
for our
our customers.
customers. Reaching
Reaching the the under-served
under-served beyond
beyond boundaries
boundaries timetime and
and
again has given
again has given usus the
the tagline
tagline of being one
of being one of
of the most trustworthy
the most trustworthy NBFCNBFC
brands in
brands India -- a
in India a building block well-constructed
building block well-constructed toto persist
persist and progress
and progress
amidst
amidst these
these challenging pandemic times.
challenging pandemic times.

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 9
M
*SHRIRA

PERSISTENCE
PERSISTENCE &
&

PROGRESS
PROGRESS THROUGH
THROUGH

OUR
OUR ROBUST
ROBUST

HUMAN
HUMAN CAPITAL
CAPITAL

10
10 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS STATEMENTS
STATEMENTS

Amidst today’s
Amidst todays rapidly
rapidly challenging
challenging business
business environment
environment customer
customer centric
centric
approach
approach andand usage
usage ofof technology
technology platforms to reach
platforms to reach the
the farthest
farthest milestone
milestone
can
can only
only become
become successful,
successful, if if workforce
workforce of
of the
the enterprise
enterprise is is truly
truly inspired.
inspired.
Through
Through ourour diverse
diverse people
people with
with extensive
extensive knowledge
knowledge of of local
local markets
markets and
and
zeal to reach
zeal to reach the
the last
last mile
mile to
to better
better serve
serve our
our customers,
customers, we
we have
have created
created

aa unique
unique bond
bond with
with our
our human
human capital.
capital.

We
We strive
strive to
to create
create a a safer
safer work
work environment
environment forfor our people amidst
our people this
amidst this
pandemic
pandemic by by shifting
shifting our
our work
work culture
culture encouraging
encouraging ‘Work-from-Home’,
Work-from-Home',
recognising performance
recognising performance achievements
achievements and and reinvesting
reinvesting inin skill
skill building
building
exercises
exercises to to embrace
embrace higher
higher usage
usage ofof digital platforms. Culmination
digital platforms. Culmination of of all
all
these efforts
these efforts translated
translated into
into enhanced
enhanced camaraderie
camaraderie amongst
amongst ourour human
human
assets
assets and and helped
helped usus show
show ‘Persistence
'Persistence & & Progress’
Progress' inin these
these challenging
challenging
times.
times.

At SCUF,
At SCUF, we
we have
have diverse
diverse workforce
workforce comprising
comprising professionals
professionals
from
from varied
varied specialisation;
specialisation; commensurate
commensurate with
with the
the diverse
diverse
geographical
geographical reach
reach and and ethnicities
ethnicities served
served over
over decades.
decades. TheThe
varied socio-economic
varied socio-economic background
background of of our
our people
people helps
helps usus toto
leverage
leverage their
their diverse
diverse skill
skill sets
sets and
and enables
enables them
them toto multiply
multiply the
the
synchronised
synchronised benefit
benefit potential
potential to
to the
the highest
highest standards
standards toto serve
serve
our
our customers
customers better.
better.

We provide
We provide specialised
specialised trainings
trainings to
to our
our workforce
workforce and
and encourage
encourage them
them to
to attain
attain newer
newer skill
skill sets
sets

through implementation
through implementation of
ot newer technologies that
newer technolo;ies that ensures
ensures sustainability
susteinablity of
ot our
our business.
business. We
We

recognise
recognise people’s
people's skill
skill and
and reward them at
reward them at every
every performance
performance accomplishment
accomplishment throughout
throughout the year.
the year

We endorse
We endorse collaborative
collaborative work
v,vk environment
environment encouraging
encouraging better
better relationships
relationships between
between employees.
employees

This apart,
This apart, we
we recruit
recruit local
local talents
talents to
to better
better leverage
leverage their
their knowledge
knowledge about customers transforming
aoout customers transforming

into
into a long-standing
bang-standing relationship.
relationship

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 11
M
*SHRIRA

KEY
KEY FINANCIAL
FINANCIAL

HIGHLIGHTS
HIGHLIGHTS

Asset Under
Asset Under Management
Management Disbursements
Disbursements
(`
g in crore)
in crore) (`
(e in
in crore)
crore)

23,132
23,132 27,461
27,461 29,582
29,582 29,085
29,085 29,571
29,571 22,356
22,356 24,922
24,922 24,071
24,071 22,712
22,712 17,154
17,154

2016-17
2016-17 2017-18
2017-18 2018-19
2018-19 2019-20
2019-20 2020-21
2020-21 2016-17
2016-17 2017-18
2017-18 2018-19
2018-19 2019-20
2019-20 2020-21
2020-21

Total Income
Total Income
Net Interest Income
Net Interest Income
(`
(e in crore)
in crore) (`
(e in
in crore)
crore)

4,435
4,435 5,102
5,102 5,781
5,781 5,887
5,887 5,738
5,738 2,897
2,897 3,416
3,416 3,795
3,795 3,747
3,747 3,605
3,605

2016-17
2016-17
2017-18
2017-18
2018-19
2018-19
2019-20
2019-20
2020-21
2020-21
2016-17
2016-17
2017-18
2017-18
2018-19
2018-19
2019-20
2019-20
2020-21
2020-21

12 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-21
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Average
Average Cost
Cost of
of Borrowing
Borrowing PAT
PAT
(%) (`
(e in
In crore)
crore)

9.76
g 76 8.90
8_go 9.01
g 01 9.36 8.76
876 556
556 665
665 988
988 1,001
1,001 1,011
1,011

2016-17
2016-17 2017-18
2017-18 2018-19
2018-19 2019-20
201 2020-21
2020-21 2016-17
2016-17 2017-18
2017-18 2018-19
2018-19 2019-20
2019-20 2020-21
2020-21

Earnings
Earnings per
per Share
Share Capital Adequacy Ratio
Capital Adequacy Ratio Tier-
Tier- II
(`) (%)

84.34
84.34 100.79
100.79 149.88
149.88 151.60
151.60 153.16
153.16 22.22
2222 20.57
20.57 22.84
22.84 27.69
27.69 28.64
28.64

2016-17 2017-18 2018-19 2019-20 2020-21

2016-17 2017-18 2018-1 g 201 g-20 2020-21
2016-17 2017-18 2018-19 2019-20 2020-21
2016-17 2017-18 2018-19 2019-20 2020-21

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 13
M
*SHRIRA

CORPORATE
CORPORATE

INFORMATION
INFORMATION

Board
Board of
of Directors
Directors
Banks
Banks Listed
Listed at
at
BSE Limited
3SE Limited
Sri
Sri Debendranath Sarangi
Debendranath Sarangi Axis Bank
Axis Sank Limited
Limited
National
National Stock
Stock Exchange
Exchange of
of
Chairperson, Non-Executive,
Chairperson, Non-Executive, Bank
Sank of ot Baroda
Baroda
India
India Limited
Limited
Independent
Independent Bank of India
Sank ot India

Bank Of Maharashtra
Registered
Registered Office
Sank Of Maharashtra
Sri
Sri Y
Y SS Chakravarti
Chakravarti Office
Citibank
Citibank N.A, NA India
India
Managing
Managing Director and Chief
Director and Chief Executive
Exoutive
123, Angappa Naicken
123, Angappa Naicken Street,
Street,
CSB Bank
csa Bank
Officer,
Officer, Executive,
Executive, Non-Independent
Non-lnde*ndent
Chennai 600 001
Chennai 600 001
Canara
Centre Bank
Bank

DCB Bank Phone

Phone
No.: + 91 442584
44 2534 1431
1431
Sri
Sri C
C R
R Muralidharan*
Muralidharan*

Director, Non-Executive,
Director, Non-Executive, Independent
Independent DBS
DBS BankBank IndiaIndia Limited
Limited

Federal Bank
Federal Bank Secretarial
Secretarial Office
Office
Sri
Sri Diwakar
Diwakar B
B Gandhi
Gandhi
HSBC
HSBC No.144,
No_144, Santhome
Santome High
High Road,
Road,
Director,
Director, Non-Executive,
Non-Executive, Independent
Independent
Mylapore, Chennai 600 004
HDFC
HDFC Bank
Bank Limited
Limited Mylapore, Chennai 600 004

ICICI
ICICI Bank
Bank Limited
Limited Phone
Phone No.+
No + 91 44
44 43925300
Sri
Sri Duruvasan
Duruvasan Ramachandra
Ramachandra
Indian
'ndian Bank
Sank Fax No. + 91 44 43925430
Fax No. + 91 4443925430
Director,
Director, Non-Executive,
Non-Executive, Non
Non
Independent
Independent Indusind Bank
Indusind
Limited
Sank Limited

Indian Overseas Bank

Indian Overseas Bank Share
Share Transfer
Transfer Agents
Agents
Sri
Sri Ignatius
Ignatius Michael
Michael Viljoen
Viljoen
Karnataka
Karnataka Bank
Bank
Integrated
Integrated Registry
Registry Management
Management
Director,
Director, Non
Non Executive
Executive ,Non
,Non
Kotak Mahindra Bank
Kotak Mahindra
Limited
Bank Limited
Services Pvt Ltd
Services Pvt Ltd
Independent
ndependent
Punjab National Bank
Punjab National Bank 2nd
2nd Floor,
Floor, Kences
Kences Towers
Towers No.
Nc 1,
1,

Ms
Ms Maya
Maya S S Sinha
Sinha RBL
RBL BankBank Limited
Limited
Ramakrishna
Remekrishna Street,
Street,

Director,
Director, Non-Executive,
Non-Executive, Independent
Independent Standard
Standard
Chartered
Chartered
Bank PLC
Bank PLC
Off
Off North
North Usman
Lisman Road,
Road, TT. Nagar,
Nagar,
State Bank Of India
State Bank Of India
Chennai 600 017
Chennai 600 01 7

Sri
Sri Pranab
Pranab Prakash
Prakash Pattanayak
Pattanayak State
State Bank
Bank of of Mauritius
Mauritius
Phone
Phone No.
No + 91 44
+91 2814 0801 –
4428140801 - 03
03

Director, Non-Executive, Independent

Director, Non-Executive, Independent
South Indian Bank Limited
South Indian Bank Limited

Sri
Sri Shashank
Shashank Singh
Singh Union
Union BankBank of of India
India
Debenture
Debenture Trustees
Trustees
Yes Bank
Yes Sank
Director, Non-Executive, Non-
Director, Non-Executive, Non- IDBI Trusteeship Services
IDBI Trusteeship Services Ltd
Ltd
Independent Asian Building,
Building, Ground
Ground Floor,
Far, 17,
17, R
Institution
Independent Asian R
Institution
Kamani
Kemeni Marg,
Merg, Ballard
Ballard Estate,
Estate,
Sri
Sri Venkataraman
Venkataraman Murali
Murali
Bajaj
Bajaj Finance
Finance Limited
Limit%
Mumbai 400 001
Mumöai 400 001
Director, Non-Executive, Independent
Director, Non-Executive, Independent
Citicorp
Citicorp Finance
Finance (India)
(India) Limited
Limited
Catalyst
Catalyst Trusteeship
Trusteeship LtdLtd
** Ceased
Ceased to be aa director
to te director due
due to
to demise on
demise on
National
National Bank
Bank For Agriculture
For Agriculture GDA
GDA House,
House, First
First Floor,
Floor, Plot
Plot No
No 85,
85,
October 8,
October 2020
8, 2020
And Rural Development
And Rural Development Bhusari Colony (Right), Paud Road,
Snuszri Calony (Right), PauciRoad,
SIDBI
SID31 Pune 411 038
411 038

Chief
Chief Financial
Financial Officer
Officer
Auditors
Auditors
Sri
Sri Ramasubramanian
Ramasubramanian Chandrasekar
Chandrasekar
G D Apte & Co.
GDApte&Co.
Chartered Accountants, GDA
Chartered Accountants, GDA House,
House,
Company
Company Secretary
Secretary First
First Floor,
Flczr, Plot
Pbot No
Na 85,
85, Bhusari
Stuseri Colony
Colony
Sri C R Dash
sriCRDash
(Right),
(Right), Paud Road,
Road, Pune 411
411 038
038

14 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-21
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report of the Board
of the Board of
of Directors
Directors

To,
The Members
The Members of
of Shriram
Shriram City
City Union
Union Finance
Finance Limited
Limited

Dear
Dear Members,
Memtrers,

The Board
The of Directors
Board of Directors (“Board”)
("Board") isis pleased to present
pleased to present this
this Report with the
Report with the audited
audited standalone
standalone as well as
as well as consolidated
consolidated financial
financial
statements of the
statements of the Company
Company forfor the
the financial
financial year
yeer ended
ended March
March 31,
31, 2021
2021 (“FY21”).
("FY21 TheThe consolidated
consolidated financial
financisl statements
stetements presented
presented
pursuant to section
pursuant to section 129
12? (3)
(3) of the Companies
of the Companies ActAct 2013
201S (“Act”)
("Act") and
and Regulation
Regulation 34
34 of
of the
the SEBI (Listing Obligations
SE81(Listing ab'igations and
and Disclosure
Disclosure
Requirements)
Requ.rements) Regulations,
Regulations, 2015
2015 (“LODR”). The
The report
reprt on
on corporate
corporate governance,
governance, management
management discussion
discussion and
end analysis
analysis and
and other
other
annexures referred to form a part of this Report.
annexures referred to form a part of this Report

1.
1_ RESULTS
RESULTS OF
OF OPERATION
OPERATION

The
The summary
summary of of standalone
standalone and
and consolidated
consolidated financial
financial performance
performance of
of the
the Company
Compeny for
for the Year is
the Year is as
as under.
under The
The details
details of
of
financials are provided
financials ere provided in the annual
in the ennual financial
financial statements.
statements

` in
in crores
crores

Particulars
Particulars Standalone
Standalone Consolidated
Consolidated

Year Ended
Year Ended March
March 31,
31, Year Ended
Year Ended March
March 31,
31 ,
2021
2021 2020
2020 2021
2021 2020
Total
Total Income
Income 5,738.43
5,738.43 5,887.14
5,887.14 6,167.87 6,239.15
6,239.15
Finance Charges
FinanceCharges 2,133.88
2,13388 2,140.45
214045 2,340.71
2,34071 2,303.26
2,30326
Depreciation 79.84
7984 82.16
8216 87.12
8712 89.58
Total
Total expenses
expenses 4,349.05
4,349.05 4,532.14
4,532.14 4,689.85 4,832.67
Profit
Profit before tax (“PBT”)
before tax ("PBT") 1,389.39
1,389 ag 1,355.00 1,478.01
1,478.01 1,406.48
1,406.48
Total
Total Tax
Tax expenses
expenses 378.44 354.48
354.48 400.30
400.30 373.27
373.27

Profit
Profit after Taxation (“PAT”)
after Taxation ("PAT") 1,010.94
1,010.94 1,000.52 1,077.72 1,033.21
Paid up equity share capital
Paid up equity shsre capital 66.01
6601 66.00
6600 66.01 66.00
(Face
(Face value
value of
of `e 10/-
ID/- per
per share)
share)
Earning
Earningper equity share (Face value of `t 10/-
perequityshare(Facevalueof each)
1D/-each)m
(i)
(i) Basic
Basic 153.16
15316
151.60
151 60
161.13 154.95
(ii)
(ii) Diluted
Diluted 152.81
15281 151.57 160.76
15076 154.92
154Æ2

Appropriations/Transfers:
Appropriations"ransfers:
Profit available for appropriation
Profitavailablefor appropriation 4,016.07
4,01607 3,509.77
3,50977 4,160.19 3,608.52
3,60352
General reserve
Genera' reserve (102.50)
(10250) (100.10)
00010) (102.50)
(P02 50) (100.10)
Statutory
Ststutory• reserve
reserve (204.90)
(204'0) (200.20)
(20020) (214.59)
(214.59 (207.4i)
(207.41)
Debenture redemption reserve
Debenture redem ion reserve - (29.31)
2931 - (29.31)
29.31

The
The Board
Board at the meeting
at the meeting held
held on
on April
April 30,
30, 2021
2021 has
has proposed
proposed tto transfer/carry
transfer/carry amounts
amounts mentioned
mentioned above
above to to different
different
reserves
reserves for
for FY21
Ff21 inin compliance
compliance with the requirements
with the r.;uirements of of regulations
regulations of
of Reserve
Reserve Bank
3snk ofof India
India (“RBI”) and
and the Act. No
the Act details
NDdetails
for
for loans
loans made, guarantee given
msde, guarantee given or security provided
or security provided in
in ordinary
ordinary course
course of
of business
business as -s required
requir± under
under Section
Section 186186 ofof the
the
Act are mentioned here as the Company being a NBFC registered with the RBI is exempted from applicability of this. Loans,
Act ere mentioned here as the Company teing N3FC registered with the 331 is exempted from app'icability of this Loans,
guarantees
guarantees endand investments
investments formform a
a part of the
part of Annual Financial
the Annual Financial Statements
Statements provided
provided in in this
this Annual
Annual Report.
Report

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 15
M
*SHRIRA

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

2. DIVIDEND
DIVIDEND

The
The Dividend
Dividend Distribution
Distribution Policy
Policy as
as required
required under
under LODR
LODRisis attached
attached as Annexure -- 12
es Annexure 12 and
and is
is displayed
displayed on
on the website of
the website of the
the
Company (refer Table - 1). Dividends are recommended and paid in line with the Dividend Distribution Policy of the Company.
Company (referTable - Dividends are recommended and paid in line with the Dividend Distribution Policy of the Companyt
The
The Board
303rd in
in the
the meeting
meeting held on April
held on April 30,
30, 2021
2021 has
has proposed
proposed for final dividend
for final dividend of
of ` 13.00
13.0] on
on each
each equity
equity share
share ofof `e 10
10 each
each
for the year
for the year. The
The table
table below
below shows the details
shows the details of
of dividend for FY20 and
dividend for end FY21

Dividend
Dividend on
on equity
equity shares
shares No of Shares
No of Shares Per share (`)
Per share (t) Dividend
Dividend Date
Date of
of payment
payment
of
of
` 10 each
10 each
Pay
Pay outout
(` in
In crores)
crores

Interim
Interim (FY21)
321) 6,60,04,322 10.00 6,600.43 43 November
November 27,
27, 2020
2020
2ndInterim
2nd (FY2ij
Interim (FY21) 6,60,05,022 10.00
1003 6,600.50
6,6CZ.50 April
April 19,
u, 2021
2021
Proposed Final (FY21)
ProposedFinal(FY21) 6,60,05,022 13.00
1303

Total
Total
33.00
33.00

Interim(FY20)
Interim (FY20j 6,59,96,022 6.00 47.74
47.74 November
November 18,
18, 2019
201g
Total
Total 6.00
6.00

FY– Financial
Financial year
year ending
ending March
March 31
31

Dividend
Dividend payout
payout is
is subject
subject to
to applicable
applicable deduction
deduction of tax at
of tax at source.
source No
No ofof shares
shares indicate the numbers
indicate the numbers ofof shares
shares existed
existed on
on
respective
res*ive record
record date
dste for
for payment
payment ofcf dividend.
dividend There
There were
were no
no delay
delay in
in payment
payment ofof dividend/interim
dividend/interim dividend
dividend during
during FY21.
FY2V
The
The Board
aoerd recommended
recommended finalfinal dividend
dividend and
end the
the interim
interim dividends
dividends declared
declared and
and paid
Eid shall
shall be the
the dividend
dividend for the year.
for the year

3. CONTRACT
CONTRACT OR ARRANGEMENT WITH
OR ARRANGEMENT WITH RELATED
RELATED PARTY
PARTY AND
AND ANNUAL
ANNUAL RETURN
RETURN

There
There were
were related
related party transactions during
Pany transactions during FY21.
FY21.AllAll the
the transactions
transections during
during FY21
Ff21 with
with related
related parties were on
parties were on arm’s
arm's length
length
basis
basis in ordinary course
in ordinary course ofof business
business with
with requisite
requisite approval
approval of of the
the Audit
Audit and
and Risk
Risk Management
Msnegement Committee.
Committee. The The Company
Company
has formulated an
has formulated en approved
Epproved policy
policy on
on related
related party
party transactions, which is
transactions, which is displayed
displayed on cn the
the web
web site
site of the Company
of the Company
(refer Table - 1) in compliance with regulations of RBI, the Act and LODR. The details of and transactions with the related
(refer Table - 1) in compliance with —ulEtions of R3L the Act and LODR The detEils Df and transactions with the related
parties
parties esas required
required under
under Regulation
Regulstion 34(3)
34(3) and
and 53(f) of the
5S(iJof the LODR
LCD* appear
appear inin note
note no.no. 44
44 of
of the
the notes
notes to
to financial
financial statements.
statements
During
During FY21,
FY21, the
the Audit
Audit and
and Risk
Risk Management
Man-gement Committee,
Committee, approved
approved the
the related
releted party
party transactions
transscticns requiring
requiring it’s
it's approval.
approval
The
The details
detai's ofcf Related
*e'ated Party
Farty Transactions
Transscticns were
were filed
filed with
with both
both BSE
SSE Limited
Limited (“BSE”)
("3SE") and
and National
Nation-I Stock
Stuk Exchange
Exchsnge of of India
India
Limited (“NSE”) on half yearly basis during FY21. There were no material related party transactions during the FY21 with
Limited ("NSE")on hef yearly basis during There were no materiel related party transections during the FEI with
promoters,
promoters, directors,
directors, key
key managerial
managerial personnel
personnel or or other
other designated
designate: persons
persons in in potential
PZtentiEl conflict
conflict with the interest
with the interest ofof the
the
Company
Company at et large
large and this information
and this information were filed with
were filed with both
t,cth BSE and NSE
3SEand NSEcn on quarterly
quarterly basis
basis on
Dnor before
before respective
respective duedue dates
detes
during
during FY21.
Ff21 TheThe details
details of
of Annual
Annual Return
Return in
in prescribed
prescribed formform MGTMGT -- 7
7 as
as required
required under
under Section
Section 9292 (3)
(3) and
end 134
134 (3)
(3) of
of the Act
the Act
is displayed on the web site of the Company (refer Table - 1).
is displayed on the web site of the Compeny (refer Table - 1).
4. STATE
STATE OF AFFAIRS
OF AFFAIRS

The
The Company
Company is is a
a deposit taking Non-Banking
deposit taking Non-ænking Finance
Finance Company
O)mpany (“NBFC”) registered with
("NBFC.•)registered with the
the RBI.
831 The
The Company
Company provides
provides
loans to customers and has multiple product offering i.e. Enterprise Finance/MSME Finance, Two wheeler loans, Loan
loans tc customers and hes multiple product offering i.e Enterprise Finance/MSME änence, Two wheeler 'Dens, Loan
against
against Gold,
Gold, Personal
Personal Loan,
Loan, Auto
Auto Finance,
Finance, Pre-owned
Pre-owned Two Wheeler loans
Thu) Wheeler loans andand Loans
Loans against
against Property.
Property The
The Company
Company
continued
continued acceptance
acceptance and and renewal
renews' ofof deposits
deposits from
from public
public during
during FY21. There was
FY21 There was no no change
change inin business
business of the Company
of the Company
during FY21. The business of the Company includes sourcing borrowers, understanding their loan requirement, providing
during Ff21. The business of the Comp-ny includes sourcing borrowers, understanding their loan requirement, providing
them appropriate finance, documentation of loans and receipt/recovery of loan dues from borrowers. Though, the Company
them appropriate finance, documentation of loans and receipt/recovery of loan dues from borrowers. Though, the Company
operates all over
operates ell over India,
Indie, the
the business
business outlets
outlets of the Company
of the Company are are concentrated
concentrsted in in semi-urban
semi-urban andand rural
rural areas.
areas. Our customer
Our customer
centric
centric approach
approach continues
continues tcto bring
bring us
us more
more number
number of cf customers
customers resulting
resulting in in higher
higher business.
business 13.61
13.61 lacs
lacs number
number ofof
customers were added during FY21. Total number of customers and total number of branches/ business outlets were 41.52
customers were added during FY21 Tote' number of customers and total number of branches/ business outlets were 41.52
lacs
lacs and 926 respectively
and g26 respectively asas on
on March
March 31,
31, 2021.
2021

Total
Tote' disbursements
disbursements of of loans
loans under
under different
different products were ` 17,154
products were 17,154 crores
crores during
during FY21
FY21 (FY20
(FY2D:: ` 22,712
22,712 crores).
crores). Income
Income
from operations for
from operations for the
the year
year reduced
reduced byby 2.60%
260% toto ` 5,730.70
5,73D70 crores
crores (FY20
(FV20 :: ` 5,883.94
5,383E4 crores)
crores) and
and profit
profit before
before tax
tax was
wes
` 1,389.39
1 crores
crores for
for the year (FY20
the year (FV20 :: ` 1,355.00 crores). As
1,35500 croresl As at
at March
Merch 31,
31 2021
2021 thethe total
total assets
assets under
under management
management was wes
` 29,571 crores (March 31, 2020 : ` 29,085 crores).
29,571 crores (March 31, 2020: 29,085 crores).

16 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

During
During FY21, the total
FY21,the total consolidated
consolidated disbursements
disbursements ofof loans
loans under
under different
different products
products were
were ` 19,349
1g,34g crores
crores (FY20
(FY2D: ` 23,839
23,839
crores).
crores). Consolidated
Consolidated Income
'ncome from
from operations
0*rations in
in FY21 reduced
reduced byby 1.27%
1 27%toto ` 6,153.75
5375 crores
crores (FY20
(FY20 : ` 6,233.11
6,23311 crores)
crores) and
and
profit
profit before tax was
before tax was ` 1,478.01
1,478.01 crores
crores in
in FY21
FY21 (FY20
(FV20 :: ` 1,406.48
1,406.43 crores).
crores). As
As at
at March
March 31,
31, 2021
2021 the consolidated assets
the consolidated assets
under
under management
management was was ` 33,500 crores (March
33,530 crores (March 31,
31, 2020
2020 :: ` 31,390
31.00 crores).
crores)

In
In order to meet
order to the loan
meet the loan requirements
requirements of of borrowers
±rrowers andand other
other requirements, the Company
requirements, the Company borrows
±rrows money
money from
from banks/
banks/
institutions, individuals and others through public issue/private placement of non-convertible debentures (“NCDs”),
institutions, individuals and others through public issue/private placement of non-convertible debentures ("NCOsT),
acceptance/renewal
acceptance/renewal of of fixed
fixed deposits,
deposits, issue
issue of
of commercial
commercial papers, cash credit/working
papers, cash credit/working capital
capital loans
loans and
and other
other loans. The
bens The
summary
summary of of borrowings
±rrowings by the Company
by the Company is is as
as under.
under.

` in crores
in crores

At the year
At the year ended
ended Deposits Privately
Privately Public
Public issue
issue Term
Term loans
loans Others Total
Total

March
March 31,
31, placed
placed NCDs
NCDs of
of NCDs
NCDs

2021
2021 5,528.89
5,528.8g 3,394.39 869.24
86924 10,264.57
10,26457 5,508.22
5,50822 25,565.31
25,565.31
2020
2020 4,012.07
4,012.07 3,618.73
3.61873 849.55
849E5 8,531.74
8,531 74 6,153.75
6,15375 23,165.84
23,165.84

Balance
Balance outstanding
outstanding oncr. cash
cash credit
credit as
es onon March 31,
March 31 and
and commitments,
commitments, affecting the financial
affecting the financial position
position
2021 was ` 358.48 crores (March 31, 2020 : ` 480.38
wes 358.48 crores (Merch 31, 2020 480.38 of the Company which occurred between the end
of the Company which cccurred between the end ofof
crores), Working capital
crores), Working capita' demand
demand loans
loans as
-s on
on March 31,
March 31 the financial
the financial year
yesr of the Company
of the Comp-ny and
and the
the date
date of
of this
this
2021 was ` 1,765.15 crores (March
2021 wes (Merch 31,
31, 2020 : ` 1,544.89 report.
report The
The impact
impact of
of pandemic
*ndemic hashas been
been dealt
dealt with
with inin
crores),
crores), Commercial
C.ommercial Papers
Papers as on March
ss on March 31,
31, 2021
2021 was
was the Management Discussion and Analysis annexed to
the Management Discussion end Analysis annexed to
Nil (March 31, 2020 : ` 111.64 crores) Subordinate
Nil (March 31, 2020 11164 crores) Subordinate this report
this report as
as Annexure
Annexure -- 3.
3
debts
debts as
es onon March
March 31,
31, 2021 was ` Nil
2021 was Nil (March
(March 31,
31, 2020
2020
During
During FY21,
Ff21, frauds
frauds amounting
amounting to to ` 55 lacs
lacs were
were detected
detected
:: ` 239.24
23Y24 crores)
crores) and
and Securitisation
Securitisation linked Term Loan
linked Term Loan
and
and reported
reported toto RBI. The details
Rah The detEils of
of frauds
frauds detected
detected are are
as on March 31, 2021 was ` 3,384.59 crores (March 31
as on March 31 2021 was 3,384.5g crores (March 31, reported
reported in in notes
notes tto financial
financial statements.
statements. The The status
status
2020
zcr-zo: `? 3,777.60
3,777.60 crores).
crores).
of
of frauds
frauds detected
detected are
are reported
reported inin notes
notes to
to financial
financial
The
The Company
Company serviced
serviced all
all its
its repayments
repayments and
and interests
interests statements. The Audit and Risk Management Committee
statements. The Audit and Risk Management Committee
for different borrowings due during FY21 on respective
for different borrowings due during FY21 on respective (“ARMC”)
("ARMC'3end and the
the Board
Board had
had discussed
discussed about
about the
the status
status
due
due dates.
dates TheThe deposits
deposits end and debentures
debentures issued/
issued/ of
of the
the frauds
frauds committed
committed and and existing. The Company
existir-g The Company has hes
allotted
allotted in
in non-dematerialised
non-demateriallsed form
form were
were redeemed
redeemed formulated
formulated whistle
whistle blower
blower and
and vigil
vigil mechanism
mechanism policy
policy
on submission of the claim with documents. 4,365
on submission of the claim with documents 4365 for,
for, in
in addition
addition toto other
other matters,
matters, bringing
bringing frauds
frauds toto light
light
number
number of of deposits
deposits amounting
amounting to to ` 61.57
61'7 crores were
crores were by
by the
the whistle
whistle blowers.
blowers
outstanding
outstanding to to be
be claimed
claimed or or renewed
renewed on on maturity
meturity asas at
at
The Company,
The Company, in the capacity
in the capacity of
of Financial
Financial Creditor,
Creditor, has
hes
March
Merch 31, 2021. Subsequent
31, 2021. Subsequent follow-up
follow-up by the Company
by the Company
not filed any
not filed any applications
applications with
with National
Neticnal Company
Comp-ny Law Lew
for
for repayments/renewals
repayments/renewals brought brought itit tto 1,730
1,730 number
number
Tribunal under
Tribunel the Insolvency
under the Insolvency and
and Bankruptcy
Bankruptcy Code,
Code,
of
of deposits
deposits amounting
amounting to to ` 29.61 crores
crores on
on the
the date of
dete of
2016
2016 during the financial
during the financial year
year 2020-21
2020-21 for
for recovery
recovery
this
this report.
report There
There were
were nono deposits
deposits which
which had
had matured
matured
of outstanding loans against any customer being
of outstanding loans against any customer ±ing
and
and claimed,
claimed, butbut were
were not
not paid
psid by the Company.
by the Companyt The The
Corporate
Corporate Debtor.
Debtor Thus,
Thus, the
the difference
difference between
between amount
amount
Company takes steps to arrange for repayment/renewal
Company takes steps to arrange for repayment/renewal
of
of the
the valuation
valuation done
done atat the
the time
time of
of one
one time
time settlement
settlement
of these unclaimed
of these unclaimed deposits.
deposits
and the valuation done while talking loan from the
and the valuation done while talking loan from the Banks
Banks
The
The Company
Company is is required
required tto be
be rated
rated by
by any
any of
of the
the rating
rating or Financial Institutions along with the reasons thereof
or Financial Institutions along with the reasons thereof
agencies
agencies in
in India
India for
for its
its different
different kinds of borrowings.
kinds of borrowings is
is not
not applicable.
applicable
Such
Such ratings
ratings were
were undertaken
undertsken and the ratings
and the ratings obtained
obtained
5.
5. CAPITAL,
CAPITAL, LISTING
LISTING AND
AND IEPF
IEPF
are mentioned in
are mentioned
notes to financial statements.
in notes to financial statements
As on
As on March
March 31,
31, 2021,
2021 the
the paid
paid up
up capital
capital was
wes ` 66.005
6E.C05
There
There are
are no
no significant
significant and
and material
material orders
orders passed
passed byby
crores with an
crores with an increase
increase of
of ` 0.002
O.CU crores
crores on the paid
on the paid
the regulators or courts or tribunals impacting going
the regulators or courts or tribune's impacting gang
up
up capital
capital on
on March
March 31,
31 2021
2021 due
due to
to allotment
Ellotment of
of 2,100
2,111'
concern
concern status
status and
and Company’s
Companfs operation
cperstion in
in future.
future For
For
(FY20
(FY20 : 10,605)
10,605) shares
shares on
on exercise
exercise ofof options
options under
under
other
other orders,
orders, please
please refer to the
refer to the notes
notes to
to accounts
accounts on on
Employees Stock Options Scheme 2006 by the eligible
Employees Stuk Options Scheme 2006 by the eligible
contingent liabilities. There were no material changes
contingent liabilities There were no material changes
employees.
employees. The
The ESOP
ESOP Scheme
scheme titled
titled SCUF
SCUF ESOPESOP

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 17
M
*SHRIRA

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

Scheme
Scheme 2013
2013 as approved by
as approved by the
the members
members in the
in the the time of
the time of transfer
transfer to IEPF
to Authorities.
IEPF Authorities

Extraordinary
Extraordinary General
Genera' Meeting
Meeting held
held on May 31, 2013
May 31, 2013 As
As required
required under
under Schedule
Schedule V V ofof LODR,
LODR,thethe Company
Company
was
wes implemented.
implemented TheThe required
require: disclosures
disclosures on
on ESOP
ESOP
has opened equity share suspense Account with NSDL
has opened equity share suspense Account with NSCL
as on March
es on March 31,
31, 2021
2021 under
under SEBI Regulations are
SE81Regulations are set
set
titled
titled ases “SCUF
"SCUF -- Unclaimed
unclaimed Securities
Securities Suspense
Suspense
out in Annexure - 6 to this report. The Company has
out in Annexure - 6 to this report The Company has Account”
Account" for for the
the purpose
purpose of of transferring
transferring unclaimed
unclaimed
received
received the certificate
the certificate as as attached
attsched in
in Annexure
Annexure -- 77 equity
equity shares
shares heldheld in
in physical
physical form
form .The
The Company
Compeny willwill
from the auditors
from the auditors of the Company
of the Compeny certifying
certifying that the
that the
transfer after due verification the shares lying in the said
transfer after due verification the shares tying in the said
ESOP Scheme is
ESOPScheme is implemented
implemented in in accordance with the
accordance with the suspense
suspense account
account to to the
the eligible
eligible shareholders
shareho'ders on receipt
receipt
SEBI
SE81 Guidelines
Guidelines and
and in
in accordance
accordance with the resolution
with the resolution
of
of request
request forfor such transfer is
such transfer is received.
received AsAs onon March
March
passed by the members. No equity shares, other thsn
passed by the members Nc shares, other than 31, 2021 there were 475 (As on March 31, 2020 : 475)
31, 2021 there were 475 (As on March 31, 2020 475)
equity
equity shares
shares under
under Employees
Employees Stock
Stcck Option
Option Scheme
Scheme number of unclaimed equity shares in the said SCUF --
number of unclaimed equity shares in the said SCUF
were
were issued
issued toto employees
employees of cf the
the Company.
Companyt There
There was was Unclaimed
unclaimed Securities
Securities Suspense
Suspense Account.
Account
no buy back of its shares and no issue of equity by the
no buy back of its shares and no issue of 4;uity by the
Company
Company during
during FY21.
FY21 S. Particulars
Particulars
No of
No of
No of
No of

No equity
equity unclaimed
unclaimed
In
In compliance
compliance with Section 124
with Section 124 (5)
(5) of
of the
the Act, the
Act, the share
share equity
equity
Company transfers the
Company transfers the dividend that has
dividend thet has remained
remained holders
holders shares
shares

unclaimed
unclaimed forfor aa period
*rict ofof seven years from
seven years from the
the date
dete of
of 1 Unclaimed
unclaimed equity
equity shares
shares 8 475
475

its transfer to unpaid equity dividend account to Investor

Its transfer to unpaid e;uity dividend account to Investor as
as on April 1,
on April 1 2020
2020
Education
Educeticn andend Protection
Protection Fund
Fund (“IEPF”).
("IEPZ) An An amount
smount of of 2 Shares
Shares claimed
claimed byby - -
` 0.86
086 crores
crores (FY20:
(FV20: ` 0.93
0 93 crores)
crores) is
is lying
lying in
in unpaid
unpaid shareholders
shareholders during
during the
the
equity
equity dividend
dividend account
account ofof the
the Company.
Compeny The The unpaid
unpaid Year
Year

dividends
dividends till
till March
March 31,
31, 2014
2014 were transferred to
were transferred to IEPF.
IEPF 3 Transfer
Transfer
of unclaimed
of unclaimed
- -
The
The Company
Comp-ny as -s provided
provided under
under Section
Section 124(6)
124(6) of the
of the equity
equity shares
shares to
to IEPF
IEPF
Act, transferred all
Act, transferred all shares
shares in
in respect
respect ofof which
which unclaimed
unclaimed during
during the
the Year
Yeer as
as per
per IEPF
IEPF
dividends
dividends were transferred to
were transferred to IEPF
IEFF during
during FY21.
FY2V In In Rules
Rules

compliance with section 125 (2) of the Act, matured

compliance with section 125 (2) of the Act, matured 4
4 Unclaimed
unclaimed equity
equity shares
shares 8 475
475

deposits,
deposits, matured
matured debentures
detentures and
end interest
interest accrued
sccrued onon as
as on
on March
March 31,
31, 2021
2021
these
these that
thst had
had remained
remained unclaimed/unpaid
unclaimed/un#id for for a
e period
*riod
The voting rights
The voting rights for
for the
the above
above said
said unclaimed
unclaimed equity
equity
of
of seven years from
seven years from the
the date
date it
it became
tecsme due
due for
for payment
payment
shares shall remain frozen till the shares are claimed
shares shell remain frozen till the shares are claimed
were transferred to
were transferred to IEPF during FY21
IEPFduring as mentioned
FY21es mentioned below.
below
by
by // transferred
transferred to to the
the concerned
concerned shareshare holders.
holders. NoNo
` in
in crores
crores equity share was issued with differential rights to voting,
equity share was issued with differential rights to voting,
Year Dividend
Divide Deposits Debentures
Debentu Equity
Equity dividend
dividend or
or otherwise.
otherwise
shares in
shares in
The
The listing
listing fees
fees to
to BSE and NSE
BSEand for the
NSEfor the Year
Year were
were paid
paid on
on
nos.
nos.

FY 21
FY 21 0.109
once 0.00
ooo 1.480 2,427
2,427 time.
time The
The shares
shares of
of the
the Company
O)mpany continue
continue to
to be
be listed
listed
FY 20 0.080
0.080 0.00
r.oo 1.465 3,032
3,032 on
on BSE
asE and
and NSE.
NSE

The Company has displayed the details of unpaid

The Company hes displayed the details of unpaid 6.
6. HUMAN
HUMAN RESOURCE
RESOURCE

dividend
dividend on
on its web site
ts web site (refer
(refer Table
Table -- 1). The
The Company
Compeny
FY21
FY21 was
was aa particularly
particulerty testing
testing one for our
one for our workforce
workforce
also
also posted
posted individual
individual letters to the
letters to the last
last known
known address
address
because
because of of the
the prevalence
prevelence of Df the
the pandemic.
pandemic Despite
Jespite
of the shareholder
of the shareholder on on MayMay 30,
30, 2020
2020 and August 31,
and August 31
operating from COVID-affected
0*rating from COVIü-affected parts parts of
of the
the country,
country,
2020 and advertised in newspapers on June 3, 2020
2020 end advertised in newspapers on dune 3, 2020
our team members
our team members helpedhelped thethe Company
Company achieve
achieve its its
and
end September
Septem&r 1, 1, 2020
2020 respectively
res*ively for the
for the purpose.
purpose
operational and business targets by reaching out to
0*rational end business targets by reaching out to
There
There will
will be
be no
no claim
claim lie on the
lie on the Company
Company on
on account
account
customers
customers andand with
with their
their physical
physical presence
presence inin offices,
offices,
of
of dividend,
dividend, debentures
debentures andand deposits
deposits which
which were
were
thus
thus putting
putting the
the interests
interests of
of the
the Company
Company on front. We
cn front. We
transferred
transferred to IEPF.
to IEPF However
However the
the investors
investors can
can claim
claim it
it
are extremely fortunate to possess such an immensely
are extremely fortunete to possess such an immensely
from IEPF Authority by following the required process.
from IEPFAuthority by following the required process
motivated
motivated andend highly-skilled workforce, and
highly-skilled workforce, and endeavor
endeavor
The
The unclaimed
unclaimed equity shares
shares existing
existing in
in physical
physical form
form to
to support
support themthem in in every
every possible
;cssib'e manner,
manner, both both
available with the
eveileble with the Company/RTA,
Company/RTA, are
are dematerialised
dematerialised at
at professionally
professionally andend personally.
personally The The Company
Company follows
follows

18 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

the
the best
best HRD
HRO practices
practices in the industry,
in the which includes
industry, which includes tto March
March asas the financial year.
the financial year. SHFL
SHFL provides
provides housing
housing
conducting
conducting sustained
sustained reskilling
reskilling andand skill-enhancing
skill-enhancing loans
loans of
of larger
larger mass
mass consisting
consisting of
of self
self employed
employed inin the
the
programs
prcærams to to provide
provide thethe necessary
necessary edge edge to to our teams
our teams lower
lower and
and middle
middle income
income class
class in
in mostly
mostly Tier
Tier 2
2 and Tier
and Tier
over
over the
the competition
competition end and according
according timely
timely rewards
rewards 33 locations
Iccations in
in India
India with
with 8282 branches.
trenches SHFLSHFL has
has 20,395
20,3S5
and
and recognition
recognition to to keep
keep our our workforce
enrkforce motivated.
motivated customers with loans in its portfolio as on March 31,
customers with loans in its portfo'io as on March 31,
This enables our employees in their career growth
Th's enables our employees in their carer growth 2021. The total employee strength of SHFL as on March
2021 The tote' employee strength of SHFL as on March
paths,
paths, besides
besides assisting
essisting the the Company
C.ompany in in achieving
achieving itsits 31,
31, 2021 was 824.
21-21was 824 The
The Policy
Policy onon Material
Material Subsidiary(ies)
Subsidiarytes)
commercial
commercial objectives.
objectives. We We emphasise
emphasise on localisation
localisation of
of the
the Company
Compeny is is displayed
displayed on on the
the web
web site
site of
of the
the
of
of our workforce and
our workforce encourage executive
and encourage executive growth
growth up up Company (refer Table - 1).
Compeny (refer Table - 1)
the organisational ladder within respective geographies.
the organisational ladder within respective geographies
SHFL
SHFL provides
provides home\mme loans,
Bens, loans
loans against
against property
property
The
The relation
relation between
between the the Company
Company and end itsits employees
employees
and finances housing
and finances housing projects.
projects The The CAGRCAGR of of loan
loan
have
have always
always been
been based
bssed on cn mutual
mutual respect, openness,
respect, openness,
disbursement
disbursement of of SHFL over last
SHFL over last five
five years was 22.60
years was 2260 %
honesty, co-operation and trust, and continued in
honesty, co-operation end trust and continued this
in this
with total disbursement
with total disbursement during
during thethe year
yesr being ` 2,195
2,1g5
manner
manner during the Year.
during the Yeer TheThe Company
Company has has formulated
formulated
crores. The total borrowings of SHFL as on March 31,
crores. The total byrowings of SHFL as on March 31,
a
a policy
policy on
on Prevention
Prevention of Sexual Harassment
of Sexual Harassment of of women
women
2021
2021 was was ` 3,180.84
3,180.84 crores,
crores, outout of which ` 578.90
of which 57843
employees
employees in the work
in the work place. The Company
place. The Company has hes also
also
crores
crores relates
relates NCDs
NCOs and and the
the balance
balence amount
amount was
wes
constituted an Internal Complaints Committee as
constituted en Internal Complaints Committee as
from borrowings from Bank/ Financial Institutions and
from borrowings from Bank/ Financial Institutions and
required under the Sexual Harassment of Women at
required under the Sexual Herassment of Women at
securitisation through bank/
securitisation through bank/ financial
financial institution.
institutiom
Workplace
Workplace (Prevention,
(Prevention, Prohibition
Prohibition and and Redressal)
Redressal) Act,Act,
As prescribed
As prescri&-d under
under section
section 129(3) of
of the
the Act
Act ,the
the
2013. There were
2013 There were no no complaints
complaints received
received during
during the
the
Consolidated
Consolidated financial
financial statements
statements of the
of the Company
C.ompany for for
Year. The total employee strength of the Company as on
Year.The total employee strength of the Company es on
FY21
FV21 were
were prepared
prepared inin accordance
accordance with
with provisions of
provisions of
March 31, 2021 was 24,963 with 4,237 employees added
Merch 31, 2021 was 24,g63 with 4,237 employees added
the Act and LODR, which were audited by the statutory
the Act end LODR,which were audited by the statutory
during
during the
the Year.
Yeer AsAs required
requir± underunder Section
Section 197(12)
1 of
of the
the
auditors
auditors of
of the
the Company.
Companyt TheThe consolidated
conso'idated financial
financial
Act
Act read with Rule
read with Rule -- 55 (1)(1) and
end 55 (2)(2) of
of the
the Companies
Companies
statements
statements along
along with
with the
the report
reprt of the auditors
of the auditors of
of the
the
(Appointment
(Appintment and
and Remuneration
Remuneration of of Managerial
Managerial
Company thereon are attached to this Report. Statement
Compeny thereon ere stt_echedto this Report Statement
Personnel)
Personnel) Rule,
Rule, 2014,
2014, thethe information
information on on remuneration
remuneration
containing
containing salient
salient features
features of
of the financial statements
the financial statements
is
is given
given in
in table
table 2.1
21 of the Corporate
of the Corporate Governance
Governance Report
Report
and other details are attached as
and other details ere attached
Annexure –
as Annexure
1 to this
— 1 to this for FY21 in form AOC- 1 is attached to
for FY21 in form AOC- 1 is attached
the financial
to the financial

Report.
Report statements of the Company.
statements of the Company.

The annual
The annual accounts,
accounts, annual
annual reports
reports and
and the
the related
related
7.
7.
SUBSIDIARY
SUBSIDIARY
AND
AND
CONSOLIDATED
CONSOLIDATED
FINANCIAL
FINANCIAL
detailed information on SHFL
detailed information on SHFL shall
shall be
be made
mede available
available
STATEMENTS
STATEMENTS
tto the
the shareholders
shareholders of of the
the Company
C.ompany and and toto the
the
M/s
M,'s Shriram
Shriram Housing
Housing Finance
Finance Limited
Limited CIN CIN -
shareholders
shareholders of of SHFL
SHFL seeking
seeking such
such information
information at et any
any
U65929TN2010PLC078004) (“SHFL”) is the only
U65E29TN2DIOPLC078004) ("SHFL") is the only
point
point of time. In
of time In accordance
accordance withwith Section
Section 136 136 ofof the
the
subsidiary
subsidiary of the Company.
of the Company. SHFL SHFL is is anan unlisted
unlisted
Act, audited annual financial statements, consolidated
Act, audited annual financial statements, consolidated
subsidiary with 77.25%
subsidiary with 7725% holding
holding byby the
the Company
Company in in
financial statements
financial statements
and related information
and related information
of the
of the
the equity of SHFL. The Company does not have any
the equity of SHFC The Company does rot have any
Company and the audited financial statements of SHFL
Compeny and the audited financia' statements of SHFL
material
material listed/
listed/ unlisted
unlisted subsidiary
subsidiary companies
companies as as
are
are displayed
displayed on on the
the Company’s
Company's web web site
site (refer
(refer Table
Table -- 1)
1)
defined
defined in
in Regulation
Regulation 24 (1)(1) of
of LODR. SHFL is
LOOA SHFL is a
e housing
housing
and
and the
the same
same shall
shall be kept
kept at
at the
the respective
respective Registered
Registered
finance
finance company
company registered
registered with
with National
National Housing
Housing
Office
Office of the Company
of the Comp-ny and and SHFL
SHFL for
for inspection
ins*ion by
by any
any
Bank
Benk (“NHB”)
("NHB•) (Registration
(Registration Number-08.0094.11)
Numer-CL8.lÆ411) with with
shareholder during business hours. Shriram Capital
shareholder during business hours Shriram Capital
registered office at Chennai. There was
registered office st ChennsL There was no
nc entity which
entity which
Limited
Limited andand SHFL
S*FL continued
continued asas promoter
promoter and end subsidiary
subsidiary
became
became or or ceased
ceased toto become
become subsidiary
subsidiary during
during FY21.
FY2V
of
of the
the Company
Company respectively.
respectively
The entities shown
The entitles shown in the Notes
in the Notes to Accounts
to Accounts under
under

Related party disclosures as Associates are treated as

Related party disclosures as Assoc.ates ere treated as 8.
8. RESERVE
RESERVE BANK
BANK OF
OF INDIA
INDIA DIRECTIONS/
DIRECTIONS/ GUIDELINES
GUIDELINES

“associates” as per paragraph 9(b)(ii) of IndAS24. The

"assccietes" as per paragraph of IndAS24 The The Company
The O)mpany isis a
a deposit
deposit accepting
accepting NBFC
N3FC and
and isis
equities
equities of
of SHFL
SHFL areare not
not listed
listed on
Dn any
sny stock
stock exchange,
exchange, regulated
—ulated byby the
the applicable
applicable regulations
regulations of
of the
the RBI.
but
but has
has debt
debt securities
securities listed on BSE.
listed on BSE SHFL follows April
SHFLfollows April The Company continues to comply with all applicable
The Compeny continues to comply with all applicable

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 19
M
*SHRIRA

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

regulations of
of RBI. The details
RBI. The details of
of registration
registration with
with RBI
RBI 10.
10.
BUSINESS RESPONSIBILITY REPORT (“BRR”)
BUSINESSRESPONSIBILITYREPORT("BAR")
appear
appear on
on note
note no
no-- 11to
to notes
notes to the financial
to the statements.
financial statements
Regulation
Regulation 34(2)(f) of
of the
the LODR
LODR requires top 500
requires top 500 listed
listed
The
The Board confirms thet
Board confirms that the
the Company followed the
Company followed the entities based on market capitalisation as on March 31,
entities besed on market cepitalisation as on March 31,
corporate governance standards prescribed by the
corporate governance standards prescribed by the
2016
2016 toto include
include BRR
BRR as
as a
e part
part of
of the
the Annual
Annual Report.
Report The
The
RBI.
831. The
The note
note nosnos 45,
45, 4843 to
to 84
84 and
and other
other notes
notes of the
of the
Company being one such entity, has included BRR in this
O)mpany being one such entity, hes included aRR in this
notes to financial statements contain the information
notes to financial statements contain the information
Annual
Annuel Report
Report (Annexure
(Annexure -- 13).
131
required toto be
be reported
reported under
under the
the regulations
regulations of cf the
the RBI.
The disclosure under the Act with respect to deposits
The disclosure under the Act with respect to deposits 11.
11. CORPORATE
CORPORATESOCIAL RESPONSIBILITY (“CSR”)
SOCIALRESPONSIBILITY("CSR')

is
is not
not applicable
applicable to to our
Dur Company
Company as as our
our Company
Comp-ny is is aa The
The Company
Company constituted
constituted aa CSR
CSR Committee consisting
Committee consisting
NBFC
N3FC regulated
regulated by by RBI. TheThe Company
Company accepts/
accepts/ renews
renews of three Directors including two independent
of three Directors including two independent directors
directors
deposits
deposits as as per
per regulations
regulations of of RBI. The
The followings
followings are are as
as required
required under
under Section
Section 135
135 of
of the
the Act.
Act The
The details
details
the indicators of acceptance of deposits.
the indicators of acceptance of deposits of
of the
the CSR
CSR Committee
Committee appear
epgæer on the Annual
on the Annual Report
Report

Description
Description March 31
March 31 on
on CSR.
CSR Annual
Annuel Report
Report on
on CSR
CSR activities
activities as
as required
required

2021 2020
2020 under
under Rule
Rule 9
g of the Companies
of the Companies CSR
CSR Policy
Policy Rules,
Rules, 2014
2014
Capital Adequacy and
Capitel Adequacy and Reserve
Reserve 28.64%
2364%
27.69% as
as amended
emended from time to
from time to time
time of of the Act is
the Act is attached
attached

Ratio (“CRAR”)*
RatioCCRAR')• to this report as Annexure – 9. The CSR policy of
to this report es Annexure — The CSR policy of the
the
Net owned funds
Net owned funds (`g in
in crores)
crores) 7,306.42
7,306.42 6,786.76
6,78676 Company as recommended by the CSR Committee, was
O)mpany es recommended by the CSRCommittee, wes
Statutory Liquidity Ratio
Statutory Liquidity Ratio 19.35% 18.37%
1337%
reviewed
reviewed and and approved
spproved by by the
the Board
Baard andand is is displayed
displayed
Deposits
Deposits (` in crores) including
in crores) including 5,590.46 4,121.90
4,121 go
on the website of the Company (refer Table -- 1).
on the website of the Company (refer Table 11 The
The
maturity payable
a ble
CSR policy contains the areas of activities of CSR and
CSR policy contains the are-s of activities of CSR and
•* The
The RBI
RBI prescribes
prescribes the the maintenance
maintenance ofof CRAR
CRAR 15
15
other
other detail
detail as
es required
required under
under Section
Section 134134 (3)
(S) (o)
(o) of
of the
the
percent
percent and
and above.
above
Act.
Act During
During FY21, the the Company
Camp-ny undertook
undertcck CSR ProjectsProjects
Our
Our principal
principal source
source of
of liquidity
liquidity are
are cash, cash equivalent,
cash,cash equivalent,
on
on health,
health, education,
education, skillskill development.
development The The spend
spend
current
current investments
investments andand cash
cash flow from operations.
flow from operations
on
on CSR
CSR amounting
amounting to to ` 21.95
21.95 crores
crores (FY20
(FY20 :: ` 10.3610.36
We
We maintain
maintain sufficient cash to
sufficient cash to meet
meet strategic and
strategic end
crores)
crores) during
during FY21
FV21 were
were approved
approved by the Board
by the Board of of the
the
operational needs. We understand that the liquidity inn
operational needs We understand thet the liquidity
Company as recommended by the CSR Committee. The
Company as recommended by the CSRCommittee The
the
the Balance
Balance sheet
sheet need to balances
need to balances between
between return and
return end
Board
203rd affirms
affirms that
that the
the CSR activities are
CSRactivities ere implemented
implemented in In
risk. We believe
risk. We that our
believe that working capital
our working capital is
is adequate to
adequate to
accordance
accordance Withwith CSR
CSR Policy
Policy ofof the
the Company.
Companyt
meet
meet our current requirements.
our current requirements
12.
12. BOARD
BOARD AND
AND COMMITTEES
COMMITTEES
9. CORPORATE
CORPORATE GOVERNANCE
GOVERNANCE
During
During FY21, the Company
FY21, the Company had hed optimum
optimum number
number
The Company follows
The Company follows thethe corporate
corporate governance
governance
of
of Directors
Directors withwith mix
mix of of Independent
Independent and and NonNon
practices and standards prescribed under LODR,
practices end standards prescr&d under LODR,
Independent. Board met 7 times during FY21. All the
Independent Board met 7 times during FY21 All the
regulations of
of RBI
RBI endand other
other regulations.
regulations. Report
Report onon
meetings of the Board and Committees were held
meetings of the Board and Committees were held
corporate
corporate governance
governance as ss required
required under
under Regulation
Regulation 34(3)
34(3)
virtually
virtually at
at Chennai
Chennai through
through video
video conferencing
conferencing during
during
of
of LODR together with
LODRtogether with aa certificate for the
certificate for the purpose
purpose from
from
FY21 in view of COVID-19 pandemic and to adhere to
FY21 in view of COVID-1g pandemic and to adhere to
the auditors of the Company confirming the compliance
the auditors of the Company confirming the compliance
with
with the corporate governance
the corporate governsnce is is attached
attached to this
this Report
Report the lockdown and social distancing norms. The interval
the lcckdown and social distancing norms. The interval

(Annexure
(Annexure -- 2). As required
2) As required under
under Regulation
Regulation 34(2)(e) between
between two two meetings
meetings did did not not exceed
exceed 120 120 days.
days

and 34(3) of
end 34(3) of LODR,
LOCH, the the Management
Management Discussion
Discussion endand Members
Members of of the
the Board
Board possess
possess requisite
requisite knowledge
knowledge

Analysis
Analysis on
on the
the business
business of of the
the Company
Compeny is is attached
attached and
and experience
experience to to steer
steer thethe Company.
Company The The brief
brief

as Annexure –
es Annexure — 3.
3 AsAs required
required under
under Regulation
Regulation 17 17 (8)
(8) profile of each director appear on the website of the
profile of esch director appear on the website of the

of the LODR, a compliance certificate, duly signed by

of the LODR, a compliance certificate, duly sign4i by Company
Company (refer
(refer Table
Table -- 1).
1). The
The Company
Company is is immensely
immensely
the
the Managing
Menaging Director
Director & & Chief
Chief Executive
Executive Officer and
Officer end benefitted
benefitted from the guidance,
from the guidance, support
support and
and advice
advice ofof the
the
Chief
Chief Financial
Financial Officer
Officer on
on the
the financial
financia' statements
ststements of
of members of the Board. The Board consists of directors
members of the Qasrs The 2aerd consists of directors

the
the Company
Company forfor FY21, was
was submitted
submitted toto the
the Board
203rd possessing
possessing diverse
diverse knowledge,
knowledge, skill
skill and
and experience
experience to to
at their meeting held on April 30, 2021 (Annexure -- 4).
et their meeting held on April 30, 2021 (Annexure 4) enhance quality of its performance. The independent
enhance quality of its performance. The independent
The relevant provisions of the voluntary guidelines are
The re'evsnt provisions of the voluntary guidelines are directors
directors have
have requisite
requisite qualification
qualification and
and experience
experience to to
adopted
adopted in the areas
in the areas deemed
deemed appropriate.
appropriate act
act as
as aa Director
Director on the Board.
on the Baard Details of meetings
Details of meetings of of

20 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

the
the Board and committees
Board end committees held
held during
during FY21
FY21 and
end the
the separate
separate meetings
meetings to to discuss
discuss related
related party transactions
party transections
details of appointment,
details of appointment, induction, training, retirement
induction, training, retirement and
and toto review
review policies
policies of of the
the Company.
Comp-ny The ARMC also
The ARMC also
and
and resignation
resignation ofof Directors/KMPs
Directors/<MPs duringduring FY21
FY21 had
had separate
separate meetings
meetings with with Statutory
Statutory Auditors,
Auditors, Internal
Internal
are
are mentioned
mentioned in in the
the Corporate
Corporate Governance
Governance report
report Auditors and
Auditors and participated
participated in in the
the meeting
meeting withwith Rating
Rating
(Annexure
(Annexure -- 1).
1) The
The Company
Company complied
complied with
with Secretarial
Secretarial Agencies separately. Each Director has given his/her
Agencies separately Each Director hes given his/her
Standards issued by the Institute of Company
Standards issued by the Institute of Company declaration
declaration to to the
the Company
Company for for not
not holding
holding anyany shares
shares
Secretaries
Secretaries of
of India.
India The
The Board
Board has Audit and
has Audit and Risk
Risk in
in the
the Company
Company and and having
Having no no relation
relation inter
intersese with
with any
any
Management Committee (“ARMC”) and Nomination
Management Committee ("ARMCO and Nomination Director.
Director. Independent
Independent Directors
Directors attend
attend familiarization
familiarization
and
and Remuneration
Remuneration Committee Committee (“NRC”)
("NRC") as as specified
specified programme
programme on joining the
onjoining the Board
Board and
and annually,
ennue'ly thethe details
deta i's
under
under Section
Section 177 177 and
end 178
178 ofof the Act respectively.
the Act respactively TheThe of which is displayed on the web site (refer Table -- 1).
of which is displayed on the web site (refer Table 1)
Company
Company received
received necessary
necessary declaration
declaration fromfrom each
each As per
As per provisions
provisions of of the
the Act
Act and
and Articles
Articles ofof Association
Association
independent
ndependent director
director about
ahut his/her
his/her meeting
meeting thethe criteria
criteria of
of the
the Company,
Company, Sri Sri Duruvasan
Duruvasan Ramachandra
Ramachandra (DIN (DIN –
of
of independence
independence as -s laid
laid down
down under
under Section
Section 149
14g (7)
(7) and
and 00223052) will retire by rotation and being eligible, has
C0223D52) will retire by rotation and being eligible, has
134(3)
134(3) (d)(d) of the Act
of the Act and
and Regulation
RegulEtion 16(b) of the
16(b) of the LODR.
LODR sought
sought forfor re-appointment
re-eppointment at at the
the ensuing
ensuing AGM.AGM. HeHe has
has
A
A statement
statement by the Managing
by the Managing Director
Director confirming
confirming expressed
expressed his his intention
intention and and confirmed
confirmed his his eligibility
eligibility to
to
receipt of this declaration from each independent
receipt of this declarstion from each independent continue
continue as as Director
Director ofDf the
the Company
Company ifif appointed
appointed at at the
the
director
director ofof the
the Company
Company is is attached
attached as as Annexure
Annexure -- 10.10 ensuing
ensuing AGM.
AG'vt In In compliance
compliance with with requirements
requirements underunder
There
There isISnono change
change in the circumstances
in the circumstances affecting
affecting their
their section 149(7) of the Act and Regulation 16(1) of the
section 149(7) of the Act and Regulation 16(1) of the
status as Independent Directors of the Company. The
status as Independent Directors of the Company. The LODR,
LODR, the
the Board
aoerd has
has received
received the
the declaration
declarstion from
from all
all

Company received required deed of covenant initially

Company received required deed of covenant initially the Independent
the Independent Directors
Cirectors about their independence
about their independence and
and
at the time
at the time of of appointment
appointment and and declaration
declarstion during
during the
the the Board
the 203rd is
is satisfied
satisfied about
-tout it.
it During
During FY21,
Ff21 there
there was no
w,ves
no
Year from the
Yeer from the Directors
Directors as as required
—uired underunder regulations
regulations change (appointment/resignation) in the Key Managerial
change (appointment/res.gnation) in the Key Menagerial
of
of RBI.
R3L The
The Board
Board onon the
the recommendation
recommendation of
of NRC
NRC Personnel
Personnel namely,
namety, Managing
Man-ging Director,
Director, Chief
Chief Financial
Financial
has formulated aa policy
has formulated policy forfor selection,
selection, appointment
appointment Officer
Officer and
end Company
Company Secretary
Secretary of
of the
the Company.
Company
and
and remuneration
remuneration of of directors,
directrs, senior
senior management
management 13.
13. DIRECTORS’
DIRECTORS' RESPONSIBILITY
RESPONSIBILITY STATEMENT
STATEMENT

personnel
personnel as es required
required under Section 178
under Section 178 (3)(3) and
and
The financial
The financial statements
statements were
were prepared
prepared byby following
following
134 (3) (e) of the Act, the details of which appear in
134 (3) (e) of the Act, the details of which appear in
Indian Accounting Standard (“Ind AS”) prescribed
Indian Accounting Standard {Ind AS") prescribed
the Annexure – 12 and the same is displayed on the
the Annexure — 12 and the same is displayed on the
under
under Section
Section 133
133 (3)
(3) of
of the
the Act
Act and
end relevant
relevant rules
rules and
and
web site of
web site the Company
of the Company (refer Table -- 1).
(refer Table This Policy
1). This Policy
guidelines
guidelines issued
issued by
by Securities
Securities Exchange
Exchange Board
303rd ofof India
Indie
states the diversity of the Board and has laid down aa
states the diversity of the Board and hes laid down
(“SEBI”) and Reserve
("SE31")end Reserve Bank
Sank of
of India
India (RBI).
(8311 Pursuant
Pursuent to to
framework
framernrk for for remuneration
remuneration of of Directors
Directors (Executive
(Executive
Sections
Sections 134
134 (3)
(3) (c)
(c) and
and 134
134 (5)
(5) of
of the
the Act
Act with
with respect
respect to
to
and
and Non-Executive),
Non-Executive), Key Key Managerial
Managerial Personnel
Personnel and and
Directors’
Directors' responsibility
responsibility statement, the Directors
statement, the Directors of
of the
the
Senior
Senior Management
Management Personnel.
Personnel As As required
reguir&d under
under
Company
Compeny hereby
hereby confirm,
confirm, in
In the
the preparation
preparation of
of annual
annual
section
section 134(3)(p) of of the Act and
the Act the LODR,
and the LODR, annual
annual
accounts
accounts for FY21
for FY21 that
that :
performance evaluation of Board, the Committees,
performsnce evaluation of Board, the Committees,
(i) the
the applicable
applicable accounting
accounting standards
standards have
have been been
Chairman
Chairman
of the Board and individual directors
of the Board and individual directors
were
were
followed and proper explanations have been made
followed and proper explanations have been mede
carried
carried out
out during
during FY21
?€21 based
bssed on the criteria
Dnthe criteria and frame
and frame
in
in notes
notes to
to accounts
accounts for
for material
material departures,
departures, ifif any;
any;
work adopted by the Board consisting of participation,
work adopt&d by the Board consisting of participation,
attendance,
attendance, duties,
duties, obligations,
obligations, contribution
contribution for for (ii) the
the accounting
accounting policies
plicies have
have been
been selected
selected and
and
effectiveness
effectiveness and
and related
related matters
matters of
of Board/Committee.
30erd/Committee applied consistently and
applied consistently and reasonable
reasonable and
and prudent
prudent

The
The outcome
outcome of of such
such evaluation
evaluation done
done during
during FY21
FY21 judgments and
judgments and estimates
estimstes have
have been
been made
made soso as
as

was discussed by the NRC/Board and both found itit

wes discussed by the NRC/aoard end both found to give a true and fair view of the state of affairs of
to give a true -nd fair view of the state of affairs of
satisfactory.
satisfactory The
The Independent
Inde#ndent Directors
Directors expressed
expressed the
the Company
Company as es at
et March
Merch 31,31, 2021
2021 and
and statement
statement

satisfaction
satisfaction over the performance
over the *rformance and and effectiveness
effectiveness ofof of the profit
of the profit and
and loss
loss of
of the
the Company
Company for the year
for the year
the
the Board,
Board, individual
individual Non-Independent
Nan-Independent Directors
Directors and
and ended on that
ended on thet date;
date,

the
the Chairman.
Chairmam The
The Independent
Independent Directors
Directors played
played active
active (iii) 
(iii) proper
proper and
and sufficient
sufficient care
care have
have been taken for
been taken for
role in the meetings of Committees including Audit and
role in the meetings of Committees including Audit and the
the maintenance
maintenance ofDf adequate
adequate accounting
accounting records
records
Risk
Risk Management
Management Committee
Committee (“ARMC”).
("ARMCTI ARMCARMC heldheld in
in accordance
accordance with the provisions
with the provisions of
of the
the Act
Act for
for

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 21
M
*SHRIRA

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

safeguarding
safeguarding thethe assets of the
assets of the Company and
Company end reviewed
reviewed and
end upgraded.
upgradad TheThe internal
internal financial
financial control
control
for preventing
for preventing and
end detecting fraud and
detecting fraud and other
other is
IS supplemented
supplemented by by internal
internal audits,
audits, regular reviews
reviews by
by
irregularities;
Irregularities, management
management to to ensure
ensure reliability
reliability of financial and
of financial and other
other
(iv) the annual
(iv) the annual accounts
accounts have
have been
been prepared
prepared on
on a
a going
going records to prepare
records to prepare financial
financial statements
statements and end other
other data.
deta
concern
concern basis.
basis
The
The auditors
auditors of
of the
the Company,
Company, M/s
Ws G.D.
GEL Apte
Apte && Co.
CD Firm
Firm
(v) 
(v) internal
internal financial controls to
financial controls to be followed were
be followed were laid
laid Registration No – 100515W Chartered Accountants
Registration No — 100515W Chartered Accountants
down, which were adequate and were operating
down, which were adequate and were operating (“GDA”)
{GDAO have
have submitted
submitted to
to the
the members
members of
of the
the Company
Company
effectively
effectively and
and the
the attached
attached Independent
'nde*ndent Auditors
Auditors Reports
Reports for
for FY21
FY21 on
on
standalone
standalone financials
financials and
end consolidated
consolidated financials.
financials. Both
80th
(vi) 
(vo proper
proper systems
systems had
had been
been devised to ensure
devised to ensure
the
the reports
reports are
are unqualified,
unqualified, without
without anyany reservation
reservation or
or
compliance with provisions
compliance with provisions of applicable laws,
of applicable laws,
adverse
adverse remark
remark orDr disclaimer
disclaimer and
-nd thus
thus the
the Board
Board does
does
which were adequate and were operating
which were adequate and were operating
not have any explanation or comment. M/s P. Sriram
not have any explanation or comment. M/s P Sriram
effectively.
effectively
&
& Associates,
Associates, Company
Company Secretaries
Secretaries (Certificate
(Certificate of
of
14. AUDIT
AUDIT AND
AND AUDITORS
AUDITORS
Practice
Practice No
No :: 3310
3310 and
and Membership
Membership No No : FCS
FCS F4862)
F4862)
Internal audits were
Internal audits were conducted
conducted periodically
periodically during
during in practice, Chennai (“PSA”) appointed by the Company
in practice, Chennai ("PSA") by the Company
FY21 and the reports thereon were presented to ARMC
and the reports thereon were presented to ARMC as
as the
the secretarial
secretarial auditors
euditDrs pursuant
pursuant to
to Section
Section 204
204 of
of
on
cr. quarterly
quarterly basis. The Internal
basis The Auditor is
Internal Auditor is appointed
appointed the
the Act
Act have
have conducted
conducted audit
audit and
and have
have submitted
submitted their
their

and
end reporting
reporting toto ARMC.
ARMC. In In addition
addition to
to others
others matters,
matters, report
report as
as attached
attached inin Annexure
Annexure -- 14
14 to the Members,
to the Members,
internal audit consisted of independent and objective
interna' sudit consisted of independent and objective which is unqualified, without any reservation or adverse
which is unqualified, without any reservation or adverse
assessment
assessment to to monitor
monitor adequacy,
adequacy, effectiveness
effectiveness endand remark
remark oror disclaimer.
disclaimer Therefore,
Therefore, Board
Board does
does not
not have
have
adherence
adherence to to the
the internal
internal controls,
controls, processes
processes end and any
any explanation
explanation oror comment
comment on on such
such Secretarial
Secretarial Audit
Audit
procedures
procedures Internal
Internal audit
audit also
also checked
checked compliance
compliance withwith Report. The details
Report The details ofof penalties/fines
pen-Ities/fines paid
paid during
during the
the
extant regulations. Internal audit conducted followed
extant regulations Internal audit conducted followed year appear in the notes to accounts. Maintenance of
year appear in the notes to accounts. Maintenance of
a
e Risk-based
Risk-based approach
approach of of Internal Audit (RBIA)
Internal Audit (RBIA) by by Cost
ODSt records
records and
and conducting
conducting of of cost
cost audits
audits specified
specified
taking
taking into
into account the RBI
account the RBI guidelines
guidelines and
and established
established under section 148(1) of the Act are not applicable for
under section 148(1) of the Act are not applicable for
practices. The ARMC
practices. The ARMC regularly
regularly reviewed
reviewed the
the audit
audit the business activities carried out by the Company.
the business activities carried out by the Companyt
findings
findings and the adequacy
and the adequacy and and effectiveness
effectiveness of the
of the During
During the
the Year
Year neither
neither GDA
GDA nornor PSA
PSA reported
reported toto ARM
ARM
internal control measures.
internal control measures under
under Section
Section 143(12)
143(12) ofof the
the Act
Act any
any instances
instances of of fraud
fraud

The
The Company
C.ompany hashas documented
duumented its its internal
internal financial
financial committed
committed by by officers
officers or employees of
or employees of the
the Company.
Companyt
controls considering the essential components of various
controls considering the essential components ofvarious The
The Board
Board appointed
appointed PSAPSA as es secretarial
secretarial auditor
auditor of
of the
the

processes,
processes, physical
physical and
and operational. This
This includes
includes its
its Company
O)mpanyfor for FY22.
Ff22
design,
design, implementation and maintenance
implementation end maintenance alongalong with
wit GDA
GDA waswas appointed
appointed by the members
by the members as the auditors
as the auditors
periodical internal review of operational effectiveness
periodical interne' review of operational effectiveness of the Company from 32 AGM till conclusion of
of the Company from nd AGM till conclusion of
32'±
and
end sustenance
sustenance which
which commensurate
commensurate with
with the
the nature
nature
36
369 AGM of the Company. GDA have confirmed their
th AGM of the Company GDA have confirmed their

of
of business
business and the size
and the size ofof its
its operations
0*rations of the
of the eligibility
eligibility and
and have
have communicated their willingness
communicated their willingness
Company.
Company ThisThis ensures conducting business
ensures conducting business inin orderly
orderly to continue as auditors. Necessary resolution, based
to continue as auditors. Necessary resolution, based
and
end efficiently
efficiently by
by adhering
adhering toto the
the Company’s
Comvny's policies,
policies, on the recommendation of the ARMC and approval of
on the recommendation of the ARMC and approval of
safeguarding
safeguarding assets,
assets, preventing
preventing errors
errors with
with accuracy
accuracy the
the Board,
aoerd, to
to fix
fix remuneration
remuneration of
of GDA
GDA as
as Auditors
Auditors is
is
and
end completeness
completeness of the accounting
of the accounting records
records and the
and the proposed
proposed at the ensuing
at the ensuing AGM. The
The details
details of
of payment
payment
timely preparation of reliable financial information. The
timely preparation Df reliable financisl informatiom The of
of Statutory
Statutory Auditors
Auditors fees
fees appear in financial
epgæerin financial statements
statements
internal
interna' financial
financisl controls
controls with
with reference
reference to
to the
the financial
financial
The
The RBI
RBI vide
vide itsits guidelines/circular
guidelines/circuler nono RBI/
831/ 2021-22/
2021-22/
statements
statements were adequate and
were adequate and operating
operating effectively.
effectively.
25 Ref. No. DoS. CD. ARG/ SEC.01/ 08.91.001/ 2021-22
25 Rei ND SECLI/ 0891 / 2021-22

The
The Company’s
Company"s organization structure, policy,
organization structure, policy, authority
authority dated April 27,
dated April 27, 2021
2021 on
on appointment
appointment of of statutory
statutory auditor
auditor
matrix and internal
matrix end financial controls
internal financial controls ensure
ensure efficiency
efficiency (s) by Non-Banking Financial Company (NBFC), has
(s) by Non-aanking Financial Company (NSFC), hes
of
of operations,
operations, protection
protection of
of resources
resources and
and compliance
compliance given flexibility to NBFCs to adopt these guidelines from
given flexibility to EFCs tc sdcpt these guidelines from
with the applicable
With the applicable laws
laws and
and regulations
regulations .The
The policies
policies second
second half
half of
of the
the Financial
änenciel Year
Yesr 2021-22
2021-22 (“H2FY22”
("H2FV22• in in
are
ere reviewed
reviewed periodically
pericdically and
end updated
updated and
and systems
systems areare order
order toto ensure
ensure no no disruption.
disruptiom Accordingly,
Accordingly, the
the NBFCs
NFCs

22 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report of
of the
the Board
Board of
of Directors
Directors (Contd.)
(Contd_)

shall
shall appoint
appoint Statutory
Statutory Auditors
Auditors for
for a
a continuous
continuous period
pericd 16.
16.
ENERGY
ENERGY CONSERVATION,
CONSERVATION, TECHNOLOGY
TECHNOLOGY

of
of three years from
three years from FY22. GDA, GDA, thethe Statutory
Statutory Auditors
Auditors ABSORPTION, FOREIGN EXCHANGE EARNING
ABSORPTION, FOREIGN EXCHANGE EARNING AND
AND
of the Company
of the Company has has conducted
conducted audit
audit of of the
the accounts
accounts ofof OUTGO
OUTGO

the
the Company
Company for for four
four consecutive
consecutive financial
financial years ending
yeers ending
Section
Section 134
134 (3)
(3) (m)
(m) of
of the
the Act
Act read with Rule
read with Rule 8
8 of
of
March
Merch 31, 31, 2021.
2021 It It is
is proposed thatthat GDAGDA the
the Statutory
Statutory
the Companies
the Companies (Accounts)
(Accounts) Rules
Rules 2014
2014 specify
specify the
the
Auditors of the Company will continue to hold their
Auditors of the Compeny will continue to hold their information
Information to
to be
be furnished
furnished on
on conservation
consenration ofof energy,
energy,
office till such
office till such period
period as as may
may bebe permitted
permitted by the law.
by the leu
absorption of technology and foreign exchange
absorption of tæhnology end foreign exchange
In that event,
In that event, it it is
is proposed
proposed to to pay
pay their
their remuneration
remuneration
earnings/outgo,
earnings/outgo, which
which for the Year
for the Year are furnished below.
are furnished below.
for
for conducting
conducting audit audit of of Company’s
Company"s accounts
accounts forfor the
the
The operations
The operations of
of the
the Company
Company are
are not
not energy
energy intensive.
intensive.
full financial year ending March 31, 2022. Otherwise, itit
full financis' year ending March 31, 2022. Otherwise,
However, adequate measures
However,adequate measures for
for conservation
conservetion of
of energy,
energy,
is
is proposed
proposed to to paypay remuneration
remuneration to to GDA,
GDA,thethe Statutory
Statutory
usage of alternate sources of energy and investments
usage of alternate sources of energy and investments
Auditors
Auditors as as may
may be be fixed
fixed by
by the
the Board
Board of of Directors
Directors of
of the
the
for
for energy
energy conservation,
conservation, wherever
wherever required were taken.
requir± were taken
Company depending upon scope of their work on pro-
Company depending upcn scope of their work on præ
The
The Company
Company did did not
not absorbed
absorbed any
any technology. There
technology There
rata
rsts basis
±sis forfor holding
Holding the the office
office of
Df the
the Statutory
Statutory Auditors
Auditors
was
was foreign
foreign exchange
exchange earnings
earnings of
of ` 1.90
1SO crores
crores (FY20
(FY20 :
for
for part
part ofof the
the FY22
Ff22 as as mentioned
mentioned in the resolution
in the reso'ution atat
` 1.71 crores ). The
1 71 crores The outgo
outgo of foreign exchange
of foreign exchange was
wes
Item
Item Nos.4
Nos.4 of of the
the Notice
Notice of ensuing 35th
of ensuing 35th Annual
Annual General
General
` 6.23 crores (FY20 : Nil)
623 crores (FY20 Nil)
Meeting.
Meeting The The ARMC ARMC and and Board
aoerd havehave recommended
recommended
passing of this resolution.
passing of this resolution 17.
17. ACKNOWLEDGEMENT
15.
15. MANAGEMENT
MANAGEMENT OF
OF RISK
RISK We thank
We thank our
our customers,
customers, share
share holders,
holders, investors,
investrs,

The
The riskrisk management
menegement functionfunction of of the
the Company
Company bankers,
bankers, employees,
employees, trustees,
trustees, vendors,
vendors, auditors,
auditors, deposit
deposit

help
help in in identifying,
identifying, analysing,
analysing, assessing,
assessing, mitigating,
mitigating, holders
holders and
and debenture
debenture holders. The Board
holders The Board expresses
expresses

monitoring
monitoring and and governing
governing risks. The Company
risky The Company has has a
a risk
risk its
its appreciation
appreciation and
and gratitude for the
grstitude for the guidance
guidance and
and

management
management policy.pclicb{ A A separate
separate section
section in this report
in this report cooperation
cooperation extended to the
extended to the Company
Company by by RBI, statutory
RBI,statutory

titled
titled “Management
"Management Discussion
Discussion and and Analysis”
Analysis" discusses
discusses authorities
authorities and
and regulators. The Board
regulators. The Board acknowledges
acknowledges thethe

about risk and its mitigating factors and the matters

about risk and its mitigating factors and the matters guidance
guidance ofof M/s
M/s GDA
GDA andand M/s
M/s PSA
PSA to
to the
the Company.
Company.

required
required under
under Section
Section 134134 (n)
(n) of the Act.
of the Act. In
In the
the opinion
opinion The Board
The aoerd records
records the commitment
the commitment and
end dedication
dedication of
of

of the Board,
of the there is
Board, there IS no
no risk
risk existing
existing toto threaten
threaten thethe employees.
employees.

existence of the Company Report on risk assessment is

existence of the Company Report cn risk assessment is
presented
present± to to ARM
ARM atat its
its meeting
meeting by by the
the Chief
Chief Risk
Risk Officer
Officer
of the Company.
of the Company For and on
For and on behalf
behalf of the Board
of the Board of
of Directors
Directors

Place
Place :: Chennai
Chennai Debendranath
Debendranath Sarangi
Sarangi
Date :: April
April 30,
30, 2021
2021 Chairperson
Chairperson

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 23
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 11
Annexure

1. 
1_
COMPANY’S
COMPANY'S
PHILOSOPHY
PHILOSOPHY
ON CORPORATE
ON CORPORATE
the
the Nomination
Nomination and and Remuneration
Remuneration Committee Cornmlttee (“NRC”)
("NRC")
GOVERANCE as
as approved
approved by by the
the Board.
a.srd. NRCNRC has formulated aa Policy
hes formulated Policy

The
The philosophy
philosophy of of the
the Company
Company on on Corporate
Corporate on Appointment, Remuneration
on Appointment, Remuneration and and Diversity
Diversity of of Board
aoard

Governance
Governance aims
aims at
at enhancing
enhancing the
the stake
stEke holders’ value
holders' value (Annexure - 12), which is displayed on the web site of
(Annexure - 12), which is displayed on the web site of
by
by efficiently
efficiently conducting
conducting business,
business, meeting
meeting obligation
obligation the Company (refer Table - 1). This ensures diversity of
the Company (refer Tsble - This ensures diversity of
to
to stake
stake holders
holders byby being
being guided
guided by the principles
by the principles qualification,
qualification, skill,
skill, experience, expertise, gender and
experience,expertise,gender and ageage ofof
of transparency, accountability, compliance with
of transparency, accountability, compliance with the
the Board.
203rd. The
The appointment
appointment of of Directors
Directors is made through
made through
regulations and
and integrity.
integrity. aa transparent
transparent process
process as as specified
specified in in the
the policy.
policy Directors
Directors
appointed
appointed are issued with
areissued with appointment
appointment letters.letters The
The format
format
2.
2_
BOARD
BOARD
OF DIRECTORS
OF DIRECTORS
of
of such
such appointment
appointment letter letter is
is displayed
displayed on Dn the web site
the web site
2.1 Composition
Composition and
and appointment
a*ntment of the Company (refer Table - 1). The Board periodically
of the Company (refer Table - 1). The 203rd periodically
The
The Board of Directors
aoard of of the
Directors of the Company
Company (“Board”)
("BoardTJconsists
consists evaluates
evaluates the the need
need forfor change
change in in size
size and
and composition
composition
of Executive, Non-Executive, Independent and Non
of Executive, Mon-Executive, Inde#ndent ard Non of
of the
the Board.
Board Independent
Inde—dent Directors
Directors were were appointed
appointed for for aa
Independent Directors to ensure independent functioning
Independent Directors to ensure independent functioning fixed period of five years from the date of their respective
fixed *ricd of years from the date of their respective
of the Board.
of the Board. We feel that
We feel this is
thet this appropriate mix
is appropriate mix of
of appointments
appointments and their appointments
end their appointments were were approved
approved by by
executive,
executive, non
non executive
executive and
and independent
independent Directors
Directors to
to the
the members
members in in respective
respective meetings.Non
meeting—Non Independent
Independent
maintain independence and separate the functions of
maintain independence and separate the functions of Directors
Directors werewere appointed
appointed as es perper provisions
provisions of of law.
law On On
governance and management. Total number of Directors
governance and management Total number of Directors appointment and during the year, each Independent
appointment end during the year, each Indesndent
as
es on
on March
March 31,
31, 2021
2021 was
"'as nine.
nine Five out of
Fivecut of nine
nine Directors,
Directors, Director
Director is familiarised with
is familiarised with the the Company,
Company, business,
business,
which
which isis more than half
more than hslf of the number
cf the number of
cf members
members of
of industry,
industry, roles
roles and
end responsibilities,
reslnnsibilities, the the details
details of of which
which
the Board are Independent. One Independent Director is
the goard ere Indesndent. One Inde#ndent Director is are
are displayed
displayed on on thethe website
website of of the
the Company
Cc.mpeny (refer(refer
Woman.
Woman The The Company
Comp-ny has has succession
succession planning. The
planning. The Table - 1). The chairperson presides over Board Meeting
Table - The chairperson presides over Baard Meting
Independent
Inde—dent Directors
Directors meet the criteria
meet the criteri- of
of independence
independence (BM)
(3M) andend meetings
meetings of the share
Dfthe share holders.
holders The The MD
MÜ andand CEOCEO
specified
specified in
in Regulation
Regulation 16 16 (1)
(1) (b)
(b) and
and other
other applicable
applicable acts
acts as es aa link
link between
between the the Board
SD-rd and end thethe management
management
regulations of LODR and each Independent Director
regulations of LODR and each Inde#ndent Director team.
team The The following
following chart
cert or matrix identified
Drmstrix identified by the Board
bythe aoard
is independent of the management. The Independent
is independent of the management The Independent as the required skills/ expertise/ competencies in the
as the required skills/ expertise/ competencies in the
Directors
Directors meet
meet the
the criteria
criteria for
for appointment formulated by
appointment formulated by context
context of of the
the NBFC sector and
NBFCsector end thethe Company.
Company.

24 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 Report on Corporate Governance
Annexure 1 (Contd.)

No. Name of the Director Skills / Expertise / Competencies identified by Board

Financial Regulatory Capital Sales/ Technology Risk Planning Business Investor Decision Diversifying Human Mergers and
affairs market/ Marketing / Management Analysis servicing making the products Resource Acqusitions
treasury Recovery Management /
Leadership
1 Debendranath Sarangi YES YES YES YES YES
2 Yalamati Srinivasa Chakravarti YES YES YES YES YES YES YES YES YES YES
3 Diwakar B Gandhi YES YES YES YES YES YES YES YES YES
4 Duruvasan Ramachandra YES YES YES YES YES YES YES YES
5 Ignatius Michael Viljoen YES YES YES YES
6 Maya S Sinha YES YES YES YES YES YES YES
7 Pranab Prakash Pattanayak YES YES YES YES YES YES YES YES
8 Shashank Singh YES YES YES YES YES YES
83

9 Venkataraman Murali YES YES YES YES YES YES YES YES
OVERVIEW
CORPORATE

OVERVIEW
CORPORATE

SHRIRAM
SHRIRAM CITY UNION
REPORTS

CITY UNION
STATUTORY

REPORTS
STATUTORY

FINANCE
FINANCE LIMITED
LIMITED
FINANCIAL
STATEMENTS
FINANCIAL

25
STATEMENTS
 Report on Corporate Governance
M

26
Annexure 1 (Contd.)
2.1 DETAILS OF DIRECTORS

ANNUAL
No Name of the DIN Category of Position Name of the listed entities Chairmanship Membership of BM ALCO ARMC BSMC CSR ITS NRC SRC IDM AGM # * ** *** Remuneration Percentage Ratio of
Director Directorships of Committees Committees (` in crores) ^ of increase remuneration of
*SHRIRA

during each Director/

REPORT
FY21 to median

ANNUAL REPORT
remuneration of
employees

2020-2'
1 Sri Debendranath 01408349 NE I Chairperson 1.Voltas Limited - Non Executive, Independent - CSR, NRC 7 - 3 4 - 1 Present 5 1 - 0.08 6.667 5.033

2020-21
Sarangi Director 2. Southern Petrochemical Industrial
Corporation Limited, Non Executive,
Independent 3. Tamilnadu Petroproducts
Limited, Non Executive, Independent
2 Sri Y S Chakravarti 00052308 E NI MD and CEO - - ALCO, CSR, 7 4 3 2 - Present - - - 0.64 20.527 40.267
IT Strategy
Committee,
SRC
3 Sri C R 02443277 NE I Director - - -
Muralidharan
4 Sri Diwakar B 00298276 NE I Director - NRC SRC 7 - - - - - 4 1 1 Present 7 - - 0.07 27.273 4.404
Gandhi
5 Sri Duruvasan 00223052 NE NI Director CES Limited - Non Executive, - - 7 - - - - - - - - Present 3 3 - - - -
Ramachandra Independent Director
6 Sri Ignatius Michael 08452443 NE NI Director Shriram Transport Finance Company Limited - NRC 7 - - - - 4 - - Present 6 - - - - -
Viljoen - Non Executive, Non Independent Director
7 Smt Maya S Sinha 03056226 NE I Director Shreyas Shipping and Logistics Limited - CSR,SRC ARMC 7 - 2 - 3 - - 1 1 Present 10 - 1 0.075 66.667 4.719
Non Executive, Independent Director
8 Sri Pranab Prakash 00506007 NE I Director - ALCO ARMC 4 2 2 - - - - - 1 Not 1 - - 0.045 2.831
Pattanayak present
9 Sri Shashank Singh 02826978 NE NI Director Zensar Technologies Limited - Non Executive, - - 7 - - - - - - - - Present 5 1 - - - -
Non Independent Director
10 Sri Venkataraman 00730218 NE I Director Take Solutions Limited - Non Executive, ARMC SRC,ITS 7 - 4 - - 2 - 2 1 Present 4 1 1 0.08 45.455 5.033
Murali Independent Director

BM - Board Meeting, ALCO - Asset Liability Management Committee, ARMC - Audit and Risk Management Committee, BSMC - Banking and Securities Management Committee, CSR - Corporate Social Responsibility Committee, NRC - Nomination
and Remuneration Committee, SRC - Stakeholders Relationship Committee, IDM - Independent Directors Meeting, AGM - Annual General Meeting
Sri C R Muralidharan, ceased to be a Director due to demise w.e.f. October 8, 2020
ARMC was reconstituted with Sri Venkataraman Murali as the Chairperson,Sri Pranab Prakash Pattanayak and Ms Maya S Sinha as Members of the Committee w.e.f. October 30 , 2020
ITS was reconstituted with Sri Venkataraman Murali as Chairperson, Sri Y S Chakravarti, Sri Ramasubramanian Chandrasekar, Smt Anitha S, Sri R Jayaraman and Sri M Karthikeyan as Members of the Committee w.e.f. November 2, 2020
SRC was reconstituted with Ms Maya S Sinha as Chairperson, Sri Diwakar B Gandhi , Sri Venkataraman Murali and Sri Y S Chakravarti as Members of the Committee w.e.f. November 3, 2020
Sri Ramasubramanian Chandrasekar is member of the ALCO but not member of the Board
Sri Ramasubramanian Chandrasekar, Smt Anitha, Sri R Jayaraman and Sri M Karthikeyan are members of the IT Strategy Committee but not members of the Board
Sri Ramasubramanian Chandrasekar, Smt Krithika Doraiswamy and Sri R Jayaraman are members of the BSMC but are not members of the Board
Non - Executive (“NE”), Executive (“E”), Non Independent (“NI”), Independent (“I”), Managing Director and Chief Executive Officer (“MD and CEO”)
*Number of directorships held in other companies (including alternate directorship) held in other companies except Shriram City Union Finance Limited. **Membership of the Committees of the Board of Directors of other companies.
***Chairmanship of the Committees of the Board of Directors of other companies. “Committee” of other companies here means Audit Committee and Shareholders’/Investors’ grievance committee public limited companies in India.
^Excluding GST
Remuneration : Independent Directors are paid sitting fees only for being a member attending respective meetings of Board ALCO, ARMC, CSR, NRC, SRC, IDM and General Meting ` 50,000 per meeting attended and ` 25,000 for ITS Committee
attended.The remuneration of MD and CEO is as per terms of his appointment.
During FY21 63 meetings of BSMC, Four meetings of ALCO/ARMC/NRC, three meetings of CSR, two meetings of ITS, two meetings of SRC and one meeting of IDM were held during FY21.
% increase-Increase in remuneration in FY21 over FY20
Ratio of remuneration-Ratio of remuneration of each Director/to median remuneration of employees
Name of Other listed entities - Name of other listed entities where directorship is held and category of directorship
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 11 (Contd.)
Annexure (Contd)

All
All Directors
Directors areere required
required to to declare
declare holding
holding ofof equity
equity required
—uired decisions
decisions taken
taken inin the
the BM
3M are
are communicated
communicated to
to
shares or convertible instruments in their name or
shares convertible instruments in their name or on
on the concerned functional heads of the Company and an
the concerned functional heads of the Company and an
beneficial
beneficial basis
basis byby them
them in in the
the Company
Company as as per
per para
para C
C (2)
(2) action
action taken
taken report
report is
is placed
placed atEt each
each BM. The
The Board
Board has
has
(f)
(f) of Schedule V
of Schedule V of
of LODR. All All Directors
Directors declared
declared no
no such
such complete
complete access
access to
to all
all the
the information
information and
and employees
employees of
of
holding
holding by by them.
thenm AllAll Directors
Directors have
have made
made declaration
declaration the Company.
the Company
about their category of directorships in the Company at
about their category of directorships in the Company at The deliberations
The deliberations and and decisions
decisions occurring
cccurring in in every
every
the time of
the time of their
their appointment
appointment and and make
make thisthis declaration
declaration BM
3M are
are entered
entered in the minute
in the minute book.
acce The
The draft
draft minutes
minutes

annually.
annually AllAll such
such annual
ennual declarations
declarations for for FY21 were
FV21 were are
are circulated
circulated within
within specified
specified time
time to
to the
the members
members
placed
placed before
before the
the BM 8M held
held onon April
April 30,
30, 2021.
202V None
None ofof of the Board. The minutes are prepared by suitably
of the Board The minutes ere prepared by suitably
the
the Directors
Directors is
is related
related inter
inter se
se in terms of
in terms of ‘relative’
'relative'
incorporating
incorporating the the suggestions
suggestions and end changes
changes given
given by by
defined under the Act. Monitoring and managing misuse
defined undertheAct Monitoring and managing misuse members
members and and are-re finalised
fina'ised by
by the
the Chairperson.
Chairpersom The The
of
of Company’s
Company's assets,
assets, potential
ptential conflicts
conflicts of
cf interest
interest of of minutes
minutes are are signed
signed by by the
the chairperson
chairperson of of the
the same
same
management,
management board board members
members andand shareholders,
shareholders, and end meeting or by the chairperson of the succeeding meeting
meeting or by the chairperson ofthe succe±ing meeting
abuse
abuse in in related
related party
party transactions
transactions areare done
done by by the
the within
within the
the specified
specified time
time line.
line The
The minutes
minutes of
of the
the BM
8M are
are
Board on quarterly basis.
Board on quarterly basis circulated
circulated
to all the members of
to all the members
the Board.
of the Board.

2.2 Board
2.2 Board process
process The
The process
process specified
s*cified above
above for
for BMs
BMs are
are followed
followed forfor the
the

BM
3M takes
takes place
place at
et least once in
least once in each
each calendar
calendar quarter
quarter meetings
meetings of of all
ell the
the Committees
Committees constituted
constituted by by the
the Board
Board

with specific agenda to review, in addition to other

with specific agende to renew, in addition to other as
as far
far as
as practicable.
practicable The The minutes
minutes of of the
the meetings
meetings of of the
the

matters,
matters, the
the performance
performance and financial
financial results
results ofof the
the Committees
Committees are ere placed
placed before
before thethe BM
8M for
for discussion,
discussion,

Company.
Companyt Management
Management team team makes
makes presentations
presentations on on action
action ifif any
any and
end noting. The
The minutes
minutes ofof the
the subsidiary
subsidiary

the operations, financial

the operations, financial results,
results, strategy,
strategy, internal
interns' audit,
audit, company of the Company are placed before the
company of the Compeny are placed before the BM3M
risk
risk management
menegementand and human
human resource
resource at the
the meetings
meetings of cf on quarterly basis. The performance evaluation of
on quarterly basis The *rformance evaluation of

the Board and Committees. Familiarisation programmes

the aoerd and Committees Familiarisation programmes all
all independent
inde*ndent directors
dirætors isis done
done by by the
the entire
entire Board
Board
are
are conducted
conducted periodically. Additional
Additiona' BMs
BMs are
are held
held excluding
excluding the the concerned
concerned independent
independent director
director based
based
by giving appropriate
by giving appropriate notice
notice onon specific
specific needs.
needs The
The on
on the
the criteria
criteria ofof performance
*rfcrmance evaluation
evaluation laid
laid down
down by by
maximum
maximum timetime gap
gap between two BMs
between two BMs does
dces not
not exceed
exceed the NRC
the NRC .The
.The Board
Board also
also evaluates
evaluates the
the fulfillment
fulfilment of
of the
the

120
120 days. The calendar
days. The calendar of
Df BMs
BMs for
for a financial year
e financial year is
IS independence
independence criteria
criteria as
es specified
specified in
in LODR
LODR andand their
their
decided in advance. Notice and Agenda of each BM are
decided in advance. Notice and Agenda of each 8M ere independence from the management. The criteria of
independence from the management The criteria of
sent to each
sent to each Director
Director in in advance.
advance In
In addition
addition to to Directors
Directors performance
performance evaluation
evs'uetion ofof independent
independent directors
directors asas laid
laid
and
and Senior
Senior Management
Management team, teem, persons
persons who who can can give
give down
down by
by the
the NRC
NRC isis attached
attached as as Annexure
Annexure -- 12.
12
insight to respective subjects are invited to the BMs.
insight to respective subjects are invited to the 8M.
2.3
2.3
Functioning
Functioning of the Board
of the Board
In
In special
special andand exceptional
exceptiona' circumstances,
circumstances, additional
additional or or
supplementary
supplementary item(s) item(s) is/are
is/ere permitted.
permitted The The Chairman
Chairman The
The Board
Board is the apex
is the epex body
body constituted
constituted byby share
share holders
holders

and
and Company
Company Secretary
Secretary draft the agenda
drsft the agenda for for each
each BM 8M for
for overseeing
overseing thethe overall
overall functioning
functioning of the Company.
of the Comp-ny TheThe

in
in consultation
consultation with with MDMC & & CEO
CED and
and CFO
CFO withwith inputs
inputs day to day affairs of the Company are managed by senior
day to day affairs of the Company are managed by senior

from
from Directors
Directors and the respective
and the res*ive functional
functions' headsheads of of management
management team team headed
headed by the Managing
by the Managing Director
Director and
end

the Company. Where it is not practicable to attach any

the Company. Where it IS not practicable to attach any Chief
Chief Executive
Executive Officer,
Officer, who
who functions
functions under
under the
the overall
overall

document
dccument to to the
the agenda
agend- of of BM,
3M, the
the same
ssme is tabled at
IStabled at the
the direction,
direction, supervision,
supervision, andend control
control ofof the
the Board.
goani TheThe

BM.
3M. In
In cases
cases of Df business
business exigencies
exigencies or or urgent
urgent matters,
matters, Board and Committees review and guide on the matters
Eoard and Committees review and guide on the matters
agenda with required
agenda with required papers
papers andand draft of the
draft of the resolution
resolution specified
speified inin different
different regulations
regulations inin addition
addition to
to strategies,
strategies,
to be passed are circulated. The information as per
to be pessed are circulated The information as per the
the plans,
plans, risk
risk management,
management, budgets,
budgets, setting
setting performance
performance
requirement
requirement of of corporate
corpcrete governance
governance norms
norms are ere made
made objectives
objectives and
and monitors
monitors implementation
implementation and and corporate
cow)rate
available
available to to thethe Board
303rd including
inc'uding thethe information
information as as performance. The Board monitors the effectiveness
performance The goard monitors the effectiveness
mentioned
mentioned in in regulation
regulEtion 17 17 (7) of
of LODR.
LODR TheThe Board
Board is is also
also of
of practices
practices with
with respect to to governance,
governance, disclosure,
disclosure,
free
free to take up
to take up any
any matter
matter for
for discussion
discussion in In agreement
sgreement communication
communication and and compliance
compliance with with regulatory
regulatory
of
of specified number
number of Directors
of Directors and
and in
in consultation
consultation requirements. Board has constituted committees with
requirements Board hes constituted committees with
with the Chairperson.
with the Chairpersom The The Board
aoerd has
has accepted
accepted all all specific terms of reference by delegating some of its
speific terms of reference by delegating some of its
recommendations
recommendations of of its
its committees during FY21.
committees during Ff2V The The power,
power, where
where ever
ever required.
required Committees
O)mmittæs constituted
constituted areare

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 27
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 1
Annexure 1 (Contd.)
(Contd.)

as
es per
per requirements
requirements of of business
business and
and as
es mandated
mandated under
under 2.5 Meeting
2.5 Meeting of
of Independent Directors
laws. On constitution of Committees, the Board defines
laws On constitution of Committees, the Board defines
A
A meeting
meeting of
of Independent
Independent Directors
Directors was
was held
held onon
the terms of
the terms of reference
reference andend appoints
appoints members
members and the
and the
November 2, 2020 as required under Regulation 25 (3)
November 2, 2020 as required under 25 (3)
chairperson
chairperson of of the
the Committee.
Committee Committees
Committees are are named
named of the LODR
of the LODR and
and Schedule
Schedule IV of the
IV of the Act to discuss
Act to discuss the
the

according
eccording to to broad term of
broad term of reference. The Committees
reference. The Committees matters
matters specified
s*cified therein.
therein. The
The attendance
attendance and
end other
other
are
ere constituted
constituted orDr re-constituted
re-constituted depending
depend.ng onon business
business relevant
relevant details
details of
of each
each Director
Director are
are mentioned
mentioned in table 2.1
in table 21

or
or regulatory
regulatory need.
need. The
The Committees
Committees are are reconstituted
reconstituted
2.6
2.6 Code
Code of
of Conduct for Directors
Conduct for Directors and
and senior
senior management
management
with
with change
change in in members
members as the need
es the need be. The Board
be. The Board
thus exercises close control over the functioning of the
thus exercises close control over the functioning of the The
The Board
Board hashes laid
laid down
down “Code
"C±e of
of Conduct
Conduct for
for Board
Board

Company
Company with with aa view
view toto enhancing
enhancing the the stakeholder
stakeholder Members
Members and and Senior
Senior Management”
Menegement• (‘CCBS’)('CCBS) forfor the
the

value. The Board periodically reviews the compliance

value The Board reviews the compliance members of the Board and for designated senior
members of the 203rd and for designated senior
by the Company of all applicable laws, as well es
by the Compeny of all applicable laws, as well as steps
steps management
management personnel
*rsonne' as as required
required under
under regulation
regulation 1717

taken
taken by the Company
by the Compeny to to rectify
rectify non-compliance,
non-compliance, if if (5)
(5) of the LODR.
of the LODR The The CCBS
CC8S is is displayed
displayed on cn the web site
the web site

any.
en}! Independent
Independent Directors
Directors play
pl-y an
en important
important role
role in
in the
the of the Company
of the Company (refer Table -- 1).
(refer Table All the
1). All the Board
aoerd members
members

governance
governance process
prcess of the Board.
of the Boeri and the designated senior management personnel
and the senior management personnel
affirmed
affirmed compliance
compliance with the Code.
with the Code A A declaration
declarstion toto
2.4
24 Board
Board meetings
meetings and
and attendance
attendance of
of Directors
Directors
this
this effect
effect signed
signed by by the
the Managing
Managing Director
Director and
end CEO
CEOis is
Seven
Seven BMs were held
BMs were during FY21 -- on
held during on May
May 4,
4, 2020,
2020, June
June attached
attached as Annexure –
es Annexure — 11.
11

11,
11, 2020,
2020, July
duly 31,
31, 2020, August 11,
2020, August 11, 2020,
2020, November
November 2, 2,
2.7
2.7 Remuneration
Remuneration of Directors
of Directors
2020, January 29, 2021 and March 26, 2021 and the time
2020, January 2g, 2021 and March 26, 2021 andthe time
gap
gap between
between the two BMs
the two BMs did
did not
not exceed
exceed 120
120 days
days during
during We
We affirm
affirm that the remuneration
that the remuneration of
of the
the Directors
Directors is
is

FY21. The
The attendance
attendance and other relevant details of each
and other relevant details of each governed
governed by by the
the policy
$icy of the Company
Df the Comp-ny named
named “Policy
"Policy

Director are mentioned in table 2.1.

Director are mentioned in table All the
21 All the meetings
meetings of of on Appointment, Remuneration and Diversity of Board”
on Appointment, Remuneration -nd Diversity of Board"

the
the Board
Board and
end Committees
Committees were were held through virtually
held through virtually at
at displayed on the web site of the Company (refer Table --
displayed on the web site cf the Comp-ny (refer Table
1).
1) Non
Non Executive
Executive Independent
Inde#ndent Directors
Directors get
get sitting
sitting fees
fees
Chennai
Chennai through video conferencing
through video conferencing during
during FY21
FY21 inin view
view
for
for each
each ofof the
the meeting
meeting of of the
the Board
aoerd and
and Committee
Committee
of
of COVID-19
COVE-I g pandemic
pandemic and and to to adhere
adhere to to the
the lockdown
lockdown
(where
(where he/she
he/she isis aa member)
memer) attended.
sttended Such
Such fees
fees paid
paid to
to
and social distancing norms. All the participants made
end social distancing norms All the participants made
the Directors during FY21 are mentioned in the table 2.1.
the Directors during are mentioned in the table
declaration
declaration individually
individually in
in the
the meetings
meetings about
about receipt
receipt of
of
The
The Managing
Managing Director
DirectDr (MD)
(MDI andand CEO
CEOof of the
the Company
Company
agenda,
agenda, clarity
clarity of
of audio/video,
audio,widea, recording
recording of of attendance
attendance
is
IS paid
paid remuneration
remuneration as ss per
per terms
terms of
of his
his appointment
appointment
etc at the
etc et the beginning
beginning of each meeting.
of each meeting.
approved
approved by by the
the Members.
Members The The details
detEils of
of remuneration
remuneration
None of the Directors is
None of the Directors
a member of
is a member
more than 10
of more then ID
of the MD and CEO is mentioned in
of the MD end CEO is mentioned
Annexure –
in Annexure
8 and
— 8 and
Committees and Chairman of more than 55 Committees
Committees end Chairman of more than Committees
there
there are
are no
no stock
stcck option
option provided
provided to the MD
to the MD and
and CEO.
CEO
across
across all
all listed
listed entities
entities ases required
required under
under regulation
regulation
No
No other
other remuneration
remuneration is
is paid to the
paid tc the Directors
Directors except
except
26 (1) of LODR. Directors submitted their requisite
26 (1) of LODR. Directors submitted their requisite
mentioned
mentioned above.
above No
No member
member of the Board
of the Board is
is granted
granted
disclosures
disclosures to to the
the Company
Company regarding
—arding theirtheir directorship
directorship
stock options.
stock options.
and
end Committee
C.ommittee positions
positions in other Companies.
in other Compenies The The
quorum
quorum forfor the
the BMs
BMs is is as
as per
per provisions
provisions of Df law.
law. The
The 3.
3. COMMITTEES
COMMITTEES OF THE BOARD
OF THE BOARD

BMs are attended by in addition to, the members of the

BMs are attended by in Edditicn to, the members of the The
The Board
Baard has
has constituted
constituted committees
committees for different
for different

Board, senior management

aoerd, senior msnegement team team and persons
persons who
who can
can purposes of the business of the Company and
purposes of the business of the Company end as es
give
give insight
insight toto different
different subjects.
subjects Board
Board Members
Members attend
attend per requirements outlined under the Act, LODR and
per requirements outlined under the Act, LODR and
the BMs being present personally or through video
the BMs being present *rsonslly or through video regulations
—ulEtions of of RBI.
RSLGuidelines
Guidelines are set out in
aresetout in regulation
regulation 18,18,
facilities.
facilities. The
The meetings
meetings of of Committees
Committees are
-re held
he'd as
as per
per 19, 20, 21 of LODR. At the time of constituting a committee,
ofLODR Atthetimeofconstitutingacommittæ,
provisions
provisions ofof law.
law The
The number
number ofof meetings
meetings held
held during
during the
the Board
aoerd defines terms of
defines terms of reference,
reference, appoints
appoints members
members
FY21 is is mentioned
mentioned in in the
the table
table 2.1. As fer
2.T As far as
as possible,
possible, and
and chairperson.
cheir*rson The
The Board
Board makes
makes any any changes
changes
same process is followed for meetings of Committees
seme prccess is followed for mætings of Committees thereof
thereof ofof each
each committee
committee as as and
and when
when required.
requirad The The
as
es BMs.
BMs committees
committees
are constituted or
ere constituted
reconstituted based
or reconstituted based

on
on business,
business, regulatory
regulatory and
and change
change requirement.
requirement. The
The
committees
committees constituted
constituted by by the
the Board
Board are Asset Liability
are Asset Liability

28 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 11 (Contd.)
Annexure (Contd)

Management
Menagement Committee,
Committee, Audit
Audit and
and Risk
Risk Management
Menegement investigation
Investigation report
report and
and follow
follow up up action
action thereon,
thereon, (v)
(v)
Committee,
Committee, Banking
Banking & & Securities
Securities Management
Menagement Review
Review repayment
repayment to to the
the depositors,
depositors, debenture
debenture holders,
holders,
Committee,
Committee, Corporate
Corporate Social
Social Responsibility
Responsibility Committee,
Committee, shareholders
shareholders (in (in case
case of of nonpayment
nonpayment of of declared
declared
IT Strategy Committee, Nomination and Remuneration
IT Strategy Committee, Nomination -nd Remuneration dividends)
dividends) and creditors and
end creditors and scrutiny
scrutiny of of inter-corporate
inter-corgorete
Committee
Committee andend Stakeholders
Stskeh&ders Relationship
Relationship Committee.
Committee loans, inter-corporate investments and ifif necessary
loans, inter-corgorate investments end necessary
Brief terms of
Brief terms of reference
reference and the number
and the number of of meetings of
meetings of valuation of assets or undertaking, (vi) review and
valuation of assets or undertaking, O) review and
the committees held
the committees held during the Year
during the Year are
-re provided
provided below.
below recommend
recommend monitormonitor different
different policies
policies including
including Risk
Risk
The
The related
related attendance
attendance ofof members
members and
-nd composition of
composition of Management
Management Policy Policy and
and formulate
formulate Related
Related PartyParty
each
each Committee
Commttee are
are mentioned
mentioned in
in table
table 2.1.
21 Transaction (“RPT”)
Transaction ("RPT') Policy
Policy and
and approve
Epprue RPTs RPTsas as required,
required,
(vii) review cyber security, (viii) approve appointment
Wii) review cyber security, (viii) approve appointment
3.1. ASSET
3_1_ ASSET
LIABILITY
LIABILITY
MANAGEMENT
MANAGEMENT
COMMITTEE
COMMITTEE
of
of Chief
Chief Financial
Financial Officer
Officer (CFO)
(CFO) (ix)(in) Seek
Seek information
information
This
This Committee was constituted
Committee was constituted as
es required
required under
under RBI
RBI
from employees and
from employees -nd (x)
(x) review
review utilisation
utilisation of of loans
bens and/
and/
notification/Regulation.
notification/Regulatiom
or advances from/investment by the Company in the
or advances from/investment by the Company in the
3.1.1
3.1.1 Brief
Brief terms of reference
terms of reference subsidiary(ies)
subsidiary— exceeding
exceeding specified
specified limits.
limits. The
The Company
Company
Secretary
Secretary ofof the
the Company
Compeny actsacts asas the
the Secretary
Secretary for for the
the
((l)
i) Formulate, review monitor
Formulate,review monitor and
and recommend
recommend Investment
Investment
Committee.
Committee
Policy, Policy on Asset Liability Management, Assignment
Policy,Policy on Asset Liability Management, Assignment
and
and Securitisation
Seuritisation Policy
Pc'icy and
avd Policy
Policy onon Private
Private Placement
Placement 3.2.2 Composition and
and Meetings
Meetings
of
of NCDs
NCOs (ii)
(li) Formulation
Formulation of of business
business strategy
strategy in in line
line
The Composition
The Composition of of the
the Committee
Committee andand attendance
attendance
with
with the
the Budget,
Budget (iii)
(iii) provide
provide frame
frame work
work for for measuring,
measuring,
are
are mentioned
mentioned in the table
in the table 2.1. The Committee
21. The Committee met
met 4
4
monitoring
monitoring and managing
managing assets
assets liabilities/interest
liabilities/interest risk/
risk/
times during
times during FY21 on on June
dune 11,
11, 2020, August 11,
2020, August 11, 2020,
2020,
liquidity risk/ business risk/ other risk, (iv) decide risk
liquidity risk/ business risk/ other risk, (w) decide risk
November 2, 2020 and January 29, 2021.
November 2, 2020 and January 29, 2021
management
management objectives
objectives andand ensuring
ensuring adherence
adherence to the
to the
limits set by
limits set by the
the Board,
3Dsrd, (v)(v) monitor
monitor thethe asset
esset liability
liability gap,
gap, 3.3
3.3 BANKING
BANKING &
& SECURITIES
SECURITIES MANAGEMENT
MANAGEMENT COMMITTEE
COMMITTEE

(vi)
(vi) any other subject
any other subject as as may
mey be be specified
specified by by RBI from
from The Banking
The Banking and
end Securities
Securities Management
Management Committee
Committee
time to time.
time to time. is
is formed
formed for the purpose
for the purpose of of banking,
banking, borrowing,
borrowing,
securities management and other day-to-day business
securities management and other day-to-day business
3.1.2
3.12 Composition
Compsition and
and Meetings
Meetings
requirement purposes. There were 63 meetings held
requirement purposes There were 63 meetings held
Composition
Composition of the Committee
of the Committee andand attendance are
attendance ere
during
during FY21.
mentioned in the table 2.1. During FY21, the Committee
mentioned in the table 2.1 During FV21, the Committee
met
met 44 times
times on dune
June 11,
11, 2020, August 11,
2020, August 11, 2020,
2020, 3.4
3.4 CORPORATE
CORPORATE SOCIAL RESPONSIBILITY
SOCIAL RESPONSIBILITY COMMITTEE
COMMITTEE

November
November 2,
2, 2020
2020 and
and January
denuary 29,
29, 2021.
2021 The
The Corporate
Corpcrete Social
Sccisl Responsibility
Responsibility (“CSR”) Committee
C'CSR")Committee
was constituted as required under section
was constituted as requir± under section 135
185 of
cf the
the
3.2 AUDIT
3.2 AUDIT
AND RISK MANAGEMENT COMMITTEE
AND RISK MANAGEMENT (MIMITTEE
Act. The
Act The composition
composition of
of the
the Committee
C.ommittee and
and attendance
attendance
The Audit and
The Audit and Risk
Risk Management
Msnegement Committee constituted
Committee constituted
are
are mentioned
mentioned in
in the table 2.1
the table 2.1
as required under Section 177 of the
as required under Section 177 of Act, regulation
the Act, regulation 18
18
and
and 21
21 of the LODR
of the LODRendand regulation of the
regulation of the RBI
RBI 3.4.1 Brief
Brief description of the
description of terms of
the terms of reference
reference

(i)
(i) Formulate,
Formulate, amend,
amend, change
change andand recommend
recommend to to the
the
3.2.1
321 Brief
Brief description
description of the terms
of the terms of
of reference
reference
Board
Baard Corporate
Corporate Social
Social Responsibility
Responsibility (“CSR”)
("CSRM}Policy
?o'icy ofof
(i)
(i) Review
Review financial
financial reporting
reporting process, financial
process, financial
the Company
the Company indicating the activities
indicating the activities to be
be undertaken
undertaken in in
conditions, financial statements, results of
conditions, financial statements, results of operations
0*rations
compliance with applicable regulations (ii) plan, identify,
compliance with applicable regulations (ii) plan, identify,
and ensure financial
and ensure financial statements
statements are are correct,
correct, sufficient
sufficient
evaluate,
evaluate, check
check sustainability,
sustainability, decide,
decide, approve
approve execute
execute
and credible, (ii)
and credible, (ii) Review
Review internal
Internal control
control andend it’s
it's
and
and monitor
monitor CSR
CSR projects/
projects/ programs/activities
programs/activities (iii) (Iii)
adequacy, financial controls, risk management systems,
adequacy,financial controls, risk msnsgement systems,
recommend
recommend an an annual
annual action
action plan
plan including
inc'uding thethe list
list of
of
risk
risk assessment
assessment reports,
reports, audit
eudit report,
report, (iii)
(iii) Recommend
Recommend CSR projects or
CSRprojects or programmes
prcgrsmrnes specified
specified in
in Schedule
Schedule VII VII of
of
appointment,
appointment, re-appointment,
re-appointment, terms terms of of appointment/
appointment/
the Act,
the Act, the
the manner
manner of
of execution,
execution, modalities
modalities of
of utilisation
utilisation
reappointment
reappointment and and remuneration
remuneration of statutory auditors
of statutory auditors
of
of funds
funds in in implementation,
implementation, monitoring
monitoring and
and reporting
reporting
and review performance and independence of auditor,
and review performance and independence of auditor, mechanism,
mechanism, and and impact
impact assessment
assessment (iv)
(iv) approve
approve CSR
CSR
(iv) review effectiveness of audit process, adequacy
review effectiveness of audit process, adequacy activities/expenditure
activities/expenditure in
in case
cese of
of emergency
emergency situations
situations
and
and structure
structure ofof internal audit, internal
internal audit, internal audit
audit report,
report or
or natural
natural calamities
calamities and
end ongoing
ongoing multi
multi year
year projects/
projects/

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 29
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 1
Annexure 1 (Contd.)
(Contd.)

programmes/
programmes/ activities
activities having
having timelines
timelines notnot exceeding
exceeding (v)
(v) Formulation
Formulation of
of the
the attributes
attributes for
for fit
fit &
& proper
proper person
Frson
three
three years
years excluding
excluding the the year
year in which the
in which the project/
project/ and
and independence
independence of of directors,
directors, (vi)
(vo Remuneration
Remuneration

programmes/
programmes/ activityactivity commenced
commenced (v) (v) recommend
recommend of
of directors
directors and
and key
key managerial
managerial personnel
personnel (“KMP”),
("KMP"),
ratification
ratification of
of existing
existing projects/programmes/
projæts/prcgrsmmes/ activitiesactivities Management
Menagement of of employee talent, welfare,
employee talent, welfare, incentive
incentive
the duration of which has been extended beyond one
the dureticn of which has been extended beyond one scheme
scheme andand stock
stck option
option scheme.
scheme
year by the Board (vi) monitor and decide on all the
year by the Board (vi) monitor end decide on all the
3.6.2
3.62 Composition
Compsition and
and Meetings
Meetings :
activities
ectivities with
with respect
respect tto CSRCSR including
including appointment
appointment
of
of any
any CSR
CSR Agent/
Agent/ intermediary/
intermediery/ Implementing
Implementing agency
agency The
The Committee
Committee met
met 4
4 times
times during
during FY21
FEI on
on June
dune 11,
11,

and
end authorise
authorise anyany official
officisl toto do
do anyany or all
all necessary
necessary 2020, August 11, 2020, November 2, 2020 and January
2020, August 11 2020, November 2, 2020 and January

acts
acts and
and deeds
deeds as as may
may be be required for the
required for the purpose
purpse of of 29,
29, 2021.
2021

CSR projects/program/activity of the Company (vii)

CSR projects/prcæram/activity of the C.ompany (vil) 3.7
3.7 STAKEHOLDERS
STAKEHOLDERS RELATIONSHIP
RELATIONSHIP COMMITTEE
COMMITTEE

ensure transfer of
ensure transfer of Unspent
unspent CSR CSR amount
-mount to to any
any fund
fund
The
The Committee
C.ommittee was
wes constituted
constituted ases required
required under
under
specified
specified and
and (viii)
(viii) ensure
ensure thethe activities
activities undertaken
undertaken by by
Section 178 of the Act, regulation 20 of the LODR and
Section 178 of the Act, regulation 20 of the LODR and
the Company as per CSR Policy.
the Company as per CSR Policy
regulations of RBI. The Committee looks into redressal
—ulEtions of The Committee Icoks Into redressal
3.4.2 Composition and
and Meetings
Meetings of
of grievances
grievances of
of shareholders,
shareholders, debenture
debenture holders,
holders, other
other

The
The Committee
Committe met
met 3 times during
3 times during FY21
FEI on on June
June 11,
11, security
security holders.
holders.

2020, November 2, 2020 and February 19, 2021.

2020, November 2, end February ng, 3.7.1
3.7 _1 Brief
Brief description of terms
description of terms of
of reference:
reference:

3.5 IT STRATEGY COMMITTEE

IT STRATEGY COMMITTEE (i)
(l) Investor/customer
Investor/customer services/relations
services/relations and
and resolution
resolution

The
The Committee
Committee waswas formed
formed as as required
requirad under
under RBI/
RBI/ of
of grievances,
grievances, (ii)
(ii) Issue
Issue and
and listing
"sting of
Df securities,
securities, (iii)
(Iii)

DNBS/2016-17/53 Master Direction DNBS.PPD.

DNBS/2016-17/53 Master Direction DN3.SPPD Investor Education and Protection Fund (“IEPF”) matters,
Investor Education and Protection Fund ("IEPZ) matters,

No.04/66.15.001/2016-17 dateddated June

June 08,
'8, 2017 and
2017 end (iv)
(v) Review
Review of
of security
security holding
holding patterns,
patterns, (v)
(v) Monitor
Monitor Code
Code

other
other applicable
applicable regulations
regulations of
of RBI.
831. of
of Conduct
Conduct for
for Insider
Insider Trading.
Trading

3.5.1
3_5_1 Brief description of
Brief description terms of
of terms of reference
reference :: 3.7.2
3.72 Composition
Compsition and
and Meetings
Meetings :

(i) Approve and

(i) Approve and monitor
monitor implementation
implementation of of IT
IT strategy
strategy The
The Committee
Committee had
hed met
met twice
twice during
during FY21 on
on August
August 11,
11,
2020 and January 29, 2021. There were no outstanding
2020 and January 2?, 2021 There were no outstanding
balancing
balancing risk
risk and
and benefits etc, (ii)
benefits etc, (ii) Formulate,
Formulate, evaluate
evaluate
shareholder
shareholder complaint
complaint at at the
the beginning
beginning of
of FY21
FY21 and
and
and
end review effectiveness of
review effectiveness of ITIT outsourcing
outsourcing policy,
*icy,
the
the Company
Compeny has
has not
not received
received any
any complaint
complaint from
from the
the
contingency plan, (iii) Evaluate IT risks and materiality
contingency plan, (iii) Evaluate IT risks and materiality
shareholder during FY21. No complaint was pending as
shareholder during FY21 No complaint was —ding es
assessing
assessing significant
significant risks
risks and
End reporting to the
reporting to the Board
Board
on
on March
March 31,
31, 2021.
2021
of
of such
such risks,
risks, (iv) review independent
(fiv)review independent auditaudit report
report on
on IT-
policies
policies and
and procedures
præedures and and action
action taken
taken on such reports.
Dnsuch reports 4
4
SUBSIDIARY
SUBSIDIARY
COMPANY
CI)MPANY

3.5.2 Composition and

and Meetings
Meetings : M/s
M/s Shriram
Shriram Housing
Housing Finance
Finance Limited,
Limited, CINCIN :
U65929TN2010PLC078004 (“SHFL”) is the only
U65g29TN2010PLC078004 ("SHFL") is the only
The
The Committee
Committee met
met 2 times during
2 times during FY21
FV21 on
on November
November
subsidiary
subsidiary of the Company.
of the Compeny. SHFL
SHFL is
is managed
managed by by it’s
it's
2,
2, 2020
2020 and January 29,
and January 29, 2021
2021 during
during FY21.
9/21
Board
203rd of
of Directors
Directors consisting
consisting of 4 Directors
of 4 Directors out
out of
of
3.6 NOMINATION
NOMINATION
AND REMUNERATION COMMITTEE
AND REMUNERATION COMMITTEE
which 2 Independent Directors and 2 non Independent
which 2 Independent Directors end 2 non Independent
This
This Committee
Committee was constituted as
wes constituted es required
required under
under Directors.
Directors. Since,
Since, SHFL
SHFL is
is an
en unlisted
unlisted non
ron material
material

Section
Section 178 of the
178 of the Act,
Act, regulation
regulation 19
1g of
of the
the LODR and
LODR end subsidiary, the Company
subsidiary, the Company isis not
not required
required tto nominate
nominate
regulations of
of RBI one
one of
of it’s
it's independent
independent directors
directors on
on the
the Board
aoerd of
of SHFL.
SHFI_
However,
However, the
the Board
Board nominated
nominated Sri
Sri Venkataraman
Venkataraman Murali,
Murali,
3.6.1
3_6_1 Brief description of
Brief description terms of
of terms of reference
reference ::
an independent director of the Company as a director
an independent director cf the Company es a director
(i)
(i) Identify
Identify fit
fit and
and proper
proper persons
persons to
to bebe directors/
dirætrs/
on
on the
the Board
Board ofof SHFL.
SHFI_ The financial statements,
The financial statements, in in
members of senior management and should such
members of senior menegement and should such aa
particular the investments
particular the investments made
made byby SHFL were reviewed
SHFLwere reviewed
need arise, (ii) recommend removal of director from
need arise, (iJ recommend removal of director from
during FY21 by ARMC of the Company. The minutes
during FY21 by ARMC of the Company The minutes
the
the Board,
Board, (iii)
(iii) Performance
Performance evaluation
evaluation ofof directors,
directors, of the meetings of BM and ARM of SHFL were placed
of the meetings of 8M end ARM of SHFL were placed
Board and Committee
aoerd end Committee on cn an
an annual
annus' basis,
basis, (iv)
(iv) Scrutiny
Scrutiny
before the BM
before the 3M and ARMC of
and ARMC the Company
of the Company quarterly. A
quarterly A
of the declarations/undertakings by the Directors,
of the dælerations/undertakings by the Directors,
statement
statement containing
containing all
all the
the significant
significant transactions
transections

30 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 11 (Contd.)
Annexure (Contd)

and
and arrangements
arrangements entered
entered into
into by
by SHFL was placed
SHFL was placed reported
reported in
in note
note no.
no 44
44 of
of the
the Notes
Notes to
to accounts
accounts of
of the
the
before ARMC of
before ARMC of the
the Company.
Company The The Policy
Policy on
on Material
Material financial statements.
financial statements.

Subsidiaries
Subsidiaries and
and Events
Events and
and Policy
Policy on
on Preservation
Preservation and
end
6
6 SHARE
SHARE HOLDER
HOLDER INFORMATION
INFORMATION AND DISCLOSURES
AND DISCLOSURES
Archival of Documents
Archival of Dccuments is
is available
available at the website
at the website (refer
(refer
Table
Table -- 1)
1) 6.1
6.1 Corporate
Corporate

5
5 RELATED
RELATED PARTY
PARTY TRANSACTIONS
TRANSACTIONS The
The Company
Company was was incorporated on on March
March 27,
27, 1986
1@86es as
Shriram
Shriram Hire-Purchase
Hire-purchase Finance
Finance Private
Private Limited
Limited with
with
Related
Related party
part/ is
is determined
determined based
based onon Section
Section 188 of
188 of
Registrar
Registrar ofof Companies,
Companies, Tamil
Tamil Nadu,
Nadu, Chennai
Chennai andand gotgot
the Act, regulation 23, Part A of Schedule V and other
the Act, regulation 23, Part A of Schedje V -nd other
fresh
fresh certificate
certificate ofof incorporation
incov:rstion consequent
conse;uent to to change
change
applicable
applicable regulations
regulations of the LODR,
of the LODR, RBI
RBI regulations
regulations
of
of name
nametto Shriram
Shriram City
City Union
union Finance
Finence Limited with effect
Limited with effect
and
and applicable
applicable accounting
accounting standard. The ARMC
stendarli The ARMC of of the
the
from April 10,
from April 10, 1990. The
The Company
Company made msde an en initial
initial public
public
Company
Company and and the
the Board
3csrd have
heve approved
approved policy
policy on
on RPTs,
RPTs,
offering
offering in
in December,
December, 1994.
1gg4 TheThe corporate
corpcrete identification
identification
displayed
displayed on the web
on the web site
site of
of the
the Company
Company (refer
(refer Table
Table
number
number (CIN)
(CIN) allotted
Ellotted to the Company
to the Camp-ny by by Ministry
Ministry of of
-- 1). The RPTs were reported to the ARMC on quarterly
1). The RPTs were reported to the ARMC on quarterly
Corporate Affairs (MCA)
corporate Affairs (MCA) isis L65191TN1986PLC012840.
L65191TN1986PLC012840.
basis.
basis Requisite
Requisite approvals
Epprovs's of ARMC and
of ARMC and the
the Board
Baard
The
The Company
Company is is registered
registered asas aa Non
Non Banking
Banking Finance
7nence
were taken for RPTs. The details of transactions with
were taken for RPTs. The details of transactions
with
Company (“NBFC”) with RBI with registration number --
Compeny ("NBFC') with RBI with registration number
entity(ies) belonging to promoter/ promoter group which
entity(ies) belonging to promoter/ promoter group which
07-00458.
07-00453 The The equity
equity shares
shares of
of the
the Company
Company are ere listed
listed
holds
holds 10% oror more
more shareholding
shareholding in the Company
in the Camp-ny isis given
given
in
in M/s
Ws BSE
BSE Limited
Limited (“BSE”)
("3SEO andend M/sWs National
National Stock
Stock
in the notes to accounts of the financial statements.
in the notes to accounts of the financial statements
Exchange
Exchange of of India
India Limited
Limited (“NSE”).
("NSE").
There
There were
were no material
material RPTs
RPTs during
during FY21. RPTs are
RPTs ere

6.2 Appointment/reappointment
6.2 A*ntment/reappointment of
of Directors
Directors

One third of
One third of the
the Directors
Directors liable
liable to retire
retire by
by rotation,
rotation, retires
retires by
by rotation
rotation and
and ifif eligible
eligible seek
seek reappointment
reappointment atet AGM.
AGM As As per
per
provisions
provisions of the Act
of the Act and
end Articles of Association
Articles of Association of of the
the Company,
Company, Sri
Sri Duruvasan
Duruvassn Ramachandra
Ramachandra holding
holding (DIN
(DIN – 00223052)
00223052)
will
will retire
retire by
by rotation
rotation and
and being
teing eligible
eligible has
has sought
sought for
for re-appointment
re-appointment at at the
the ensuing
ensuing AGM.
AGW HeHe has
has expressed
expressed his
his intention
intention
and confirmed his eligibility to continue as Director of the Company if appointed at the ensuing AGM. The notice of the
and confirmed his eligibility to continue as Director of the Company if eppinted at the ensuing AGM The notice of the 35th
AGM contains this
AGM contains
this.

6.3 General body meetings

6.3 meetings // Postal
Postal Ballots
Ballots

The
The date, time and
date, time and venue
venue of
of last three AGMs
Lestthree AGMs held
held and
end special
special resolutions
resolutions passed
pass€Z thereat
thereat are
are as
as follows.
follo,vs No
No Extraordinary
Extraordinary
General Meetings (“EGMs”) was held during the last three years.
General Meetings ('EGMS') wes held during the Lestthree years

Year ended
Year ended AGM
AGM Location
Location Date Time
Special Resolutions
Time Resolutions

March
March 31
31 passed
2018
2018 32nd
32nd AGM
AGM Narada
Narede Gana
Gana Sabha
Sabha (Mini
(Mini Hall),
Hall), July
duly 25,
25, 2018
2018 10.00
10.00 am
am *
2019
201 g 33rd AGM
33rd AGM No
No 314
314 (Old
(Old No
No 254)
254) TTT TKK Road,
Road, July
duly 29,
29, 2019
201g 10.00
10.00 am
am **
Alwarpet, Chennai
Alwarpet Chennsi –- 600 018013
2020 34th AGM
34th AGM
Video Conferencing
Video Conferencing (“VC”)/
CVC'V Otherather July
duly 31,
31, 2020
2020 10.00
10.0)
am
am
***
Audio Visual Means (“OAVM”) at Chennai
Audio Visual Means ("OAVM'3et Chennai
*Increase
•Increase in
in borrowing
borrowing powers
powers under
under section
section 180(1)
180(1) (c
(c )) of the Act
of the for an
Act for an amount
amount not
not exceeding ` 36,000
36030 crores
crores and
end private
private
placement of securities
placement of securities

** Appointment
Appointment of of Sri
Sri Pranab
Pranab Prakash
Prakash Pattanayak
Pattanayek (DIN-
(DIN- 00506007)
Cu:150öOD7) as
as an
an Independent
Independent Director, Appointment of
Director, Appointment of Sri
Sri
Venkataraman
Venkataraman Murali
Murali (DIN-00730218)
(DIN-00730218) asas an
en Independent
'nde*ndent Director,
Director, Increase
Increase in
in borrowing
borrowing powers
pwers under
under section
section 180(1)
180(1) (c
(c))
of the Act
of the for an
Act for an amount
amount not
not exceeding
excæding ` 40,000
40,C03 crores
crores and
and private
private placement
p'acement ofof securities
securities

*** Appintment
Appointment of
of Sri
Sri Ignatius Michael Viljoen (DIN
IgnatiusMichaelViljoen N– 08452443) as e
—C8452443)es a Non
Non Independent Director, Appointment of
IndependentDirector,Appointment of Sri Debendranath
SriDetendraneth
Sarangi (DIN – 01408349) as an Independent Director, Appointment of Smt Maya S Sinha (DIN – 03056226) as an Independent
Sarangi (DIN —01408349) as an IndependentDirector,Appointment of Smt Maya S Sinha (DIN - 03056226) as an Independent
Director and Borrowing powers under section 180(1) (c ) of the Act for an amount not exceeding ` 40,000 crores
Directorand aorrowing powers under section 180(1) (c) ofthe Act for en amount not exceeding 40,011 crores

The following special

The following special resolutions
resolutions were
were passed
pessed under Section 180
under Section 180 (1)
(1) (a) of the
(a) of the Act
Act through
through postal
gostal ballot
ballot and
and remote
remote e-voting
e-voting
in
in FY20 for
for creation
creation of
of security
security on
on the
the assets/
assets/ receivables
receivables of
of the
the Company
Compeny and and for
for securitisation.
securitisation

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 31
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 1
Annexure 1 (Contd.)
(Contd.)

Type
Type of
of Votes casted
Votes casted in
in favour
favour Votes casted
Votes casted against
against Date
Date of of
voting No of
No of
No of
No of
Percentage
Percentage ofof No of
No of
No of
No of Percentage
Percentage of
of declaration
declaration of
of

shareholders
shareholders votes votes
votes shareholders
shareholders votes
votes votes results
results

E 58 4,17,43,594 97.01 14 12,86,011 2.99

July
duly 28,
28, 2015
2015
PBF 166 12,81,551 99.94 9 553 0.04
E 72 4,99,04,913 92.14
9214
32 42,46,650 7.84
July
duly 28,
28, 2016
2016
PBF 72 9,777
g,777 0.02
0112 7 292 0.00
0.00

E 100 5,85,57,370 99.85 6 80,871

80,871 0.14
0.14
June
June 12,
12, 2018
2018
PBF 74 8,009 0.01 5 127 0.00
0.00

E 64 54,781,018 95.30 37 2,697,401 4.69

July
duly 25,
25, 2018
2018
PBF 58 4,074
4,074 0.01 4 95 0.00
occ

E 57 5,50,04,731 94.64
94 64 36 31,09,304
31 5.35
5.35
July
duly 29,
29, 2019
2019
PBF 60 5,002
5,002 0.01 1 5 0.00
0.00

E 97 5,76,98,994 99.96 7 20,948 0.04

0.04 June
June 12,
12, 2020
2020

Electronic
Electronic (“E”) and
and Postal
Postal Ballot
Ballot Forms
Forms (“PBF”)
*F")
The
The following
following special
special resolutions were passed
resolutions were passed through
through remote
remote e-voting
e-voting for
for issue
issue of
of debentures
debentures on
on private
private placement
placement basis
basis
by the Board.
by the aoerd

Type
Type of
of Votes casted
Votes casted in favour
in favour Votes
Votes casted
casted against
against Date
Date of of

voting No
No of
of No
No of
of votes
votes Percentage of
Percentage of No of
No of Noof
No of votes
votes Percentage declaration
Percentage declarationof of
shareholders
shareholders votes
votes shareholders
shareholders of
of votes
votes results
results

E 98 5,76,99,894 99.97
gyg7
7 20,054
20,054 0.03 June 12,
dune 12, 2020
2020

Sri
S ri P
P Sriram,
Sriram, M/s
M/s P. Sriram &
P.Snram & Associates,
Associates, Company
Company Secretaries
Secretaries in
in practice
practice was
was appointed
appointed as the scrutiniser
as the scrutiniser for
for carrying
carrying the
the
process of remote e-voting in fair and transparent manner.
process of remote FÆting in fair and transparent manner
All
All business
business set out in
set out in the
the notice
notice ofof 35th AGM
AGM shall
shall be
be conducted
conducted through
through remote
remote e-voting
a-voting in
in compliance
compliance with
with sections
sections 108,
108,
and other applicable Sections of the Act, relevant rules and regulation 44 (3) of the LODR provided by the Company through
end other applicable Sections of the Act, relevant rules -nd —ulstion 44 (3) Df the provided by the Company through
CDSL.
CDSC The
The notice
notice of
of 35
859th
AGM state
stste the
the process
prccess of
of respective voting. The
respective voting. voting rights
The voting rights are
are based
based on
on the
the number
number shares
sheres of
of the
the
Company
Company heldheld by the member
by the member on the cut
Dnthe cut off
off date.
date The
The scrutiniser
scrutiniser appointed
ap$nted by the Board
by the Board shall
shell submit
submit his
his report
regzrt onon results
results
of
of the
the respective voting to
respective voting to the
the chairperson
chairperson after
after completion
completion ofof his
his scrutiny within permissible
scrutiny within *rmissible time.
time The
The facility
facility of
cf e-voting
e-voting
shall
shall be
be made
mede available
available at the 35th AGM
at the AGM with
with the
the assistance of scrutinisers
assistance of for the
scrutinisers for the members,
members, who
who have
have not
not casted
casted their
their votes
votes
through
through remote
remote e-voting.

6.4
64 Materially
Materially significant
significant related
related party
party transactions
transactions
During
During FY21, there
there were
were no
no materially
materially significant
significant RPTs
RPTs entered
entered into,
into, which
which were
were inin potential conflict with
potential conflict with the
the interest
interest of
of the
the
Company at large. The details of RPTs are presented in note no 44 of the financial statements attached hereto. The statement
Company at large The details of RPTsere present± in note 44 Dfthe financial statements attsched hereto The ststement
of
of RPTs
RPTs isIS placed
placed before
before the Audit Committee
the Audit Committee on on quarterly
quarterly basis.
basis Omnibus
Omnibus approval
approval was
was obtained
obtained for the transactions
for the transscticns of of
repetitive nature. The Related Party Transaction Policy and dealing with RPTs as approved by the Board is uploaded on the
repetitive nature The Related Pany Transscticn Po'icy and desling with RPTsas approved by the 3aard is uploaded on the
Company’s
Company's web web site
site (refer Table -- 1).
(refer Table 1). None
None of the Directors
of the Directors has
has any
any pecuniary
—jniary relationships
relationships oror transactions vis-à-vis the
transactions vise-vis the
Company
Company except the payment
except the payment of of sitting fees to
sitting fees to Directors
Directors by
by the
the Company.
C.ompany.

6.5 Accounting treatment

Accounting treatment
The
The details
details of
of accounting
accounting treatment followed during
treatment followed during FY21
FEI are
are mentioned
mentioned in
in the
the Notes
Notes to
to Financial
Financial Statements.
Statements

6.6 Risk
Risk management
management
Our business is
Our business is subject
subject to
to uncertainties
uncertainties and and risks. The impact
risks. The impact ofof these
these risks
risks may
may impact
impact our
our performance.
performance If If any
any of
of the
the
risks materialise, our business, financial and prospectus could be materially and adversely affected. The risk management
risks materialise, our business, financial -nd prospectus could be materialty and adversely affected The risk msnegement
function of the
function of the Company
Company help
help in
in identifying,
identifying, analysing,
analysing, assessing,
assessing, mitigating,
mitigating, monitoring
monitoring and
and governing
governing risks.
risks. The
The Company
Company
has
has risk management policy.
riskmanagement A separate
policy A separate section
section in this report
in this titled “Management
report tiffed "Management Discussion
Discussion and Analysis” discusses
and Analysis" discusses about
about
risk
risk and
and its
its mitigating
mitigating factors
factors is
is attached
attached to to this
this report
report (Annexure
(Annexure-- 3).
3) Risk
Risk management
management report
report is
is reviewed
reviewed byby ARMC
ARMC ofof the
the
Company
Company on on quarterly
quarterly basis.
basis.

32 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 11 (Contd.)
Annexure (Contd)

6.7 
6.7 Details
Details of
of non
non compliance and penalties, strictures
compliance and strictures also
also available
available onon the
the website
website of
of the
the Company
Company (refer
(refer
imposed Table -- 1),
Table 1), BSE and NSE.
BSEend NSE During
During FY21, financial
financial results
results
There
There were
were no
no instances
instances of of non
non compliance
compliance by by the
the were
were not
not published
published in
in news
news papers
papers as
ss exempted
exempt± under
under
Company on any matter relating to capital market during
Company on any matter relating to capita' market during SEBI
SE31 circulars
circulars SEBI/HO/CFD/CMD1/CIR/P/2020/48
last three years
last three years. No
No penalties,
*nalties, strictures
strictures were
were imposed
impsed dated March 26, 2020
dated Merch 26, 2020 andend SEBI/HO/CFD/CMD1/
SEBI/HO/CFÜ/CMDI/

on the Company
on the Company by by stock
stock exchanges
exchanges or or SEBI or any
SEEIor other
anyother CIRs/P/2020/79 dated May 12, 2020 for
dated May 12, 2020 for Q4-FY20
Q4-FY20 andand
statutory authority (ies) last 3 years except mentioned in
statutory authority (ies) last 3 years except mentioned in Q1-FY21.
QI-FY21

the
the notes
notes to
to accounts.
accounts
The Company
The Company also also gives
gives press
press release
release in
in different
different
news
news papers
pepers after
after declaration
declaration of financial results
of financial results for
for
6.8 Whistle
6.8 Whistle Blower, Vigil Mechanism
Blower, Vigil and Prohibition
Mechanism and Prohibition of
of
information
information of of investors.
investors TheThe Company’s
Compeny's website
website
Insider Trading
Insider Trading
contains
contains aa separate
separate section
section “INVESTOR”,
"INVESTOR", wherewhere
The
The Company
C.ompany promotes
promotes ethical
ethical behaviour
behaviour in in all
all it’s
it's
shareholder/security holder information are
shareholder/security holder information ere displayed.
displayed
business activities. Accordingly ,the Company has
business activities Accordingly the Company has
Presentations
Presentations made
msde toto institutional
Institutional investors,
investors, investors/
investors/
formulated
formulated “Whistle
"Whistle blower
bbower and and VigilVigil Mechanism
Mechanism
earning
earning conference
conference calls
cells or to the
or to the analysts transcripts,
analysts transcripts,
Policy”
Policy" inin line
line with
with regulation
regulEticn 22 22 ofof the
the LODR
LODR and and RBIRBI
and
and other
other general
general information
inform-tian about
about the
the Company
Company are are
regulations for employees to report concerns about
regulations for employees to report concerns about
also available on the Company’s website (refer Table - 1).
also available on the Companfs website (refer Table - 1)
unethical
unethical behavior
behavior providing
providing for for adequate
adequate safeguard
safeguard
The annual
The ennuel report
report of the Company
of the Company is is also
also displayed
displayed
against victimisation of
against victimisation of directors/employees,
directors/empbyees, who who avail
avail
at the same section of the website of the Company
at the same section of the website of the Company
of
of the
the mechanism.
mechanism This This policy
policy isis disclosed
disclosed inin the
the web
web
(refer
(refer Table
Table -- 1). Shareholders
Shareholders have
have been
been provided
provided with
with
site of the Company. No person is denied access to the
site of the Company No person is denied access to the
an
an opportunity
opportunity to to provide
provide their
their email
email id for receiving
id for receiving
ARMC. The Company has formulated “Code for Fair
ARMC The Compeny h's formulated "Code for Fair
correspondence
correspondence and and annual
annual report
report in
in electronic
electronic form.
form.
Disclosure
Disclosure and and Conduct”, which is
Conduct", which is displayed
displayed on
on the
the web
web
The annual
The annual report
report and
and quarterly
quarterly financial
financial results
results
site
site of
of the
the Company (refer Table
C.ompany(refer Table -- 1).
1)
were
were sent
sent in electronic form
in electronic form to the registered
to the registered email
email
6.9 Audit
6.9 of Reconciliation
Audit of Reconciliation of
of share
share Capital
Capital Ids of shareholders,
Ids of who have
shareholders, who have registered
registered their
their email
email
Audit
Audit of
of reconciliation
reconciliation of of share
share capital
capital isis mandated
mandated ids.
ids InIn view
view ofof the
the prevailing
prevailing COVID-19
COVID-1g situation
situation
under
under Regulation
Regulation 55A 55A of of SEBI
SE81 (Depositories
(Depositories and end and consequent lockdown
and consequent lockdown across
across the country, the
the country, the
Participants)
Participants) Regulations,
Regulations, 1996. Accordingly, this audit
Accordingly, this audit Ministry
Ministry of of Corporate
Corporate Affairs
Affairs (MCA)
(MCA) has has exempted
exempt&d
for
for reconciliation
reconciliation ofof share
share capital
capital admitted with NSDL
admitted with NSCL companies
companies from from circulation
circulation of of physical
physical copies
copies of of
and CDSL with the total issued and listed capital were
and CDSL with the total issued and fisted capitel were Annual Report
Annual Report for for year
year ended
ended MarchMarch 31, 31, 2021.
2021 TheThe
carried
carried out
out on
on a a quarterly
quarterly basis
basis during
during FY21
FY21 byby M/s
M/s Annual Report
Annual Report of the Company
of the containing director’s
Company containing director's
P.Sriram
PSriram & & Associates
Assccietes (“PSA”). PSA PSA was
w,vesappointed
appointed byby report, standalone financial statements, consolidated
report, standalone financial statements, consolidated

the Board. The audit reports did not have any adverse
the Board The audit reprts did not have any adverse financial statements,
financial statements, auditor’s
auditor's report
report thereon
thereon and
and other
other
comment
comment and the same
end the same were
were submitted
submitted quarterly
quarterly to
to BSE
BSE important
Import-nt information
inform-tion are are circulated
circulsted to to members
members and and
and
and NSE within stipulated
NSEwithin time.
stipulated time. others
others entitled
entitled thereto
thereto by by email.
email The The investor
investor complaints
complaints
are
are processed
processed in in centralized
centralized web web based
based complaints
complaints
6.10 Means
6.10 Means of
of communication
communication
redressal system controlled by SEBI known as
redressal system controlled by SEEI known as SEBI
SE31
Multiple
Multiple modes
modes are are adopted
adopted by by thethe Company
Company for for Complaint
Complaint redressredress system
system (“SCORES”).
("SCORES") The The Investor
Investor
communication with shareholders ,debenture holders,
communication with shareholders ,debenture holders,
section
section of of the
the web
web site
site contains
contains specified
specifiad email
email ids
ids for
for
fixed
fixed depositors
depositors such
such as
as individual
individual letters,
letters, publication
public,stion in
in investor servicing i.e. sect@shriramcity.in, scufncd18@
investor servicing i.e sect@shriramcityin, scufncd18@
news
news papers,
papers, disclosure to BSE/NSE,
disclosure to display on
3SE/NSE,display on it’s
it's web
web shriramcity.com,
shriramcitycom. customersupport@shriramcity.com,
site,
site, emails,
emails, annual
ennual reports
reports etc.
etc. The
The annual
annual and
and quarterly
quarterly shriramcity@shriramcity.in
shriramcity@shriramcity.in The The Company
Company has hes been
been
financial results of FY21 are generally published in
finsncisl results of are generelly published in filing the
filing the information
information related
related toto corporate
corporate governance,
governance,
newspaper
newspaper in english in
inenglish in “Business
"Business Standard”
Standard" andand in
in Tamil
Tamil shareholding
shareholding pattern,
pattern, reconciliation
reconciliation of of share
share capital
capital audit
audit
in “Makkal Kural”
in "Mekkal
within 48 hours of conclusion of
Kure"' within 48 hours of conclusion
the
of the
and quarterly financial results in the website of NEAPS
and quarterly financiE' results in the website of NEAPS
Board Meetings at which the respective financial results
Board Meetings at which the res*ive financial results (National
(National Electronic
Electronic Application
Applicsticn Processing
Prccessing System)
System)
were
were approved
approved and-nd are
ere sent
sent to
to individual
individual shareholders
shareholders viz
viz https://neaps.nseindia.com/NEWLISTINGCORP/
httpsflneapsnseindiåcom/NEWLlSTlNGCORP/
through
through email
email tto those
those shareholders
shareholders registered their
registered their and
and onon BSE
BSE Listing
Listing Centre
Centre https://listing.bseindia.com.
https//listing.bseindiacom.
email
email ids with the
ids with the Company.
Company. Financial
Financial Results are
Results ere The presentations made by the
The presentations made by the Company
Company to to analysts
analysts

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 33
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 1
Annexure 1 (Contd.)
(Contd.)

are
ere displayed
displayed on the web
on the web site
site of the Company
of the Company (refer Table -- 1).
(refer Table 11 The
The SRC
SRCofof the
the Board
aoerd examines
examines and
and redresses
redresses grievances
grievances
of the shareholders
of the shareholders and and investors. The status
investors. The status ofof grievances
grievances ofof shareholders
shareholders and
and investors
investors are
are reviewed
reviewed by the
the ARMC
ARMC andand
Board.
Board. The
The Company
Company discloses
discloses to to BSE/NSE information required
3.SE/NSEinform-tion required to to be
be disclosed
disclosed under
under Regulation
RegulEtion 30
30 read
reed with
with Part
Part A
A of
of
Schedule
Schedule IIIIII of
of the
the LODR
LOCRincluding
including material
msterial information
information having
having a bearing
bearing on
on the
the performance
performance // operations
opersticns of
of the
the Company
Company
or other
other price
price sensitive
sensitive information.
information TheThe Board
Board ofof Directors
Directors has
has approved
approved aa policy
plicy for
for determining
determining materiality
materiality of
of events
events as
es
required under LODR.
required under LODR.

6.11
6_ 1 1 Details of 35th
Details of AGM
35th AGM

a. Date
Dete and Time
and Time July
duly 29,
2g, 2021
2021 at
at 10
10 a.m.
an.
b. Venue
Venue The
The Company
Company will
will conduct
conduct meeting
meeting through
through VC/OVAM pursuant to
VC/OVAMpursuant to the
the MCA circular and
MCAcircular end as
as there
there is
is no
requirement
uirement to have venue
tchave venue for
for the
the AGM. For
For details
detsils please
lease refer
refer to
to the
the Notice
Notice of
cf AGM.
AGM.

c. Dividend
Dividend Interim dividend and 2nd Interim dividend of ` 10.00 per equity share declared by
Interim dividend and 2nd 'nterim dividend of IDIO per share declsred by the
the Board
Baard at
at its
its
meeting held on November 2, 2020 and March 26, 2021 were paid on November 27, 2020 and April
meeting held on November 2, 2020 and March 26, 2021 were paid on November 27, 2020 end April
19, 2021
2021 respectively. The Board
respectivelb{The Board hashas recommended
recommended final final dividend
dividend ofof ` 13.00
13.111per
per equity
equity share
share at
at its
its
meeting
meetin held
held on
on April
A il 30,
30, 2021.
2021

6.12
6_ 12 Financial
Financial Year
Year

The
The financial year for
financial year for FY21 was
was from
from April
April 1,
1, 2020
2020 to
to March
Merch 31,
31, 2021. The next
2021. The next financial
financial year
year is
is from April 1,
from April 1, 2021
2021 to
to
March
March 31,
31, 2022. The financial
2022. The financial year of the
year of the Company
Company isis from
from April
April 11 to
to March
March 31.
31

6.13
6_13 Details of listing
Details of listing on
on stock exchanges
stock exchanges
The annual listing
The ennual fees to
listing fees to BSE and NSE
BSEand and annual
NSEand annual custodian
custc.dian fees
fees to
to NSDL
NSCL and
and CDSL
CDSLforfor FY21
FY21 for
for the
the Company
Company were
were paid
Eid
on time. The equity shares of the Company with ISIN – INE722A01011 are listed in BSE with stock code 532498 and NSE
cr. time The equity sheres of the Comp-ny with ISIN —INE722A01D11are listed in BSEwith stock code 5324?8 and NSE
with
with stock
stock code SHRIRAMCIT.
SHRIRAMCIT The The details
details of
of listed
listed secured
secured redeemable
redeemable non-convertible
non-convertible debentures
debentures (NCDs) of the
(NCCs)of the Company
Company
are
ere displayed on the
displayed on the website
website ofof the
the Company
Company (refer
(refer Table
Table -- 1). The Company
1) The Company submitted
submitted thethe documents/information
dæuments/infcrmation to to the
the
respective Trustees for the issues and allotments of NCDs made on time during FY21 in compliance of Regulation 55 of the
res*ive Trustes for the issues and allotments of NCDs made on time during in compliance of Regulation 55 of the
LODR.
LODR

34 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 Report on Corporate Governance
Annexure 1 (Contd.)
6.14 Stock market price data
The volume and market price (high and low) of equity shares of the Company traded during each month during FY21 are given below.

NSE BSE
Month Per share price Volume NIFTY (in `) Per share price Volume SENSEX (in `)
(in ` of the Company) of shares (in ` of the Company) of shares
High Low Average traded High Low Average High Low Average traded High Low Average
Apr-20 795.00 711.00 753.00 356127 9859.90 8083.80 8971.85 791.95 717.15 754.55 9183 33717.62 27590.95 30654.29
May-20 754.95 642.85 698.90 227283 9580.30 8823.25 9201.78 739.20 639.95 689.58 11872 32424.10 30028.98 31226.54
Jun-20 716.70 641.00 678.85 2335823 10471.00 9813.70 10142.35 702.70 632.80 667.75 140203 35430.43 33228.80 34329.62
Jul-20 711.50 666.45 688.98 1599241 11300.55 10430.05 10865.30 708.75 657.55 683.15 68006 38492.95 35414.45 36953.70
Aug-20 989.85 657.05 823.45 2840188 11647.60 10891.60 11269.60 982.20 655.70 818.95 205438 39467.31 36939.60 38203.46
Sep-20 1002.20 881.00 941.60 889961 11604.55 10805.55 11205.05 996.80 885.45 941.13 35322 39302.85 36553.60 37928.23
Oct-20 951.35 784.00 867.68 456172 11971.05 11416.95 11694.00 936.40 778.90 857.65 21430 40794.74 38697.05 39745.90
Nov-20 1113.00 810.00 961.50 1185574 13055.15 11669.15 12362.15 1102.55 821.90 962.23 40300 44523.02 39757.58 42140.30
Dec-20 1120.40 952.50 1036.45 897116 13981.95 13109.05 13545.50 1108.75 989.65 1049.20 39730 47751.33 44618.04 46184.69
Jan-21 1154.00 992.00 1073.00 1089775 14644.70 13634.60 14139.65 1144.85 983.80 1064.33 63231 49792.12 46285.77 48038.95
Feb-21 1606.10 1050.00 1328.05 2235516 15314.70 14281.20 14797.95 1609.95 1155.45 1382.70 151851 52154.13 48600.61 50377.37
Mar-21 1576.50 1357.00 1466.75 374142 15245.60 14324.90 14785.25 1570.20 1353.60 1461.90 39520 51444.65 48440.12 49942.39

8
Average price per share= (High price per share+Low price per share)/2
OVERVIEW
CORPORATE

OVERVIEW
CORPORATE

SHRIRAM
SHRIRAM CITY UNION
REPORTS

CITY UNION
STATUTORY

REPORTS
STATUTORY

FINANCE
FINANCE LIMITED
LIMITED
FINANCIAL
STATEMENTS
FINANCIAL

35
STATEMENTS
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 1
Annexure 1 (Contd.)
(Contd.)

6.15
6_15 Movement
Movement of
of share
share price
price of the Company
of the Company in
in comparison to NIFTY
comparison to NIFTY and
and SENSEX
SENSEX

Company’s Average Share

Company's Average Share Price
Price v/s Average NIFTY
Ws Average NIFTY

AVERAGE SHARE PRICE OF COMPANY

16000.00 1600.00
14000.00
1 1400.00
AVERAGE OF NIFTY

12000.00
1 1200.00
10000.00 1000.00
8000.00 800.00
800

6000.00 600.00
600

4000.00 400.00
400

2000.00 200.00
200

0.00
0.00
k 20'dam 21FEb21 0.00
o_oo
Apr, 20 May, 20 Jun, 20 Jul, 20 Aug, 20 Sep, 20 Oct,
0:22C20 Nov, 20 Dec, 20 Jan, 21 Feb, 21 Mar, 21

Per
Per share
share price
price of the Company
Ofthe Compmy (in
(In `)
C) NIFTY Average (in
NIFTYAverage (In `)
t)

Company’s Average Share

Company's Average Share Price v/s
Ws Average
Average SENSEX
SENSEX

AVERAGE SHARE PRICE OF COMPANY

60000.00
60000.00
1600.00
1

50000.00
50000.00 1400.00
1200.00
8
AVERAGE OF SENSEX

40000.00
40000.00
1000.00
30000.00
30000.00 800.00
800

20000.00
20000M 600.00
600

400.00
400
10000.00
10000.00
200.00
200

0.00 0.00
o_oo
Apr, 20 May, 20 Jun, 20 Jul, 20 Aug, 20 Sep, 20 Oct, 20 Nov, 20 Dec, 20 Jan, 21 Feb, 21
21 Mar, 21
21

Per
Per share
share price
price of the Company
Ofthe Compmy (in
(In `)
C) SENSEX Average (in
SENSEXAverage (In `)
0

36 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 11 (Contd.)
Annexure (Contd)

6.16 Contact
6.16 Contact
Details
Details

Particulars Name Address Contact

Contact person Telephone
Telephone Fax
Fax Number
Ntmmber E-mail
E-mail id
id

name number
number

Registrar
Registrar Equity Integrated
Integrated 2nd
2nd Floor,
Acor, Kences
Kences Smt Anusha N
Smt Anusha N
+ 91 44 2814
* gl 442814
+ 91 44
44
csdstd@
and Transfer
Transfer Shares
Shares & Registry
Registry Towers,
Tcuers, No. 1 Sri K 0801
ceol /02/03 2814 2479
2814247g integratedindia.in
in

Agents (RTA)
Agents (RTA) Dividend
Divider-Z Management
Management Ramakrishna
Ramakrishna Street,
Street Balasubramanian
aalasubranænian
csdstd@
Services
Sewices Private
Private Off
Off North
Narth Usman
Usman
integratedindia.in
in
Public
Put'ic
Limited
Limited Road,
Aced. T T. Nagar,
Nager. or
issue
issue of
of
Chennai
Chennai
– 600 017
- Eco 017
scuf@
NCDs
NZs

2011,
2011. integratedindia.in
in

2012
2012 and
end

2019
Public
Zublic Shriram
Shriram Insight
Insight CK
CK- – 5 &15, Sector
sector II,II, *+ 91
gl 33
323250 + 91 33
32 scuf_nov13@
issue
issue of
of Share
Share Brokers
Brokers Salt
Selt Lake
Lake City
City. , Kolkata
Kolk* 7069 2358
2358 7189
71gg shriraminsight.
NCDs
NZs Ltd - 700 091 +91 33 2358 com
2013
2012
and 7188
7188
and
2014
2014 scuf_mar14@
shriraminsight.
com
Trustees for
Trustees
NCDs
for NCOs
Catalyst GDA House, First First
Floor, Ms. Rakhi Kulkarni
Ms. Rakhi Kulkarni
+ 91 20 25282528
+ 91 20
20
dt@ctltrustee.
Trusteeship
Trusteeship Plot
Plot No. 85, S S No. 94 0081 2528
2528 0275
0275 com
Limited & 94, Bhusari
& 04. Zhuseri Colony
Color-y or
(Right),
Fight), Kothrud,
Kothrud, grievance@
Pune – 411 038 ctltrustee.com
ctltrustæccm

Statutory Authoriti
Statutory Authorities
es Ministry
Ministry of of ‘A’ Wing, +91
egl 11 23382338

Corporate
Corporate Shastri
Sin-stri Bhawan,
Zhgwa,n. 4660/
4660/ 2338 4659
Affairs
Affairs (“MCA”)
CIMCA') Rajendara
Rajendera Prasad,
New Delhi – 110 001
New Delhi-VOC01

Securities
Securities and
and Plot
Plot No. C4-A,c.4-A, ‘G’ 'G' +91 22 22 2644
2644 +91 22
22 2644
2644 sebi@sebi.gov.in
Exchange Board acara Block, Bandra
agndra Kurla
Kurla 9000/
gow 4045
4045 9000 9019
nig –
- 22 /

of
of India
India (“SEBI”)
esgar) Complex,
Cc.mplex, 4045 9019-
Bandra
aendra (East),
East), 22
Mumbai
Mumbai –- 400 051

Reserve Bank of 16th Floor, Central

Reserve of IStf7 Central +91 22 22 2260

India
India (“RBI”)
(agar) Office
Office Building
Zuilding Shahid Shahid 1000
Bhagat Singh Singh Marg,
Merg.
Mumbai
Mumbai –- 400 001

Stock Exchanges
Stak Exchanges National
National Stock
Stcck Exchange Plaza, +91 22 22 2659 +91 22
22 2659

Exchange af of C-1,
C-I. Block
31cck G, G, Bandra
Zendra 8100 - 8114
Elm-g114
8120
3120

India Limited
India Limited
Kurla
Kurla
Complex,
(“NSE”) Bandra
genera (E), E).
Mumbai
Mumbai –- 400 051

BSE Limited
BSE Limited
Phiroze
Phiroze Jeejeebhoy
-leejeeb.hoy +91 22 2272
22 2272
+91 22 2272 corp.comm@
22 2272

(”BSE”)
(vase) Towers,
Tcmers, Dalal Street Street, 1233 1919
Igng
bseindia.com
Mumbai
Mumbai –- 400 001

Depository
Oe;ository National
National
Trade World, A
Trade World. A wing.
wing, +91 22 22
2499 +91 22 2497 info@nsdl.co.in
22 2407 inffnsdlcoin
Securities
Securities
4th
4th floor,
flccr. 4200 6351
Depository Kamala
emala Mills
Mills Toll
w free
free 1800goo 222
222

Limited
Limited (“NSDL”)
(ANSOI_•) Compound,
Cc.m;aurt. 990
Lower
Lcwer Parel,
Mumbai
Mumbai
–-
400 013
Central
Central Marathon Futurex,
Mg,æthcn Futurax. +91 22 22 2305
ZOS helpdesk@
helpdesk@
Depository
Cepository A
A - wing,
wing, 25th25th floor,
flor. 8640/8624/8639/ cdslindia.com
cdslir±iecom

Services
Sewices (India)
(India) N NM M Joshi
doshi Marg,
Marg, 8663
Limited
Limited (“CDSL”)
(ACDSL') Lower
Lcwer
Parel, Toll
W
free
free
1800 22 22

Mumbai – 400 013

Mumbai -
5533
The aforesaid
The afcæsgid details
details are
ere displayed
displayed on the website
on the website of
of the
the Company.
Company

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 37
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 1
Annexure 1 (Contd.)
(Contd.)

6.17
6_17 Share
Share transfer system:
transfer system:
Company’s
Companfs shares
shares areare held
held by the holders
by the holders inin dematerialised
dematerialised form
form and few share
and fe,v Shere holders
holders hold
hold itit in
in physical
physical form.
form. Members
Members
holding shares in physical form are requested to consider converting their holdings to dematerialised form. Transfer of
holding shares in physics' form are requested to consider converting their holdings to demateriElised form. Transfer of
shares
shares held
held inin dematerialised
dematerislised form
form are
are effected
effected through the depositories
through the with no
depositories with no involvement
involvement of the Company.
of the Company. In In terms
terms of
of
Regulation
Regulation 4040 of
of LODR securities can
LOCRsecurities can be
be transferred
transferred only
only in
in dematerialised
dematerialised formform w.e.f. April
April 1,
1, 2019
201 except
except in
in case
case of
of request
request
received
received for
for transmission
transmission or or transposition
trensP3sition ofof securities.
securities Transfer
Transfer ofDf shares
shares held
held in
in physical
physical formform areere effected
effected through
through thethe
RTA. Valid transfer
RTA Valid transfer requests
requests received
received on
on or before March
Drbefore Msrch 31,
31, 2021
2021 were
were processed
processed by the RTA
by the RTAand and within
within stipulated
stipulated time.
time The
The
documents
documents for for transfer
transfer ofof securities
securities held
held in
in physical
physic-I form
form can
can be
be lodged
'caged with
with respective
res*ctive RTAs.
RTAs The The Board
Board has
has delegated
delegated the
the
authority to approve
authority to transfer, transmission
approve transfer, transmission etcetc of
of shares
shares and
-nd securities
securities ofof the
the Company
Company to to it’s
it's BSMC.
aSMC. AsAs stipulated
stipulated under
under
Regulation
Regulation 40(9)
40(g) ofof the
the LODR, the Company
LCD*, the Company obtained
obtained half yearly certificates
half yearly certificates ofof compliance
compliance with with share
shsre transfer
trensfer formalities
formalities
from
from M/s
M/s SPNP
SPNP & & Assoc.ates,
Associates, Company
Company Secretary
Secretary inin practice
practice and filed copies
and fled copies of cf the
the said
said certificates
certificates with
with BSE & NSE during
NSEduring
FY21 within
within stipulated time. There
stipulated time. There were
were nono deviations
deviations reported
reported in
in the
the said
said certificates.
certificates TheThe Company
Company also also received
received internal
internal
audit
audit report
report of
of RTA.
RTA

6.18
6_18 Updation of Demographic
Updation of Demographic Details
Details :-

Updation
updation of
of Nomination,
Nomination, Permanent
Permanent Account
Account Number
Number (‘PAN”),
('PAN"),Bank account details
Bank account details and
and other
other required
required details
details can
cen be
be made
made
by
by applying
applying in
in the
the specified
s—ified form
form with
with necessary enclosure to
necessary enclosure to the
the RTA
RTAor or Depository
Depository Participant
Participant as the case
as the case may
may be.
t. SEBI
SEBI
has made PAN card as mandatory for transfer/transmission of securities.
has made PANcard as mandatory for transfer/trensmission of securities

6.19
6_19 Distribution
Distribution of
of shareholding as at
shareholding as at March
March 31,
31, 2021
2021

No.
No. of
of equity
equity shares
shares held
held Shareholders
Shareholders
Shares
Shares

Number
Number
% Number
Number
%
UPTO
UPTO 500 12,656
12,656 94.99 6,00,826 0.91
ogl

501-1000
501-1 on 296 2.22
222 2,22,502
2.22502 0.34
1001-2000
1 -21330 132 0.99 1,88,966 0.29
o:zg

2001-3000
2001-31330 65 0.49
0.4g 1,66,539 0.25
025

3001-4000
3001-41330 23 0.17
0.17 79,009
7g,czg 0.12
012

4001-5000
4001
25 0.19
ong
1,12,282 0.17
017

5001-10000
5001-1 COO
46 0.35 3,28,317 0.50
10001 AND
AND ABOVE
ABOVE
81 0.61 6,43,06,581 97.42
Total
Total
13,324
13,324 100.00
loom
6,60,05,022 100.00
100.00

6.20
620 Shareholding
Shareholding pattern
pattern (in
(in %) as at
%)as at March
March 31,
31, 2021
2021

Promoters
PrMnot8s
Mutual
Wttual
Banks
Balks
FII
NI
Bodies
Boda
Individuals
Intnvldu*
Limited
LB" tted
Foreign
Forelgn Foreign
Forelgn NRIs
NR's Others
Others Alternative
Alternattve
Total
Total

Funds
Ftmds
and FIs
and FIS
Corporate Liability
Llablllty Com
Com pany Portfolio
Portfollo
Investment
Partnership
PannerMIIp Investor Fund
34.6337
346337 3.5259
3525g 0.0044 0.0124
00124 10.1278
101278 2.4568
24568 0.0022
00322 20.3346
203346 28.4741
284741 0.1458
01458 0.2821
02821 0.0002 100
103

6.21
621 Dematerialisation
Dematerialisation of shares and
of shares and liquidity
liquidity

The
The Company’s
Company's equity
equity shares
shares are tradable compulsorily
are tradable compulsorily in
in dematerialised
dematerialised form
form in
in BSE
BSE and
and NSE, which are
NSE,which are managed
meneged by by
NSDL
NSDL and
and CDSL.
COSI. The
The connectivity
connectivity with
with NSDL
NSU andand CDSL
CDSLisis established
established through the RTA.
through the As on
RTA_As on March
March 31,
31 2021,
2021, 6,58,78,916
nos
nos of
of equity
eguity shares
shsres (99.80%
(EEO" of the shares),
ofthe shares), existed
existed in
in dematerialised
dematerialised form.
form. The
The Company’s
Company's shares
shares are
ere liquid
liquid and
and are
are actively
actively
traded
traded in
in both
tzth NSE
NSE and
and BSE.
BSE

6.22
622 Outstanding
Outstanding GDR/ADR/Convertible warrants, conversion
GDR/ADR/Convertible warrants, conversion date
date and
and impact
impact on equity
on equity

The
The Company
Company has
has not
not issued
issued any
any GDR
GDR // ADR. The
The Company
Company has
has granted
grant± stock
stcck options
options tto the
the eligible
eligible employees
employes of
of the
the
Company under Employees Stock Option Scheme, 2006. The details of the scheme are set out under annexure to Report of
Company under Employees Stck Option Scheme, 20CE.The details of the scheme are set out under annexure to Report of
Directors.
Directors

38 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 11 (Contd.)
Annexure (Contd)

6.23 Location
6.23 Location

The
The Company
Company is
is in
in the
the business
business of
of Non
Non Banking
Banking Finance
Finance and
and operates through various
D*retes through various offices
offices in
in India
India with
with registered
registerad office
office
at Chennai.
at Chennai

6.24 Address
6.24 Address for
for correspondence
correspondence

Registered
Registered Office
Office :123, Angappa Naicken
:123,Angeppe Naicken Street,
Street, Chennai
Chennai 600
600 001, Ph: +91
COI,Ph: +91 44
44 2534 1431
25341431

Secretarial
secretarial Office
Office :144, Santhome High
:144,santhome High Road, Mylapore, Chennai
Road,Mylapre, Chennai 600 004.
CU. Ph
Ph ::+91
+91 44
44 4392
43S2 5300 Fax
Fax No :: +91
+91 44
44 4392
4392 5430
5430
Email : sect@shriramcity.in
Email : spr.tßshriramniu in

6.25 Calendar
6.25 for the
Calendar for the financial
financial Year 2021 –
Year 2021 2022 (tentative)
—2022 (tentative)

Annual
Annuel General
General Meeting
Meting September,
September, 2022
2022
Unaudited results for
unaudited results for the
the quarter
quarter ending
ending June 30, 2021
dune 30, 2021 Last week of July,
Last week of July, 2021
2021
Unaudited results for the quarter / half –Year ending September
unaudited results for the gusrter / hslf -Year ending September 30,
30, 2021
2021 Last week of October, 2021
Last week of October, 2021
Unaudited results for the quarter ending December 31, 2021
unaudited results for the gusrter ending Cecemt:er 31 2CZ1 Last week of January, 2022
Last week of January, 2022
Audited
Audited results for the
results for Year ending
the Year ending March
Merch 31,
31, 2022
2022 Last
Last week
week of
of May, 2022
May,2022

6.26 Adoption
6.26 Adoption of
of Mandatory
Mandatory and
and Non
Non Mandatory
Mandatory requirements
requirements under
under LODR
LODR

The
The Company
Company hashes complied with all
comp liedwith all mandatory
mandatory requirements
requirements and
and has
has also
also adopted
adopted the
the non
ron mandatory
mandatory requirements
requirements deemed
deemed
appropriate. The report of the auditors of the Company does not contain any qualification on the financial statements. The
appropriate The reprt of the auditors of the Company does not contain any qualification on the financia' statements. The
posts
psts of
of Chief
Chief Executive
Executive Officer
Officer (“CEO”) and Chairman
("CEO")and Chairman of
of the
the Company
Company areere held
held by two separate
by two separate persons. The Company
persons The Company does
ces
not
not maintain
maintain a
e separate
separate office
office for the Non–executive
for the Chairman.
Nori—executiveChairmam

7.
7. COMPLIANCE
COMPLIANCE ON
ON FINANCIAL
FINANCIAL REPORTING
REPORTING

The
The Company complies with
Company complies with the
the requirements
requirements ofof Financial
Financial Reporting. TheThe MD
MÜ && CEO and CFO
CEOend CFOgivegive annual
annual certification
certification onon
financial reporting and internal control to the Board in terms of regulation 17(8) read with Part B of Schedule II of the LODR.
finsncisl reporting and internal control tc the Baard in terms of regulation 17(8) read with Part 3 of Schedule II of the LODR.
The
The said
said certificate
certificate issued
.ssued for
for FY21
Ff21 is
is attached
attached to
to this
this report
report as Annexure -- 4.
as Annexure 4 The
The CEO
CEO& MDMD and
and CFO
CFa also
also issue
Issue certificate
certificate
on
on financial
financial results
results every
every quarter,
quarter, while
while placing
placing the
the quarterly
quarterly financial
financial results
results before
before the
the BM
3M in
in terms
terms ofof Regulation
Regulation 33 33 (2)
(2) (a)
(a)
of the LODR.
of the LODR

8.
8.
COMPLIANCE
COMPLIANCE
WITH CORPORATE
WITH CORPORATE
GOVERNANCE
GOVERNANCE

We
We have
have complied
complied with the requirements
with the requirements of
of Corporate
Corporate Governance.
Governance A A certificate from the
certificate from the auditors
auditors of
of the
the Company,
Compeny, M/s
Ws GDA
GDA
Apte & Co., Chartered Accountants confirming compliance with the conditions of corporate governance as stipulated under
Apte & CD, Chartered Accountsnts confirming compliance with the conditions cf corporate governance ss stipulat± under
Part
Pert EE of
of Schedule V of
Schedule V of the
the LODR
LODRisis attached to this
attached to this report
report (Annexure
(Annexure NoNo -- 2).The
2)The certificate
certificate is
is without
without any
any adverse
adverse remarks,
remarks,
reservation.
reservation.

9. ELIGIBILITY
ELIGIBILITY FOR APPOINTMENT/CONTINUANCE AS
FOR APPOINTMENT/CONTINUANCE AS AA DIRECTOR
DIRECTOR

Each director has

Each director has declared
declared to the Company
to the stating that
O)mpany stating that he/she
he/she isis not
not disqualified
disqualified or
or debarred
debarred by
by the
the Board
Board // Ministry
Ministry of
of
Corporate
Corporate Affairs
Affairs (“MCA”)
('MCA') oror any such statutory
any such statutory authority
authority from
from being
being appointed
ap$nted as as a
a director
director on
on the
the board ofof company
company or or
to
to continue
continue ases director
director of
of company.
company. The
The Board
Board atEt its
its meeting
meeting held on June
held on dune 11,11, 2020
2020 appointed
appointed PSA
PSA , Practicing
Practicing Company
Company
Secretary
Secretary forfor verification
verification of the disqualification
of the disguelification of
of directors
directors and
and certify
certo thereon.
thereon Pursuant to Schedule
Pursuant to Schedule V V Para
Para CC clause
clause (10)
(10)
(i) of the LODR, the Company has obtained certificate from PSA, Practicing Company Secretary confirming that none of the
(l) of the LODR,the Camp-ny has obtained certificete from PSA Practicing Company Secret-ry confirming thst none of the
directors on the board of the company have been debarred or disqualified from being appointed or continuing as directors
directors on the board of the company have ten debsrred Dr disqualified from teng appinted or continuing es directors
of companies by
of companies by the
the Board/
Board/ Ministry
Ministry of
of Corporate
Corporate Affairs
Affairs or any
any such
such statutory
statutory authority
authority (Refer Annexure -- 10).
(Refer Annexure 1D)

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 39
M
*SHRIRA

Report
Report on
on Corporate
Corporate Governance
Governance
Annexure 2
Annexure 2

G.D.
G.D. Apte
Apte &
& Co.
co.
Chartered
Chartered Accountants
Accountants

Independent Auditor’s Certificate

Independent Auditor's Certificate on
on Compliance
Compliance with the Corporate
with the Corporate Governance
Governance requirements
requirements under
under SEBI
SEBI (Listing
(Listing Obligations
Obligations
and Disclosure Requirements) Regulations, 2015
and Disclosure Regulations, 2015
The Members
The Members Shriram
Shriram City
City Union
Union Finance
Finance Limited
Limited
1. This Certificate is issued in accordance with
This Certificete is issued In accord-nce with the terms of
the terms of our
our engagement
engagement letter
letter dated
dated October
October 16,
16, 2020.
2020.
2. 
2 We
We have
have examined
examined the the compliance
comp'ience of of conditions
conditions ofof Corporate
Corporate Governance
Governance by by Shriram
Shriram City
City Union
union Finance
Finance Limited
Limited (‘the
(the
Company’),
Company), for for the
the year
yesr ended
ended on
Dn March
March 31,
31, 2021,
2021 asas stipulated
stipulEted in
in Regulations
Regulations 17
17 to
to 27
27 and
and clauses
clauses (b)
(b) to
to (i)
(i) of
cf regulation
regulation
46
46 (2)
(2) and
and paragraphs
paragraphs C, C, D
D and
and EE of
of Schedule
Schedule V V of the SEBI
of the (Listing Obligations
SE81(Listing Obligations and
end Disclosure
Disclosure Requirements)
Requirements) Regulations,
Regulations,
2015
201 5 (“Listing
("Listing Regulations”).
Regulations")
Management’s
Management's Responsibility
3. The
The Management
Management is is responsible
responsible for
for ensuring that the
ensuring thet the Company
Company complies
complies with
with the
the conditions
conditions of
of Corporate
Corprete Governance.
Govemance
This
This responsibility
responsibility also
-Isc includes the design,
includes the design, implementation
Implement-ticn and
and maintenance
maintensnce ofof internal
internal controls
controls and
end procedures
prccedures to
to ensure
ensure
compliance
compliance with the conditions
with the conditions of the Corporate
of the Corporate Governance
Governance stipulated
stipulated in
in the
the Listing
Listing Regulations.
Regulations

Auditor’s Responsibility
Auditor's

4. 
4 Our
Our responsibility
responsibility isis limited
limited toto examining
examining the the procedures
procedures and
and implementation thereof, adopted
implementation thereof, adopted by by the
the Company
Company forfor ensuring
ensuring
the
the compliance
compliance of of the
the conditions
conditions of of the
the Corporate
Corporate Governance.
Governance ItIt is is neither
neither an
an audit
audit nor
nor an
an expression
expression ofof opinion
opinion onon the
the
financial
financial statements
statements of of the
the Company.
Comvny
5. We
We have examined the
have examined the books
books ofof account
account and
and other
other relevant
relevant records
records andend documents
documents maintained
maintained by the Company
by the Company for for the
the
purpose
purpose ofof providing
providing reasonable
reasonable assurance
assurance on the compliance
on the compliance with
with Corporate
Corporate Governance
Governance requirements
ra;uirements by by the
the Company.
Company.
6. We
We conducted
conducted our our examination
examination in in accordance
accordsnce with the Guidance
with the Guidance NoteNote on
on Certification
Certificstion of
Df Corporate
Corporate Governance
Governance issued
issued byby
the
the Institute
'nstitute of
of the
the Chartered Accountants of
Chartered Account-nts of India
India (“ICAI”), the Standards
("ICA13,the Standards on Auditing specified under
cn Auditing under Section
Section 143(10)
143(10) ofof the
the
Companies
Compames Act, Act, 2013, 3, in
in so far as
so fer as applicable
applicable for
for the
the purpose
purpose of this certificate
of this certificate and
and as
-s per
per the
the Guidance
Guidence Note
Note on
on Reports
Reports oror
Certificates for Special
Certificates for Special Purposes
Purposes issued
issued by
by the
the ICAI which requires
ICAIwhich requires that we comply
that we comply with the ethical
with the ethics' requirements
requirements ofof the
the Code
Code
of
of Ethics
Ethics issued
issued by the ICAI.
by the ICAL

Opinion
Opinion
7. We
We have
have complied
complied with the relevant
with the relevant applicable
applicable requirements
requirements of the Standard
of the Standard onon Quality
Quality Control
Control (SQC)
(SLC) 1,
1, Quality
Quality Control
Control
for
for Firms
Firms that
that Perform
Perform Audits
Audits and
and Reviews
Reviews of of Historical
Historical Financial
Financial Information,
Information, and
end Other
Other Assurance
Assurance andand Related
Related Services
Services
Engagements
Eng-gements issued
.ssued by
by ICAI.
ICAL
8. Based
Based onDn our
our examination
examination as as above
above and
and to the best
to the best ofof the
the information
information andand explanations
explanations given
given to
to us
us and
and representations
representations
provided
provided by
by the
the management,
management, we we certify
certify that the Company
that the Company has has complied
comp'ied with
with the
the conditions
conditions ofof Corporate
Corporate Governance
Governance as es
stipulated
stipulated in
in regulations
regulations 17 to 27
17 tc 27 and
and clauses
clauses (b) (b) to
to (i) of regulation
(l) of regulation 4646 (2)
(2) and
and paragraphs
paragraphs C, C, D
D and
end EE of
of Schedule
Schedule V V of
cf the
the
Listing
Listing Regulations
Regulations during the year
during the yesr ended
ended March
March 31,
31 2021.
2021
9. We further state that such compliance is neither an assurance as
We further state that such complisnce is neither en essurance as to the future
to the future viability
viability of
of the
the Company
Company nor the efficiency
nor the efficiency or
or
effectiveness
effectiveness with
with which the management
which the management has hes conducted
conducted the the affairs of the
affairs of the Company.
Company

Restriction
Restriction
on Use
on Use

10. The certificate is

10. The certificate is addressed
addressed andand provided
provided to
to the
the members
members of the Company
of the Company solely
solely for
for the
the purpose
purpose to enable the
to enable the Company
Company
to comply with
to comply with the
the requirement
ra;uirement of of the
the Listing
Listing Regulations,
Regulations, and
and itit should
should not
not be
be used
used by
by any
any other
other person
person or
or for
for any
any other
other
purpose.
purpose Accordingly,
Accordingly, wewe dodo not
not accept
accept or
or assume
assume anyany liability
'iEbility or
or any
any duty
duty of
Df care
cere for
for any
Eny other
other purpose
purpose or or to
to any
any other
other
person
person toto whom
whom this
this certificate
certificate is
is shown
shown or
or into whose hands
into whose hands itit may
may come
come without
without our prior consent
Durprior consent inin writing. We
We have
have no
no
responsibility to update this Certificate for any events or circumstances occurring after the date of this Certificate.
respnsibility to update this Certificate for any events or circumstances occurring after the dete of this Certificate

For G.
For G. D.
D Apte
Apte && Co.
co.
Chartered
Chartered Accountants
Accountants

Firm
Firm Registration
Registretion Number:
Number 100 515W
1C"]51SW
UDIN:
UDIN: 21121007AAAACE8729
21121007AÅAACE8729

Anagha M.
Anagha M. Nanivadekar
Nanivadekar
Partner
Psrtner
Membership
Membership Number.:
Number: 121
121 007
007
Pune, April 30, 2021
April 30, 2cr21

40 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Management
Management Discussion
Discussion and
and Analysis
Analysis
Annexure 3
Annexure 3

GLOBAL
GLOBAL
ECONOMY
ECONOMY
same
seme have
have been
been wavering.
wavering. Some
Some parameters
parameters have
have been
been

The COVID-19
The COVE-I g pandemic
pandemic ensued
ensued global
globel economic
economic downturn
downturn witnessing
witnessing progressive,
progressive, albeit
albeit gradual
gradual advances,
advances, while
while for
for
is the most severe one since the Global Financial crisis. The
is the most severe one since the Global Financial crisis The some
some segments, the improvements
segments, the improvements have
have been
been losing steam.
basingsteam

lockdowns
lcckdowns and
and social distancing norms
social distancing norms brought
brought the
the already
already Although
Although business
business and and commercial
commercial activity
activity is
is expected to to be
be
slowing
slowing global
globel economy
economy to to a standstill.
standstill. Global
Global economic
economic higher in the coming months with the resumption of economic
higher inthe coming months with the resumption of economic
output estimated to fall by 3.50% in 2020 (IMF January 2027
output estimated to fall by 350% in 2020 (WF January 2021 activity
activity and
and optimism
optimism surrounding
surrounding the the vaccine,
vaccine, uncertainty
uncertainty
estimates). Governments
estimates) Governments and end central
cent-sl banks
banks across the globe
across the globe abounds on all these fronts. Concerns over the new strain
ebounds on ell these fronts Concerns over the new strain of
of

deployed
deployed various
various policy
policy tools to support
tools to support their
their economies
economies such
such the
the virus
virus and
and associated
asscciated restrictions
restrictions might overshadow the
might overshadow the
as
as lowering
lowering policy
plicy rates,
rates, quantitative easing measures,
quantitative easing measures, etc.
etc. optimism of a faster vaccine fuelled economic recovery.
optimism of a faster vaccine fuelled economic reccp.rery.
As per
As per World
World bank
bank report,
report, following
following aa collapse
collapse last year
last year Outlook
Outlook

caused by the COVID-19 pandemic, global economic

caused by the nVlD-1g pandemic, global economic
In the next
In the next financial
financial year year (i.e.
(le 2021-22),
2021-22), thethe domestic
domestic
output is
output is expected
expected to expand 4% in
to expsnd in 2021.
2021 Global
Global growth
growth is
is
economy
economy is is projected
projected tc to register
register positive
positive growth
growth inin the
the range
range
projected to moderate
projected to moderate to to 3.80%
380% inin 2022,
2022, weighed
weighed down
down byby the
the
of around 9 to 11 %, fuelled up by the low-base effect. This
of around g to 11 'k, fuelled up by the low-base effect This
pandemic’s
Endem.c•s lasting
I-sting damage
damage toto potential
potential growth.
growth In In particular,
particular,
number
number cancen be
be lower
lower inin case
case there
there isis any
any improvement
improvement in in the
the
the impact
the impact of
of the
the pandemic
pandemic onon investment
investment andand human
human capital
capital
negative
negative growth
growth raterate of of FY21. However,
However, despite
despite the
the higher
higher
is
is expected to erode
expected to erode growth
grouth prospects
prospects in in emerging
emerging market
market
growth
growth trajectory,
trajectory, the
the size
size of the economy
of the economy would
would be be around
around
and
and developing
developing economies
economies (EMDEs).
(EMDEsl Although
Although aggregate
aggregate
that of 2019-20. With economic activity expected to attain the
that cf 201g-2D With economic activity expected to attain the
EMDE
EMDE growth
growth is is projected
projected to
to be
be around
around 4.20%
420% in in 2021-22,
2021-22,
pre-lockdown levels only gradually amid uncertain prospects,
pre-lockdown levels only grsdually amid uncertain prospects,
the improvement largely reflects China’s expected rebound.
the improvement largely reflects Chines expected rebound
the
the purported
purported growth
growth trajectory
trajectory of of the
the nation’s
nation's economy
economy has hes
Barring
Barring China,
Chine, the
the recovery
recovery across
across EMDEs
EMDEs is is expected
expected toto be
be
been
been effectively
effectively derailed
derailed forfor the
the next
next 1-2 years.
1-2 years
muted
muted at
at around
around 3.50%
350% in
in 2021-22
2021-22

(Source:
(Source: World
World Bank
Benk – Global Economic
—Global Economic Outlook
Outjock 2021).
2021). INDUSTRY
INDUSTRY REVIEW
REVIEW

Outlook
Outlook Indian
Indian Financial
Financial Services
Services Sector
Limiting
Limiting the
the spread
spread of the virus,
of the virus, providing
providing relief
relief for
for vulnerable
vulnerable India
India has
has aa diversified
diversified financial
financial sector
sector undergoing
undergoing rapid
rapid
populations,
populations, andand overcoming
overcoming vaccine-related
vaccine-related challenges
challenges expansion,
expansion, both
both in
in terms of strong
terms of strong growth
growth of
of existing
existing financial
financial
remain the key
remain the key immediate
immediate policy
policy priorities
priorities toto make
make a a turn
turn services
services firms
firms and
end newnew entities
entities entering
entering the
the market. The
market. The
around
around from
from the
the current
current worldwide
worldwide crisis.
crisis The
The global
globel recovery,
recovery, sector comprises commercial banks, insurance companies,
sector comprises commercial bsnks, Insurance companies,
which has
which has been
ten dampened
dempened in the near
in the neer term
term byby aE resurgence
resurgence ofof non-banking
non-banking financial
financisl companies,
comp-nies, co-operatives,
co-operatives, pension
pension
COVID-19
nVlD-1 g cases,
cases, is
is expected
expEted to tc strengthen
strengthen over
over the
the projected funds,
funds, mutual
mutual funds
funds and other
other smaller
smaler financial
finenciEI entities. The
entities The
period
peri± as confidence, consumption,
as confidence, consumption, and trade gradually
end trade gradually banking regulator has allowed new entities such as payment
banking regulator has allowed new entities such as payment
improve,
improve, supported
supported by by ongoing vaccination programme.
ongoing •vaccinationprogramme banks
banks toto be
be created
created recently,
recently, thereby
thereby adding
adding to to the
the type
type of
of
entities
entities operating
0*rating in in the
the sector.
sectr However,
However, financial
financial sector
sector in
in
INDIAN
INDIAN ECONOMY
ECONOMY
India
India is
is predominantly
predominantly a bankingbanking sector
sector with
with commercial
commercial

The economic
The economic fallout
fallout of the pandemic
of the pandemic led
led nation-wide
nation-wide banks
banks accounting
accounting forfor more
more than
than 64% of
of the
the total
total assets
assets held
held

lockdown on the Indian economy has been rather severe,with

lcckdown on the Indian econorny has been rather severe,with by the financial system.
by the financial system
GDP
GDP registering
registering 4.20%
420", growth
growth in in FY20.
Ff20 WithWith the onset of
the onset of the
the The
The Government
Guernment of
of India
India has
hes introduced
introduced several
several reforms
reforms to
to

pandemic
pendenc and end lockdown
lcckdown restrictions
restrictions on on economic
economic activity,
activity, liberalise,
liber-Ilse, regulate
regulate and enhance
enhance this this industry.
industry The
The Government
Government
GDP
GDP growth
groynh forfor FY21
FY21 is estimated to
is estimated to decline
decline by 7.70%.
by 770% and
end Reserve
Resen'e Bank
Benk of
of India
India (RBI) have taken
(981)have taken various
various measures
measures
Private consumption is estimated to contract by 9.50% in
Private consumption is estimated to contract by Y5D% in to facilitate easy access to finance for Micro, Small and Medium
to feciliteteeesyeccess to finance for Micro, Smell and Medium
FY21 owing to demand shrinkage based on income loss,
FY21 owing to demsnd shrinkage based on income loss, Enterprises (MSMEs). These measures include launching
Enterprises (MSMEs). These me-sures include launching
mobility
mobility restrictions
restrictions and supply constraints.
end supply constraints. Government
Government Credit
Credit Guarantee
Guarantee Fund
Fund Scheme
Scheme for for MSMEs,
MSMEs, issuing
issuing guideline
guideline
consumption is estimated
consumption estimated to to rise
rise byby 5.80%
580% duedue toto increased
increased to
to banks
banks regarding
regarding collateral
col'stera' requirements
requirements and and setting
setting upup aa
expenditure as part of pandemic relief packages. Although,
ex#nditure as part of pandemic relief packages. Although, Micro Units Development and Refinance Agency (MUDRA).
Micro Units Development and Refinance Agency (MUDRA).
since the unlocking (June ’2020 onwards), there has been
since the unlocking (dune '2020 onwards), there has been aa With
With ae combined
combined push
push byby Government
Government and and private
private sector,
sector, India
Indie
resumption
resumption in economic activity,
in æonomic activity, the
the pace
pace and
and extent
extent ofof the
the is
is undoubtedly
undoubtedly oneone of
of the
the world’s
world's most
most vibrant
vibrant capital
capitel markets.
markets.

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 41
M
*SHRIRA

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd.)

Financial
Financial
inclusion
inclusion
has accelerated since
has accelerated since
2014
2014
with the
with the
on March
on March 31,
31, 2020
2020 to
to ` 3.80
380 lacs
lacs crores
crores on
on March
March 31,
31, 2021
2021
roll-out
tll-out of of Pradhan
Pradhan Mantri
Mantri Jan-Dhan Yojana, UPI-based
Jan-Dhan Yojana, LIPI-based primarily on account
primarily on of deposit
account of depsit growth
growth outpacing
outpacing credit
credit
digital
digital payments
peyments and and linkage
linkage ofof Government
Government subsidies
subsidies tto growth
growth and
and a
e number
number of
of liquidity
liquidity injection
injection measures
measures (like
(like CRR
CRR
bank
bank accounts, creating growth
accounts, creating growth in the Indian
in the Indian banking
banking sector.
sector reduction,
reduction, OMO purchases) undertaken
OMOpurchases) undertaken by by the
the RBI.
RBI
The Government decided to consolidate public sector banks
The Government decided to consolidate public sEtor banks
(Source:
(Source: CARE Research end
CAREResearch and IBEF Report)
IBEFReport)
(PSBs) with the hope of creating larger banks with greater
(PSas) with the hope of creating larger banks with greater
financial strength,
financial strength, better
better international
internations' competitiveness
competitiveness end and Indian
Indian Non-Banking
Non-Banking Financial
Financial Companies
Companies (NBFCs)
(NBFCs)

ability
ability to
to support
support larger
lerger lending
lending volumes.
volumes Government
Government of cf India
India In the aftermath
In the aftermath of
of NBFC
N3FC crisis
crisis and
and pandemic,
pandemic, the
the sources
sources ofof
(GOI)
(GOI) has
has decided
decided to to recapitalise
recapitalise the
the PSBs
PS3s toto the extent of
the extent of funds, especially for small and mid-size NBFCs, got affected
funds, especially for small and mid-size N3FCs, got affected
` 20,000
20,000 crores.
crores due
due to
to risk
risk aversion
aversion of
of banks,
banks, while
while top
top rated
rated large
large NBFCs
NFCs were
were
The insurance
The insurance industry
industry is
is at crossroads. While
at crossroads While itit is
is among the
among the able
able to
to access funds via
acc:essfunds via multiple
multiple sources.
sources AsAs mentioned
mentioned in the
in the
fastest
fastest growing
growing markets
markets in
in the world, penetration
the world, *netreticn in the same
in the same RBI’s
Ralls Financial
Financial Stability
Stability Report,
Report, NBFCs
N3FCs and and HFCs continue to
HFCScontinue to
is
is low
low and
and coverage
coverage needs
needs to to be
be substantially
substantially increased
increased endand be
be the
the largest
largest borrowers
barrowers of of funds
funds from
from thethe financial
financia' system
system of
of
distribution has to be enhanced. Foreign Direct Investment
distribution has to be enhances Foreign Cirect Investment which a
which e substantial
substantial part of funding is
Ertoffunding is done
done byby the
the banks.
banks AmidstAmidst
(FDI)
(FDI) in
in insurance
insurance has
h's been
been increased to 74%
increesed to 74% inin the
the current
current these challenging
these challenging times,
times, overall
overall exposure
exposure of cf the
the banks to
banks to
budget.
budget A A possible
possible strategic
strategic disinvestment
disinvestment of
cf a
a PSU insurance
PSIJinsurance NBFCs has been increasing. The Commercial Papers (CPs) and
NBFCshas beenincreasinlJ The C.ommercialPapers(CFS)end
company
company andand IPO
IPOofof LIC
LIC have
have been
been announced
announced byby the
the GOI.
GOL Corporate
Corporate Debt
Debt (CDs)
(CDs) deployed
deploy± together
together in in NBFCs
NFCs increased
increased

Indian
Indian financial
financial services sector
services sector scenario
scenario in
in FY21 has has been
teen in January 2021 and reached at level witnessed in January
in January 2021 and reached et level witnessed in denuary

quite different from the past. There is surplus liquidity in

quite different from the past There is surplus liquidity in 2020. Banks’ outstanding credit to NBFCs registered a slower
2020 Banks' outstanding credit to NFCs registered a slower

the system. Growth in credit is lagging that of deposits

the system. Growth in credit is lagging that of deposits growth
growth ofof 6.60%
681% in in January
Janu-ry 2021 (as (as compared
compered withwith 35.80%
3580% in in
and
and yet
yet there
there isis aa tendency
tendency for for GSec yields to
GSec yields to increase
increase notnot January 2020) largely due to high base effect and investment
danuery 2020) largely due to High base effect and investment
withstanding
withstanding aggressive
aggressive measures
measures by the RBI tc
by the to keep
keep them
them by
by banks
banks in
in NBFCs
N3FCs through
through various
various capital
cepitsl market
merket instruments
instruments
down.
down. AtAt the
the same
ssme timetime banks
banks are-re lowering their lending
lowering their lending rates
rates supported
suppyted by by RBI/Government
R3LiGcvernment of of India.
Indie. Growth
Growth in in bank
bank credit
credit
tto garner
garner business
business especially
especially on on the retail side. Hence the
the retail side Hence the to NBFCs
to N3FCs hashas registered
registered as downward
downward trendtrend due
due to
to risk
risk aversion
eversion
movement
movement of of commercial
commercis' lending
lending ratesrates and
and GSecs
GSecs are are not
not in
in the
the banking
benking system.
systenmHowever,
However,thethe same
seme improved
improved to to 9.20%
in
In consonance.
consonance During During thethe financial
financial yearyesr FY21, the the banking
banking in
in February
February 2021
2021 indicating
indicating ease
ease of
of fund
fund availability
availability for
for NBFCs
NFCs
system liquidity surplus has widened from ` 2.52 lacs crores
system liquidity surplus has widened from 2.52 lacs crores and
and enhancement
enhancement in turnaround opportunities.
In tumaround opportunities.

Figure
Figure 2:
2: Growth
Growth in
in bank
bank credit to NBFCs
credit to NBFCs vis-a-vis
vis-a-vis overall
overall bank
bank credit growth
credit growth

40%
29.0%
290%
25.9% 30.3%
30
30% 25.7%
24.1%
24.1 %

20% 17.0%
12.1%
121%
9.2% 7.8% 8.4%
10% 6.6%
6.7% 7.3% 6.8% 6.7% 6.7% 6.0% 5.8% 5.6% 6.0% 5.9% 5.7%
0%
Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

— Gross
Gross bank
bank credit to NBFCs
credit to NSFCs YoY
YoY growth
growth (%)
(Z) bank
bank credit
credit growth
growth (%) YoY
YoY

42 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd)

Outlook
Outlook
a
e key
key employment
employment generator.
generator. Therefore, the government
Therefore, the government has
hes

A year
A year into the post
into the post COVID-19 world, the
COVE-I g world, the sector
sector expected to
expected to taken
tsken up
up promotion
promotion ofof MSMEs
MSMEs in in order
order to
to create
create new jobs in
new jobs in
get relief through privatisation and recapitalisation of
get relief through privstissticn and recapitslisstion of PSBs,
PSas, the
the sector.
sector Further, the government
Further,the government aims
aims to
to enhance
enhance MSME’s
MSME's

simplification
simplification of
of governance
governance reforms,
reforms, easing
easing of
of credit
credit access
access share
share in
in exports
exports and
end its
its contribution
contribution to
to GDP.
GDP

norms
norms and a boost
and e boost tto digitisation.
digitisatiom Inn order
orderto to achieve these targets,
achievethese targets, the
the government
government shouldshould invest
invest
in providing more back-end services to improve performance
in providing more back-end services to improve performance
INDIAN
INDIAN MSME
MSME SEGMENT
SEGMENT
of the MSME
of the MSME sector.
sector Lack
Lack of technology-based production
of techno'cgy-based pr±uction

The Micro,
The Micro, Small
Small and
and Medium
Medium Enterprises
Enterprises (MSMEs)
(MSMEs) sector
sector is
is aa activities and low investment in R&D activities are bottlenecks
activities end low investment in activities are bottlenecks

major contributor to
major contributor the socio-economic
to the sccio-economic development
deve'opment of of the
the hindering
hindering the the sector
sector to to become
become competent.
competent Globally
Globally available
available

country. In
country In India, the sector
India, the sector has
has gained
gained significant
signifænt importance
importance technology could be subsidised by the government so
technology could subsidised by the government so

due
due to
to its
its contribution to Gross
contribution to Gross Domestic
Domestic Product
Product (GDP) of
(GDP) of that the product quality of MSME players can be improved
that the product quality of MSME players can be improved

the country and exports. India has approximately 6.30 crores

the country and exgzrts India has Epproximately 630 crores using
using the the existing
existing resources.
resources ThisThis also
also requires
requires the
the help
help of
of

MSMEs.
MSMES The number of registered
Thenumberof registered MSMEs
MSMEsgrewgrew 18.50% Y-o-Y
18.50%Y-o-Y academic
ecadem.c institutions
institutions inin the
the form
form of of providing
providing research
research andand

to reach
to reach 25.13
25.13 lacs
lacs (2.50
(2.50 lacs)
lacs) units
units in
in 2020
2020 from
from 21.21
21.21 lacs
lacs development
development (R&D) services for
(R&Ü)services for product
product innovation.
innovation.

(2.10 lacs) units in 2019. The Indian MSMEs sector

(2.10 lacs) units in 2019 The Indian MSMEs sector Role
Role of
of NBFCs
NBFCs in
in MSME
MSME Financing
Financing
contributes about
contributes about 29%
29, towards the GDP
towards the GDP through
through its
its national
national
Providing
Providing reliable
reliable access
access tto efficient
efficient formal
formal credit
credit to
to MSMEs
MSMEs
and international trade.
and international trade
has
has long
long been
been challenging
chalenging due to
due to
The sector
The sector has
has been
been rendered vulnerable by
rendered vulnerable by the
the pandemic
pandemic
(i) 
(i) inadequate
inadequate formal
formal data
deta for
for credit
credit assessment
assessment in
in case
case of
of
necessitating concerted effects to combat the stress and
necessitating concerted effects to combat the stress end informal,
informal, micro
micro SMEs,
SMSs,
focus on the revival of the sector. Reserve Bank of India (RBI)
focus on the revive' cf the sEtor Reserve Bark Df India (RBI)
(ii) 
(ii) lack of tailormade
lack of tailormade products
products to
to suit the borrower
suit the ±rrower and
and
made
msde crucial
crucial interventions
interventions toto support the economy’s
support the economy"s critical
critical
lender risk profiles/appetite,
lender risk profiles/appætite,
sector. Budget Outlay to the MSME sector doubled to ` 15,700
sector. Budget autlsyto the MSMEsector doubled to 15,713]
(iii) 
(iii) long
long turn-around
turn-around times
times for
for granting
granting loans,
loans, and
and
crores in
crores in the
the Budget of 2021.
Budget of Also, the
2021 Also, the changes
chenges in in customs
customs
duty
duty in
in current
current year
year budget will provide
budget wil provide aa level
level playing
playing field to
field to (iv)
(iv) the
the requirement of collateral,
requirement of collateral, guarantees,
guarantees, etc.
etc required
required

MSMEs
MSMEs and
and aid
aid in
in attaining
attaining global
global competitiveness.
competitiveness by most traditional lenders.
by most traditional lenders.

MSMEs
MSMEs are are being encouraged to
being encouraged to market
market their
their products
products Over
Over the
the last
last decade,
decade, NBFCs
NFCs have have been
been significant
significant credit
credit

on the e-commerce site, especially through Government

on the e-commerce Site, especially through Government providers to MSMEs especially at the lower end. Well
providers to MSMEs especialty at the Zwer end Well
e-Marketplace (GeM),
e-Marketplace (GEM), owned
owned and
end run
run by the government,
by the government, established
established regional
regional NBFCs
EFCs with with in-depth
in-depth knowledge
knowledge of of micro
micro
markets
markets andand low-cost
low-cost distribution
distribution networks
networks provide
provide access
access toto
where from
where from Ministries
Ministries and
end PSUs (public sector
PSUs(public sector undertakings)
undertakings)
credit to MSMEs
credit to MSMEs beyond the the tier
tier I cities, while focusing
cities,while focusing onon credit
credit
source
source their
their procurement.
procurement The The platform
platform hashas recorded
recorded
underwriting
underwriting tailored
teilored to
to informal
informs' and end smaller
smaller MSMEs.MSME
MSMEsMSME
transactions worth ` 55,048 crores (USD 7.50 lacs) until
transactions worth 55,048 crores (USD 7 50 lacs) until
lending segment has seen maximum disruption through
lending segment has seen maximum disruption through newnew
September
September 2020.
2020.
business models including the evolution of fintech lenders
business models including the evolution of fintech lenders
Increasing
Increasing digital
digital payment
payment and
and digital
digital penetration
penetration across
across
seeking
seeking toto use
use innovative
innovative approaches
approaches to to credit
credit underwriting
underwriting
the country has the potential to raise the productivity of
the country has the potential to raise the productivity of and offering innovative
end offenng nnovative products
products with with aa lower turn-around time.
lowerturn-around time.
agriculture,
agriculture, manufacturing
manufacturing and
-nd businesses
businesses as as well
well as
as improve
improve
NBFCs serve MSMEs through
NBFCs serve MSMEs through
the delivery
the delivery of
of public
public services
services like
like healthcare
hes'thcsre and
and education.
educatiom
(i) 
(i) differentiated
differentiated credit
credit underwriting
underwriting approach
approach thatthet takes
takes
In the financial
In the financial sector
sector this
this could
could lead to higher
lead to financial
higher financial
into account multiple sources of data (formal and
Into account multiple sources cf data (formal and
inclusion,
inclusion, lesser
lesser information asymmetry and
information asymmetry and reduced credit
reduced credit
informal)
informal) inin the
the absence
absence ofof credit
credit ratings/formal
ratings/fDrmsl data,
data,
risk. Measures on credit access, digital adoption end
risk Measures on credit access, digit-I adoption and reskilling
reskilling
seasonality
seasonality of of cashflows,
cashflows, industry
industry and
end cluster
cluster risks,
risks, as
as
would be
would be critical to support
critical to support MSMEs, which were
MSMEs,which amongst the
were emongst the
well
well as
es a
a 360-degree
360-degree viewview of
of the
the borrower,
borrower,
worst hit
worst hit during
during the
the pandemic.
pandemic.
(ii) designing
designing product
product offerings that are
offerings thet are best
best suited
suited to
to their
their
Outlook
Outlook
target segments keeping in mind the customers working
target segments keeping in mind the customers v.Uking
The Government
The Government of India
of Indie has
has envisioned
envisioned to double
to double the
the Indian
Indian capital
capital cycle/cash
cycle/cash flow
flow requirements,
requirements,

economy to
economy to USD
IJSÜ 5
5 trillion
trillion in
in five
five years.
years In
In order
order tto achieve
achieve (iii) 
(Iii) reduced turn-around times
reduced turn-around times from
from credit
credit appraisal
appraisal to
to
this goal,
this goal, career opportunities for
career opportunities for the
the young
young population
population has
has disbursement through standardised processes and use
disbursement through standardised prccesses and use
to be
to be generated
generated and
and MSMEs
MSMEs have the potential to
have the to serve
serve as
as of
of technology.
technology.

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 43
M
*SHRIRA

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd.)

The NBFCs’
The N3FCs' difference
difference in
in approach
approach to to underwriting
underwriting MSME
MSME the Government’s
the Aatmanirbhar Bharat
Government's Aatmanirbhar Bharat initiative
initiative to
to promote
promote
credit
credit has
has been
been made
made possible
possible by their focus
by their fccus or
or specialisation
specialisation localisation
lccalisation in
in auto
auto spare
spare parts
parts manufacturing.
in
in MSME-lending
MSME4ending by by sector,
sector, geography,
gecgrsphy, client
client segment,
segment or or aa
The emphasis
The emphasis on on credit
credit availability
availability will
will support
support demand
demand
combination of these
combination of these factors
factors and
and their
their calibrated
calibrated operations
operations
recovery
recovery in
in the
the sector.
sector The
The continued
continued focus
fccus on
Dn building
bunding rural
rural
and streamlined distribution
and streamlined distribution networks
networks designed
designed tto best
best serve
sewe and
and agricultural
agricultural infrastructure
infrastructure and
end prioritising
prioritising agriculture
agriculture
their customers.
their customers.
credit growth will have a long-term positive impact on
credit growth will have a long-term ;csitive impact on the
the
(Source:
(Source: The
The Economic
Economic Times)
Times) rural demand for passenger, small and light commercial
rural demand for passenger, small and light commercial
vehicles.
vehicles
Role
Role of
of NBFCs
NBFCs in
in Automobile
Automobile Loans
Loans Financing
Financing
(Source:
(Source: CARE Research)
CAREResearch)
NBFCs
NFCs take take exposure
exposure to to wholesale
wholesale as es well
well as
es toto retail
retail
sectors. The retail loan book exposure of the NBFCs consist
sætors. The retail boantook exposure of the NFCs consist Role
Role of
of NBFCs
NBFCs in
in Gold
Gold Loans
Loans Financing
Financing
of vehicle financing,
of vehicle financing, housing
housing loans
loans and
and microfinance
microfinsnce whilst
whilst
Gold
Gold is treated as
is treated es aa very
very important
important asset asset among
among the the Indians
Indians
the wholesale
the wholesale portfolio
portfolio exposure
exposure includes
includes infrastructure
infrastructure
and
and is
is considered
considered beingbeing a representative
representative of of financial
financial security,
security,
loans and structured
loans end structured credit
credit products,
products, among
among others.
others NBFCs
NFCs
social
sccial status
status and-nd cultural
cultural legacy.
*acy In In India,
India, due
due toto emotional
emotional
take enormous exposure to vehicle financing. Around 85%
take enormous exposure t vehicle financing. Around 85%
value associated
value associated with with gold jewellery, people
go'd jewellery, people pledge
pl±ge thethe same
same
of the total
of the vehicle financing
total vehicle financing exposure
exposure of of NBFCs
NFCs is is from
from
as collateral instead of selling it and secure gold loans. The
as collateral instead of selling it and secure gold loans The
commercial
commercial vehicles
vehicles (CVs) and passenger
(CVS)and pessenger car/utility
car/utility Vehicles
Vehicles
organised gold
organised gold loan
'DEn market
merket in in India
India comprises
comprises of of banks,
banks,
(UVs)
(I-Ws) financing.
financing. Balance
Balance include tractor/two/three wheeler
include tractor/two/three wheeler
NBFCs
N3FCs and end Nidhi companies. However,
Nidhi companies. However,gold gold loan
loan NBFCs have
NEFCshave
financing. consistently increased their market share through aggressive
consistently increased their market share through aggressive
The automotive
The autmotive sector
sector that was already
thet was already grappling
grappling with fall
with fell investments
investments in in branding,
branding, promotion
promotion and end geographical
gecgraphical
in
in consumer demand in
consumer demand in FY20,
Ff20, was further affected
was further affected by the
by the expansion. These
expansion These NBFCs
NFCs hold hold competitive
competitive edge edge over
over banks
banks
ongoing
ongoing pandemic
Endemic in
In FY21. Due
Due to the pandemic,
to the pandemic, the first
the first and other financiers through faster loan processing, accurate
and other financiers through faster loan processing, accurate
half
half of
of FY21 saw aa sales
Ff21 saw sales decline
decline of close to
of close to 38% due
due toto aa gold
gold evaluation,
evaluation, safekeeping
sefekeeping and end auctions
auctions of of gold. With this,
goli With this,
combination of supply and demand disruption. However, the
combination of supply and demand disruption However,the the NBFCs
the NFCs are are well
well poised
poised toto increase
increase their
their loan
loan book
book size
size
market
market has
has since
since shown
shown green
green shoots
shoots of
of recovery, with high
recovery,with high going
going forward
forward with the demand
with the demand increase
increase among
-mong customers
customers
growth
growth in second half
in second half year of FY21. Segments
year of Segments like tractors,
like tractors, driven
driven by by higher
higher economic
economic activity
activity throughout
throughout the the country
country
passenger
passenger vehicles
vehicles and two-wheelers showed
and two-wheelers showed an an impressive
impressive post
post ‘unlock’
'unlock' phases.
phases
recovery on a sequential basis in FY21. Demand for
recovery on a sequential basis in Ff2V Demand for
(Source:
(Source: KPMG
KPMG Report)
Report)
automobiles
automobiles inin FY22
FY22willwill depend
depend on on how
how quickly
quickly the economy
theæonomy
progresses and lifts
progresses end consumer incomes.
lifts consumer incomes. Role
Role of
of NBFCs
NBFCs in
in Housing
Housing loans
loans

Medium
Medium andand Heavy
Heavy Commercial
Commercial Vehicles
Vehicles (MHCVs)
(MHCVs) segment
segment NBFCs
N3FCs remained
remained the the biggest
biggest engines
engines forfor the
the housing
housing finance
finance
is
is expected
expected to to bebe the
the last
last segment
segment tto recover
recover asas its
its growth
growth drive
drive in the country
in the country since
since last
I-st one
one decade.
decede They
They are
ere
performance is directly proportional to the pick-up in country’s
performance is directly prv:rtiDnsl to the pick-up incountry's the largest
the largest borrowers
borrowers of of funds
funds from
from the the financial
financial system.
system
infrastructural
infrastructural endand mining
mining activities.
activities Light
Light commercial
commercial Housing
Housing Finance
Finance Companies
Companies (HFCs)
(HFCs) in in FY21
FY21 might
might witness
witness
vehicles are
vehicles are expected
expected tto perform
perform better than MHCVs
better than MHCVs withwith aa growth
growth of of 10-12%
10-12% on the back
on the back of of Governments
Governments push push onon
sustained
sustained
demand from the E-commerce sector
demand from the E-commerce
and increase
sector and increase affordable
affordable housing,
housing, newnew business
business strategies
strategies like
like co-lending
co-lending
in freight movement. Within the three wheelers industry,
in freight movement Within the three wheelers the
industry, the with banks
with banks and
and leveraging
lever-ging loan
loan securitisation.
securitisatiom However, asset
However,asset
passenger carrier segment will continue to be under pressure
passenger carrier segment will continue to under pressure quality in the wholesale books remains to be a key concern
quality in the wholes-le tzoks remains to be a key concern
due
due to
to the
the prevailing
prevailing social
social distancing
distsncing norms,
norms, while
while the goods
the goods which might
which might adversely
adversely impact
impact provisions
provisions and and profitability
profitability
carrier
carrier segment
segment is is expected
expected toto augur
augur well. The demand
well The demand forfor thereon.
thereon.

tractors is expected to continue staying strong, owing to aa

tractors IS expected to continue staying strong, owing to
The wide
The wide differential
differential among
among NBFCs’ funding costs
NFCs' funding costs is is likely
likely
resilient
resilient rural
rural economy.
economyt
to push the sector to consolidate, especially in the sectors
to push the sector to consolidate, especially in the sætors
The voluntary
The voluntary vehicle
vehicle scrappage
scrappage policy
policy along
along with
with mandatory
mandatory with aa thin
with thin margin
margin profile
profile and
and limited
limited product
product differentiation,
differentiation,
vehicle fitness
vehicle fitness tests
tests is
is expected
expected toto boost
boost personal
*rsonal endand while the
while the strong
strong regulatory
regulatory support
supprt inin FY21 ensured adequate
FY21ensured adequate
commercial vehicle demand.
commercial vehicle demand The
The customs
customs duty
duty rate
rate has
has been
teen liquidity.
liquidity Going forward, the
Going forward, the NBFCs
NFCs will will also
also look
look at taking
et taking
increased
increased onon certain
certain auto
auto parts
parts (such
(such as
-s ignition
ignition wiring
wiring sets,
sets, advantage of the co-lending opportunities presented by
advantage of the co-lending opportunities presented by
safety
safety glass,
glass, parts of signalling
parts of signalling equipment)
equipment) being in
in line
line with
with regulations
regulations and
end try
try tto earn fee incomes
earn fee Incomes from the stream.
from the stream

44 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd)

PERSONAL
PERSONAL
LOAN
LOAN
Raised
Raised longer tenure resources
longer tenure resources through
through fresh
fresh long-term
long-term

Personal
Personal loan availment from
loan evailment from NBFCs
NFCs has has gained
gained momentum
momentum borrowings
borrowings
in last few years due to their ease of availability and also
in last few years due to their ease cf -veil-bility end also due
due Reinstated
Reinstated credit fundamentals through
credit fundamentals through strong
strong credit
credit
to change in the behavioural consumption pattern among
to change in the behavioural consumption pettern among ratings
ratings received
received from
from multiple
multiple credit
credit rating
rating agencies
agencies
people.
people With the advent
With the advent of of newer technological platforms
newer technolæical platforms and
end
Improved collection efficiency
Improved collection efficiency and
and asset
asset quality
quality through
through
ease of
ease of credit
credit norms
norms to to avail
avsil personal
Frsonal loans,
læns, increasing
increasing number
number
state-of-the-art coverage network
state-of-the-art coverage network and
and distribution
distribution
of people
of people are
are showing
showing affinity to avail
Effinity to the same.
-veil the same Personal
Personal
systems
systems
loans, which are typically consumption loans borrowed
loans, which ere typically consumption loans ±rrowed
Strong
Strong focus
focus on
on technology
technobcgy platforms
platforms to leverage
to leverage the
the
without any
without any security
security to to meet
meet expenses,
expenses, have have witnessed
witnessed a a 23%
opportunities
opportunities emanating from digital
emanating from digital based lending
based lending
year-on-year rise
year-on-year rise in
in the
the number
number of of women borrowers in
w,vcmenborrowers in the
the
trends.
trends
first nine
first nine months
months of of 2020-21
2020-21 (FY21)
(FV21) (till
(till December
December 2020).
2020)
(Source:
(Source: CRIF High Mark
CRIFHigh Mark Report)
Report) Key
Key Financial
Financial Ratios
Ratios

Key
Key Ratios-IND AS
Ratios-IND AS Year
Year Ended
Ended Year
Year Ended
Ended
COMPANY
COMPANY REVIEW
REVIEW
FY20 FY21
FY21

Incorporated in in 1986, Shriram City

lg86, Shriram City Union
union Finance
Finance Limited
Limited Return
Retum onon Average
Average Total
Total 3.31%
3.31 % 3.10%
3.10%

(‘Company’)
(Company') has has grown
grown to to be
be one
Dne of
of the
the leading
leeding NBFCs
NBFCs in in Assets (Annualised)
Assets(Annualised)
the retail
the finance industry,
retail finance industry, providing
providing timely
timely borrowings
borrowings to
to its
its Return
Return on
cn Average
Average Net
Net 14.71%
14.710/0 13.19%
Worth
Worth (Annualised)
(Annualised)
customers end
customers and delivering value to
delivering vslue to its
its stakeholders.
stakeholders. With
With its
its
Earnings
Earnings per
per share
share (`)
(t) 151.60
15160 153.16
153.16
pan India presence of 926 branches, it has developed AUM
pen India presence of branches, it has developed ALIM
(Basic)
(Basic)
of ` 29,571
of 2g,571 crores
crores inin FY21. The
The Company’s
Company"s product
prcZuct portfolio
portfo'ic
Book
acok value per share
valueper (`)
Shere(t) 1,092
1,ogz 1,230
11230
encompasses providing
encompasses providing borrowings
borrowings to to small
smal scale
scale business
business
Capital Adequacy Ratio
Capital Adequacy Ratio 27.69%
27.69,
28.64%
28.64%
owners; lending
owners; lending for
for purchasing
purchasing twotwo wheelers,
wheelers, commercial
commercial
(CAR)
vehicles, passenger cars, loan gold, personal loan,
vehicles, passenger csrs, en gold, personal Ben, loan
loan
Interest
Interest Coverage
Coverage Ratio
Ratio 1.63 1.65
1.65
against property and Pre-owned Two Wheelers loans.
against property and Pre-owned Thu)Wheelers loans.
Debt-Equity Ratio
Debt-E j Retia 3.21
321 3.15
3.15

Asset Under
Asset Under Management
Management as
as on
on March
March 31
31 (`
g in
in crores)
crores)
OPPORTUNITIES
OPPORTUNITIES
AND THREATS
AND THREATS
` in
In crores
crores

2019
201 g
2020
2020
2021
2021 Opportunities
29,582
29,582 29,085
29,085 29,571
29,571 Leverage
Leverage thethe strong
strong parentage
parentage of
of being
being one
one of
of the
the

Product
Product wise
wise performance
performance review
review (`
(e in
in crores)
crores) largest financial conglomerates in India
largest financial conglomerates in India

` in crores
in crores Brand equity to
Brend equity to garner
garner higher
higher acceptability
acceptability among
among the
the
underprivileged section of the society
underprivileged section of the society
Loan
Loan Type
Type Disbursement
Disbursement AUM
AUM inin

in 2020-21
in 2020-21
2020-21
2020-21 Higher
Higher and
and ever-increasing
ever-increasing government
government regulations andand
MSMEs
MSMEs 3,241
3,241 15,070
15,070 tightening of
tightening of norms to restrict
norms to restrict competition
competition and
and deter
deter
Two-wheelers
Two-wheelers
5,134
5,134 6,884 entry
entry of
of unorganised
unorganised players,
players, thus
thus benefiting
benefiting the
the leaders
leaders
Gold
Gold Loans
Læns 5,927
5,927 3,789
3,789 in
in the
the industry
industry
Personal Loan
Personal Loan 1,493
1,4g3 2,007
2,007

Increasing
Increasing geographical
*Dgrephical reach
reach and
and higher
higher customer
customer
Auto Loan
Auto Loan 257 546 base creating opportunity to penetrate further into
bese creating opportunity to penetrate further into the
the
Pre-owned
Pre-owned Two Wheelers
Two Wheelers 913 1,087
1,087
hinterland
hinterland
Loan
Loan Against
Against Property
Property 189 188
Increasing
Increasing disposable income,
income, change
change in
in consumption
consumption
Total
Total 17,154
17,154 29,571
29,571
pattern
pattern and
and shift
shift in
in mindset
mindset to
to spend
spend bringing
bringing in
in higher
higher
Key
Key highlights
highlights in
in 2020-21
2020-21
demand
demand for consumer loans
for consumer loans

Driven
Driven growth
growth through
through strong
strong demand
demand pull
pull from
from the
the
With
With government’s
government's initiatives
initiatives to
to increase
increase spend
spend in
in the
the
MSME loan and the two wheeler loan segments
MSME loan and the two wheeler ben segments
MSME segment to increase start-up businesses and
MSME segment to increase start-up businesses and
Achieved strong financial
Achieved strong financial growth through higher
growth through higher NIM
NIM thus demand for MSME loans
thus demand for MSME loans

(Net Interest Margin) of 12.29% and stronger loan yields

(Net Interest Margin) of 12.29; and stronger loan yields
of 19.57%
of 19.57%

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 45
M
*SHRIRA

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd.)

Threats
Threats
All employees
All employees across
across the
the levels
levels are
are encouraged
encouraged to to maintain
maintain


Increasing
Increasing competition
competition from
from thethe global
global and
end local
lccal the highest
the highest standards
standards of
of integrity,
integrity, honesty
honesty and ever-learning
end ever-learning
competitors in terms of product development end
competitors in terms of prc.duct development and attitudes. The company
attitudes. The company maintains
maintains cordial
cordisl relationship with
relstionship with

technology
technolcgy innovations
innovations leaving very thin margin
leaving verythin margin of
of errors
errors its
its employees,
employees, provides
provides equal
equal opportunities
opportunities andand implements
implements
policies
*icies on
cr. prevention
prevention of
of sexual
sexual harassments
harassments of
of women
women

Regulatory and compliance
Regulatory end compliance related
related changes
changes in the
in the
workforce on the job. Total number of employees as
workforce on the job Total number of employees as on
on
sector
sætor affecting
effating NBFCs
N3FCs
March
March 31,
31, 2021
2021 was
was 24,963.
24,g63
Growing
Growing commoditization
commoditization of the financial
of the financial products
products
remain the toughest challenge for the Company.
remain the toughest challenge for the Company.
RISK
RISK MANAGEMENT
MANAGEMENT

Risk
Risk management
management remainsremains an en integral
integral part
pert of
of the
the Company’s
Company's
HUMAN
HUMAN RESOURCES
RESOURCES
business
business DNADNA over the years.
over the year. TheThe Company,
Company, beingbeing engaged
engaged
Amidst todays
Amidst today’s evolving
enlving socio-economic
sad-economic changes,
changes, attracting
attracting
in the retail lending business, has to face and manage
in the retail lending business, hes face and manage
the best talents from the industry, maintaining their highest
the best talents from the industry, maintaining their highest
different
different risks
risks throughout
throughout its its business
business spectrum
spectrum suchsuch as es
productivity
productivity level through continuous
level through continuous skill
skill building
building exercises
exercises
credit risk,
credit risk, market
market risk,
rise operational
operational risksrisks etc.
etc The
The Company
Company
and
and retaining them in
retaining them the organisation
in the organisation plays
plays a pivotal
pivotal role to
role to
manages
manages risks risks through
through its Its robust
robust riskrisk management
menagement
the success of any company where human capitals are the
the success of any company where human capitals are the
framework and prudent de-risking policies approved
framework and prudent de-risking approved by by
most
most coveted assets.
coveted assets
the Risk Management Committee and the Members of the
the Risk Management Committee and the Members of the
The company
The company provides
provides object-oriented
object-oriented trainings
trainings tto our
our Board.
Board TheThe Risk
Risk Management
Management CommitteeCommittee regularly
regularly analyse,
analyse,
workforce
workforce and
and encourages
encourages them
them tto attain
attain newer
newer skill
skill sets
sets assess
assess and end manage
manage risksrisks through
through proper
proper implementation
Implement-tian
through embracing
through embracing newer technologies that
newer techno'cgies transpires to
that transpires to and
and proactive
proactive monitoring
monitoring of of risk
risk policies
policies on on aa continuous
continuous
give benefits in the long run and ensure sustainability of
give benefits in the long run and ensure sustainability of basis encompassing every strata of the organization. The
basis encompassing every strata Df the organizaticm The
the business.
the business. Dedicated
Dedicated HR HR function
function generates
generates employee
employee Risk
Risk Management
Management Committee
Committee has has identified
identified and
and categorised
categorised
strategies to make
strategies to make best
test in
In class working environment
class working environment through
through the major
the major risk
risk classes
classes encompassing
encompassing credit, credit, market,
market, legal
legal
innovative
innovetive learning
'earning process,
prccess, skill
skill developing
developing seminars and
sernnsrs end and
and regulatory,
regulatory, operational,
operational, liquidity,
liquidity, interest
interest rate, cyber
rate, cyber
training sessions
training sessions and
and adapts the cross-cultural
adepts the cross-culturel workforce to
workforce to security
security andend information technology risks
information technology risks among
among other
other
the rapidly changing business environment.
the rapidly changing business environment significant risks.
significant risks

Risk
Risk management
management framework:
framework:

RISK
RISK FRAMEWORK
FRAMEWORK COMPRISES
(M'PRISES OF
OF :

Key
Key Business
Business Strategies:
Strategies: Risk
Risk Identification:
Identification:

Business
ausiness goal
goal setting
setting by
by Determining
Determining uncertainties
uncertainties which could potentially
which could potentially
management
management and
and BOD impact
impact achievement
achievement ofof business
business objectives
objectives

Risk Assessment:
Risk Assessment:
Risk Treatment:
Risk Treatment:

Evaluating
vaua ngnsrisks identified
en
Migrate,
Mig transfer, tolerate, terminate
Inate

and possible impact

end possible impact or exploit identified risks
or exploit identified risks

Monitoring
Monitoring and
and Reporting:

Scrutinizing
Scrutinizing and
and reporting
reporting of
of risks
risks
and
and treatment
trestment plans
plans

46 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd)

Credit Risk
Credit Risk
Well-organised Market
Market Risk
Risk Management
Management System
System isis

Credit
Credit risk
risk is the risk
is the of defaulton
riskof default on aa loan
loan that
that may
may arise
arise from
from aa in
in place
place to
to proactively
proactively monitor
monitor the
the market
market risks
risks and
and
borrower failing to make required payments on time. This risk
to make required payments on time This risk accordingly
accordingly de-risk
de-risk the
the loan book portfolio
I—enbook portfolio

could also
could also lead
lead to
to loss of interest
loss of interest revenue,
revenue, disruption
disruption toto cash
cash Impact
Impact generated
generated from
from sudden
sudden market
market shocks
shocks were
were
flows, and
flows, and increased
increased collection
collection costs. With more
costs Witt more than
than three
three simulated
simulated periodically
periodically through
through rigorous
rigorous stress
stress testing
testing of
of
decades
decades ofof experience, the Company
experience, the Company continues
continues tto manage
manage the portfolio across asset classes.
the portfolio across asset classes
the credit risk with its established risk policies
the credit risk with its established risk policies and robust
and robust
Operational
Operational Risk
Risk
demonstrated
demonstrated risk
risk mitigation
mitigation model.
model
Operational
Operational risksrisks are the risks
are the risks arising
arising from
from inadequate
inadequate
The Company
The Company has
has adopted
adopted extensive
extensive range
range of of credit
credit risk
risk
or failed
failed internal
internal processes,
processes, people
people andand systems
systems or from
or from
management
management policies,
policies, procedures
procedures and
and controls,
controls, as
es given
given under:
under
external
external events.
events Such Such failures
failures can
can have
have significant
significant impact
impact

Stated
Stated credit
credit policies,
policies, guidelines
guidelines and
and methods
methcds on the
the business
business operations
0*rations and and financial
financial position
position and
and cancan
throughout all business functions and encompassing
throughout all business functions and encompassing impact the long-term well being of the Company. These
imp-ct the long-term well teng of the Companyt These
entire
entire product
product portfolio
portfolio risks
risks are
ere efficiently
efficiently addressed through implementation
addressed through imp'ementstion of of the
the

Robust
Robust credit
credit appraisal
appraisal process
prc.cess for
for all
ell business
business comprehensive
comprehensive Operational
Operation-I RiskRisk Management
Management Framework.
Framework
segments
segments simultaneously
simultaneousty putting
putting in
In place
place This framework identifies
This framework identifies the
the risks,
risks, analyses
snatyses it, takes corrective
it,takes corrective
commensurate
commensurate risk
risk mitigation
mitigation practices
practices actions in timely manner and continuously monitors the
actions in timely manner end continuously monitors the risk
risk
progression.
progression. A A stable
stable and
and experienced
experienced management
msnsgement team team

Underwriting
underwriting ofof borrowed
borrowed capital
capital keeping
keping inin mind
mind
provides
provides much
much needed
needed continuity
continuity andand expertise
ex#rtise inin managing
managing
the
the inherent
inherent cash flows of
cash flows of the
the customers
customers and taking
and taking
the
the dynamic
dynamic changes
changes in in the
the market
market environment.
environment. Process
Process
effective
effective inputs
inputs from credit bureaus
from credit bureaus information
information reports
reports
improvements and quality control are on-going activities.
improvements end quality control are on-going activities
Regular stress testing
Regularstress testing and scenario analysis
end scenario of the
analysis of entire
the entire
The
The Company
Company hashes adopted
adopted extensive
extensive range
range ofof operational
operational risk
risk
credit
credit portfolio to
to implement
implement corrective
corrective actions
actions
management policies, procedures and controls, as given under:
management ;dicies, prccedures and contra's, as given under:
Mandated
Mandated useuse of
of defined
defined credit
credit ratings
ratings from
from established
established
Operational
Operational risk
risk control
control strategies
strategies and
and procedures
prccedures toto
credit
credit rating
rating agencies
agencies to
to make
make portfolio
portfolio investments
investments
evaluate, monitor, review and report to management for
evaluate, monitor, review and report to management for
decisions
decisions with
with systematic
systematic tracking
tracking of
of the
the portfolio
prtfolio
robust controls and
mbust controls
minimal losses
and minimal losses

Appropriate
Appropriate risk
risk exposures taken through
exposures taken through rigorous
rigorous

State-of-the-art
State-of-the-ert corporate
corporate governance
governance practices,
practices,
analysis of the counterparty fundamentals, industry and
analysis of the counterparty fundamentals, industry end
Code
Code ofof Conduct,
Conduct, corporate
corporate ethos
ethos and organisation-
and organisation-
sectoral risks
sectoral risks
wide
wide approach
approach for
for risk
risk management
management areare the
the pillars
pillars for
for

Portfolio
Portfolio risk
risk concentration
concentration managed
meneged throughthrough mitigating operational risks
mitigating operational risks
implementation
implementation of of prudent
prudent allocation
-Ilocation strategies amongst
strateg iesamongst
Need
Need based
based systematic
systematic reviews
reviews and
end updating of the
updating of the
different
different asset
asset classes,
classes, industry
industry sectors,
sectors, geographical
gecæraphical
internal controls and systems
internal controls and systems
regions, single liability and joint liability groups.
regions, single liability and joint liability groups
Systematic
Systematic skill
skill development
development programs
programs and
and seminars
seminars to
to
Market
Market Risk
Risk
ensure organisation-wide standard and homogeneous
ensure organisation-wide standard end homogeneous
Market
Market risk for the
risk for the Company emanates from
Company emanates the risk
from the risk arising
arising potent workforce
potent workforce
out of
out of sudden
sudden adverse
adverse movements
movements in the equity
in the eguity share
share Structured
Structured standard
standard operating
0*rating procedures
prcædures to to ensure
ensure
prices, interest rates, credit spreads, foreign exchange rates,
prices, interest rates, credit spreads, foreign exchange rates, improved governance over transactions, portfolio
improved governance over transactions, portfolio
commodity prices etc.
commc»dity prices etc assessment
assessment and
and regulatory
regulatory compliance
compliance
The Company
The Company has
has adopted
adopted extensive
extensive range
reræe ofof market
market risk
risk Risk
Risk oriented
oriented audit
audit procedure
procedure performed
performed at
et systematic
systematic
management
management policies, procedures and
policies,procedures and controls,
controls, as
es given
given under:
under intervals
intervsls across
-cross all
ell departments
departments to
to reduce
reduce enterprise
enterprise


The Asset Liability
The Asset Liability Management
Management Committee
Committee (ALCO)
(ALCO) risk exposure
risk exposure

frequently
fre;uently monitors the market
monitors the market movements,
movements, government
government Regular
Regular stress
stress testing
testing and
and audits
audits of
of the
the Brief
Brief Disaster
Disaster
policy
plicy decisions,
decisions, changes
changes in in regulatory
regulatory scenario
scenario Recovery
Recovery (DR) plan
pl-n and
and Business
Business Continuity
Continuity Plan
Plen (BCP)
(SC?)
affecting the NBFC space and tweaks the strategies and
affecting the N3FC space and tweaks the stretegies end done to assess the preparedness of the Company to
done to assess the preparedness of the Company to
operationalise
operationalise them
them inin prudent
prudent and
and timely
timely manner
manner contingencies
contingencies

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 47
M
*SHRIRA

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd.)


DR
OR endand BCP ensures long
SCP ensures term sustainability
long term sustainability of
of 
Creation
Creation of of maturity
maturity ladder
ladder and
and use
use of
of cumulative
cumulative

the
the organisation
organisation synchronising the deliverables
synchronising the deliverables as
as surplus/deficit
surplus/deficit ofof funds
funds calculation
calculation technique
technique on
Dn any
any

confronted
confronted with sudden
with sudden adverse
adverse events
events specific
specific maturity
maturity date
date standardise
standardise determination
determination of
of
liquidity
liquidity risk
risk
Existence of contingency
Existenceof contingency plan
plan to
to ensure
ensure data
data security and
security end
data
date recovery
recovery in
in case
case any
any ‘force
'force majeure’
majeure' contingency.
contingency Contingency
O)ntingency plans
plans put
put in
in place
place for
for liquidity
liquidity management
management
in case of contingencies
in case of contingencies
Interest
Interest
Rate Risk
Rate Risk
Proactive
Proactive monitoring
monitoring of the capital
of the capital adequacy
adequacy and
and asset
asset
The risk
The risk emanating
emanating from the financial
from the financial loss
loss occurred
cccurred inin view
view
exposure
exposure levels to assess
levelsto assess potential
potential funding
funding requirements
requirements
of
of adverse
adverse movements
movements in the interest
in the interest rates for both
rates for both lending
lending
Varied
Varied source
source funding
funding including
including borrowings
borrowings from
from banks,
banks,
and treasury operations
and treasury operations is
is called
called interest
interest rate
rate risk.
risk Significant
Significant
financial
financial institutions,
institutions, capital
capital markets
markets and
end public
public (fixed)
(fixed)
adverse
adverse movements
movements in
in interest
interest rates
rates can
can deteriorate
deteriorate the
the net
net
deposits to facilitate flexibility in meeting funding
depsits to facilitate flexibility in meeting funding
interest
interest income
income and
end affect
affect profitability
profitability negatively.
negatively
requirements
requirements
The Company
The Company has adopted extensive
has adopted extensive range
range of of interest
interest risk
risk

Systematic
Systematic CashCash Management
Management and end asset-liability
asset-liability
management
management policies,
policies,procedures and
end controls,
controls, as
as given
given under:
under.
management
management training
training programs
prcgrams toto solidify
solidify Company’s
Compeny's
Extensive
Extensive policies
policies and
and procedures
prccedures put
put in
in place
place to
to put
put
financial
financial position
position in the long
in the long run.
run
the
the assets
assets and
and liabilities
liabilities exposure
exposure within the stipulated
within the stipulated
regulatory guidelines
guidelines Cyber
Cytw Security
Security Risk
Risk


R ate-sensitive
Rate-sensitive asset-liability
asset-liability maturity
maturity analysis
analysis Cyber
Cyder security
scurity risks
risks have
have increasingly
increasingly become
become eminent
eminent
performed to assess correlation of the loan book
performed t assess correlation of the loan bnk in today’s remote working environment during Covid-19
in todays remote working environment during Covid-lg
maturity
maturity profiles
profiles to
to interest
interest rate fluctuations
rate fluctuations pandemic
pandemic and and the
the management
management at et SCUF
SCUF is is dedicated
dedicated to to
minimize
minimize anyany such
such threats
thrests that
that can
can bring
bring inin any
any significant
significant
Interest spreads set
Interest spreads set through
through categorising
categorising entire
entire gamut
gamut
adverse
adverse impact
impact on on the
the growth
growth potential
potential of the organisation.
of the organisatiom
of
of assets
assets andand liabilities
liabilities into
into several time-periods
several time-periods
By
ay establishment
establishment to to aa secure
secure information technology network
information technology network
synchronising
synchronising themthem with with contracted
contracted maturities
maturities or or
and cybersecurity framework, the Company ensures aa
and cybersecurity framework; the Company ensures
anticipated re-pricing dates; the difference between
anticipated re-pricing dates; the difference between
safeguarded
safeguarded business
business environment
environment for for all
all its
its stakeholders
stakeholders
assets and liabilities
assets end liabilities maturity
maturity or or itit being
being repriced
repriced atat any
any
throughout the organisation. To act as a counter measure
throughout the Drgsnisstion To act es a counter measure
time
time period
*riod indicates
indicates the extent of
the extent of exposure
exposure toto the
the risk
risk
against
against cyber-attacks
cyber-attacks and and protect
protect critical
critics' assets,
assets, thethe
of potential changes in the margins on new or re-priced
of potential changes in the margins on new or re-priced
Company
Company has formed a Security
hes formed Security Operations
*rations Centre
Centre (SoC)
(Sco that
that
assets
assets and
and liabilities.
liabilities
works on
works on real-time
real-time 24x7
24x7 basis.
t.esis The
The Company
Company has has adopted
adopted
Liquidity
Liquidity Risk
Risk extensive range of cyber security risk management policies,
extensive range of cyber scurity risk management policies,
Liquidity
Liquidity is
is the
the ability
ability to
to meet
meet liabilities
liabilities as they become
as they become due. due procedures and controls, as summarised below:
procedures and controls, as summarised below:
Liquidity can have significant impact on profitability in any
Liquidity cen hsve significant impact on profitability in any 
Systematic
Systematic investments
investments are
ere made
made inin technology,
technology
adverse
adverse situation.
situation. Management
Msnegementof of assets
assets and liabilities
liabilities largely
largely processes enhancements and
prccesses enhancements end on
on hiring
hiring cybersecurity
cybersecurity
depend
de#nd upon the interest
upon the interest rates,
rates, liquidity
'iquidity and
and respective
respective riskrisk professionals
professionals toto ensure
ensure highest
highest standards
standards ofof
profiles.
profiles Measuring
Measuring and managing
msneging interest
interest risks
risks and
end liquidity
liquidity preparedness against any cybersecurity threat
preparedness against any cybersecurity threat
risks
nsks play
play pivotal
pivotal role
role in
in maintain
ms.ntsin capital
capital adequacy.
adeguecb{ Liquidity
Liquidity
Established
Established security
saurity framework,
framework, policies
policies and
end procedures
prccedures
is tracked through maturity or cash flow mismatches.
is tracked through maturity or cash fD,v mismatches
aligned with best-in-class industry standards to
aligned with best-in-class industry standards to protect
protect
The Company
The Company has
has adopted
adopted extensive
extensive range
range ofof liquidity
liquidity risk
risk information
information across
across all
ell strata
strata of
of the
the organisation
organisation
management
management policies, procedures and
policies,præedures end controls,
controls, as
as given
given under:
under.
All-inclusive
All-inclusive security training programs
security training programs and
end workshops
workshops
Liquidity
Liquidity management
menegement performed in
in sync
sync with
with the Asset
the Asset to
to increase
increase employee
employee // interested
interested parties’
parties' awareness
awareness
Liability
Liability Management
Management (‘ALM’)
CALM') policies
policies and
end operating
operating on cyberattack incidents such as malware, phishing,
on c•ærattack incidents such as malware, phishing,
procedures
præedures ransomware, spoofing etc.
ransomware, spa:flng etc

The
The Asset
Asset Liability
Liability Committee
Committee (ALCO)(ALCO) comprising
comprising Implementation
Implementation of of ISO
ISO 27001
27001 certification
certification forfor
the Board of Directors of the Company to review
the aoerd of Directors of the Compeny to the
review the Information
Information Security
Security Management
Management System
System framing
framing
different
different liquidity
liquidity positions
positions (Structural
(Structural and
end dynamic)
dynamic) policies
plicies and
and procedures
prccedures on
on IT
IT framework
framework and
and covering
covering
of the Company
of the Compeny regularly
regularly through
through different
different scenario
scenario all IT processes
all IT processes
analysis
enetysis

48 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd)

Email
Email Threat
Threat Prevention
Prevention (ETP)
(ETP) services
services to
to quarantine
quarantine
A
A time tested and
time tested and efficient
efficient Business
Business Continuity
Continuity Plan
Plan(BCP)
(BCP)
detected e-mail threats in advance
detected e-mail threats in advance
is
is in
in place
place to
to ensure
ensure continuity
continuity of
of business
business operation
0*ration on
Dn
Recurrent
Ræurrent evaluation
evaluation and
and penetration
penetration tests
tests performed
performed toto any
any crisis
crisis situations
situations such
such as
as ‘Covid-19’
'Covid-l g' pandemic
pandemic
assess
assess vulnerabilities
vulnerabilities in the IT
In the IT infrastructure
infrastructure and
and network
network
As
As per the regulatory
perthe regulatory compliance
compliance norms,
norms, privacy
privacy policy
plicy is
is
Continuously
Continuously scrutinised
scrutinised fraud
fraud protection
prot42tion measures for
measures for followed to safeguard customers’ personal information
followed to safeguard customers' personal information
authentication of risk-based transactions
authentication of risk-based transections
and
and usage.
usage

An
An all-encompassing
all-encompassing cyber
cyder security
security approach
approach is is in
in
In
In today’s
todafs challenging environment
challenging environment amidst emidst Covid-19
Covid-lg
place to manage information security threats involving
place to manage information security threats involving
pandemic every organisation has to fight the pandemic with
pandemic eve,' Drgsnisstion has to fight the pandemic with
communication,
communication, documentation,
documentation, evidence collection
evidence collection
rigorous
rigorous efforts which has
efforts which has brought
brought various
various risk
risk associated
associated
&& closure of security
closure of security events
events so as to
so es to provide
provide SCUF
SCUF anan
to
to it.
it. Covid-19
Cc.'id-lg pandemic
pandemic hashes contributed
contributed to to all
all of
of the
the above-
above
efficient way to respond to all cyber security threat
efficient way to respond to all cyber security threat
mentioned risks in one or several ways. Management at
mentioned risks in one or several ways. Menagement et
incidents
incidents tto minimize
minimize impact.
impact.
SCUF
SCUF is is dedicated
dedicated toto manage
msnege all all those
those risks
risks and
and restrict
restrict their
their
Information
Information Technology Risk
Risk
impact to minimal level. Through robust implementation
impact to minimal level Through robust implementation
In
In today’s dynamic business
today's dynamic environment, tæhnolcæy
business environment, technology of
of risk
risk policies
policies and
and framework,
framework, varied types of
varied types of risks
risks are
are
platforms support the entire gamut of any vibrant
platforms support the entire gamut of any vibrant identified
identified and
and mitigated through operationalization
mitigated through operationalization of of prudent
prudent
business functions. This has increased importance of
business functions. This has Increased importance of measures,
measures, checks
checks andand controls
controls throughout
throughout all all facets
facets ofof the
the
information technology infrastructure
information technology infrastructure and and adaptability
adaptability organisation.
organisation.
of any
of any organisation
organisation to to rapidly changing technological
rapidly changing technological
advancements and frameworks to manifold.
advancements and frameworks to manifold. INTERNAL
INTERNAL AUDIT
AUDIT

The Company
The Company has
has adopted
adopted extensive
extensive range of information
renge of information The Audit Committee
The Audit Committee and and the
the Risk
Risk Management
Management Committee
Committee
technology risk management policies, procedures and
technology risk management *icies, procedures end encompassing members from the Board of Directors
encompassing members from the aoerd of Directors
controls, as
controls, as summarised
summarised below:
below: appraises
appraises performance
*rformance of the Internal
of the Audit function
Internal Audit function ofof

Systematic
Systematic security
security drills and employee
drills end employee awareness
awareness the Company which helps to effectively control and adhere
the Company which helps to effectively control and adhere
programs
prcgrsms are
ere conducted
conducted to to ensure
ensure enhanced
enhanced security
security to the regulatory
to the —ulatory compliance
compliance guidelines
guidelines laid
laid out
out by by the
the
awareness throughout the organisation
awareness throughout the organisation government
government depicting
depicting highest
highest standards
standards of of corporate
corporate


Security
Seurity Operations
Operations Centre
Centre (SoC) secures the
(Sac) secures the ITIT governance followed in the Company.
governance followed in the Company

infrastructure and network architecture on 24x7 basis

infrastructure end network architecture on 2417 basis The
The Internal
Interne' Control
Control System
System of of the
the Company
Company is is proportionate
proportionate
by assessing and
by assessing and monitoring
monitoring any type of
any type of attacks
attacks and
end to
to its
its size,
size, scale,
scale, nature
nature and
end complexity
complexity of of operations. The
operations The
potential threats. It
ptential threats. It has
hes following
following attributes:
attributes: Company conducts its internal audit within the parameters
Company conducts its internal eudit within the parameters
- Identifies
Identifies security
security threats from inside
threats from inside as well as
as well as of
of regulatory framework through execution
regulatoryframeworkthrough execution of
of annual
ann ual internal
internal
outside the
outside the organization
organization leading to stricter
leading to stricter reporting audit
audit plan.
plan. The
The Internal
Internal audit
audit department
department carries out specific
carries out specific
and
and control
control
assessments
assessments laid laid by
by the
the management
management underunder existing
existing
- Conducts
Conducts Disaster
Disaster Recovery
Recovery Drills
Drills in
in systematic
systematic regulations
regulations toto monitor
monitor adequacy, efficacy and
edæquacy,efficacy and adherence
adherence to to
manner to achieve
msnner to echieve better
better Recovery
Recovery Point
Point Objective
Objective the internal controls, processes and procedures. This helps
the internal controls, præesses and procedures. This helps
(RPO) and Recovery
(RPO)end Time Objective
RecoveryTme Objective (RTO)
(RTO) in
In conservation
conservation of of Company’s
Company's assets.
assets

- 
Rigorous
Rigorous security tests
security tests and evaluations done
and evaluations done The
The Company adopts Risk-based
C.ompanyadopts Risk-based approach
approach of
of Internal
Internal Audit
Audit
prior
prior to
to launching
launching anyany application to assure
application to assure (RBIA). The vital focus of this system is to focus on key risk
(RBIA).The vital focus of this system is to focus on key risk
zero prospective loss to
zero prospective loss to the
the customers or the
customers or the areas of importance with main emphasis on risks that has
areas of importance with mein emphasis on risks that hes
organization.
organization. extensive
extensive impact.
impact

To
To improve the control
improve the control checkpoints, vulnerability
checkpints, vulnerability
The
The Internal
Internal Audit
Audit department
department reports
reports to
to the Audit Committee
the Audit Committee
assessment
assessment and
and penetration testing are
penetration testing are regularly
regularly done
done
for Audit Planning & Reporting. The relevant audit reports
for Audit Plenning Reportir@ The relevant audit reports are
are
through
through internal
interne' resources
resources and
and external
external experts
experts
circulated to the
circulated to the management
menagement teams
teams and the Audit Committee
andtheAuditCommittee
Presence
Presence of
of contingency
contingency plan
plan ensures
ensures availability
availability of
of the
the of the Board. The Audit Committee regularly reviews
of the Baard. The Audit Committee regularly reviews the
the audit
audit
crucial business functions to customers even though
crucial business functions to customers even though findings as well as the adequacy and effectiveness of the
findings as well es the adequacy end effectiveness of the
one functional section
one functional section is
is entirely
entirely non-functional
non-functional internal control measures.
internal control measures

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 49
M
*SHRIRA

Management
Management Discussion
Discussion and Analysis
and Analysis
Annexure 3 (Contd.)
Annexure 8 (Contd.)

INTERNAL
INTERNAL
CONTROL
CONTROL
OVER FINANCIAL REPORTING
OVER FINANCIAL REPORTING
Framework
Framework (2013)
(2013) issued
issued by
by the
the Committee
Committee of
of Sponsoring
Spnsoring

Company
Company has has in
in place
place an
an effective
effective internal
internal control
control system
system Organisations
Organisations of
of the Treadway Commission
the Treadway Commission (“COSO”).
CCOSO").
tto synchronize
synchronize itsits business
business processes,
processes, operations,
operations, financial
financisl
reporting, fraud control,
reporting, fraud control, and
end compliance
comp liance with
with extant
extant regulatory
regulatory CAUTIONARY
CAUTIONARY STATEMENT
STATEMENT

guidelines
guidelines and
and compliance
comp'isnce parameters.
parameters Strict
Strict internal
interns' control
control Statements
Statements made
made in this Management
in this Management Discussion
Discussion and
and
and systems are devised as a depiction of the principles of
and systems are devised as s depiction ofthe principles the
of the Analysis Report
Analysis Report may
may contain
contain certain
certain forward-looking
forward-&king
highest standards of governance.The Company ensures that
highest standards of governanceThe Comp-ny ensures that statements
statements based on various
based on various assumptions on the
assumptions on the Company’s
Compeny's
aa standard
standard and
and effective
effective internal
internal control
control framework
framework operates
operates present
present and future business
and future business strategies
strateges and and the
the environment
environment
throughout the
throughout the organisation,
orgenisetion, providing
providing assurance
assurance about about in which itit operates.
In which Actual results
operates. Actual results may
mey differ
differ substantially
substantially
safekeeping of the assets and execution of transactions
safekeeping of the assets and execution of transactions or materially
or materially from
from those
those expressed
expressed oror implied
implied due
due to to risk
risk and
and
as
as per
per the authorisation in
the authorisation in compliance
compliance with
With thethe internal
internal uncertainties. These risks and uncertainties include the effect
uncertainties. These risks and uncertainties include the effect

control
control policies
policies ofof the
the Company.
Company This This confirms
confirms orderly and
orderly end of economic
of economic and and political
*itical conditions
conditions in in India
India andand abroad,
abroad,
effective
effective conduct
conduct of of its
its business,
business, including
including adherence
adherence to to volatility in
volatility in interest
interest rates
rstes and
and inin the
the securities
securities market,
market new new
the Company’s policies, accuracy and completeness of the
the Company"s policies, accuracy and completeness of the regulations and Government policies that may impact the
regulations and Government policies that mey impact the
accounting
accounting records
records andand timely
timely preparation
preparation of
of reliable
reliable financial
financisl Company’s
Company's businesses
businesses as as well
well as
as the
the ability
ability to
to implement
implement
information.
Information. The
The internal
interns' financial
financial controls
controls with reference
with reference
its
its strategies.
strategies The The information
information contained
contained herein
herein is is as of the
as of the
tto the
the financial
financial statements
statements were
were adequate
adequate and
and operating
0*rating date referenced and the Company does not undertake any
date referenced end the Company dces not undertake any
effectively.
effectively obligation to
obligation to update
update thesethese statements.
statements The The Company
Compeny has hes
The Management
The Management periodically
*riodicelly reviews the framework,
reviews the framewor•s obtained all
obtained
market data and other information from
all market data and other information
from sources
sources

efficacy and operating effectiveness of the Internal Financial

efficacy end operating effectiveness of the Interne' Financisl believed
believed to
to bebe reliable
reliable or
or its
its internal
internal estimates,
estimates, although
although its
its
Controls
Controls of
of the
the Company,
Company broadly
brDEdly in
in accordance with the
accordance with the accuracy or completeness cannot be guaranteed.
accuracy or completeness cannot be guarantæi
criteria
criteria established
established under
under the
the Internal
Internal Control
Control -- Integrated
Integrated

50 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Compliance
Compliance Certificate
Certificate by
by CEO
CEO // CFO
CFO
Annexure 4
Annexure 4

To
The Board
The Board of
of Directors
Directors

Shriram City
Shriram City Union
Union Finance
Finance Limited
Limited
Chennai
Chennai

We, Y
We, YSS Chakravarti,
Chakravarti, Managing
Managing Director
Director and
and Chief
Chief Executive
Executive Officer
Officer and
end Sri
Sri Ramasubramanian
Remesubramanien Chandrasekar,
Chandrasekar, Chief
Chief Financial
änenciel
Officer of M/s Shriram City Union Finance Limited (“Company”) pursuant to Regulation 17 (8) of the SEBI (Listing Obligations and
Officer of M/s Shriram City union Finance Limited ("Company") pursuant to Regulation 17 (8) of the SE81(Listing Obligations and
Disclosure
Disclosure Requirements)
Requirements) Regulations,
Regulations, 2015,
201 5, to the best
to the best of
of our
our knowledge
knowledge and
and belief,
belief, certify that
certify that
(i) 
(i) we
we have
have reviewed the Balance
reviewed the Balance Sheet
Sheet as
as at
et March
March 31,
31, 2021
2021 and
and statement
statement of
of Profit
Profit and
and Loss for the
Loss for the year
year ending
ending on
on same
same
date,
date, Cash
Cash Flow
Flow statement
statement as on the
as on the same
same date
date and the notes
and the thereto (together
notes thereto known as
(tc»getherknown as financial
financial statements).
statements)

(ii) 
(ii) these financial statements
these financial statements do
do not
not contain
contain any
any materially
materially untrue
untrue statement
statement or
or omit
omit any
any material fact or
material fact or they
they contain
contain
statements
statements that
thet might
might be
be misleading.

(iii) 
(iii) these
these financial
financial statements and other
stetementssnd financial information
other financial informetion included
included in this report
inthis report present a true and fair
presentatrueend view of the Company’s
fairviewofthecompanfs
affairs and are in compliance with existing accounting standards, applicable laws and regulations.
affairs and ere in compliance with existing accounting standards, applicable laws and regulations
(iv) 
(iv) there
there are
are no transactions entered
no transactions entered into
into by the Company
by the Company during
during the
the year
year which
which are
ere fraudulent,
fraudulent, illegal
illegal or
or violative
violative of the
of the
Company’s code of conduct.
Company"s cc.deof conduct

(v)
(v) we
we accept
accept responsibility
respnsibility for
for establishing
establishing and
and maintaining
maintaining internal
internal controls for financial
controls for financial reporting of
of the
the Company.
Companyt

(vi)
(vi) we have evaluated
wehave evaluated the
the effectiveness
effectiveness of the internal
of the internal control systems of
control systems the Company
of the Company pertaining
pertaining to financial
financial reporting.
reportir-g
(vii) 
(vid there
there are
ere no
no deficiencies
deficiencies in
in the design or
the design or operation
operation of
of internal
internal controls
controls which
which are
are to
to be
be disclosed to the
disclosed to the auditors
auditors and/or
and/ortoto
the Audit and Risk Management Committee.
the Audit and Risk Menagement Committee

(viii)
(viii) we
we have
have indicated
indicated to the auditors
to the auditors of
of the
the Company
Compeny and
end the Audit and
the Audit and Risk
Risk Management
Menagement Committee that there
Committee that there were
were

a)
a) no
no significant
significant changes
changes in
in internal
internal control over financial
control over financial reporting
reporting during
during the
the year covered by
year crnered by this
this report;
reprt,

b)
b) no
no significant
significant changes
changes in
in accounting
accounting policy
policy has
has been
been made
mede during
during the year covered
the year covered by
by this
this report;
report;

c)
c) no
no significant
significant instances
instances of fraud detected
of fraud detected during the year
during the year except
except the
the frauds
frauds reported
reprted in
in Notes
Notes tto Accounts.
Accounts.

Yalamati Srinivasa
Yalamati Srinivasa
Chakravarti
Chakravarti
Ramasubramanian
Ramasubramanian
Chandrasekar
Chandrasekar

Managing Director and Chief

Managing Director and Chief Executive
Executive Officer
Officer Chief Financial Officer
Chief Financial Officer

DIN - 00052308
DIN - 00052308

Place
Place : Chennai
Chennai

Date
Date:: April
April 30,
30, 2021
2021

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 51
M
*SHRIRA

Form
Form No.
No. AOC
AOC -
- 2
2
Annexure 5
Annexure 5

(Pursuant to clause
(Pursuant to clause (h) of sub-section
(h) of sub-section (3)
(3) of
of section
section 134 of the
134 of Act and
the Act and Rule
Rule 8
8 (2)
(2) of
of the
the Companies
Companies (Accounts)
(Accounts) Rules,
Rules, 2014)
2014)

Form
Form forfor disclosure
disclosure ofof particulars
particulars of
of contracts/arrangements
contracts/arrangements entered
entered into
into by
by the
the Company with related
Company with related parties
parties referred
referred to
to
in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso
in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso
thereto
thereto

1. Details
Details of
of contracts
contracts or
or arrangements
arrangements or transactions not
or transactions not arm’s
arm's length
length basis
basis

Sl. Particulars
Particulars
Remarks
No.
a) Name
Name (s) (s) of
of the
the related
related party
party and
and nature
neture of
of relationship
re'atiDnshi -
b) Nature of contracts/arrangements/transactions
Nature of contracts/srran ements/trensactions -
c)
c) Duration
Curation of of the
the contracts/
contrects/ arrangements/ transactions
arrengements/ transactions -
d) Salient terms of the contracts or
Salient terms of the contracts or arrangements
arran ments or transactions including
or transactions includin the the value,
value, if
ifsany -
e) Justification for entering into such contracts or arrangements or transactions
Justification for enterin into such contracts or arran ements or transactions -
f) Date(s)
Oa s ofof' approval
rove by b the
the Board
Board Not
Note applicable
licable

g) Amount paid
Amount aid asas advances,
Edvsnces, ifif any
a -
h)
h) Date
Date on cn which
which the the special
special resolution was passed
resolution was p.essed inin general
general meeting
meeting as as required
required under
under first
first Not
Not applicable
applicable
proviso
ovisa to to section
section 188 188

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

Sl. Particulars
Particulars Remarks
No.
a) Name
Name (s)s ofof the
the related
related party
a and
and nature
netureof of relationship
re'atiDnshi -
b) Nature of contracts/arrangements/transactions
Nature of contracts/srran ements/trensactions -
c) Duration
Curation ofof the
the contracts/
contrects/ arrangements/ transactions
arren ements/ transactions -
d) Salient terms of the contracts or
Salient terms of the contracts or arrangements
arran ments or transactions including
or transactions includin the
the value,
value, if
if any
e -
e) Date(s)
Üat*s) ofof approval
spprovel by by the
the Board
Board Not
Not applicable
applicable
f) Amount paid
Amount aid as
as advances,
advances, if
if any
a -

52 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 6
Annexure 6

Disclosure
Disclosure pursuant
pursuant to the provisions
to the provisions of
of Securities
Securities and
and Exchange
Exchange Board
Board of
of India
India (Share
(Share Based
Based Employee
Employee Benefits)
Benefits) Regulations,
Regulations,
2014 as
2014 as at
at March
March 31,
31, 2021.
2021.

PARTICULARS
PARTICULARS SCUF
SCUF Employees
Em Stock
Stock Option Scheme,
scheme, 2006
2006
Date
Date of
of shareholder’s approval
a roval October
October 30, 2006
SD,2006
a) Options
O ions Granted
Granted 13,55,000 equity u shares
sheres ofof?` 10/-
10/- each
each

Vesting requirements
Vesting requirements Options granted shall be vested after the
Options granted shall be vested Efter the period
*riod ofof one
one year
year
from the date of grant
from the date of rant

b) Exercise
Exercise price
rice ` 35/-
35/- pererooption
ion
Maximum
Maximum term
term of
of options
options granted
granted Options
Options granted
granted can
can be vested after
be vested after the
the gap
gep of
of aa one
one Year
Yeer
and
and the vested options
the vested options cancan be
be exercised
exercised within
within a
e period
period 10
10
Years
Years

Source of shares
Source of shares Primary
prime

c) Options vested
O ions vested 13,55,000
d) Options exercised
O ions exercised
13,44,140
1344140
Number of options outstanding at the beginning of the period 12,960
Number of ions outstandin at thebe innin of the riod

Number
Number of of options
o tions granted ranted during
durin the
the Year
Year -
Number of options forfeited / lapsed during the
Number of o tions forfeited / 'a sed durin Year
theYear -
Number
Number of of options
o tions vested
vested during
durin the Year
the Yeer 2,100
2,100
Number
Number of of options
o tions exercised
exercised during
durin the Year
the Year 2,100
2,100
e) Number
Number of of shares
shares arising
-risin as
as a E result
result of of exercise
exercise of of option
o Ion

f) Options
O ions lapsed
IE d -
g) Variation of terms of
Varistion cf terms Df options
o ions -
h) Money
Mo
realised by exercise of options
realised b exercise of ions
` 73,500
Number
Number of of options
o tions outstanding
outstandin at the end
-t the end of of the
the Year
Year ` 10,860
Number of options exercisable at
Number of o tions exercisable
the end of the Year
Et the end of the Year
-
i) Total
Total number
number of of options ions in
in force
force -
j) Employee
Eml wise
wise details
details of of options
o ions granted ranted to:to

i) Senior
Senior Management
Msn- ement Personnel
Personnel -
ii) 
ii) AnyAny other
other employee
employee who who receives
receives a a grant
grant of option
of option
-
amounting
amountin to
to 5% or moremore of of option
D tion granted
ranted

iii) 
iii) identified
Identified employees
employees who w,vhowerewere granted
grant± option
option equal
to
to or exceeding 1%
or exceeding 1 of the issued
of the issued capital
capita' (excluding
(excluding
-
outstanding
outstanding warrants warrants and and conversions)
conversions) of the Company
of the Company
at the time
et the of grant
time of rant

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 53
M
*SHRIRA

Annexure 6
Annexure 6 (Contd.)
(Contd.)

PARTICULARS
PARTICULARS SCUF
SCUF Employees
Employees Stock
Stock Option
Option Scheme,
Scheme, 2006
k)
k) Diluted
Diluted earnings
earnings perprer share
share (EPS)
(EPS) pursuant
pursuant to to issue
issue ofof
Shares on exercise of option calculated in accordance with
Shares on exercise of option calculated in accordance with ` 152.81
15281

Accounting
Accountin Standard
Standard (AS)
AS 2020 ‘Earnings
'Eernin s Per
Per Share’
Shsre•

i) Method
Method of Df calculation
cs'culEtioncf of employee
em compensation
ecom ensation cost
ccst Intrinsic
'ntrinsic value
value method
method

ii) 
ii) Difference
Difference between
between the employee compensation
the emp'oyee compensation cost cost so
so Fair
Fsir Value
Vs'ue method
method

calculated at (i) above and the employee compensation

calculated at (i) stave -nd the employ* compensation (Using
(Lsing Black
Slack Scholes
Scholes Model):
Made') ` 30.82
3082 crores
crues
cost that
cost that shall
shall have
have been
been recognised
recognised ifif itit had
had used
used the
the Intrinsic Value method: ` 30.69 crores
'ntrinsic Value method: 69 crores

fair velue
fEir value of of the
the Options
C tiDns Difference
Difference in
in cost
cost : ` 0.13 crores
D 13 crores

iii) The
The impact
impact of of this
this difference
difference on
on profits
profits and
and on on EPS of
of Fair Value method
Fsir Vs'ue method
-
the Company
the Company (Using Black Scholes Model)
(using Black Scholes Made')
Intrinsic
'ntrinsic Value
Value method
method -
Impact
Impact on on Profit
Profit -
Impact
1m ct on
on Diluted
Diluted EPS
EPS -
l) Weighted
Wei htedsvera averagee exercise
exercise price nce ` 35.00
3500

Weighted
Wei htedsvera averagee fair fair value
value ` 227.42
22742

m) Fair value of options based on Black Scholes methodology

Fair value of D tiDns based on 3ack Scho'es methodolo

Assumption
Assum ion risk
risk free
free rate
rate 7.67%
767%

Expected life of options (in Years)

Ex ed life of o tions In Years
5
Expected
Expected volatility
volatility (based
(based on on Monthly
Monthly Volatility
Volatility of
of the
the
55.36%
55.36%
Company’s
Com a
stock price
sstock
on the NSE)
rice Dn the NS

Expected
Ex ed Dividends
Dividends perr share
share ` 3.00
300

Closing
Closin
market
market
price of share at NSE on
ricecfshareat
date of option
on datecfo tion
granted
rented
` 261.45
26145

54 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 7
Annexure 7

G.D.
G.D. Apte
Apte &
& Co.
co.
Chartered
Chartered Accountants
Accountants

The Members,
The Members,

Shriram City
Shriram City Union
Union Finance
Finance Limited
Limited

This is
This to certify
is to that the
certify thet the ‘SCUF
'SCUF Employees
Emplcyæs Stock
Stock Options
Options Scheme
Scheme 2006’
2006' (“the
("the 2006
2006 ESOP scheme”) and
ESOPscheme") and ‘SCUF
SCUF Employees
Employees Stock
Stock
Options Scheme 2013’ (“the 2013 ESOP scheme”) of Shriram City Union Finance Limited (CIN – L65191TN1986PLC012840),
options scheme 2013' ("the 2013 Esap of Shriram City union Finance Limited (CIN - L65191TNIE86PLC012840),
has
hes been
been implemented
implemented inin accordance
accordance with
with the
the Securities
Securities and
and Exchange
Exchange Board
Board of
cf India
Indie (Employees
(Employees Stock
Stock Option
Option Scheme
Scheme and
and
Employees
Employees Stock
Stock Purchase Scheme)
Scheme) Guidelines,
Guidelines, 1999 and
and Securities
Securities and
and Exchange
Exchange Board
Board ofof India
Indie (Share
(Shere Based
3ssed Employee
Employee
Benefits)
Benefits) Regulations,
Regulations, 2014
2014 and
end in
in accordance
accordance with
with the
the resolution
resolution passed
passed by
by the
the Company
Company at at its
its Extraordinary
Extraordinary General
General Meeting
Meeting
held
held on
on October
October 30, 2006 and
SD,20116 and May
May 31,
31, 2013
2013 wherein
wherein the
the aforesaid
aforesaid 2006
2006 ESOP scheme and
ESOPscheme and 2013
2013 ESOP scheme were
ESOPscheme were approved
approved
by
by the
the shareholders
shareholders respectively.
respectively.

This Certificate
This Certificate is
is issued
issued under
under Regulation
Regulation 13
13 of
of the
the Securities
Securities and
end Exchange
Exchange Board
Board of
of India
India (Share
(Shere based
based Employee
Employee benefits)
benefits)
Regulations,
Regulations, 2014.
2014.

For
For G.
G. D.
D Apte & Co.
Apte&Co.
Chartered Accountants
Chartered Accountants

Firm
Firm Registration
Registration Number:
Number: 100
1133515W
515W
UDIN: 21121007AAAACD9059
UDIN 21

Anagha M
Anaghe M Nanivadekar
Nanivadeker
Partner
Partner

Membership
Membership Number.:
Number: 121
121 007
007
Pune, April 30, 2021
Pune,April 30, 2021

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 55
M
*SHRIRA

Annexure 8
Annexure 8

DISCLOSURE UNDER RULE 5 (1)

DISCLOSUREUNDERRULE5 (1) OF THE COMPANIES
OFTHE (APPOINTMENT AND REMUNERATION
COMPANIES(APPOINTMENTAND OF MANAGERIAL
REMUNERATIONOF MANAGERIAL PERSONNEL)
PERSONNEL)
RULES, 2014
RULES, 2014

The remuneration
The remuneration ofof Sri
Sri Ramasubramanian
Ramasubramanian Chandrasekar,
Chandrasekar, Chief
Chief Financial
Financial Officer
Officer (“CFO”) and Sri
("CFO•)end Sri C
CRR Dash,
Desh, Company
O)mpany Secretary
Secretary
(“CS”)
("CS") during
during Financial Year 2020-21
Finencisl Year 2020-21 (“FY21”) was ` 0.54
("FY21 was 0.54 crores
crores and
and ` 0.56
056 crores
crores respectively.
respectivety. There
There was
was an
an decrease
decrease of
of 3.91%
3.91%
in
In the
the remuneration
remuneration of
of Sri
Sri Ramasubramanian
Remesubremanien Chandrasekar,
Chandrasekar, CFO and no
CFOend no increase
increase in the remuneration
in the remuneration of
of Sri
Sri C
CRR Dash,
Desh, CS during
CSduring
FY21.
The percentage
The percentage increase
increase in the median
in the median remuneration
remuneration of
of employees
emplcyees in
in FY21
FY21 was
was 2.68%
268% (FY20
(FY2D: 6%)
6%)
The ttal
The total number
number of
of employees on the
employees on the rolls
rolls of
of the
the Company
Compeny as
es on
on March
March 31,
31, 2021
2021 was
was 24,963
24,963 (March
(March 31,
31, 2020
2020 :: 28,699).
28,6gg).

The average
The average percentile
percentile increase
increase in
In salaries of employees
salaries of employees of the Company
of the other than
Compeny other than key
key managerial
managerial personnel
personnel in
in FY21
FV21 was
wes
4%. Average decrease in key managerial remuneration was 9%. There were no exceptional circumstances for increase in the
436 Average decrease in key managerial remuneration was There were no exceptional circumstances for increase in the
managerial
managerial remuneration.
remuneration

INFORMATION AS REQUIRED
INFORMATIONAS UNDER RULE 5 (2)
REQUIREDUNDERRULE5 (2) OF THE COMPANIES
OFTHE (APPOINTMENT AND REMUNERATION
COMPANIES(APPOINTMENTAND REMUNERATIONOF
OF MANAGERIAL
MANAGERIAL
PERSONNEL) RULES, 2014
PERSONNEL)RULES,2014

Employees
Employees in
in receipt
receipt of
of remuneration of not
remuneration of not less
less than
than ` 1.02
1.02 crores
crores per
per annum
annum

Name Designation Remuneration* Nature of Qualifications Experience Date of Age Last Relationship
of the (` in crores)
(t IncrMes) employment, (in Yezs)
Years) commencement
commcenmt (in
(In employment with Director/
employment with Dlrector/
employee whether of
Of employment Years) held
Years) held before
befMe Manager ofOf

contractual or
contractual or joining the
lolnlng the the Company
the Compüy
otherwise Company
Compüy
NIL

56 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 8
Annexure 8 (Contd.)
(Contd)

Top 10
Top 10 Employees
Employæs in terms of
in terms of remuneration
remuneration drawn
drawn

Sl.
SL Name Of
of the
the Designation
Deslgnåon Remuneration*
Rerrwneratlon• Nature
"httreofof Qualifications
Quallcatlons Experience
Eoerlence Date
Date of Of Age
Age Last
Last Relationship
Relatio•rÜ
No. employee
errwloyee (`
g in crores) an#ymatt,
Incrores) employment, (in Years) connencemalt
(InYears) commencement (in employment
(In ernployment with
wtth
whether of employment Years)
Of&TVIoyment Years) held
held before
before Director/
Dlrector/
contractual joining the
Jolnlngthe Manager
MmaW
or otherwise Company
Company of
Of the
the

Company
1 Ramachandran President
President 0.87 Permanent BA, PGDBM 27
27 March 12,
12, 2010
2010 52
52 Fullerton
Fullerton No
Nair India
India Credit
Credit

Co
Cc Limited
Limited

2 Siddhartha
Siddhalha President 0.86 Permanent B.Com, PGDM 24
24 June 27, 2011
une27,2011 47
47 Hong Kong No
Pakrasi and
Shanghai
Shangha
Banking
a.snkirg
Corporation
Ccrpct2ticn
3 Lakshmi
L:ehrni
Executive 0.74 Permanent A.C.S,
ACE, 31 April 2, 2015
2015
59
59
Magma
ll:grna No
Narasimhan
Narasrnh.n V
V Director*
L7iræcT• PGDBA Fincorp
Fro:rp
4 Monika
%nika Kapoor
K.pcc,r Senior Vice
Vice 0.70 Permanent B.Com,
acorn LLB,
LL3, 17 May
May 7,7, 2018
2018 46
46 Capital
Capital First
First No
President
Fræslden', MBA
5 YS
Y S Chakravarti
Chakravart Managing
Mana$ng 0.64 Permanent B.COM 29 June 17, 1991 57
57 Shriram
Shhram No
Director
L7iræcT Group
group
& Chief
Executive
Officer
Offcer

6 Parikshit
Pahksht Senior Vice
Vice 0.63 Permanent MBA 18 February
Febnxy 14,14, 42
42 ICICI Bank No
Kapoor
Ka;ocr President
Fræslden', 2017 Limited
Limite

7 Vijayaraghavan
Vijyyeraghavan Executive 0.62 Permanent CS,CA,
cs,CA ICWA 42
42 October 6, 2006 67
67 MD Victory No
T Director*
Direct," Laminations
Laminations

Limited
Limite

8 Swapneel Patil
SwepneelPatil Senior Vice
Vice 0.58 Permanent B.E, MMS 23
23
March 25,
25, 2013
2013 47
47
Fullerton
Fullerton
No
President India
India Credit
Credit

Co
Cc Limited
Limited

9 Srinivas K
Srinb,'3s K
Executive 0.57 Permanent MBA 29 May 5, 1992
Mays, 55
55
Shriram
Shiism
No
Director*
L7iræcT•
Group
Group
10
10 Chitta
Chitta Ranjan
Ranjan President
President 0.56 Permanent B.COM,CS,CA
3COMCS,CA 32
32 April 16, 2009
April 57
57 Prithvi No
Dash And Information
Company
Ccrn;arry Solutions
Solutcr,s

Secretary
Secretary

* Not a member of
Not a member
of the
the Board.
Zoanl

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 57
M
*SHRIRA

Annual
Annual Report
Report on
on CSR
CSR Activities
Activities
Annexure 9
Annexure g

1. A
A brief
brief outline
outline of the Company’s
of the Company's CSRCSR Policy,
Policy, including
including overview
overview of
of projects
projects or
or programs
programs proposed to be
proposed to be undertaken
undertaken and
and
a
a reference
reference to
to the
the web-link
web-link to the CSR
to the CSR policy and
and projects
projects or
or programs.
programs. –
Shriram
Shriram City
City Union
union Finance
Finance Limited
Limited (“Company”)
("Company") has
has formulated
formulated itsits Corporate
Corporate Social
Social Responsibility
Respnsibility (“CSR”) Policy in
("CSRT)Policy in line
line
with
with Section
Section 135
135 of
of the
the Companies Act 2013
Companies Act 201S (“CA13”),
("CAI Schedule
Schedu'e VII
VII to
to CA13
CAI 8 and
and Companies
Companies (Corporate
(Cov:rste Social
Social Responsibility
Respnsibility
Policy)
Policy) Rules 2014. The
Rules2014. The Company’s
Company"s CSR
CSRProjects/Activities
Projects/Activities are
are carried
carried onon by
by the
the Company
Company directly
directly or
or through
through implementing
implementing
agency as approved from time to time by the CSR Committee in accordance with CSR policy of the Company.
agency es approved from time to time by the Committee in eccordance with CSR plicy of the Company.
The
The CSR
CSR spend
S*nd isis planned
planned inin advance
advance keeping
keeping in view the
in view the amount
amount specified
specified under
under the
the Companies
Companies Act Act 2013,CSR
2013,CSR Policy
Policy
,scalability and other related matters .The CSR projects of the Company during the financial year 2020-21 were undertaken
,scalability and other relsted matters The CSR projects of the Compeny during the financial year 2020-21 were undertaken
on
cr. education
education ,skill
skil development,
development livelihood,
livelihcod, art
art and
end culture. The Company
culture The Compeny is is open
open to join hands
to join with other
hands with other implementing
implementing
agencies
agencies for
for optimal
optime use
use of
of resources
resources and
and skill. The CSR
skill. The policy of
CSRpolicy of the
the Company
Company continues
continues toto be
be displayed
displayed on
on the
the website
website of
of
the Company (refer Table - 1)
the C.ompany(refer Table - 1)

2. The
The Composition
Composition of the CSR
of the CSR Committee
Committee

S
S Name
Name of of the
the Director
Director DIN Type
Type of of Position
Position

No Director
Director

i Smt Maya
MayaS S Sinha
Sinha 03056226
03056226 NE, I Chairperson
Chairperson
ii Sri
Sri Debendranath
Debendranath Sarangi
Sarangi 01408349 NE, I Member
Member

iii Sri
Sri Yalamati
Yalsmeti Srinivasa
Srinivasa Chakravarti
Chakravarti 00052308
013352308 E, NI Member
Member

Executive
Executive (“E”), Non
Non Executive
Executive (“NE”),
CNE"),Non Non Independent
Independent (“NI”), Independent (“I”)
("NIA),Independent

3. Average
Average net
net profit
profit of
of the
the Company
Company for
for last
last three financial years
three financial years :: ` 1,308.66
1 crores
crores

4.
4_ Prescribed
Prescribed CSR
CSR Expenditure (two
(two percent
percent of
of the
the amount as in
amount as in item
item 3
3 above):
above): ` 26.17
26_17 crores
crores

5. (a)
(a) Details
Details of
of CSR
CSR spent
spent during the financial
during the financial year
year 2020-21
2020-21 :: `t 21.95 crores
21S5crores

(b) Total amount

(b) Total amount to
to be
be spent
spent for the financial
for the financial year
year : ` 26.17
26.17 crores
crores

(c) Amount unspent

(c) Amount unspent if
if any
any :: ` 4.22
422 crores
crores

(d)
(d) Manner
Manner in which the
in which the amount
amount spent
spent during the financial
during the financial year
year is detailed below
is detailed below

(Amount
(Amount ` in
in crores)
crores)
Sl. Name
Name of
of the
the Name of Location Amount
Amount Amount
Amount Date
Date of
of Purpose % of
No
No Program
Program (s)
(s) Project
Project Proposed
Proposed Spent
Spent commencement
commencement progress
to
to be
be spent
spent during the
during the
year
1 Shriram
Shriram
Matriculation
Matriculation
Education
Education
Skill
Skill
Tiruneermalai,
Tiruneermalgi, 0.80 0.85 Apr-19
Apr-lg Infrastructure,
nfrastructure. Ongoing
Orgoing
School, Tiruneermalai-
TirureermaLai- Development Chennai, Chennai, Tamil
Tamil teacher training
te;cher training
Shriram
Shriram Foundation
gourd—ten and Livelihood
Li'.EIihzo± Nadu and student
student

activities
2 Mission
Mission
25- Shriram
2S- Shriram
Krishna
Krishna
0.30 Apr-19
Apr-lg Infrastructure,
Infrastructure. Ongoing
Orgoing
Foundation
n dation District,
District Andhra
Andhra teacher training
te;cher training
Pradesh
Pradesh and student
student

activities
3 Two wheeler
wheeler mechanic
mechanic Education
Education Skill
Skill Multiple
Multiple 0.65
oss 0.80 Apr-19
Apr-lg Two
Two W Wheeler
reel er Ongoing
Orgoing
program-
;rcgram- Pratham
Prsth;rn Development locations
locations in
in UP,
UP, Training Program,
Training Program.
Education
Education Foundation
Foundation and Livelihood Chattisgarh
Chettis;arf7 Hospitality &
and
and Telengana
Telergana Health
*Elth
Care
Cere

sectors
sectors
for 1500
for SO]

underprivileged
underprivileged
youth from
youth from Tamil
Tamil
Nadu, Telangana
Telergg,na
&
&
all over India.
IndÄ

4
4 Chennai
Chennai Mathematical
Matten-ætical Tamil
Tamil Nadu
Nadu 4.00
4.00 4.00 Apr-19
Apr-lg Corpus fund
Carpus furd
Institute
Institute

58 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annual Report
Annual Report on
on CSR Activities
CSR Activities
Annexure 9
Annexure g (Contd.)
(Contd)

Sl. Name of the

Name of the Name of Location Amount
Amount Amount
Amount Date of Purpose % of
No
No Program
Program (s)
(s) Project Proposed
Proposed Spent
Spent commencement
conunencement progress
to
to be spent
spent during die
the
year
5 South
South India
India Club
Club Art and Culture
Art and Culture New
New Delhi
Delhi 11.30 8.30 Apr-19
Apr-10 Support
Support forfor Art
Art Ongoing
Ongoing
and
and Culture
Culture

6 Promoting
Promoting Education-
Education- Single
Single Rural
Rural 1.00 2.00 Nov-19
Nov-lg Promoting
Promoting
Swami
Swami Vivekananda
Wveenand; Teachers
Teachers Tamilnadu
Tamilnedu Education,
Educetion,
Rural
Rural Development
>velopment School Stopping
Stopping school
schcd
Society drop
drag outs
outs
7 Ramkrishna
Ren-krishng Mission
Mission Promoting
Promoting Tamil Nadu
Tamil Nadu 1.00 1.00 Dec-20 Promotion
Promotion of
of

Students
Students Home
Home Education
Educ;tio.n education
education

8 M
M R Educational
Educational And
And Promoting
Promoting Tamil Nadu
Tamil Nadu 3.00 3.00 Mar-21
Mar-ZI Promotion
Promotion of
of

Social Trust
Trust
Education
Educ;tio.n
education
education

9 Dr VV Krishnamurthy
Krishnamurtf-y Promoting
Promoting Tamil Nadu
Tamil Nadu 2.00 2.00 Jan-21
-Ian-21 Promotion
Promotion of
of

Educational
Educational Foundation
Foundation Education
Zucation education
ed Retia
I n

Total 24.05
24.05
21.95

6. In
In case the Company
case the Company has
has failed
failed to
to spend the two
spend the two percent
percent of
of the
the average
average net
net profit
profit of
of the
the last
last three financial Years
three financial Years or
or any
any
part thereof, the
part thereof, the Company shall provide
Company shall provide the
the reasons
reasons for
for not
not spending the
the amount
amount in in its
its Board
Board report.
report
The
The Company
Compeny had spent ` 21.95
had spent 21'5 crores
crores during
during the
the year
year ended
ended March
March 31,
31 2021
2021 (March
(March 2020
2020 ` 11.75
1175 crores).
crores). There
There was
was ae
short spending to the tune of ` 4.22 crores during the financial year as the Company could not finish up the projects due to
short s*nding to the tune of 4.22 crores during the financial year es the Compeny could not finish up the projects due to
non-availability
non-aveilability of the required skill
of the skill and
end manpower
manpwer withwith the
the Company.
Company

We
We hereby
hereby affirm
affirm that the CSR
that the CSR Policy
Policy (“Policy”) of the
("Policy) of the Company as approved
Comp-anyas approved by the Board
by the 203rd of
of Directors
Directors of
of the
the Company
Company is
is
monitored
monitred by the CSR
by the CSR Committee
Committee and
and the
the CSR activities have
CSRactivities have been
been implemented
implemented inin accordance
accordance with the Policy.
with the Policy

Yalamati Srinivasa
Yalamati Srinivasa Chakravarti
Chakravarti Maya
Maya SS Sinha
Sinha
DIN -- 00052308
00052338 DIN – 03056226
DIN 03056226

Managing
Managing Director
Director Chairperson
Cheir#rson – CSR Committee
—CSR Committee

Place
Place : Chennai
Chennai

Date : April 30,

Date: April 30, 2021
2021

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 59
M
*SHRIRA

ANNEXURE IIII
ANNEXURE

ANNUAL REPORT
ANNUAL REPORT ON
ON CSR ACTIVITIES FOR
CSR ACTIVITIES FOR FINANCIAL YEAR COMMENCING
FINANCIAL YEAR COMMENCING ON
ON OR
OR AFTER
AFTER APRIL
APRIL 1,
1, 2020
2020

1. Brief
Brief outline
outline on
on CSR Policy of
CSRPolicy of the
the Company
Company

Shriram
Shriram City
City Union
union Finance
Finance Limited
Limited (“Company”)
("CompenyT) formulated
formulated aa policy
plicy named
named “Corporate
"Corporate Social
Social Responsibility
Responsibility (“CSR”)
("CSR')
Policy in line with Section 135 of the Companies Act 2013 (“CA13”), Schedule VII to CA13 and Companies (Corporate Social
Policy in 'ine with Section 135 of the Campanies Act 2013 Schedule VI' to CAI 3 and Companies (Corporate Social
Responsibility
Responsibility Policy)
Policy) Rules 2014. The
Rules2014. The Company’s
Company's CSR CSRProjects/Activities
Projects/Activities are
ere carried
carried on
on by
by the
the Company
Comp-ny directly
directly or through
or through
implementing
implementing agency
agency asas approved
approved from time tto time
from time time by
by the
the CSR Committee in
CSRCommittee in accordance with CSR
accordance with policy of
CSRpolicy the Company.
of the Companyt
The
The CSR
CSR spend
S*nd is is planned
p'anned inin advance
advance keeping
keeping in view the
in view the amount
amount specified
specified under
under the
the Companies
Companies Act Act 2013,CSR
2013,CSR Policy
Policy
,scalability and other related matters .The CSR projects of the Company during the financial year 2020-21 were undertaken
,scalability and other relsted matters The CSRprojects cf the Company during the financial year 2020-21 were undertaken
on
cr. education
education ,skill
skil development,
development livelihood,
'ivelihc,ad, art
art and
end culture. The Company
culture The Comp-ny is is open
open to join hands
to join with other
hands with other implementing
implementing
agencies
agencies for
for optimal
optime useuse of
of resources
resources and
and skill. The CSR
skill. The policy of
CSRpolicy of the
the Company
Company continues
continues toto be
be displayed
displayed on
on the
the website
website of
of
the
the Company (refer Table
C.ompany(refer Table -- 1)
1)

2. Composition
Composition of
of CSR
CSR Committee
Committee

S
S Name of the
Name of the Director/
Director/ Designation
Designation Designation
Designation I/ Number
Number ofof meetings
meetings Number
Number of
of meetings
meetings of
of CSR
CSR
No Nature
Nature of of of
of CSR
CSR Committee
Committee Committee
Committee attended
attended during
during
Directorship
Directorshi held
held during
during the
the year
year the
the year
year
i Smt
Smt Maya
Ma S S Sinha,
Sinha, Chairperson
Chai rson NE, I 3 3
ii Sri Debendranath Sarangi, Member
Sri Detendraneth Saran i, Member NE, I 3 3
iii
iii Sri Yalamati Srinivasa
Sri Ys'amati Srinivasa Chakravarti,
Chakravarti, E, NI 3 3
Member
Member

3. Provide the web-link

Provide the web-link where
where Composition
Compsition ofof CSR
CSR committee,
committee, CSR
CSR Policy
Policy and
and CSR
CSR projects
projects approved
approved by
by the
the board
turd are
ere
disclosed on the website of the Company:- The CSR policy of the Company continues to be displayed on the website of the
disclosed on the website of the Company:- The CSR *icy of the Company continues t be on the website of the
Company (refer Table - 1)
Company (refer Table - 1)

4. 
4_ Provide
Provide the details of
the details of Impact
Impact assessment
assessment ofof CSR
CSRprojects
projects carried
carried out
out in
in pursuance
pursuance ofof sub-rule
sub-rule (3) of rule
(3) of rule 8
8 of the Companies
ofthe Companies
(Corporate Social responsibility
(CMP3rate Scciel rev:nsibi'ity Policy)
Policy) Rules,
Riles, 2014,
2014 ifif applicable
applicsble (attach
(attach the
the report).
report} There
There are
ere no
no projects
projects undertaken
undertaken or
or
completed
completed after January 22,
after danuary 22, 2021, for which
2021, for which the
the impact assessment report
impact assessment report is
is applicable
applicable in
in FY21;
FV21;
5. Details of the
Details of the amount
amount available
available for
for set
set off
off in
in pursuance
pursuance ofof sub-rule
sub-rule (3) of rule
(3) of rule 7 of the
7 of the Companies
Companies (Corporate
(Carprate Social
Sccial
responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any
respnsibility Policy) Rules,2014 end amount required for set off for the financial year, if any

Sl. Financial
Financial Year
Year Amount available
Amount available for
for Amount
Amount required
required toto bebe
No. set-off from preceding
set-off from preceding setoff for the financial
setoff for the financial

financial
financial years (in `) year,r, if
if any (in `)
1 FY 20 0.89 NIL
TOTAL
TOTAL 0.89
0.89 NIL

6. Average
Average net
net profit
profit of
of the
the Company
Company as
as per section
section 135(5)
135(5) -- ` 1308.66 crores
130866 crores
7. (a) Two percent
(a) Two percent of average net
of everage net profit
profit of the Company
of the Company as
as per
per section
section 135(5)
135(5) -- ` 26.17
26.17 crores
crores

(b)
(b) Surplus
Surplus arising
arising out of the
out of the CSR projects or
CSRprojects or programmes
programmes or
or activities
activities of
of the
the previous financial years
previous financial years -- Nil
Nil

(c) Amount required

(c) Arnunt to be
requir4i to be set
set off
off for the financial
for the year, ifif any
financial year, any -- ` 0.89
089 crores
crores

(d) Total CSR

(d) Total CSR obligation for the
obligation for financial year
the financial year (7a+7b-7c).
(7a+7b-7c).

8. (a)
(a) CSR amount spent
CSRamount spent or
or unspent
unspent for the financial
for the financial year:
year:
Total
Total Amount
Amount Amount Unspent
Amount Un (` in
In crores)
crores

Spent for
Spent for the
the Total Amount transferred to
Total Amount transferred to
Amount
Amount transferred
transferred toto any
any
Financial
Financial Year
Year
Unspent
Unspent CSR
CSR Account as per
Account as per fund
fund specified
specified under
under Schedule
Schedule
(`
(t in
in crores)
crores) section
section 135(6)
135(6) VII
VII as
as per
per second
second proviso to section
proviso to section 135(5)
135(5)
21.95
21.95 Amount Date
Date of transfer
of transfer Name
Name of the Fund
of the Fund Amount
Amount Date
Date of
of transfer
transfer

3.33
333
April 29,
i' 29 2021
2021

60 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure IIII (Contd.)

Annexure (Contd.)

(b)
(b) Details of CSR
Details of CSR amount
amount spent against ongoing
spent against ongoing projects
projects for
for the financial year:
the financial year

(1) (2) (3) (4) (5) 6) (7) (8) (9) (10) (11)
Sl. Name of the Item from the Local
Item from Lwal
Location
Locationof the project Project
Pr*t Amount
knount Amount
hunt
Amount
known
Mode
We of of Mode
Mc&ofof Implementation-
knpleneltation-
No. Project
Pr*t list
ist of
of area
wea duration ücated
dwation allocated spent
spent in tramfered
transferred to
to Implementa Through Implementing
knplenelta Though 1m*nenting
activities
activiies (Yes/ for the the
tte Unspent
Unswt CSR CSR tion
tim -- Agency
in
in Schedule VIIVII No) State
SWe District project
prow current
curent Account for
Account fm Direct Name
Nane CSR
to the Act.
to the (` in
in financial the
the project
voiect as
as (Yes/No).
Ne&/No) Registration
crores) Year
crore) Year (` in
in
per Section
Section
number
crore)
crore) 135(6)
135(6)
(` in cue)
g in crores)
1. South
S:uth India
Irsa Club
tub Art and Culture
'rt CLiture No New New
Ne,'JDelhi
CEIhi 7 years 11.30 8.30 3.00 Direct
Delhi
2. Shriram
*rire-n Matriculation
'*triaJLetion Education
Siuæt& Skill
Skl Yes
Yes Chennai
thnræi Tiruneermalai
Trurærmsai 1.18 0.85 0.33 Direct
School,
Sch:cl, Tiruneermalai- Development
Shriram
*rire-n Foundation
Fun detion and Livelihood
3.
3 Mission -- 25
MSEion 25 No Andhra Krishna
Krishrz

Pradesh
TOTAL 12.48
1248 9.15
9.15 3.33
(c)
(c) Details of CSR
Details of CSR amount
amount spent against other
spent against other than
than ongoing
ongoing projects
projects for
for the
the financial
finsncisl year:
yeer:

(1) (2) (3) (4) (5) (6)

(6) (7)
(7) (8)
(8)
Sl. Name Item from the
Item from the
Local
Local
Location of
Location
of the
the Amount Mode of
bÆode of
Mode of implementation --
Mode of implementation
No. of the list
list ofof activities
activities area project.
project. spent
spent for
for implementati
implementati Through implementing
implementing
Project.
Project in
in Schedule
Schedule VII (Yes/No).
VII (Yes/t•b)_ the on - agency.
to the
to the Act.
Act. State. District. project
project Direct Name CSR
(in
(in ` In
In (Yes/No).
(Yes/No)_ Registration
Registration
crores).
crores) _ number.
1. Two wheeler
v.'f-eeler Education
Education Skill
Skill No UP, UP, 0.80 No Pratham
Pratham

mechanic
mechanic
Development
Ceælcpn-ænt Chattisgarh Chattisgarh
Chettisgerh Education
Educ;tio.n

program-
program- and
and Livelihood
Liveliho:t and and Foundation
Foundation

Pratham
P rat f-Am Telengana
Tel ergana Telengana
Tel ergane
Education
Education

Foundation
Fourtaticn

2. Chennai
Chennai Education
Education Skill
Skill Yes
Yes Tamil Nadu
Tan-lil Nadu Chennai
Chennai 4.00
4.00 Direct
Mathematical
Mat rematical Development
Ceælcpn-ænt
Institute
Institute and
and Livelihood

3. Single
Single Teachers
Teachers Promoting
Promoting Yes
Yes
Tamil Nadu
Tan-lil
Nadu
Chennai
Chennai
2.00
2.00
Direct
School -- SwamiSwami Education
Education

Vivekananda
Vivekananda

Rural
P.ur—I

Development
De•.elopn-ent
Society
4. Ramkrishna
Ramkrishne Promoting
Promoting Yes
Yes Tamil Nadu
Tan-lil Nadu Chennai
Chennai 1.00 Direct
Mission
Mission Education
Education

Students
Students
Home
eon-e

5. M R Educational
M R Educational Promoting
Promoting Yes
Yes Tamil Nadu
Tan-lil Nadu Chennai
Chennai 3.00
2.00 Direct
And
Ard Social
Scial Trust
Trust Education
Educetion

6. Dr V Promoting
Promoting Yes
Yes
Tamil Nadu
Tan-lil
Nadu
Chennai
Chennai
2.00
2.00
Direct
Krishnamurthy
Kris h nannurthy Education
Education

Educational
Education;'

Foundation
Fourtaticn

(d) Amount spent

(d) Amount spent in
in Administrative
Administrative Overheads
Overheads

(e) Amount spent

Amount spent on
on Impact
Impact Assessment,
Assessment, ifif applicable
applicable -- Nil
Nil

(f)
(f) Total amount
Total amount spent
spent for the Financial
for the Year –
änenciel Year —` 21.95 crores
21Æ5crores

(8b+8c+8d+8e)
(g)
(g) Excess amount for
Excess amount for set
set off,
off, ifif any
any -- Nil
Nil

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 61
M
*SHRIRA

Annexure II
Annexure II (Contd.)
(Contd.)

Sl. Particular
Particular Amount
Amount

No. (` in
In crores)
crores

(i) Two
Two percent
percentof of average net profit of
averagenetprofit of the
the Company
Companyesper as per section
section 135(5) 35(5) 26.17
2517

(ii)Total amount spent for the Financial Year

Tot-I smount spent far the Financial Year 21.95
21.95

(iii)
Excess
Excess amount
amount spent
spent for
for the financial year
the financial year [(ii)-(i)] Nil
(iv)Surplus
Surplus arising
arising out of the
out of the CSR projects or
CSRprojects or programmes
programmes or or activities
activities of the previous
ofthe previous financial
financial Nil
years,
years, if
if any
Eny
(v) Amount
Amount available
available for
for set
setoffoff in
in succeeding
succeedin financial
financial years ars[ [(iii)-(iv)]
lil - Nil
9. (a)
(a) Details
Details of
of Unspent
unspent CSR amount for
CSRamount the preceding
for the præeding three
three financial
financial years:
years

Sl. Preceding
Preceding Amount Amount spent
Amount spent Amount transferred to
Amount transferred to any
any fund
fund Amount
Amount

No. Financial
Financial transferred
transferred to
to in
in the
the specified under
under Schedule
Schedule VIIVII as
as per
per remaining
remaining to to
Year Unspent
Unspent CSR CSR reporting
reporting section
section 135(6),
135(6), if
if any.
a be spent in
be spent in
Account under
Account under Financial
Financial YearYear Nameofthe
Name of the Amount
Amount Date of
Date of succeeding
succeeding
section 135 (6)
section 135 (6) (in `)
(in t) Fund
Fund (in
(in `)
t) transfer
transfer financial
financial

(in `) years (in `)

NOT
NOT APPLICABLE
APPLICABLE

(b)
(b) Details
Details of
of CSR
CSR amount
amount spent
spent in the financial
in the year for
financial year ongoing projects
for ongoing projects of
of the
the preceding financial year(s):
precading financial year(s):

(1) (2)
(2) (3)
(3) (4) (5) 6)
6) (7)
(7) (8)
(8) (9)
(9)
Sl.
Sl. Project
Project Name
Nameof of Financial
Financial Project
Pr*t Total
Total Amount
Amount Cumulative
Cumulative Status
Status of the
of the

No. ID. the

the
Year in
Year in
duration.
duration.
amount
amount
spent
spent onon the
the amount
amount spentspent project
project --
Project
Pr*t which the
which the allocated
allocated project
project in
in the
the at
at the
the end
end of
of Completed
Completed
project
project was
was for the
for the reporting
reporting reporting /Ongoing.
'Ongoing.
commenced.
commenced. project
pr*t Financial
Financial Financial
Financial

(in `) Year (in

Year m `) Year. (in
Year. In `)

NIL

10. In case of

In case of creation
creation oror acquisition
acquisition of
of capital
capital asset, furnish the
asset, furnish the details
details relating
relating to
to the
the asset
asset so
so created
created or
or acquired through
acquired through
CSR spent in the financial year
CSR spent in the financial year
(asset-wise details)._
(asset-wise details)

(a)
(a) Date
Date of
of creation
creation or
or acquisition of the
acquisition of capital asset(s).
the capital asset(s). -- Nil
Nil

(b) Amount of
(b) Arnunt of CSR
CSR spent
spent for
for creation
creation or
or acquisition of capital
acquisition of capital asset.
asset -- Nil
Nil

(c) 
(c) Details of the
Details of the entity
entity or
or public
public authority or beneficiary
authority or beneficiary under
under whose
whose name
name such
such capital
capital asset
asset is
is registered,
register4i, their
their address
address
etc. - Nil
etc - Nil

(d) 
(S) Provide details of
Pro.ridedetails the capital
of the capitel asset(s)
asset(s) created
created or acquired (including
Dracquired (including complete
complete address
address and
and location
location of the capital
of the cepital asset).
asset)
- Nil

11.
11 _ Specify the
the reason(s),
reason(s), if
if the
the Company
Company has failed to
has failed to spend two per cent
spend two cent of
of the
the average
average net
net profit
profit as
as per section
section 135(5).
135(5)_

The
The Company
C.ompanyhad had spent
spent ` 21.95 crores during
21Æ5crores during the year ended
the year ended March
March 31,
31, 2021
2021 (March
(March 2020
2020 ` 11.75
11 75 crores).
crores). There
There was
wes aa
short spending to the tune of ` 4.22 crores during the financial year as the Company could not finish up the projects due to
short spending to the tune of? $22 crores during the financial year as the Company could not finish up the projects due to
non-availability of the
non-evailebility of the required
required skill
skill and
and manpower
manpower with
with the
the company.
company

Yalamati Srinivasa
Yalamati
Srinivasa Chakravarti
Chakravarti
Maya
Maya SS Sinha
Sinha
DIN - 00052308
DIN - 00052308
DIN
DIN
– 03056226
03056226

Managing
Managing Director
Director Chairperson
Chairperson – CSR Committee
—CSR O)mmittee

Place : Chennai
Place : Chennai

Date
Date : April
April 30,
30, 2021
2021

62 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 10
Annexure 10

DECLARATION
DECLARATION ON
ON CERTIFICATE
CERTIFICATE OF INDEPENDENCE
OF INDEPENDENCE FROM
FROM INDEPENDENT
INDEPENDENT DIRECTORS
DIRECTORS

II hereby confirm that

hereby confirm the Company
that the Company hashas received from each
received from of the
each of the independent
independent directors
directors namely
namely Sri
Sri Debendranath
Debendrenath Sarangi,
Sarangi,
Sri
Sri Diwakar
Diwakar B
a Gandhi, Smt Maya
Gandhi,Smt Maya SS Sinha,
Sinha, Sri
Sri Pranab
Pranab Prakash
Prakash Pattanayak
*Ettsnayak and
and Sri Venkataraman Murali
Sri Venketaremen Murali certificate
certificate stating
stating his/her
his/her
independence
independence ases required
required under
under section
section 149
149 (6)
(6) of the Companies
of the Companies Act,
Act 2013.
2013

Yalamati
Yalamati Srinivasa
Srinivasa Chakravarti
Chakravarti

Place
Place : Chennai
Chennai DIN -- 00052308
DIN

Date
Date:: April
April 30,
30, 2021
2021 Managing
Managing Director
Director and
and CEO
CEO

CERTIFICATE
CERTIFICATE OF
OF NON-DISQUALIFICATION
NON-DISQUALIFICATION OF
OF DIRECTORS
DIRECTORS

(Pursuant
(Pursuant to
to Regulation
Regulation 34(3)
34(3) and
and Schedule V Para
Schedule V Pera C
C clause
clause (10)(i) of the SEBI
of the SE81
(Listing Obligations and Disclosure Requirements) Regulations, 2015)
(Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,
The Members
The Members of
of

SHRIRAM
SHRIRAM CITY UNION
CITY UNION FINANCE
FINANCE LIMITED
LIMITED

123, ANGAPPA NAICKEN

123, ANGAPPA NAICKEN STREET,
STREET,

CHENNAI
CHENNAI –
- 600001

II have
have examined
examined the
the relevant
relevant registers,
registers, records, forms, returns
records, forms, returns and
and disclosures
disclosures received
received from
from the
the Directors
Directors of
of Shriram
Shriram City
City Union
union
Finance Limited having CIN L65191TN1986PLC012840 and having registered office at 123, Angappa Naicken Street, Chennai –
Finance Limited having CIN L651 TN1g86PLCD12840 and Having —istered office at 123, Angapps Naicken Street Chennai —
600001 (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate,
in
in accordance
accordance with
with Regulation
Regulstion 34(3)
343) read with Schedule
reed with Schedule VV Para-C
*sra-C Sub
Sub clause
clause 10(i)
1DO)ofof the
the Securities
Securities Exchange
Exchange Board
aoerd of
of India
Indie
(Listing
(Listing Obligations
Obligations and
and Disclosure
Disclosure Requirements)
*uirements) Regulations,
Regulations, 2015.
2015.

In
In my
my opinion
opinion and
and to
to the
the best
best of
of my
my information and according
information end according toto the
the verifications
verifications (including
(including Directors
Directors Identification
Identification Number
Number (DIN)
(DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers,
status at the portal v.wumcagcvin) as considered necessary and explensticns furnished to me by the Comp-ny & its officers,
II hereby
hereby certify
certify that
that none of the
none of the Directors
Directors on
on the
the Board
Baard ofof the
the Company
Company as as stated
stated below for the
below for the Financial
Finencis' Year
Year ending
ending on
cn March
March
31,
31 2021
2021 have
have been
ten debarred
debarred or
or disqualified
disqua'ifl± from
from being
±ing appointed
ap$nted or or continuing
continuing asas Directors
Directors of
of companies
companies byby the
the Securities
Securities and
and
Exchange
Exchange Board
Board ofof India,
India, Ministry
Ministry of
of Corporate Affairs, or
Corporate Affairs, or any
any such other Statutory
such other Authority.
Statutory Authority

Sr. Name of Director

Name of Director DIN Date
Date of
of Appointment
A*ntment at
at Current
Current
No. Designation in the Company
Designation in the Company

1. Debendranath
Debendrsnath Sarangi
Sarangi 01408349
40834 July
duly 28,
28, 2020
2020

2.
2 Srinivasa
Srinivasa Chakravarthy
Chakravarthy Yalamati
Yalamsti 00052308
D00523D8 July
duly 29,
29, 2019
201g

3. Coimbatore
Ccim±tcre
Ramarao
Rsmerao
Muralidharan
Muralidheran
02443277
02443277
July
duly 29,
29, 2019
201g

4.
4. Diwakar
Diwakar Bhagwati
Shagwati Gandhi
Gandhi 00298276
00298276 July
duly 29,
29, 2019
201g

5. Duruvasan
Duruvasan Ramachandra
Ramachandra 00223052
00223052 July
duly 29,
29, 2019
201g

6.
6.
Ignatius
Ignatius Michael Viljoen
Michsel Viljoen 08452443
08452443
July
duly 31,
81, 2020
2020

7.
7. Maya Swaminathan
Swaminathan Sinha
Sinha 03056226
03056226 July
duly 28,
28, 2020
2020

8.
8. Pranab
Prensb Prakash
Prakash Pattanayak
Pattanayek 00506007
00506007 July
duly 29,
2?, 2019
201g

9. Shashank
Shashank Singh
Singh 02826978
02826978
July
duly 31,
31, 2020
2020

10. Venkataraman
Venkataraman Murali
Murali 00730218
00730218 July
duly 29,
29, 2019
201g

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 63
M
*SHRIRA

Annexure 10
Annexure 10 (Contd.)
(Contd.)

Ensuring
Ensuring the
the eligibility for the
eligibility for the appointment
appointment/ / continuity
continuity ofof every
every Director
Director on the Board
on the aoerd isis the
the responsibility
responsibility of
of the
the management
management ofof
the Company.
the C.ompany.MyMy responsibility
responsibility is
is to
to express
express an
an opinion
opinion on
on these
these based
based onon my verification. This
my verification This certificate
certificate is
is neither
neither an
an assurance
assurance
as
as to
to the future viability
the future of the
viability of the Company
Company nor of the
nor of the efficiency
efficiency or
or effectiveness with which
effectiveness with which the
the management
management has has conducted
conducted the
the
affairs
affairs of the Company.
of the Company

For
For SPNP
SPNP & & Associates
Associates

Nithya
Nithya Pasupathy
Pasupathy
Certificate
Certificate of
of Practice
Practice No
No –— 22562
22562

Place
Place : Chennai
Chennai Membership No. - F10601
Membership ND - FID601
Date : April 30,
Date April 30, 2021
2021 UDIN : F010601C000213837

Annexure 11
Annexure 11

DECLARATION
DECLARATION
ON COMPLIANCE WITH
ON COMPLIANCE
WITH THE COMPANY’S CODE
THE COMPANY'S
OF CONDUCT
CODE OF CONDUCT

II hereby
hereby confirm
confirm that the Company
thet the Company has
hes obtained from all
obtained from the members
all the members of the Board
ofthe Board and
and designated
designated senior
senior management
management employees
employees
of the Company affirmation that they have complied with “Code of Conduct for Board Members and Senior Management” (“Code”)
of the Compeny affirmation thet they heve complied with "Code of Conduct for Board Members end Senior Management" ("Code")
of
of the
the Company during the
C.ompany during the year
year ended
ended March
March 31,
31, 2021.
2021

Yalamati
Yalamati Srinivasa
Srinivasa Chakravarti
Chakravarti

Place
Place :: Chennai
Chennai DIN
DIN -
- 00052308
D00523D8

Date : April 30,

Date April 30, 2021
2021 Managing Director and
Managing Director and CEO
CEO

64 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 12
Annexure 12

POLICY
POLICY ON APPOINTMENT, REMUNERATION
ON APPOINTMENT, AND DIVERSITY
REMUNERATION AND DIVERSITY OF
OF BOARD
BOARD

1. Background
Background ::

Companies
Companies Act Act 2013
2013 (“CA13”)
CCA133 and
and SEBI
SEBI (Listing
(Listing Obligations
Obligations and
and Disclosure
Disclosure Requirements)
Requirements) Regulations,
Regulations, 2015
2015 (“LODR”)
CLODR")
require the Nomination and Remuneration Committee of a company to recommend to the Board and the Board to approve
require the Nomination and Remunerstion Committee of a company to recommend to the Board and the Board to approve
a
a Policy on Appointment,
Policy on Appointment Remuneration
Remuneration and Diversity
Civersity ofof Board
Board (“Policy”).
C'Policy"} Regulations
Regulations of
of Reserve
Reserve Bank
ænk ofcf India
India (“RBI”) also
also
requires
requires NBFCs
NFCs toto have
have a policy
pcl.cy on
Dn Fit
Fit and
and Proper
Proper criteria for appointment
criteria for Eppaintment ofof Directors.
Directors Accordingly,
Accordingly, the
the Board
Baard ofof Directors
Directors
(“Board”)
{Board") ofof M/s
M/s Shriram
Shriram City
City Union
union Finance
Finance Limited
Limited (‘Company”)
Company) has hes approved
approved this
this policy
policy considering
considering the
the recommendation
recommendation
of its Nomination and Remuneration Committee (“NRC”).
of its Nomination and Remuneration Committee ("NRCTJ

2. Applicability
Applicability ::

This
This Policy
Policy covers the appointment,
covers the appintment, remuneration
remuneration of
of Directors,
Directors, Key
Key Managerial
Managerial Personnel
Personnel (“KMP”), Senior Management
CI<MP"),Senior Management
Personnel of the Company and the performance appraisal of the Directors.
Personnel of the Company end the performance appraisal of the Directors.

3. Definition
Definition
::
All terms used
All terms used in the Policy
in the Policy shall
shell have
have the
the same
same meaning
meaning as
as ascribed to them
ascribed to them under
under CA13, SEBI (LODR).
CA13,SE31(LODR)

4. Objectives
O*tives ::
The
The objective
objective of this policy
of this plicy is
is to
to stipulate
stipulate criteria
criteria for
for

Appointment, re-appointment,
Ap*ntment, re-apgontment, continuance, discontinuance and
continuance, discontinuance and extension
extension of term of
of term of directors
directrs KMPs
KMPs and
and senior
senior
management
management

Increase diversity et
Increase diversity at Board
Board level
level and
end to
to make
make maximum
maximum use
use of
of the
the skills
skills and
and industry
industry experience of the
experience of the directors.
directors

Retain,
Retain, Promote,
Promote, motivate
motivate and
and sustain talent in
sustain talent the Company
in the Company

Remuneration
Remuneration payable
payable to
to the
the Directors,
Directors, KMP
KMP and
and Senior
Senior Management
Management personnel.
Frsonnel

Ensure the remuneration

Ensure the remuneration isIS reasonable,
reasonable, sufficient
sufficient to
to attract
attract and
and retain
retain talents
talents and
and is
is proportional
proportional to
to the
the effort,
effort,
performance,
*rformance, dedication
dedication and
end achievement
achievement relating to the
relating to the Company’s
Company's operations
operations of the concerned
of the concerned individual.
individual.
Strike
Strike the
the balance
balance between
between fixed
fixed component
component and
and variable
variable incentive
incentive of
of remuneration.
remuneratiom

5. Criteria for AW)intment

Criteria for Appointment ::

The
The appointment
appointment shall
shall be
be based on the
based on the following
following criteria.
criteria
Qualification, technical expertise,
Qualification, tæhnical expertise, track
track record,
record, and
and relevant
relevant experience
experience for
for the
the concerned
concerned position
position
Age, number
Age, number of
of years
years of
of service,
service, specialised
specialised expertise
expertise and
and period
period of
of employment
employment or
or association
association with
with the
the Company.
C.ompany.
Special
Special achievements
achievements and
and operational
D*retional efficiency which contributed
efficiency which to growth
contributed to growth in
in business
business in
in the
the relevant
relevant functional
functional
area.
Constructive
Constructive and
and active
active participation
participation in
in the
the affairs
affairs of the Company.
of the Company

Exercising
Exercising the
the responsibilities
respnsibilities in
in a
a bona fide manner
bone fide manner in
in the
the interest
interest of
of the
the Company
Company

Sufficient
Sufficient devotion of time
dention of time to the assigned
to the assigned tasks.
tasks

Diversity
Diversity of the Board
ofthe aoerd keeping in view
keepingin the skills,
viewthe skills, qualification,
qua lificetion, experience
experience in varied fields
inveried fields of
of finance,
finance, banking,
banking, administrative
administrative
etc. of
etc. of directors
directors in
in different
different industry
industry and
end other
other related
related matters.
matters

Having
Having aa valid
valid Director
Director Identification
Identification Number
Number inin case
case of
of a
a director
director and
end having
having name
name in in the
the data
date base
base of
of the
the Indian
Indian
Institute
Institute of
of Corporate Affairs in
Corporate Affairs in case
case of
of Independent
Independent Directors
Directors throughout
throughout the
the tenure
tenure in the Company.
in the Company

Criteria for Remuneration:

Criteria for Remuneration:

The
The remuneration
remuneration shall
shall be
be sufficient
sufficient based
based on
on the criteria of
the criteria of appointment
appointment mentioned
mentioned above
above and
and shall
shall be
be subjected
subjected to
to the
the
limits mentioned below.
limits mentioned below

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 65
M
*SHRIRA

Annexure 12
Annexure 12 (Contd.)
(Contd.)

POLICY
POLICY ON
ON APPOINTMENT,
APPOINTMENT, REMUNERATION
REMUNERATION AND
AND DIVERSITY
DIVERSITY OF
OF BOARD
BOARD

Category
Catego Remuneration
Remuneration Remarks
Remarks

Whole-time
Whole-time Director
Director &
& Basic
Basic Pay, allowances, Perquisites,
Pay,allowances, Perquisites, Retirement
Retirement benefits,
benefits, Employee
Employee As As approved
approved byby the
the Board/
Baard/
Managing
Managing Director
Director Stock
Stock Option
Option Scheme,
Scheme, and
and reimbursement
reimbursement of expenses incurred
of expenses incurred in
in share holders,subject to
Sherehclderssubject to the
the
performance
performance of of office
office duties
duties limits
limits prescribed
prescribed under
under the
the
CA13.
CA13

Director (other than

Director (other than Reimbursement of reasonable expenses for attending the
Reimbursement of reasonable expenses for attending the Sitting
Sitting Fees are subject
Feesare subject toto
Independent
Independent Director)
Director) meetings
meetings ofof Board
Board andand Committees,
Committees, where
where such
such director
director is
is aa the
the applicable
applicable limits
limits (not
(not
member
member as as decided
decidedby by the Board from time tc
Boardfrom to time.
time exceeding
exceeding 11 lac
lac per meeting)
meeting)
Independent
Independent Directors
Directors Sitting
Sitting Fees
Fees of
of `e 50,000/- per
per meeting
meeting of the Board,
of the Board, per meeting
meeting prescribed
prescribed under
under CA13.
CAI 3
of each Committee and Reimbursement of reasonable expenses
of each C.ommittee Reimbursement of reasonable expenses
for
for attending
attending such
such meetings
meetings as
as decided
decided by
by the
the Board
Board from time to
from time to
time
time

Senior
Senior Management
Management Basic
Basic Pay, allowances, Perquisites,
Pay,allowances, Perquisites, retirement
retirement benefits,
benefits, Employee
Employee As
As decided
decided byby the
the Managing
Managing
Personnel/ KMP
Personnel/ KM Stock Option Scheme reimbursement of expenses incurred in
Stock Option Scheme reimbursement of expenses incurred in Director of the Company
Director of the Company
performance of office duties.
performance of office duties.
The
The Managing
Managing Director
Director shall
shall decide about the
decide etc-it the remuneration
remuneration of
of the
the executives
executives based
based on the
the criteria
criteria set,
set, subject
subject to
to limit
limit fixed
fixed
under any applicable law at the time of appointment and shall decide about reasonable annual increase keeping in view the
under any applicable law at the time of sp*ntment and shall decide E±ut reasonable annual increase keping in view the
prevailing
prevailing market
market condition,
condition, statutory
statutory requirements
requirements objectives/criteria
objectives/criteria and
end any
any other
other factor.
factor.

The
The following
following matters
matters shall
shall be
be brought to the
brought to the attention
attention of
of the
the NRC for evaluation
NRCfor evaluation and
end recommendation.
recommendatiom

a.
a Remuneration
Remuneration to
to any
any person
person in
in excess
excess of
of Rupees two crore
Rupeestwo crore per
per annum
annum
b.
b. Appointment / remuneration
Appointment/ remuneration of
of Directors,
Directrs, KMPs,
{MPs, Senior
Senior management
management personnel.
personnel
The
The maximum
maximum remuneration
remuneration payable
payable to
to all
all the
the Directors/managerial
Directors/managerial personnel
personnel shall
shall be
be capped
capped as
as provided
provided under
under Section
Section
197,198,
197,198, Schedule
Schedule V of the
V of Act.
the Act.

On
On appointment,
appointment, the
the Company shall issue
C.ompanyshell issue appointment
appointment letter.
letter

Process
Process of Evaluation:
of Evaluation:

The evaluation of
The evelustion the Board,
of the aoerd, Committee,
Committee, Director
Director and
and Chair
Chair Person
Person shall
shall be carried out
te carried out atat least
least once
once ae year. The evaluation
year The evaluation
of
of performance
performance ofof each
esch independent
independent director
director shall
shall be done
done byby all
al the
the directors
directors except
except the
the concerned
concerned independent
independent director.
director
The
The evaluation
evaluation of
Df performance
perform-nce of cf non-independent
nan-independent directors
directors shall
shal bebe carried
carried out
out by
by the
the Independent
Independent Directors.
Directors Independent
Independent
Directors
Directors shall
shell also
also evaluate the Board
evaluate the Board as
as aa whole,
whole, the
the Chairperson
Cheir#rson of of the
the Company,
Company, quantity
quantity and timeliness of
and timeliness of flow
flow of
of
information. The evaluation shall be carried out through an evaluation sheet based on different criteria, i.e. qualification,
informatiom The evs'ueticn shal be carried out through an evaluation sheet based on different criteria, Le qualification,
experience,
experience, age,
age, participation,
Erticipation, attendance,
attendance, knowledge,
knowledge, quality
quality of
of discussion,
discussion, beneficial contribution etc.
beneficial contribution The evaluation
etc The evaluation and
and
the
the results thereof shall
results thereof shall be
tre confidential.
confidential

Performance
Performance Evaluation
Evaluation of
of the
the Board/Committee:
Board/Committee:

Each
Each director
director shall
shall be provided
provided with
with rating
rating sheet
sheet on the
the pre
pre set
set criteria.
criteria. The
The rating
rating sheet
sheet shall
shall be filled in
befilled in by
by each
each director with
director with
scores
scores awarded
awarded by by him/her
him/her and
and shall
shal be
be handed
handed over to the
over to the Company
Company Secretary.
Secretary. The
The total
tot-I score
score given
given by
by all
ell the
the directors
directors
participating
participating in
in the
the evaluation
evs'uetion shall
shall be totalled
totalled up
up and
-nd averaged
averaged outcut by
by dividing
dividing the
the total
total score
score with
with number
number of of participating
participating
directors. Based on the average score, the Board may decide on the necessary improvemental activities to be under taken.
directors. Based the average score, the Board may decide on the necessary improvemental ectivities to be under taken

Performance
Performance Evaluation
Evaluation of
of the
the Directors:
Directors:

Each
Each director
director shall
shall be provided with rating
provided with rating sheet
sheet on
on the
the pre set criteria.
pre set criteria. The
The rating
rating sheet
sheet shall
shell be filled in
be filled in by
by each
each director
director for
for
all the directors except himself/herself with necessary details with scores awarded by him/her. The filled in rating sheet shall
ell the directors except himself/herself with necessery•details with scores awarded by him/her The filed in rating sheet shsll
be
be handed
handed over to the
over to the Company Secretary .The
C.ompanySecret-ry .The total
tot-I score
score given
given by
by all the directors
al the d.rectors participating
participating inin the
the evaluation
evaluation shall
shall be
be
totalled
totalled up
up and averaged out
and averaged out by
by diving the total
diving the total with
with number
number ofof participating
participating directors.
directors

66 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 12
Annexure 12 (Contd.)
(Contd_)

Outcome
Outcome
of the Evaluation
of the Evaluation

The
The outcome
outcome of the evaluation
of the shall be
evsluation shall be placed
placed before
before the
the Board,
Board, NRC
NRC and
and before
before the
the meeting
meeting of
of Independent
Independent Directors.The
Directors.The
NRC, Meeting of Independent Directors based on their observation of the awarded scores placed before them, can
NRC,Meeting of Independent Directors based on their observation of the -warded scores placed before them, cen suggest
suggest
to
to the
the Board for action,if
203rd for action,if any.
any Based
Based on
cn the
the recommendation
recommend-tian of of relevant
relevant Committee
Committee and
and based
based on its
its own
own observation,
observation, Board
Board
can
can decide
decide about
about continuance,
continuance, discontinuance
discontinuance and extension.
and extension

Effect and Revision:

Effect and Revision:

This
This policy
policy shall
shall come
come into effect from
into effect from April
April 1,
1 2021
2021 and shall remain
end shell remain in
in force
force till
till amended
amended by by the
the Board
aoerd with
with recommendation
recommendation
of the Committee.
of the Committee AnyAny regulatory changes affecting
regulatory changes this Policy
effecting this Policy shall
shall prevail
prevail over
over this
this Policy.
Policb{

DIVIDEND
DIVIDEND DISTRIBUTION
DISTRIBUTION POLICY
POLICY

1. Preamble
Preamble :-
Dividend
Dividend is
is the
the payment
payment made made byby ae company
companyto to its
its shareholders,
shareholders, usually
usually inin the form of
the form of distribution of its
distribution of its profits.
profits The
The profits
profits
earned by a company can either be retained in business and/or be used for acquisitions, expansion, diversification, business
earned by a company can either ret-ined in business end/Dr be used for acquisitions, expsnsion, diversificgtion, business
growth
groynh oror itit can
can be distributed
distributed to to the
the shareholders.
shareholders A A company
company may mey choose
chczse to to retain
retain a e part
part of
of its
its profits
profits and
and distribute
distribute
the
the balance
balance amongamong its its shareholders
shareho'ders as as dividend.
dividend. This
This Policy
Policy aims
aims toto balance
balance between these. This
between these. This Dividend
Dividend Distribution
Distribution
Policy
Policy (“Policy”)
("Policy') wil will guide
guide dividend
dividend declaration
declaration and
and its
its pay-out
pay-Dut by the Shriram
by the Shriram CityCity Union
Union Finance
Finance Limited
Limited (“Company”)
C'Company") in in
accordance with the provisions of Companies Act 2013 (“CA13”), Rules thereunder (“Rule”) Secretarial Standard (“SS”),
accordance with the provisions of Companies Act 2013 ("CA13•), Rules thereunder ("Rule) Secretarial Standard
Securities
Securities and
and Exchange
Exchange BoardBoard ofof India
Indie (Listing
(Listing Obligations
Obligations and
and Disclosure
Disclosure Requirements) Regulations,
Regulations, 2015
2015 (“LODR”)
("LODR")
and
and any
any other
other applicable
applicable rules
rules and regulations.
—ulstions The The objective
objective of
Df this
this policy
policy is
is to
to ensure
ensure a regular
regu'ar dividend
dividend income for the
income for the
shareholders and long term capital appreciation for all shareholders of the Company. The Board of Directors of the Company
shareholders and long term capital appreciation for all shareholders of the Company The 3csrd of Directors of the Company
(“Board”) will refer
{Board") will refer to
to the
the policy
policy for
for declaring/
declsring/ recommending
recommending dividends.
dividends. This
This policy
policy is framed as
is framed as required
required under
under SEBI Circular
SE81Circular
No.
NC SEBI/
saw LAD-NRO/GN/2016-17/008
LAD-NRO/GN/2D16-17/C08 dated dated July
duly 8,
8, 2016.
2016

2. Applicability and Review

Applicability and Review ::


IItt shall
shall come
come into
into force
force with effect from
with effect from April
April 1,
1, 2021.
2021 Any
Any change
change in
in applicable
applicable law,
law, regulation
regulation shall
shall prevail
prevail over
over this
this Policy.
Policy.
This
This policy
policy shall
shall be
be reviewed
reviewed by
by the
the Board
Board periodically
pericdically for
for any
any changes
changes oror amendments.
emendments The The Company
Company has hes issued
issued only
only
Equity
Equity Shares
Shares and
and no
no Preference
Preference shares
shares issued
Issued by the Company
by the Company are outstanding.
are outstanding

3. Definitions
Definitions ::
i. Company
Company :: Shriram
Shriram City
City Union
union Finance
7nence Limited
Limited

ii. Board
Board :: Board
203rd of
of Directors of the
Directrs of the Company
Compeny

iii.
Ill
Current
Current Financial Year : The
Financial Year financial year
The financial for which
yearfor which the
the dividend
dividend is
is declared/
declared/ recommended
recommended

iv. Dividend
Dividend : Distribution
Distribution of
of any
any sums
sums to
to Members
Members out of Profits
out of Profits of the Company
of the Company and
and included
included both
both interim
interim and
end final
final
dividend
dividend

v. Dividend
Dividend Pay
Pay Out
Out Ratio:
Retia: The
The percentage
percentage of
of dividend
dividend paid/recommended
p.eid/recommend&d bears
bears to
to Profit
Profit determined
determined for
for Dividend
Dividend
purposes.
purposes.

vi.
w
Interim
Interim Dividend:
Dividend Dividend
Dividend declared
declared by
by the
the Board
Board

vii. Final
Final Dividend:
Dividend: Dividend
Dividend recommended
recommended by
by the
the Board
Board and
end declared
declared by
by the
the Members
Members at
at an Annual General
an Annual General Meeting
Meeting of
of the
the
Company.
Company

4. Category of
of Dividends
Dividends :
The
The CA13
CAI 3 provides
provides for two forms
for two of Dividend
forms of Dividend -- Final
Finel and
and Interim.
Interim

(i)
(i) Interim
Interim Dividend
Dividend

The
The Board shall have
Baard shall the absolute
have the absolute power to declare
power to declare interim
interim dividend
dividend during
during aa financial
financial year,
year, as
as and
end when
when itit considers
considers
fit .The Board may endeavor to declare an interim dividend one or more times in a financial year after finalisation of
fit The Board may endeavor to declare en interim dividend one or more times in e financial year after finalisation of
quarterly/half yearly/yearly financial
quarterly/half yearly/yearly financial accounts
accounts based
based on
on the
the profits
profits of the Company.
of the Company

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 67
M
*SHRIRA

Annexure 12
Annexure 12 (Contd.)
(Contd.)

(ii)
(ii) Final
Final Dividend
Dividend

The
The Final dividend shall
Final dividend shall be
be recommended
recommended to to the shareholders/members of
the shareholders/members of the
the Company
Company by
by the
the Board
Board after
after the
the annual
ennual
financial statements are approved by the Board. The Board shall recommend the payment of Final Dividend to
financial statements are Epproved by the The Eoard shall recommend the payment cf Fin-I Dividend to the
the
shareholders/members
shareholders/mem&rs for for their
their approval
approval asss an
an ordinary
ordinary business
business item
item of
of the
the Annual
Annual General
Genersl Meeting. IfIf the
the Board
Board
declares
declares more
more than
than one
one interim
interim dividend
dividend in
in ea financial year, the Board
financial year,the Board may
may recommend
recommend to the shareholder
to the shareholder to treat the
to treat the
last
lest interim
interim dividend
dividend as
as a final Dividend.
e final Dividend

5. Factors to be
Factors to be considered
considered for
for declaring
declaring Dividend
Dividend ::
The
The payment/recommendation
peyment/recommendation of of dividend
dividend is to determine
is to determine the
the amount
amount of
of profit
profit to
to be
be distributed
distributed among
among shareholders
shareholders and
and
amount
amount of
of profit
profit to
to be
be retained
retained in
in business.
business The
The Board will endeavour
Baard will endeavour to
to take
take aa decision
decision with
with an
en objective
objætive tto enhance
enhance
shareholders
shareholders wealth
wealth andand market
market value of the
value of the shares.
shares The Board
The considers as stable
Board considers stEble dividend
dividend to
to constitute
constitute an
an important

element
element of of the
the Company’s
Compsny's investment
investment attractiveness
attractiveness and
and shareholder
shareholder return.
return AsAs aa leading
leading NonNon banking
banking finance
finance Company
Company
operating
operating in in rapidly
rapidly developing,
developing, yet volatile, markets,
yet volatile, markets, its
its primary
primary need
need isis tto maintain
maintain sufficient
sufficient resources
resources and financial
and financial
flexibility
flexibility toto meet
meet financial
financial andand operational
operational requirements.
requirements The The Retained
Ret-ined earnings
earnings strengthen
strengthen thethe Company’s
Companfs net net owned
owned
funds. It will further help in maintaining Capital Adequacy Ratio (CAR) for the Company. The Board from time to time will
funds It will further help in mainteining Capital Adequacy Ratio (CAR)for the Company The Board from time to time will
decide
decide utilisation
utilisation ofDf the
the retained
retained earnings
earnings for
for organic/inorganic
organic/inorganic growth,
growth, market
market competition,
competition, creating
cresting long
long term
term shareholder
shareholder
value etc. The
value etc. The Board
Board will
will ensure judicious balancing
ensure judicious balancing ofof these
these factors
fsctors inin the
the interest
interest of
of the
the Company
Comp-ny and and its
its stakeholders.
stakeho'ders The The
decision
decision regarding
regarding recommendation/declaration
recommendation/declaration of of dividend
dividend will
will depend
depend upon various external
upon various extemal and
end internal
internal factors
factors including
including
the
the following:
following:

(i)
(i) External
Extemal Factors:-

S
 tate of
State of Economy
Economy -- inin case
case of
of uncertain
uncertain or
or recessionary economic and
recessionary economic and business
business conditions,
conditions, the
the Board
Board will
will endeavour
endeavour
to retain larger part of profits to build up reserves to absorb future shocks.
to retain larger part of profits to build up reserves to absorb future shocks

C
 apital Markets
Capital Markets -- when the markets
when the markets are favourable, dividend
are favourable, dividend pay-out
pay-out can
can be
tre liberal.
liberal. However,
However, in
in case
case of
of unfavourable
unfavourable
market conditions, Board may resort to a conservative dividend pay-out in order to conserve cash outflows.
market conditions, 3aard may resort to a conservative dividend pay-out in order to conserve cash outflows.
S
 tatutory and
Statutory and Contractual
Contractual Restrictions-
Restrictions- The
The Board
Board needs
needs to
to keep
keep in
in mind the restrictions
mind the restrictions imposed
impos4i under
under the Act
the Act
and
and any
Eny other
other laws,
laws, the
the regulatory
regulatory developments with regard
developments with regard to
to declaration
declaration of
of dividend, the Company’s
dividend, the Company's contractual
contractual
obligations
obligations under
under the
the loan
loan agreements
agreements // debenture
debenture trust
trust deed
deed and
and other
other agreements,
agreements, documents,
documents, writings
writings limiting
limiting //
putting restrictions on dividend pay-out.
putting restrictions on dividend pay-out

(ii)
(ii) Internal
Internal Factors:- In
In addition to the
addition to the matters
matters mentioned
mentioned in
in CA13,
CA13, regulations and this
regulations and this Policy, the following
Policy, the following factors
factors
shall be considered.
shall be considered


P rofitability, cash
Profitability, cash flow,
flow, cost
cost of
of funds,
funds, business
business growth/expansion,
growth/expension, diversification,
diversification, additional
additional investments,
investments, acquisition
acquisition of
of
business,
business, modernisation
modernisation and
end any
any other
other matter
matter as
as may
may be
be decided
decided by
by the
the Board
Board from
from time
time to time.
to time

The
The Shareholders
Shsrehclders of
of the
the Company
Comp-ny maymey or
or may
may not
not expect
expect dividend
dividend for
for a
e financial
financial year(s)
year(s) in
in the circumstances of
the circumstances of (a)
(a)
challenging/sluggish
challenging/sluggish market
market conditions,
conditions, (b) tough liquidity
(b) tough liquidity position,
position, (c)
(c) losses/no
losses/no profits/inadequate
profits/ina*uete profits.
profits

6. Quantum
Quantum of
of Dividend
Dividend ::

Dividend
Dividend shall
shall be
be recommended/declared
recommended/declered by the Board
by the Board out of profits
out of profits ofof the
the Current
Current Financial
Financial Year
Year of the Company.
of the Compeny. ItIt shall
shall
not
not be
be recommended/paid
recommende.d/peid cut out of
of Free
Free Reserves
Reserves or
or Profits
Profits of
of earlier
earlier financial years or
financial years or both.
both No
No dividend
dividend shall
shall be
be declared/
declared/
paid
paid ifif there
there is
is default
defeult in
in redemption
redemption of of debentures,
debentures, payment
payment of of interest
interest on
on debentures,
debentures, creation
creation of
Df debenture
debenture redemption
redemption
reserve, creation of
reserve,creation of capital
capital redemption
redemption reserve,
reserve, payment
payment ofof dividend
dividend declared.
declared The
The following
following matters
mstters shall
shell be considered for
be considered for
determining the quantum of dividend. Company shall declare/recommend and disclose the Dividend on per share basis only
determining the quantum of dividend C.ompanyshall declare/recommend and disclose the Dividend cr. per share basis only
i)i) Current financial year’s
Current financial years profit
profit as
as determined
determined for the purpose
for the purpose of
of Dividend
Dividend in terms of
in terms of applicable
applicable provisions
provisions of
of CA13.
CA13
ii)
iO Transfer to
Transfer to reserves such amount
resen,'essuch amount as
as may
may be prescribed
prescribed under the CA13,
underthe CA13, RBI regulation
regulation and
and other
other applicable
applicable regulation
regulation

The
The determination of dividend
determination of dividend pay-out
pay-out shall
shall depend
de#nd upon
upon regulatory, internal
internal and
end external
external factors
factors .The
The Board
Board may
may maintain
maintain
a Dividend pay-out ratio (including the applicable dividend distribution tax) in the range of 20 – 25% or such other range
e Dividend pay-out Etio (including the applicable dividend distribution tax) In the renge of 20 — or such other range as
es
may
may be
be decided
decided by the Board
by the 203rd from
from time to time
time to of profits
time of profits after
after tax
tax (PAT).
(PAT)

68 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 12
Annexure 12 (Contd.)
(Contd_)

7. Process Payment
Payment of
of Dividend
Dividend ::

The
The Company
Company will
will give
give prior
prior intimation
intimation of
of 22 working
working days to Stock
days to Stock Exchanges
Exchanges (excluding the date
(excluding the date of
of intimation
intimation and
end the
the
date of the Board meeting) of date of Board Meeting in which the declaration / recommendation of dividend will be
date of the Board meting) of dete of 20erd Meeting in which the declaration / recommendation of dividend will be
considered.
considered

The
The Company
Company will
will inform
inform about
ebout the
the decision
decision taken
taken by
by Board
aoerd regarding
—arding dividend to Stock
dividend to Stck Exchange
Exchange within
within 30
30 minutes
minutes
of the
of the closure
closure of the Board
of the 20erd Meeting.
Meeting.
The
The Company will fix
Compeny will fix Record
Record date
date for
for the
the purpose
purpose of
of determination
determination for
for list of shareholders
list of shareholders eligible to receive
eligible to receive dividend.
dividend.
Persons appearing as members in the register of members or benpose of the Company shall be entitled for Dividend.
Persons appearing as members in the register of members or tenpc,se of the Compeny shall be entitled for Dividend.

The
The intimation
intimation for fixing Record
for fixing Record date
date shall
shell be
be given
given tto exchange
exchange at
at least
least seven
seven working
v.vking days
days in
in advance
advance (excluding
(excluding the
the
date of intimation and the record date).
date of intimation and the record date).
Payment
Payment of
of Dividend
Dividend shall
shall be
be made through electronic
mede through electronic mode
mode or
or cheques
cheques or or payable
payable at
at par
par warrants.
werrants IfIf dividend
dividend isis
payable by
by at par warrants or
par warrents or cheques
cheques they
they shall
shall be
be sent
sent by
by speed
spe± post,
post, ifif itit exceeds
exceeds one
one thousand
thousand five
five hundred
hundred rupees.
rupees
The Company
The Company shall
shal be
be discharged
discharg± of
of its
its responsibility
responsibility of
of payment
payment of
of Dividend
Dividend on on the
the amount
amount debited
debited to
to the
the Dividend
Dividend
Banking
Banking account
account ofof the
the Company
Company with
with such
such dividend
dividend paying
paying Bank.
Bank
The
The dividend declared shall
dividend declared shall be
be deposited
depsited in
in a
a scheduled
scheduled bank
bank in
in aa separate
separate account
account within
within five
five days
days form the date
form the dete of
of
declaration of such dividend.
declaration of such dividend

8. Unclaimed/Unpaid
unclaimed/Unpaid Dividend
Dividend ::
Dividend
Dividend declared
declared by
by aa Company
Company remaining
remaining unpaid or unclaimed
unpaid or within 30
unclaimed within 30 days
days from
from the
the date
date of
of declaration
declaration of
of Dividend,
Dividend,
the Company shall within 7 days from the date of expiry of the said period of thirty days to a special account to
the Company shell within 7 days from the date of expiry of the said period of thirty days to a special account to be
be
opened by the Company in any Scheduled bank to be called the Unpaid Dividend Account.
opened by the Compeny in any Scheduled benk to be called the Unpaid Cividend Account
Any
Any money
money transferred
transferred to
to the
the Unpaid
unpaid Dividend
Dividend Account
Account ofof a
e Company
Compeny which
which remains
remains unpaid or unclaimed
unpaid or unclaimed for
for a
e period
period
of seven
of years from
seven years the date
from the dete of
of such transfer shall
such transfer shall be
be transferred
transferred by
by the
the Company
Company along
along with
with Interest
Interest accrued,
accrued, ifif any,
any,
thereon to
thereon to the
the Fund
Fund established
established byby the
the Central
Cent-sl Government
Government called
celled the
the Investor
Investor Education
Education and
and Protection
Protection Fund
Fund (“IEPF”)
("IEPF')
and
and investors can claim
investors can claim refund
refund from
from IEPF and not
IEPFand not from
from Company.
O)mpanyt

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 69
M
*SHRIRA

Business
Business Responsibility
Responsibility Report
Report
Annexure 13
Annexure 13

BUSINESS
BUSINESS RESPONSIBILITY
RESPONSIBILITY REPORT
REPORT FOR THE YEAR
FOR THE YEAR ENDED
ENDED ON
ON MARCH
MARCH 31,
31 , 2021
2021

SECTION
SECTION A :: GENERAL
A GENERAL INFORMATION
INFORMATION ABOUT
ABOUT THE COMPANY
THE

1 Corporate
Corporate Identity
Identity Number
Number (CIN)
(CIN) of the Company
of the Company L65191TN1986PLC012840
2 Name
Name of
of the
the Company
Company Shriram
Shriram City
City Union
union Finance
Finance Limited
Limited
3 Registered address
Registered address 123, Angappa Naicken
123, Angeppe Naicken Street,
Street, Chennai
Chennai -- 600
600 001

4
4
Website
Website
www.shriramcity.in
wwwshriramcityin
5 E-mail
E-mail id
id sect@shriramcity.in
6 Financial
Financial Year
Yeer reported
reported 2020-2021
2020-2021

7 Sector(s) that the

Setor(s) thet the Company
C.ompany is
is engaged
enga* in
in (industrial
(industrial activity
activity code-
code- NIC Code-64990
NIC code-uggo

wise)
wise)
8 List three key
List three key products/services
products/services that
thet the
the Company
Company manufactures/
manufactures/ Please
Please refer to page
refer to page 4
4&& 55 for
for product
prc.duct details
details
provides (as on March 31, 2021)
provides (as on March 31, 2021) under heading Persistence & progress through
under heading Persistence progress through
all-encompassing
all-encompassing product
product contributions
contributions
9 Total
Total number
number ofof locations
Inations where
where business
business activity
activity is
is undertaken
undertaken by
by
the
the Company
Compeny
a) Number
Number of
of International
International Locations
Locations (Provide details of
(Provide details of major
major 5)
5) Nil
b)
b) Number of National Locations
Number of National Locations
926
10
10 Markets served by
Markets served by the
the Company
Company -- Local
local /State/National/
/State/National/ International
International National
National

SECTION
SECTION B
B :: FINANCIAL
FINANCIAL DETAILS
DETAILS OF
OF THE
THE COMPANY
COMPANY

1 Paid
Paid up
up Capital
Capital (INR
(INR in
in lacs)
lacs) (Consolidated)
(Consolidat&d) 6,600.50
6,500 50

2 Total
Tot-I Turnover
Turnover (INR
ONRinin lacs)
lacs) (Consolidated)
(Consolidated) 6,16,786.62
3 Total
Total profit
profit after
after taxes
taxes (INR
(INR in
in lacs)
lacs) (Consolidated)
(Consolidated) 1,07,771.53
4 Total
Total Spending
Spending onon Corporate
Corporate Social
Social Responsibility
Respnsibility (CSR)
(CSR) as
as aa 2.11%
211%

percentage
percentage of
of profit
profit after tax (%)
after tex
5 List
List of
of activities
activities in which expenditure
in which expenditure in
in 4 above has
4 etc,'e has been
been incurred
incurred Education,
Education, Health
Health care,
care, Welfare
Welfare and
and Culture
Culture and
and
skill development
skill development
SECTION
SECTION C
C :: OTHER
OTHER DETAILS
DETAILS

1 Does
Does the
the Company
Compeny have
have any
any Subsidiary
Subsidiary Company
Company // Companies
Compenies Yes. M/s
Yes. M/s Shriram
Shriram Housing
Housing Finance
Finance Limited
Limited
2 Do
Do thethe Subsidiary
Subsidiary Company/Companies
Compsny/Companes participate
participate in the BR
in the 3R The Subsidiary does not participate in
The Subsidiery dces not participate the BR
in the 3R
Initiatives of the parent Company? If yes, then indicate the number of
InitiEtives of the parent Company? If yes, then indicate the number of initiatives of the Company
initiatives of the Company
such
such subsidiary
subsidiery Company(s)
Company(s)
3 Do
Do any other entity
any other entity // entities
entities (e.g. suppliers,
suppliers, distributors
distributors etc.)
etc.) that
that the
the No other entity
No other entity participates
participates in
in the
the BR
3R initiatives
initiatives of
of
Company
Company does
does business
business with,
with, participate
partici#te in the BR
in the 3R initiatives
initiEtives of
cf the the Company
the the Company
Company?
Company? IfIf yes,
yes, then
then indicate the percentage
indicate the percentage of
of such
such entity/entities?
entity/entities?
(Less than 30%,
(Less then 30%, 30%-60%,
308±-603;,MoreMore than
than 60%)
6D%)
SECTION
SECTION D
D :: BR
BR INFORMATION
INFORMATION

1 Details
Details of
of Director/Directors
Dirator/üirectors responsible for BR
responsible for 3R
a) Details
Details of
of the
the Director/Directors
Director/Directors responsible for implementation
responsible for implementation of
of the
the Sri Yalamati Srinivasa
Sri Yelamati Srinivasa Chakravarti,
Chakravarti,
BR
3R policy/policies
policy/plicies
Managing
Managing Director,
Director, DIN-00052308,
DIN-00052308,
b)
b) Details of BR Head
Details of BR Heed
Telephone No. +91 44 4392 5300,
Telephone +91 44 5300,
email id - md@shriramcity.com
email id - md@shriremcitycom

70 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Business
Business Responsibility
Responsibility Report
Report
Annexure 13
Annexure 13 (Contd.)
(Contd_)

2.
2. Principle-wise
Principle-wise (as
(as per
per NVGs)
WGs) compliance
compliance with
with BR
BR Policy(ies)
Policy(ies)

Sl
Sl Questions
Questions P
Pl 1 P
P22 P
P3 3 P
P4 4 P
P55 P
PS6 P
P77 P
P8 8 P9
1 Do
Do you
you have
have a
a policy/policies
policy/plicies for
for Y Y Y Y Y Y Y Y Y
2 Has
Has the
the policy
plicy being formulated in
being formulated in consultation
consultation Y N Y N N Y N N N
with the relevant
With the relevant stakeholders
stakeholders

3 Does
Jces the
the policy
plicy conform
conform to to any
any national/
national/ Y Y Y Y Y Y Y Y Y
international standards? If yes, specify (50
international standards? If yes, specify (50 words)
words)
4
4 Has
Has the
the policy
plicy been
teen approved
Epproved by the Board
by the Board ?? IfIf yes,
yes, Y Y Y Y Y Y Y Y Y
has
has itit been
been signed
signed byby MD/owner/CEO/appropriate
MD/owner/CEO/appropriate
Board
Board Director
Director

5 Does
Jces thethe Company
Company have have e a specified
specified committee
committee Y Y Y Y Y Y Y Y Y
of
of the
the Board /Director official
Board ,füirector official to oversee
to oversee
implementation
implementation of the policy
of the policy
6 Indicate
Indicate the
the link
'ink for the policy
for the policy tto be
be viewed
viewed online
online Refer
Refer tto the
the Note
Note below
below

7 Has
Has the
the policy
plicy been
teen formally
formally communicated
communicated tto allell Y Y Y Y Y Y Y Y Y
relevant
relevant internal
Internal and external
external stakeholders
stakeholders

8 Does
Jces the
the Company
Company havehave in-house
in-house structure to
structure to Y Y Y Y Y Y Y Y Y
implement
implement the the policy/policies
policy/pclicies
9 Does
Jces the
the Company
Company havehave ea grievance
grievance redressal
redressal Y Y Y Y Y Y Y Y Y
mechanism
mechanism related to the
related to the policy/policies
$icy/policies to to
address stakeholders' grievances
address stakeholders' grievances related
related to the
to the
policy/policies
policy/policies
10
ID Has
Has the
the Company carried out
C.ompanycarried out independent
independent audit/
audit/ Y Y Y Y Y Y Y Y Y
evaluation of the
evsluation of working of
the working this policy
of this policy by
by an
an
internal
internal or
or external
external agency
agency

Yes
Yes (“Y”)
(Y) ,No (“N”)

P1
Pl Business should conduct
ausiness should conduct and
and govern themselves with
govern themselves with Ethics, Transparency and
Ethics,Transparency and Accountability
Accountability
P2 Business
Business should
should provide
provide goods
goods andend services that are
services that ere safe
safe and
end contribute to sustainability
contribute to throughout their
sustainability throughout their life
life cycle.
cycle.
P3
93 Business should promote the wellbeing of all employees
Business should promote the wellbeing of ell employees
P4
94 Business
Business should
should respect the interest
respect the interest of
of and
and be be responsive towards all
respnsive towards all stake
stake holders,
holders, especially those who
especially those who are
are
disadvantaged,
disadvantaged, vulnerable and marginalised
vulnerable end
P5 Business
Business should
should respect
respect and
and promote
promote human
human rights
rights
P6 Business should respect, protect and make efforts to
Business should respect, protect and make efforts to restore
restore the
the environment
environment
P7
97 Business,when engaged in influencing public and regulatory policy, should
Business,when engaged in influencing pubic and regulatory policy, should do
do so
so in
in aa responsible
responsible manner
manner
P8
98 Business
Business should
should support
support inclusive
inclusive growth
growth and
and equitable
equitEble development
development
P9 Business should engage
ausiness should with and
engage with and provide
provide value
value to their customers
to their customers and and consumers
consumers in in aa responsible
responsible manner
manner

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 71
M
*SHRIRA

Business
Business Responsibility
Responsibility Report
Report
Annexure 13
Annexure 13 (Contd.)
(Contd.)

If
If answer
answer tto the
the question at serial
question et serial number
number 1
1 against
against any
any principle,
principle, is
is ‘No’,
'NO, please
please explain
explain why
why :: (Tick
(Tick up
up to
to 22 options)
options)

Answers
Answers tto the
the question at 11 in
question et the above
in the table for
above table for all
ell the
the Principles
Principles is
is Yes.
Yes So,
So, explanation
explanation is
is not
not required.
required

Sl
Sl Questions
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.
1
2
2
The Company
The
The
itself
Company has
The Company
Comp-ny is
itself in
has not

in a position
not understood
is not
not at
understood the
at a stage
stage where
to formulate
gzsiticn tc formulate and
policies on specified principles
*icies on specified principles
the Principles
where it
Principles
it finds
finds
end implement
implement thethe ilililiilililll
3 The Company
The Comp-ny doesdces not
not have financial or
have financial or
manpower
msnpower resources
resources available
available for the task
for the task
4 It
It is
is planned
planned to
to be done
done within
within next
next 66 months
months
5 It
It is
is planned
p'anned to
to be done
done within
within next
next 1 year
1 year
6 Any other
other reason
reason (please
lesse specify)
s c

Notes for Sl
Notes for Sl no
no 3
S to the above
to the table : The
stave table The policies
policies are formulated based
are formulated on applicable
based on applicable regulations/general practices
practices and
and
therefore
therefore the
the polices
polices conform
conform toto national
national standards
standards
Note
Note for
for Sl
Sl no
no 66 to
to the above table:
the above table: The
The web
web link for the
link for the policies of the
policies of the Company
Company are
ere as follows https://
es follows httpsfi' www.shriramcity.
wwwshriramcity
in/Investors---->Company Information---Policies.
Information---*Policies The remaining
The remaining policies
plicies are
are not
not displayed
displayed on the
the web
web site
site as
as they
they are
ere
internal to the
internal to the Company
Company

3. Governance
Governance related
related to
to BR
BR

The
The Business
ausiness Responsibility
Respnsibility Policy constitute different
Policy constitute different policies of the Company.
of the Those policies
Compeny Those plicies were
were implemented
implemented and
end the
the
compliance
compliance of
of such
such policies
plicies were
were discussed
discussed in in the
the meeting
meeting of the Board
cf the Board of
of Directors
Directors of the Company
of the Company each
each quarter
quarter during
during
FY21. This
This report
report is
is displayed
displsyed on
on the
the web
web site
site as
as part
part of the Annual
of the Annual Report
Reprt

SECTION
SECTION
E : PRINCIPLE -- WISE
E : PRINCIPLE
WISE PERFORMANCE
PERFORMANCE

1 Does the policy relating to ethics, bribery

Jces the policy relating to ethics, bribery and
end corruption cover only
corruption cover the
only the Yes. It
Yes. It extends
extends to
to Company
Company only
only
Company?
Company? Yes/No. Yes/No. Doesaces itit extend
extend to to the
the Group
Group // Joint Ventures // suppliers
Joint Ventures suppliers
// Contractors
Contractors // NGOs NGOs // Others?
Others?
P1
2 How many many stakeholder
stakeho'der complaints
complaints have have been
been received
received in in the
the past
past financial
financial Please refer to notes to accounts
Please refer to notes to accounts

year
yeer and
-nd what
w,vhatpercentage
*rcentsge was was satisfactorily
satisfactorily resolved
resolved by by the
the management?
management?
If
If so,
so, provide
provide details there of
detai's there of in
in about
E±ut 50 wordswords or or so.
so
1 List up to 3 of your products or services whose design has
List up tc 8 cf your prcducts or services whose design has incorporated The
The Company is a
C.ompanyis e NBFC. This is
N8FC. This is
social
suial or or environmental
environmental concerns,
concerns, risks risks and/
and/ or or opportunities
oppzrtunities not
not applicable
Epplicab'e
2 For
For each
each such
such product,
product, provide
provide the the following
following details
details inin respect
respect ofof resource
resource Not Applicable
Not Applicable
use
use (energy, water, raw
(energy,water, raw material
material etc.)etc) per
per unit
unit ofcf product
product (optional)
(optional)
P2
a Reduction
Reduction during during sourcing
sourcing // production
production // distribution
distribution achieved
achieved since the
since the Not Applicable
Not Applicable
previous year
previous throughout the
yearthroughout value chain
the velueCh'in
b Reduction
Reduction during during usage
usage by by customers
customers (energy, water) has
(energy,water) has been
been achieved
achieved Not Applicable
Not Applicable
since
since the previous
previousyearyear
3 Does
Jces the the Company
Company have have procedures in in place
place for for sustainable
sustainable sourcing
sourcing Not Applicable
Not Applicable
(including transportation)
(includingtransportation)
a If yes, what
If yes, percentage of
w,vhatpercentage your inputs
of your inputs was
wes sourced
sourced sustainably?
sustainably? Also,
Also, Not Applicable
Not Applicable
provide details
_provide thereof, in
detailsthereof, in about
about 50 50 words
words or cr so.
s.
4 Has the Company
Has the Company takentaken any
sny steps
steps to to procure
procure goods
gocZs andand services
services from
from local
lccel The Company
The Company is isaa NBFC
NBFC and end
P2
P2 & Small
Small producers,
producers,including communities surrounding their place
includingcommunitiessurrounding of work
placeof work procures
procures goods
gco±s locally.
If
If yes, what steps
yes, whst steps have
have been
teen taken
tsken to to improve their capacity
improve their c,spscity and
end capability
capability The
The Company
Company prefers
prefers employing
employing
of
of local
Iccsl andand small
small vendors
vendors from the same locality
from the same locality
5 Does
Czes the the Company
Company have have aa mechanism
mechanism to to recycle
recycle products
products and waste? IfIf
and waste? No.
NC Not Applicable.
Not Applicable
yes what is the percentage of recycling of products and waste (separately
yes whet is the percent-ge of recycling of products end weste (separately
as
es <5%, 5-10%,
5-1DE >10%).
SID";) Also, provide details thereof, in about 50 words
Also,prohdedetailsthereof,inabout wordsor or so.
SD

72 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Business
Business Responsibility
Responsibility Report
Report
Annexure 13
Annexure 13 (Contd.)
(Contd_)

SECTION
SECTION E
E :: PRINCIPLE
PRINCIPLE -- WISE
WISE PERFORMANCE
PERFORMANCE

1 Please indicate the Total number of employees

Pleaseindicatethe Tot-I numberof employees 24,963
24,963
2 Please indicate the Total number of
Please indicate the Tote' number of employees
employees hired on temporary/
hired on temporary/ 349
349 as
as on
on March’21
March'21

contractual/casual
contractual/casual basis
basis Consultants
Consultants on
on contract,
contract,
P3 Temporary
Temporary & Casual
Casual –. Nil
Nil
3 Please indicate the Number
Pleaseindicatethe of permanent
Numberof women employees
permanentwomen employees 3096
4 Please
Please indicate the Number
indicate the Number of
Df permanent
permanent employees with disabilities
employees with disabilities 35
5 Do you have
Doyou an employee
havean enplgyee associated that is recognised
asscciatedthat recognis± by by management
management No
6 What percentage of your permanent employees is members of
Whet percentage of your permanent employees is members this
of this Not
Not applicable
applicable
recognised employee association
recognisedemployeeasscciEtion
7 Please
Please indicate
.ndicate the
the Number
Number of of complaints
complaints relating to child
relating to child labour,
le±ur, forced
forced Nil
Nil

labour,
labour, involuntary
involuntary labour,
labour, sexual
sexual harassment
harassment in the last
in the last financial year and
financial year and
pending,
pending, asas on end of
on end of the
the financial
finsncisl year
yesr
8 What
What percentage
percentage of your under
of your under mentioned
mentioned employees
employees were were given
given safety
safety All New
All New Joinees
Joinees and
and ,
& skill
skill up-gradation
up-grad-tian training
training in
in the
the last year? (a)
last year? (E) Permanent
Permanent Employees,(b) (a) 
(e) Permanent
Permanent Employees
Employees -- 52%
P3
P3
Permanent
Permanent Women Women Employees,
Employees, (c) (c) Casual/Temporary/Contractual
Cesual/Temprery/Contractual of
of existing
existing employees.
employees
Employees,
Employees,(d) (d) Employees
Employees with with disabilities
disabilities (b) 
(b) Permanent
Permanent Women
Women

Employees – 60% of existing

Employees — of existing
employees.
employees
(c) 
(c) Casual/
Casual/ Temporary/
Temporary/
Contractual
Contractual Employees
Employees -- NilNil
Employees
Employees with
with disabilities
disabilities -- 50%
of existing
of existing Employees.
Employees
1 Has
Hasthe the Company mapped its internal
Companymappedits and external stakeholders
interne'andexternalstakeholders Yes
2 Out
aut of the above, has
of the hes the
the Company
Company identified
identified the
the disadvantaged, vulnerable
disadvantaged, vulnerable Yes
&
& marginalised stakeholders
marginalisedstekehclders
P4
3 Are
Are there
there anyany special
specisl initiatives taken by
initiatives taken the Company
by the Company to to engage
engage withwith the
the Yes.
Yes Please
Please refer
refer to
to Note
Note below.
below

disadvantaged, vulnerable and

disadvantaged, vulnerable and marginalised
marginalised stakeholders.
stakeholders. If If so,
so, provide
provide
details
details thereof,
thereof, inin about
about 50 words or so.
w,vordsor
1 Does the policy of the Company on
Does the policy cf the Company on human
human rights
rights cover
cover only the Company
only the Company Yes.
Yes Only
Only to
to Company
Company
or
or extend
extend to to the
the Group/Joint
Group/Joint Ventures/
Ventures/ Suppliers/
Suppliers/ Contractors/
C.ontractors/ NGOsNGOs //
P5 Others
Zithers

2 How
How manymany stakeholder
stakeholder complaints
complaints havehave been
been received
received inin the
the past financial
past financial Please
Please refer
refer to the notes
to the notes tto

year
year andand what
w,vhatpercent
percent was was satisfactorily
satisfactorily resolved
resolved byby the
the management
msnegement accounts
accounts

1 Does
Does the the policy
policy related
related to to Principle
Principle 66 cover
cover only the Company
only the Company or or extends
extends Company
Company
to the Group
to the Group // Joint Ventures // Suppliers
Joint Ventures Suppliers // Contractors
Contractors // NGOs
NGCs // Others
athers
2 Does
Does the the Company
Company have have strategies
strategies // initiatives
initiatives toto address
address global
global Yes
environmental issues such as climate change, global warming, etc. IfIf yes,
environment-I issues such as climate change, global warming, etc yes,
please give hyperlink
pleasegive hyperlinkfor for webpegeetc
webpage etc.
3 Does
Does the the Company
Company identify
identify andand assess
assess potential
potential environment
environment risksrisks No
4 Does
Does thethe Company
Compeny have heve any
any project
project related
related toto Clean
Clean Development
Development No
P6 Mechanism?
Mechanism? If 'f so,
so, provide
provide details thereof, in
details thereof, in about
about 50
50 words or or so.
sc Also,
Also, ifif
Yes, whether any environmental compliance report is filed
Yes,whether Eny environmental complisnce report is filed
5 Has the Company
Has the Company undertaken
undertaken anyany other
other initiatives
initiatives on
on -- clean
clean technology,
technology, No
energy
energy efficiency,
efficiency, renewable
renewable energy,
energy, etc.
etc If
If yes,
yes, please
please hyperlink
hyperlink for
for web
web
page
page etc.
etc
6 Are the Emissions/Waste
Arethe Emissions/Waste generated
generated by by the
the Company within the
Companywithin the permissible
permissible Not Applicable
Not Applicable
limits
limits given
given byby CPCB // SPCB
SPCa for
for the
the financial
financial year
yesr being
teng reported
rez:lrted
7 Number
Number of of show
show cause
cguse // legal
legal notices
notices received from CPCB/SPCB
received from CPC3/SPCa which which Nil
Nil

are pending (i.e. not resolved to satisfaction) as on end of

are pending (i e not resolved to satisfaction) as on end of Financial
Financial Year
Year

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 73
M
*SHRIRA

Business
Business Responsibility
Responsibility Report
Report
Annexure 13
Annexure 13 (Contd.)
(Contd.)

SECTION
SECTION E
E :: PRINCIPLE
PRINCIPLE -- WISE
WISE PERFORMANCE
PERFORMANCE

1 Is your Company a member of any trade

Is your Company a member of any trede and
-nd chamber
chamber or
or association
association ?? IfIf Yes.
Yes M/s
Ws South
South India
India Hire
Hire
yes,
yes, Name
Name only
only those
those major
major ones that your
cr.es thet your business
business deals
deals with
with Purchase
Purchase Association,
Association, M/s M/s
Madras
Madras Chamber
Chemter of
of Commerce
Commerce

and
and Industry
Industry
2 P7
P7
Have
Have youyou advocated/lobbied
advccat±/lobbied through
through aboveabove associations
associations forfor the
the Yes. Governance and
Yes. Governance and
advancement
Edvencement or or improvement
improvement of Df public
public good?
gco±? If If yes
yes specify
specify the
the broad
broad Administration
Administration

areas
areas (drop
(drop box:
box: Governance
Governsnce and Administration, Economic
-nd Administration, Economic Reforms,
Reforms,
Inclusive
Inclusive Development
Development Policies,
Policies, Energy
Energy security, Water, Food
security, Water, Fad Security,
Security,
Sustainable
Sustainable Business
Business Principles,
Principles, Others)
Others)
1 Does
Jces the
the Company
Company have have specified
specified programmes/initiatives/projects
prcgrammes/initiatives/projects in in Yes.
Yes Refer
Refer Note
Note below
below
pursuit of the policy related to Principle
policyrelatedto 8? IfIf yes
Princip'e3? yes details thereof.
detailsthereof.
2 Are
Are the
the programmes/projects
programmes/projects undertaken
undertaken through
through in-house
in-house team/own
team/own Programmes/Projects
Programmes/ProJects are are
foundation
foundation /external
'external NGO/government structures // any
NGO/governmentstructures other organisation?
anyother organisation? undertaken
undertaken by by the
the Company,
Compsny,
in
in house,
house, external
external NGOsNGOs andend
combination of these.
combination of these

3 P8
P8
Have
Have you
you done
done any
any impact
impact assessment
assessment of your initiative
of your initiative Yes
4 What is your Company’s direct contribution to community
What is your Compsny's direct contribution to community development
development Please
Please refer
refer “ANNUAL
"ANNUAL REPORT REPORT

projects - Amount in INR and the details of the projects undertaken

projects - Amount in INRend the details of the projects undertsken ON CSR”
5 Have you taken
Haveyou taken steps
steps to
to ensure
ensure that this community
that this community development
development initiative
initiative Steps
Steps have
have been taken for
been taken for
is successfully adopted
is successfully adopted by the community?
by the community? PleasePlease explain
explain in
in 50 words or
50 words or community
community development
development throughthrough
so. our lending
our lending activities
activities and and by
by our
our
CSR
CSR activities
activities

1 What
What percentage
percentage of of customer complaints // consumer
customer complaints consumer cases
cases areare pending
—ding Please
Please refer
refer to
to the
the notes
notes toto

as
es onon the
the end
end of financial year.
of financial year accounts
accounts

2 Does
Jces thethe Company
Company display
disp'ay product
prcduct information on the
information on the product
product label, over
label,over Not Applicable
Not Applicable
and
end above what is
above whet is mandated
mandated as as per
per local
local laws
laws
3 Is
Is there
there any
any case
case filed
filed by
by any
Eny stakeholder
stakeholder against
against the
the Company
Company regarding
regarding No
P9
unfair
unfair trade
trade practices,
practices, irresponsible
irresponsib'e advertising
Edvertising and
and // or
or anti
anti -competitive
-competitive
behaviour
behaviour during the last
during the last five
five years
yesrs and
-nd pending
pending as
ss on
on end
end of financial year
offinancial year.
If so,
so, provide details thereof, in about
providedetai'sthereof, in about 50 words or so.
words cr s.
4 Did your Company
Did your Company carry out any
carry out any consumer
consumer survey/ consumer satisfaction
survey/ consumer satisfaction No
trends?
trends?

Notes
Notes

P4.3:
PA3: A A significant
significant number
number of of our
our borrowers
±rrowers belong
belong to
to low
low income
income group
group and
and persons
persons not
not having
having access
access to
to formal
formal line
line of
of
credit. This is our special initiative to identify such borrowers and meet their credit requirement. We also meet the education
credit This is cur s=cis' initiative tc identify such turowers and meet their credit requirement We also meet the education
and
end welfare
welfare need
need of
of marginalised
marginalised persons
persons through
through our corporate social
our corporate suial responsibility
responsibility activity.
activity

P8.1: The Company

1: The Company isis driven
driven by
by one
one of
of it’s objective of
it's objective of financial
financial inclusiveness,
inclusiveness, in
in which the financial
which the financial needs
needs of
of persons
;rersons not
not
having
having access to formal
access to formal banking
banking system
system are
are provided
provided with finance. This
with finance This in turn contributes
in turn contributes to
to inclusive
inclusive growth
growth and
and equitable
equitable
development
development

SECTION
SECTION E
E

PRINCIPLE
PRINCIPLE -WISE
-WISE PERFORMANCE
Business
Business Responsibility (“BR”)
("BR') of the Company
of the Company takes
takes into
into consideration
consideration the
the principles
principles of of National
National Voluntary
Voluntary Guidelines
Guidelines on
on
Social,
Sccial, Environmental
Environmental and
and Economic
Economic Responsibilities
Responsibilities of
of Business
Business (“NVG”).
('NVGJ To To enable
enable itit further,
further, the
the Company
Company has
has got
got Policies,
Policies,
Framework,
Framework, Codes,
CcZes, Management
Management Systems
Systems and
and Monitoring
Monitoring tools. The BR
tools The BR matters
matters are
ere monitored
monitored by by the
the respective
respective functional
functional
heads
heads of the Company
of the Company

74 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Business
Business Responsibility
Responsibility Report
Report
Annexure 13
Annexure 13 (Contd.)
(Contd_)

Principle
Principle 1:
1: Businesses should conduct
Businesses should conduct and
and govern themselves with
govern themselves with Ethics, transparency and
Ethics, transparency and accountability
accountability

The
The Company
Compeny is is governed
governed with with ethics,
ethics, transparency,
transparency, accountability
eccountability and
and inin compliance
compliance withwith applicable
applicsble laws.
laws. Corporate
Corporate
Governance of the Company reflects ethics, transparency and accountability The Code of Conduct for Board Members
Govemance of the Company reflects ethics, transparency -nd sccountabllity The Code of Conduct for Board Members
and
and Senior
Senior Management
Management (“CCBS”)("COBS") governs
governs thethe conduct
conduct of
of Directors
Directors and
and Senior
Senior Management
Management personnel
personnel and
-nd they
they confirm
confirm
adherence
adherence to to the
the CCBS
ccas annually.
annuallb{ CCBS
CC8S is is reviewed
reviewed and
and upgraded
upgrsded regularly.
—ulsrly TheThe Company
Company regularly
regularly communicates
communicates in in
different modes with it’s with members, security holders, other agencies and public at large. The Whistle Blower Policy
different modes with it's with members, security holders, other agencies and public et large The Whistle Blower Policy
of
of the
the Company
Company is is aimed
aimed at et bringing
bringing outout unethical
unethical conducts
conducts and
and thereby
thereby making transactions ethical
making transactions ethical and
and transparent.
transparent
The
The Company
Company conducts
conducts familiarisation
familisrisation programme
prcgremrne for for Independent
Independent Directors,
Directors, which together with
which together with fair
fsir disclosure
disclosure make
make
activities
activities transparent.
transparent The The roles
roles of
of Chairman
Chairman and and CEO
CEOareare separately
separately held
held by
by different
different individuals
individuals and
and the
the Chairman
Chairman is
is an
an
Independent Director ,which bring in transparency and ethics.
Independent Directr ,which bring in transparency and ethics

Principle
Principle 2:
2: Businesses
Businesses should
should provide
provide goods
goods and
and services
services that
that are
are safe
safe and
and contribute
contribute to
to sustainability
sustainability throughout
throughout their
their
life
life cycle
cycle
The
The Company
Compeny isis engaged
engaged in the business
in the of financing
business of financing and
and provides
provides loans to its
loans to its borrowers
borrowers and
end accepts
accepts deposits
deposits from
from public.
public.
The products and services provided by the Company, not being physical in nature are safe and sustainable. The Company
The products and services provided by the Company, not being physical in nature are safe and sustainable The Company
as
as aa whole
whole works
works towards
towards reducing our environmental
r4iucing our environmental foot
foot prints.
prints

Principle
Principle 3:
3: Businesses should promote
Businesses should promote wellbeing of employees
wellbeing of employees
The
The Company
Company is is an equal opportunity
an equal opportunity provider to all
provider to all employees
employees starting
starting from
from their
their recruitment
recruitment irrespective
irrespective of of their
their caste,
caste,
creed, gender, race, religion, language, disability or sexual orientation. Our employees belong to all parts of the country and
creed, gender, race, religion, language, disability or sexual orientation Our employees be'cng to al vrts of the country and
are selected based on individual merit without any discrimination or preference. We encourage the capable employees
are selected based cn individuel merit without sny discriminetion or preference We encourage the capable employees
reaching senior positions
reaching senior positions and
and be aa part of Company’s
part of Companys decision
decision making
making process.
prcess Employee
Employee welfare
welfare measures
measures on on counseling
counseling
on
on stress free living,
stress free living, medical
medics' andand eye
eye checkup, yoga etc.
checkup, yoga etc. were
were conducted
conducted during
during the
the year.
year WeWe maintain
mainten cordial
cordial relationship
relstionship
with our employees.
with our employees We We train
train our
our employees
employees on on upgrading
upgrading functional
functions' and
and soft
soft skills.
skills In
In order to ensure
order tc ensure healthy
he-lthy working
vnrking
conditions and prevent sexual harassment of women employees, we have constituted Internal Complaint Redressal
conditions and prevent sexual harassment of women employees, we have constituted Internal Complaint Redressal
Committee
Committee at various workplaces
at various workplaces with
with aa Policy
Policy onon Prevention
Prevention ofDf Sexual
Sexual Harassment
Haressment at at Workplace
Workplace for for Women
Women in in force.
force.
Employee continuing policies
Employeecontinuing plicies and compliance with
and compliance with regulation
—ulation havehave promoted wellbeing of
promoted wellbeing of employees.
employæs.

Principle
Principle 4:
4: Businesses
Businesses should
should respect
respect the
the interests
interests of,
of, and
and be
be responsive towards all
responsive towards all stakeholders,
stakeholders, especially those
those who
who
are
are disadvantaged,
disadvantaged, vulnerable
vulnerable and
and marginalised
marginalised
The
The Company
Company respects
respects thethe interests
interests ofof stake
stake holders
holders .The
The grievances
grievances of of share/security/deposit
shere/security/deposit holders,
holders, borrowers,
±rrowers,
customers,
customers, regulators,
regulators, government
government agencies,
sgencies, lenders
lenders others
others ,public
,public and
and society
society atat large
large are
are responded
responded to
to within
within stipulated
stipulated
time
time In
In such
such response the interest
response the interest of
cf such
such stake
stEke holders
holders and the the Company
Company are are considered.
considered Committee
Committee ofof the
the Board
Board which
which
meets quarterly overseas this. Our policy is to treat all customers in fair and transparent manner. The loan recovery and
meets guerterly oversees this Our policy is to treat all customers in fEir and transparent manner. The loan recovery and
collection operation are
collection operation are in-house,
In-house, which
which ensures
ensures relationship
re'ationship based
based recovery
recovery procedures
procedures well-suited
well-suited to
to our
our customers.
customers TheThe
Company
Company pays
peys dividend,
dividend, interest,
interest, redemption value and
redemption va'ue and other
other dues
dues on
on their
their respective
respective due
due dates
detes subject
subject to
to the
the requirement
requirement
of
of process.
process The
The award
award of
of credit
credit rating,
rsting, which
which indicates
indicates high
high consider
consider these. The Company’s
these The Company's CSR programmes are
CSRprc„grammes are focused
fccused
on education, skill development for disadvantaged sections of the society.
on education, skill development for disadvantaged sections of the society

Principle
Principle 5:
5: Businesses should respect
Businesses should respect and
and promote
promote human
human rights
rights

The
The Company
Company employs
employs without
without discrimination
discrimination and
and pays
pays fair
fair wages
wages to
to employees.
employees. The
The employees
employees are
ere given
given equal
equal opportunity
to
to suggest for betterment.
suggest for betterment The
The Company
Company hashas implemented
implemented policy
policy on
on Prevention
Preventionofof Sexual
Sexual Harassment
Harassment of women Employees
ofwomen Employæs
are treated equally with dignity. We comply and adhere to all the human rights laws and guidelines.
are treated equally with dignity. We comply and adhere to all the human rights laws and guidelines

Principle
Principle 6:
6: Business
Business should
should respect,
respect, protect
protect and
and make efforts to
make efforts to restore the environment
restore the environment
The
The Company
Company has has made
made many
many ofof its
its processes
prccesses automated
automated making
making itit less
less paper
paper based
based information.
informatiom WeWe appeal
appeal toto our
our
shareholders,
shareholders, security
security holders,
holders, NCD/FD holders, borrowers
NCO/FDholders, borrowers for
for dealing
dealing with
with us
us electronically (demat, email,
electronica Ity(demat, direct credit
email,direct credit to
to bank
bank
a/c
a/c etc), thereby reducing
etc), thereby reducing use
use of
of paper
paper . We
We continue
continue to create awareness
to create swareness about
stzut environment
environment protection
protection among
among employees
employees
&
& customers.
customers. The
The Company
Company adheres
adheres toto all
all pollution
*lution control
contra' measures.
measures WeWe use
use electronic
electronic methods
methods of
of communication
communication within
within
and
and outside
outside our
our offices and avoid
offices end avoid use
use of
of paper
paper as as far as possible.
far es possible.

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 75
M
*SHRIRA

Business
Business Responsibility
Responsibility Report
Report
Annexure 13
Annexure 13 (Contd.)
(Contd.)

Principle 7: Businesses,
Principle 7: when engaged in
Businesses, when in influencing
influencing public
public and
and regulatory policy,
policy, should
should do
do so
so in
in a
a responsible manner
manner

The
The Company
Company is is aa member
member ofDf and
and actively
ectively participates
partici#tes in organisations representing
in organisations representing NBFC
N3FC industry,
industry, through
through which
which different
different
matters of NBFC industry are represented and influenced. Additionally, the Company also represents business interest of
matters of NBFC industry are represented and influenced Additionally, the Company also represents business interest of
NBFC
N3FC industry
industry to
to regulatory
regulatory authorities
authorities in
in a
a responsible
responsible manner.
manner

Principle
Principle 8:
8: Businesses
Businesses should
should support
support inclusive
inclusive growth
growth and
and equitable
equitable development
development

We
We meet
meet the
the financial
finsncisl need
need of
of persons
persons ofof areas
areas generally
general}' in
in unbanked/less
unbanked/less banked
banked areas
areas with
with many
many ofof our
our branches
branches at
at
semi
semi urban
urban and
and rural
rut-I areas. We
We also
Elsa mobilise
mobi'ise deposits
dez:lsits from
from these
these areas.
areas These
These twotwo promote
promote the
the ‘financial
'financial inclusion’ which
inclusion' which
is the focus
is the focus point
point of
of all
all welfare
welfare initiatives
initiatives of the government.
ofthe government Our Our CSR
CSR activities
activities contribute the development
contribute the development andand growth
growth of
of
persons
persons inin semi
semi urban
urban and
and rural
rural areas..
areas.

Principle
Principle 9:
g: Businesses should engage
Businesses should engage with
with and
and provide
provide value
value to their customers
to their customers and
and consumers
consumers in
in a
a responsible manner
manner

Our
Our customers
customers havehave derived
derived value
value by
by being
teing associated with us
associated with us inin availing
availing finance
finance andand keeping
keeping money
money deposited withwith us.
u.
When
When availing
availing finances
finsnces have
hsve helped inin achieving
echieving advancement,
-dvancement progress,
prcgress, growth
growth inin their
their business,
business, the
the deposits
deposits have
have helped
he'*
them with reasonable
them with reasonable return to carry
return tc carry out
out their
their objectives..
objectives. We engage with
We engage with our
our customers
customers to to understand their need
understand their need in
in order
order
to offer a suitable product to them on timely basis. The redressal of customer grievances within reasonable time helps us
to offer a suitable product to them cn timely basis The redressal of customer grievances within reesonsble time hews us to
to
serve
serve our customers in
our customers in responsible
responsible manner.
manner. Our Our other
other services
services like
like insurance,
insurance, settlement
settlement of of insurance
insurance claims,
claims, support
support for
for
housing
housing loans
loans have
have helped
helped us to value
us to value toto our
our services
services to
to customers.
customers

76 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Form
Form No.MR-3
No.MR-3 SECRETARIAL
SECRETARIAL AUDIT
AUDIT REPORT
REPORT
Annexure 14
Annexure 14

FINANCIAL
FINANCIAL YEAR
YEAR ENDED
ENDED MARCH
MARCH 31,
31 , 2021
2021

[Pursuant
[Pursuant to
to Section
Section 204(1)
204(1) of the Companies
of the Act, 2013
C.ompanies Act, 2013 and
and Rule
Rule No.9
Nog of
of the
the Companies
Companies (Appointment
(Appintment and
and Remuneration
Remuneration
Personnel) Rules, 2014]
Personnel) Rules,2014]

To,
The Members,
The Members,

Shriram City
Shriram City Union
Union Finance
Finance Limited
Limited
123, AngappaNaicken Street,
123, AngeppeNaicken Street,
Chennai
Chennai -- 600001

II have
have conducted the secretarial
conducted the secretarial audit
audit of
of the compliance of
the compliance of applicable
applicable statutory
statutory provisions
provisions and
and the
the adherence to good
adherence to gr_cd corporate
corporate
practices by Shriram City Union Finance Limited,Corporate Identification Number L65191TN1986PLC012840 (“the Company”).
practices by Shriram City union Finance Limited,Ccrporate Identification Number L651g1TNI ?86PLC01284C ("the Company).
Secretarial
Secretarial Audit was conducted
Audit was conducted inin a
a manner that provided
manner thet provided me
me aa reasonable
reasonable basis
basis for
for evaluating
evaluating the
the corporate
corporate conducts/statutory
conducts/statutory
compliances and
compliances expressing my
and expressing my opinion thereon.
opinion thereon.
Based
Based on
on my
my verification
verification of the Company’s
of the Compeny's books,
books, papers, minute books,
pep,ers,minute ±oks, forms
forms and
and returns
retums filed
filed and
and other
other records
records maintained
maintained by by
the Company
the Compeny andand also the information
also the inform-tian provided
provided by the Company,
by the Company itsits officers,
officers, agents
agents and authorized
authorized representatives
representatives during
during the
the
conduct of
conduct of secretarial
secretarial audit,
audit, II hereby
hereby report
report that
that in
in my
my opinion,
opinion, the
the Company
Company has, has, during
during the
the audit
audit period
period covering
covering the
the financial
financial
year ended
year ended on
on March
Merch 31,
31, 2021
2021 complied
complied with
with the
the statutory
statutory provisions
provisions listed
fisted hereunder
hereunder and
and also
s'sD that the Company
that the Company hash's proper
proper
Board-processes
Board-processes andand compliance
compliance mechanism
mechanism in in place to the
pl-ce to the extent,
extent, in the manner
in the manner and
-nd subject
subject toto the
the reporting
reporting made
msde hereinafter:
hereinafter:
II have
have examined
examined the
the books,
bczks, papers,
papers, minute
minute books,
bcoks, forms
forms and
and returns
returns filed
filed and
and other
other records
records maintained
maintained by the Company
bythe Compeny for
for the
the
financial year
financial year ended
ended on
on March 31, 2021
Merch 31 2CZ1 according to the
according to the following
following provisions
provisions as
as amended from time
amended from time to
to time:
time:
1)
1) The
The Companies Act,2013 (the
O)mpanies Act,2013 Act) and
(the Act) and the
the rules
rules made there under;
mede there under,
2)
2) The Securities Contracts(Regulation) Act, 1956(‘SCRA’) and the rules
The Securities Contracts(Reguletlon) Act, 1g56('SCRAr)end the rules made
made there
there under;
under;
3)
3) The
The Depositories
Depositories and
and Participants
Psrticipants Regulations,
Regulations, 2018
2018 and
end Bye-laws
Bye-laws framed thereunder;
framed thereunder,
4) Foreign
4) Foreign Exchange
Exchange Management Act, 1999
Management Act, 1ggg and the rules
and the rules and
and regulations
regulations made
made thereunder
thereunder to the extent
to the extent of
of Foreign
Foreign Direct
Direct
Investment;
Investment,

5) 
5) The
The following
following Regulations
Regulations and
and Guidelines
Guidelines as
es amended
amended from
from time
time tto time
time prescribed
prescrib&d under
under the
the Securities
Securities and
and Exchange
Exchange
Board
Board of
of India
India Act,
Act, 1992(‘SEBI Act’):-
1gg2(SEBl Act")
a) The Securities
a) The Securities end
and Exchange
Exchange Board
aoerd of
of India
India (Substantial Acquisition of
(Substantial Acquisition of Shares
Shares and Takeovers) Regulations,
and Takeovers) Regulations, 2011;
201 1
b) The Securities
b) The Securities and
and Exchange
Exchange Board
Board of
of India
Indie (Prohibition
(Prohibition of
of Insider
Insider Trading)
Trading) Regulations,
Regulations, 2015
2015 and
and any
any amended from
amended from
time tto time;
time time;

c) The Securities
c) The Securities end
and Exchange
Exchange Board
aoerd of
of India
India (Issue of Capital
(Issue of Capitel and
and Disclosure
Disclosure Requirements)
Requirements) Regulations,
Regulations, 2018;
2018,
d) The Securities
d) The Securities and
and Exchange
Exchange Board
Board of
Df India
India (Employee
(Emp'oyee Stock
Stcck Option
Option Scheme
Scheme and
and Employee Stock Purchase
EmployeeStock Purchsse Scheme)
Scheme)
Guidelines,
Guidelines, 1999
Iggg and
-nd the
the Securities
Securities and
and Exchange
Exchange Board
Board of
cf India
Indie (Share
(Share Based Employee
Employee Benefits)
?eneflts) Regulations,
Regulations, 2014;
2014;
e) The Securities
e) The Securities end
and Exchange
Exchange Board
aoerd of
of India
India (Issue
(Issue and
and Listing
Listing of
of Debt
Debt Securities)
Securities) Regulations,
Regulations, 2008;
2008;
f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
f) The Securities -nd Exchange Baard of India (Registrars to en Issue and Share Transfer Agents)
regarding the Companies
regarding the Companies Act
Act and
end dealing
dealing with
with client;
client;
g)
g) The Securities
The Securities end
and Exchange
Exchange Board
aoerd of
of India
India (Listing
(Listing Obligation
Obligation and
and Disclosure
Disclosure Requirements)
Requirements) Regulations, 2015.
2015.
6)
6) Reserve
Reserve Bank
Bank of
of India
India Act,
Act, 1934;
1934;

7) Master
7) Mester Non-Banking
Non-aanking Financial
änenciel (Deposit Accepting or
(Deposit Accepting or Holding)
Holding) Companies
Compenies Prudential
Prudential Norms
Norms (Reserve
(Reserve Bank)
Bank) Directions
Directions 2007
2C07
and
and circulars
circulars of
Df Reserve
Reserve Bank
Sank of
of India
India thereon;
thereon,

8)
8) Master Direction - Non-Banking Financial Companies
Mester Direction - Non-Benking änenciel Companies Acceptance
Acceptance of
of Public
Public Deposits
Deposits (Reserve
(Reserve Bank)
Bank) Directions,
Directions, 2016;
2016,
9)
g) Non-Banking
Non-Benking Financial
änenciel Companies
Companies Prudential
Prudential Norms
Norms (Reserve
(Reserve Bank)
Bank) Directions,
Directions, 1998.
1gg8.

10)
10) Non-Banking
Non-Benking Financial
änenciel Companies– Corporate Governance
Companies—Corporate Governance (Reserve
(Resewe Bank)
Bank) Directions,
Directions, 2015.
2015

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 77
M
*SHRIRA

Form
Form No.MR-3
No MR-3 SECRETARIAL
SECRETARIAL AUDIT REPORT
AUDIT REPORT

Annexure 14
Annexure 14 (Contd.)
(Contd.)

II have
have also
also examined
examined compliance
compliance with the applicableclauses
with the applicableclauses of the following:
of the following

(i)
(i) Secretarial
Secretarial Standards
Standards issued
issued by
by The
The Institute
Institute ofCompany Secretaries of
ofCompany Secretaries of India.
Indie.

(ii)
(ii) The
The Equity
Equity Listing Agreements entered
Listing Agreements entered into
into bythe
bythe Company
Compeny with
with BSE Limited and
BSELimited and NationalStock
NationalStæk Exchange of India
Exchangeof India Limited;
Limited,

(iii)
(iiÜ The
The Debt
Debt Listing
Listing Agreements
Agreements entered
entered into
into bythe
bythe Company
Company with
with BSE
3SE Limited
Limited and
and NationalStock
NetionalStock Exchange
Exchange of
of India
India Limited;
Limited,
During
During the
the period
period under
under review the Company
review the Company has
has compliedwith the provisions
compliedwith the provisions of the Act,
of the Act, Rules, Regulations,Guidelines, Standards,
Rules,Regulations,Guidelines,Standards,
etc. mentioned above except that:
etc. mentioned above except that

1. The
The Company filed the
Company filed the disclosures
disclosures ofof related
related party transactions on
Pany transactions on aa consolidated
consolidated basis
basis with
with ae delay
delay of
of 66 dayswhich
dayswhich was was to
to
be filed within 30 days from the date of publication of its standalone and consolidated financial results for half year ended
be filed within 30 days from the date cf publication of its stand-lone consolidated financia' resu'ts for half year ended
September
September 30, 30, 2020. The Company
20211The Company received
received notice
notice from
from M/s
M/s BSE Ltd and
BSELtd and M/s
M/s National
Nstional Stock
Stock Exchange
Exchangeof of India
India Limited
Limited and
and
the
the Company
Comp-ny hashas represented
represented to to both
both the
the stock
stck exchanges
exchanges in in response
response toto the
the said
said notice.
notice The
The Company
Compeny is is yet to receive
yet to receive
further
further communication
communication in this regard.
in this regard
2. The
The Company
Company paid
paid aa penalty
penalty of
of ` 5,00,000/- (Rupees
(Rupees Five
3rve lacs
lacs only)
only) to
to the
the Reserve
Reserve Bank
Bank ofof India
India (RBI)
(RBI) in
in response
response to
to
the
the Order
Order issued
issued byby RBI dated
dsted September
September 23,23, 2020
2020 for
for non-compliance
non-compliance withwith directions
directions issued
issued by
by the
the RBI contained
cont-ined in
in
“Non-Banking Financial Company – Systematically important Non-Deposit taking Company and Deposit taking Company
"Non-aanking Finencisl Company - Systematically important Nori-Deposit taking Comp-ny and Deposit taking Company
(Reserve
(ReserveBank)
Bank) Directions,
Directions, 2016”
2016" and
and “Monitoring
"Monitoring of
of Frauds
Frauds in
in NBFCs
NFCs (Reserve
(Reserve Bank)
Benk) Directions,
Directions, 2016”
2016" which
which was
wes observed
observed
with
with respect
respe toto the financial position
the financial position of the Company
of the Company asas on
on March
March 31,
31, 2018.
2013

3. The
The Company
Compeny paidEid ae fine
fine of
oft` 4,50,000/- (Rupees
(Rupees Four
Four lacs
lacs Fifty
Fifty Thousand
Thousand only) to Financial
only) to Financial Intelligence
Intelligence Unit
unit - India
India (FIU-
(FIU
IND),
IND), Ministry of Finance,
Ministry of Finance, Government
Government ofof India
India in
in response
response to
to the
the Order
Order No.
No. 11/DIR/
11/DIR/ -IND/2020
-IND/2J20 dated
dated December
Cecemter 4,4 2020
2020 for
for
non-compliance under Section 12 and 13 of the Prevention of Money Laundering Act, 2002.
non-compliance under Section 12 end 13 of the Prevention of Money Laundering Act, 2002

II further
further report that-
report that-

The
The Board
3DErdDfof Directors
Directors of the Company
ofthe Company isis dulyconstituted
dulyconstituted with
with proper
proper balance
balence of
of Executive
ExecutiveDirectors,Non-Executive
Directors,Non-Executive Directors
Directors and
and
Independent
Inde#ndent Directors.
Directors. Thechanges
Thechanges in the composition
in the composition ofof the
the Board
aoerd of
of Directors
Directors thattook
thattook place
place during the period
during the period under
under review
renew
were
were carriedout
cerriedout in
in compliance
compliance with the provisions
With the provisions of the Act.
of the Act

Adequate notice
Adequate notice is
is given to all
given to all directors
directors to
to schedule
schedule the
the Board
Board Meetings,
Meetings, agenda
agende and
and detailed
detailed notes
notes on
on agendawere
egendawere sent
sent at
at least
least
seven days in advance, and a systemexists for seeking and obtaining further information and clarifications on the agenda items
seven days in sdvsnce, and a systemexists for seeking -nd obtaining further information and clarifications on the agenda items
before
before the
the meeting
meeting andfor
andfor meaningful
meaningful participation
participation at the meeting.
et the meeting
All decisions
All were carried
decisions were carried out
out with
with majority
majority approval
approval ofthe
ofthe Board
Board and
and there was no
there was no instance
instance of
of dissent
dissent voting
voting byany
byany member
member
during
during the
the period
pericd under
under review.
review
II have examined the
haveexamined the systems
systems and
and processes
prccesses establishedby the Company
establishedbythe Companyto to ensure
ensure the
the compliance with generallaws
compliance with including Labour
generallewsincluding Labour
Laws,
Lsws, Employees
Employæs Provident FundsAct, Employees
Employæs State
State Insurance Act &
InsuranceAct & other
other State
St±teLaws,considering and relying
Laws,ccnside-ingand relyingupon representations
uponrepresentations
made
mede byby theCompany
thecompeny and and its
its Officers for systems
afficers for systems and
and mechanismsformed
mechanismsformed by by the
the Company
Company for
for compliance
compliance under
under these
these lawsand
lawsand
other applicable sector specific Acts, Laws, Rulesand Regulations applicable to the Company and itsobservance by them.
other applicable sector specific Acts, Laws, Rulesand Regulations applicable to the Company end itsobservence by them

II further
further report
report that
thet there
there are
are adequate
adequate systems andprocesses in
systems endprocesses the Company
in the commensurate with
C.ompanycommensurate the sizeand
with the sizeand operations
operations of
of the
the
company
company to to monitor
monitor and ensurecompliance with
and ensurecompliance with applicable
applicable laws,
laws, rules,
rules, regulations
regulations andguidelines.
endguidelines
II further
further report
report that
that during the audit
during the audit period,
perico there
there were
were no
no specific
specific events
events // actions
actions having
having major
major bearing
bering on theCompany’s affairs
on thecompany's affairs
in pursuance of the above referredlaws, rules, regulations, guidelines, etc.
in pursuer-Ee of the atove referredlews, rules, regulations, guidelines, etc.

For
For M/s.
Ws. P.Sriram
PSriram & Associates,
& Associates,

P.
P Sriram
Sriram

Proprietor
Proprietor
Certificate
Certificate
of Practice No
of Practice
- 3310
No - 3310

Membership No - F4862
Mem±rship No - F4862
Place:
Place: Chennai
Chennai UDIN-F004862C000213851
UDIN-FCU862COCU13851

Date: April 30,

Date:April 30, 2021
2021 Peer Review No- S2011TN155200
Peer Review No- 8201 ITNI

78 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

To

The Members,
The Members,

Shriram City
Shriram City Union
Union Finance
Finance Limited
Limited

My
My report
reprt of
of event
event date
date is
is to
to be
te read
read along with thissupplementary
along with thissupplementary testimony.
testimonb{

1. Maintenance
Maintenance ofof secretarial
secretarial record
ræord is the responsibilityof
ISthe the management
responsibilityofthe management of
of the
the Company.
Company My
My responsibility
responsibility is
is to
to express
express an
an
opinion
opinion on
on these
these secretarial
secretarial recordsbased
recordsbssed onon our audit.
our audit
2. 
2 I have
have followed the audit
followed the audit practices
practices andand processes
præesses as were appropriate
es were appropriate toto obtain
obtain reasonable
reasonable assuranceabout
assuranceabout the correctness
the correctness
of the contents
of the contents of
of theSecretarial
thesecretarial records.
records The
The verification
verification was
was done
done ontest
cntest basis
±sis to
to ensure
ensure that
that correct
correct facts
facts are
ere reflected
reflected in
in

secretarial records. I believe that the processesand practices, the company had followed provide are reasonable basis for
secretarial records I believe that the prccessesend practices, the company had followed provide are reasonable basis for
our opinion.
our opimom

3.
3 I have
have not
not verified
verified the
the correctness
correctness andappropriateness of financial
andappropriateness of financial records
records and
and Books
303ks of Accounts of
of Accounts of the
the Company.
Compeny

4. Wherever
Wherever required,
required, II have
have obtained the Managementrepresentation
obtained the Managementrepresentation about
about the
the compliance
compliance of
of laws,
laws, rulesand
rulesand regulations and
and
happening of events etc.
hap*ning of events etc.

5. The
The compliance
compliance of
of the
the provisions of Corporate
provisions of Corporate andother
andother applicable
applicable laws,
laws, rules,
rules, regulations,
regulations, standards
standards isthe
isthe responsibility
respnsibility of
of
management.
management My examination waslimited
My examination to the
weslimited to verification of
the verification of procedures onon test
test basis.
basis

6. The
The Secretarial Audit report
Secretarial Audit report is
is neither
neither an
an assuranceas
assurenceas to
to the future viability
the future viability of
of the
the company
cornpeny nor
nor of
of theefficiency
theefficiency or
or
effectiveness with which
effectiveness with which the
the management
management has conducted the
has conducted the affairs
affairs of the company.
of the company.

For
For M/s.
Ws. P.Sriram
PSriram &
& Associates,
Associates,

P. Sriram
P Sriram

Proprietor
Proprietor
Certificate
Certificate of
of Practice
Practice No
No - - 3310
3310

Membership
Membership No No -- F4862
F4862
Place:
Place: Chennai
Chennai UDIN-F004862C000213851
UDIN-F004862COCZ213851

Date: April 30,

Date:April 30, 2021
2021 Peer
Peer Review
Review No-
No- S2011TN155200
S2011 TW 552n

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 79
M
*SHRIRA

TABLE –
TABLE
1
- 1

TABLE OF
TABLE OF WEB
WEB LINK
LINK FOR
FOR POLICIES/OTHERS MATTERS
MATTERS APPEARING IN
APPEARING IN DIRECTORS
DIRECTORS REPORT
REPORT OF THE COMPANY
OF THE COMPANY

S.
S. Name
Name of the Policies
of the Policies Web Link
Web Link

No
1. Dividend
Dividend Distribution
Distribution Policy
Policy https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/Dividend_Distribution_
https://mvw.nseprimeir.com/z SHRIRAMClT/pdf filesnividend Distribution
Policy.zip
2. Related
Related Party Transaction Policy
Party Transaction Policy https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/SCUF_Related_Party_
nsporimpirr:nm/7 SHRIRAMr.lT/a,-if
Transaction__RPT__Policy.zip
Zip

3. Whistle
Whistle Blower
Blower and
end Vigil
Vigil Mechanism
Mechanism https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/SCUF_Whistle_Blower_
nspgrimpirr:nm/7 SHRIRAMtlT/ßdf JF Whistle 31nwpr
Policy
Policy and_Vigil_Mechanism_Policy.zip
and Vigil Mechanism Policyzip
4.
4 Policy on Appointment
Policy on Appointment https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/Policy_on_Appointment_
nqpprirnpirrnm/7 RH818LMr.lT(phf
Remuneration and Diversity of
Remuneration and Diversity of Remuneration_and_Diverstiy_of_Board.zip
Remuneretion and Diverstiy of aoerdzip
Board
203rd

5. Terms
Terms andand conditions
conditions of
of https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/Terms_and_conditions_of_
nsporimpirr:nm/7 SHRIRAMtlT/ßdf files.'Tprms anh r:nnditinne nf
appointment of Independent
appointment of Independent appointment_of_Independent_Directors.zip
appnintmpnt nf
Director
Director

6. Familiarisation
Femiliarisation Programme
Programme for
for https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/Familiarisation_
https://wrwnseprimeircom/z SHRIRAMClT/pdf filesiFemiliarisation
Independent Directors
Independent Directors Programme_for_Independent_Directors.zip
fnr nirpntnrs 7iz
7. Code
Code of
of Conduct
Conduct for
for Board
Board https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/Code_of_Conduct_for_
nsporimpirr:nm/7 SHRIRAMtlT/adf files/rndp nf r.nndurt for
Members and Senior Management
Members and Senior Management Board_Members_and_Senior_Management.zip
8. Policy on Material
Policy on Materiel Subsidiary
Subsidiary (ies)
(ies) https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/Policy_on_Material_
nsporimpirr:nm/7 SHRIRAMtlT/ßdf files.'?nlicy nn Material
and
and Events
Events Subsidiary_ies__and_Events.zip
9. Policy on Preservation
Policy on Preservation and Archival
and Archival https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/SCUF_Policy_on_
of Documents
of Cuuments
Preservation_and_Archival_Documents.zip
Preservation and Archival Cccumentszip

10.
10. Code
Code for
for Fair
Fair Disclosure
Disclosure and
and https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/CODE_FOR_FAIR_
Conduct
Conduct DISCLOSURE_AND_CONDUCT.zip
nl.qr.l 'r:T7iQ
11. Corporate Social Responsibility
Corporate Sc.ciel Responsibility https://www.nseprimeir.com/z_SHRIRAMCIT/pdf_files/Corporate_Social_
https://wrwnseprimeircom/z SHRIRAMClT/pdf filesiCcrporate Scciel
Policy
Policy Responsibility_Policy.zip
Resonnsihility Policy ziz
12.
12. Annual
Annuel Return
Return https://www.nseprimeir.com/ir_download/PPN_AnnualReports/MGT_7FY20-21.
pdf
pdf
13.
13. Unclaimed
unclaimed Deposits/ Debentures/
Debentures/ https://www.nseprimeir.com/pages_new/Unclaimed_FD_Debenture.
Sub
Sub Debt
Debt aspx?value=7UgP1IltRM3M600MSHCcMw==
14.
14. Unclaimed/
unclaimed/ Unpaid
unpaid Dividend
Dividend https://www.nseprimeir.com/z_SHRIRAMCIT/unclaimed_dividend.
nspprimpirr:nm/7 SHRIRAMClT/unclaimed djviderl(i
aspx?value=7UgP1IltRM3M600MSHCcMw==
15.
15.
Standalone
Standalone
and Consolidated
and Consolidated
https://www.nseprimeir.com/ir_download/PPN_AnnualReports/SCUF_Annual_
https://mvw.nseprimpirrnm/ir download,'ppN
Financial Statements
Financial Statements Reports_2020-21.zip
Raanrts Zia
16. Financial
Financial Results
Results of
of the
the Company
Company https://www.nseprimeir.com/pages_new/FinResultSummary.
https://wrwnseprimeircom/pages new/FinResultSummary
aspx?value=7UgP1IltRM3M600MSHCcMw==
17.
17. Annual
Annuel Report
Report of
of the
the Company
O)mpany https://www.nseprimeir.com/ir_download/PPN_AnnualReports/SCUF_Annual_
nsporimpirrnm/ir Anni
Reports_2020-21.zip
8æpnrtR zip

18.
18. Investors
Investors Presentation
Presentation https://www.nseprimeir.com/z_SHRIRAMCIT/investor_presentation.aspx
nspgrimpirr:nm/7 SHRIRAMtlT/in•upRtnr present;tinn

19. Earning
Earning call
call transcripts
transcripts https://www.nseprimeir.com/z_SHRIRAMCIT/earning_call.aspx
nsporimpirr:nm/7 SHRIRAMtlT/9Rrnina Rsox

Listed
Listed Secured
Secured redeemable
redeemable Non-
Non https://www.nseprimeir.com/z_SHRIRAMCIT/files/DETAILS_OF_LISTED_
Convertible
Convertible Debentures
Debentures (NCDs)
(NCDs) SECURED_REDEEMABLE_NCDs.pdf

80 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 FINANCIAL
FINANCIAL

STATEMENTS
STATEMENTS
M
*SHRIRA

Independent
Independent Auditor’s
Auditor's Report
Report

The Members
The Members of
of Shriram
Shriram City
City Union
Union Finance
Finance Limited
Limited requirements
requirements and the Code
and the Code ofof Ethics.
Ethics WeWe believe
believe that
that
the audit evidence we have obtained is sufficient and
the audit evidence we have obtained is sufficient and

REPORT
REPORT ON THE AUDIT
ON THE AUDIT OF
OF THE STANDALONE FINANCIAL
THE STANDALONE FINANCIAL
appropriate
appropriate to
to provide
provide aa basis
basis for
for our
our opinion.
opinion
STATEMENTS
STATEMENTS
3. Emphasis
Emphasis of
of Matter
Matter
1. Opinion
Opinion
Attention
Attention is
is invited
invited to
to the
the Note
Note No.
No. 70
70 to
to the financial
the financial

We
We have
have audited the accompanying
audited the accompanying standalone
standalone
statements:
statements.

financial
financial statements
statements of
of Shriram
Shriram City
City Union
union Finance
Finance
i. In
In accordance
accordance with
with the
the Board
Board approved
approved moratorium
moratorium
Limited
Limited (“the
(the Company”), which comprise
Company'), which the Balance
comprise the Balance
policy relating to COVID-19 - Regulatory Package
policy relating to COVE-IS - Regulatory Package
Sheet
Sheet as at March
as et Merch 31,31, 2021,
2021, the
the statement
statement of
of Profit and
Profit end
announced
announced by by Reserve
Reserve BankSank ofof India
India (RBI),
(881), thethe
Loss, statement of Changes in Equity and statement of
Loss, statement of Changes in Equity and stetement of
Company
Company has has granted
grsnted moratorium
moratorium up up to
to six
six months
months
Cash Flows for the year then ended and notes to the
Cash Flows for the yesr then ended -nd notes to the
on
on the
the payment
peyment of of instalments
instalments falling
falling due
due between
between
financial statements, including
financial statements, inc'uding aa summary
summsry of of significant
significant
March
March 1, 1, 2020
2020 and August 31,
and August 31, 2020
2020 to to all
all eligible
eligible
accounting
accounting policies
policies and
and other
other explanatory
explanatory information.
information.
borrowers
tzrrowers andand has
has continued
continued recognition
recogn ton of of interest
interest
In
In our
our opinion
opinion and to the
and to the best
best ofof our
our information
information end and income.
income In In view
view of
of the
the management,
menagement this this relaxation
relaxation
according to the explanations given to us, the aforesaid
according to the explensticns given to us, the aforesaid
does not trigger any significant increase in
does not trigger any significant increase in
standalone
standalone financial
financial statements
statements give give the
the information
information
credit
credit risk.
risk
required by the Companies
by the Companies Act, Act, 2013
2013 (“the
("the Act”)
Act') in the
in the
ii. The
The provision
provision in
in respect
respect of
of expected
expected credit
credit losses
losses
manner
manner so so required
required and
and give
give a a true
true and
and fair
fair view
view inn
on
on loans
loans and
and advances
advances consequent
consequent to to COVID
nVlD 19lg
conformity with the accounting principles generally
conformity with the accounting principles generally
pandemic has been made on the basis of estimation
pandemic has teen made on the basis of estimation
accepted
accepted in in India
India including
including the the Indian Accounting
Indian Accounting
of
of probable
probable defaults
defaults and
and future
future business
business estimates.
estimates
Standards
Standards (“Ind
("Ind AS”)
AS") prescribed
prescrib± underunder section
section 133 of the
133 of the
These
These estimates
estimates would
would bebe periodically
periodically reviewed
reviewed
Act,
Act, of the state
ofthe state of of affairs of the
affairs of the Company
Company as at March
aset Merch 31,31
based on the
based on future business
the future business scenario.
sceneric However,
However,
2021, its profit (including other comprehensive income),
2021 its profit (including other comprehensive Income),
actual results are uncertain and could be different
actual results are uncertain and could be different
changes
changes in equity and
in equity and its
its cash
cash flows
flows for the year
for the year ended
ended
from such estimates.
from such estimates
on that date.
cr. that date

Our
Our opinion
opinion is
is not
not modified
modified in
in respect
respect of
of the
the above
ebove
2. Basis
Basis for
for Opinion
Opinion
matters.
matters

We conducted our

Weconducted our audit
audit in
in accordance
accordance with
with the
the Standards
Standards

on Auditing (SAs)
cr. Auditing (SAs) specified under
under section
section 143148 (10)
(10) ofof 4. Key Audit Matters
Key Audit Matters

the
the Act.
Act Our
Our responsibilities
responsibilities under
under those
thcse Standards
Standards are are Key
Key audit
audit matters
matters are those matters
are those matters that,
that, in
in our
our
further
further described
described in in the
the ‘Auditor’s
'Auditor's Responsibilities
Responsibilities for for the
the professional judgment, were of most significance in
professional judgment, were of most significance in
Audit of the Financial Statements’ section of our report.
Audit of the Financial Statements' section of our report our audit of the standalone financial statements of
our audit of the standalone financial stetements of

We are independent
We ere independent of of the
the Company
Company in in accordance
accordance the current year.
the current year. These
These matters
matters were
were addressed
addressed inin
with the ‘Code
With the 'Code ofof Ethics’
Ethics' issued
issued by by the
the Institute
Institute of of the
the context
context of
of our
our audit
audit ofof the
the standalone
standalone financial
financial

Chartered
Chartered Accountants
Accountants of of India
India (‘the
(the ICAI’) together with
ICAI') tcæether with statements as a whole, and in forming our opinion
statements es a whole, end in forming our opinion
the
the ethical
ethic-I requirements
requirements thatthat are
are relevant
relevant to to our
our audit
audit thereon, and we do not provide a separate opinion
thereon, and we do rot provide e separate opinion
of the financial statements under the provisions of the
of the financial ststements under the provisions of the on these matters.
on these matters We
We have
have determined
determined the
the matter
matter

Act and the Rules thereunder and

Act and the Rules thereunder end
we have fulfilled our
heve fulfilled our
described
described below
below to to be the key
be the key audit
audit matters
matters to to be
be
other
other ethical
ethical responsibilities
responsibilities in accordance with
in accordance with these
these communicated in our report:
communicated in our report:

82 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Independent Auditor’s Report

Independent Auditor's Report (Contd.)
(Contd.)

Sr.
Sr. Key Audit Matter
Key Audit Matter Auditor’s
Auditor's Response
Response
No.
1 Impairment
Impairment and Write-offs
and Write-offs Our
Our key audit procedures included:
key audit included
The Recognition
The Recognition and
and Measurement
Measurement We
We test
test checked
checked thethe computation of the
computation of the Probable
Probable default
default (PD) which denotes
(RD)which denotes
of Impairment
of Impairment and
end Write-off
Write-off of of the statistical
the statistical pattern
pattern of
of occurrence
occurrence of
of defaults
defaults in
in individual
individual accounts
accounts over
over a
e
Loans
Loans and
and Advances involves
Advances involves period of past
period of past five
five years.
years
estimates, management
estimates, judgements
management judgements
We
We also test checked
also test checked the
the computation
computation of
of the
the ratio
ratio of
of Loss
Loss Given
Given Default
Default (LGD)
(LCD)
and appropriate processing
and appropriate processing of of
which denotes the non-recoveries (after considering the collections) till the
which denotes the non-recoveries (after considering the collections) till the
information from the
information from the IT
IT systems
systems date of Balance Sheet.
date of Balance Sheet
because
because of of which the same
which the same has
has been
been
We
We reviewed
renewed the
the changes
changes made
mede by by the
the management
management inin estimating the PD
estimating the PD and
and
identified as a key audit matter.
identified as a key audit matter.
the LGD
the on the
LCDon the background
background of of COVID
nVlD 19 1g outbreak
outbreak and
and additional
additional ECL provisions
ECLprovisions
made
made on the
the basis
basis of
of above
above revisions.
revisions

We
We examined
examined thethe computation
computation ofof Impairment
Impairment Losses
Losses by
by application
application of
of PD
PD
and LGD
end LGD and
end ensured
ensured that
that the
the entire
entire pool
prnl of
of Loans
Loans and
and advances
advances has
hes been
been
considered for
considered for the
the same.
same.

We
We reviewed
reviewed the Internal
the Internal financial
financial controls
controls over
over data
deta extraction
extraction and
and data
date

validation from the ERP system for computation of PD and LGD with the
validation from the ERP system for computation of and LCD with the
participation
participation of
of our
our internal
internal IT
IT expert.
expert
We
We performed analytical
analytical procedures
prccedures for
for ascertaining
ascertaining of
of reasonableness
reasonableness of
of
Impairment
Impairment provisions.
provisions.

We
We carried
carried out
outaa combination
combination of of procedures
prnadures involving
involving enquiry
enquiry and
and observation,
observation,
re-performance on a test basis and inspection of evidence in respect
re-#rformance on a test basis and inspection of evidence in respect ofof
computation of provisions including considering the situations where additional
computation of provisions includi ng cons idering the situations where additional
impairment
impairment waswas required
required for
for individual
individual accounts
accounts andand review
review of
of procedures
prccedures and
and
practices, justification notes
practices, justification notes and
and approvals
approvals inin case
case of
of Bad
Bad Debts
Debts written
written off.
off

Our
Our audit
audit procedures
procedures did
did not
not reveal any significant
revealany significant inconsistencies
inconsistencies with
with respect
respect
to provisions for impairment and write offs.
to rovisions for im irment and write offs

5. 
Information
Information Other
Other than the
than the Standalone
Standalone Financial
Financial obtained
obtained during
during the
the course
course of
of our
our audit
audit or
or otherwise
otherwise
Statements and Auditor’s Report Thereon
Statements and Auditor's Report Thereon appears to be materially misstated.
appears to be materially misstated

The
The Company’s
Company& Board
aoerd of
of Directors
Directors is
is responsible
respnsible for
for the
the If,
If, based
based onon the
the work
work we
we have
have performed,
performed, wewe conclude
conclude
other
other information. The other
informatiom The other information comprises the
information comprises the that there is a material misstatement of this other
thet there is e material misstatement of this other

information
information included
included inin the
the Management
Management Discussion
Discussion information,
information, wewe are
are required
required toto report
report that
that fact.
fact WeWe have
have
and
and Analysis, the Report
Analysis, the Report of
of the
the Board
3aard of
of Directors
Directors and
end nothing to report in this regard.
nothing to report in this regard
the Report on the Corporate Governance but does not
the Report on the Corporate Governance but dces not
6. 
6.
Management’s
Management's Responsibility for
for the
the Standalone
Standalone
include
include the standalone financial
the standalone financial statements
statements and our
end our
Financial
Financial Statements
Statements
auditor’s
auditor's report thereon.
reprt thereon
The
The Company’s
Company's BoardBoard of of Directors
Directrs is is responsible
respnsible for for
Our
Our opinion on the
opinion on standalone financial
the standalone financial statements
statements does
does
the matters stated in section 134 (5) of the Act with
the matters stated in section 134 (5) of the Act with
not cover the other information and we do not express
not cover the other information and we do not express
respect
respect to
to the
the preparation
preparation of of these
these standalone
standalone financial
financial
any
any form
form of
of assurance conclusion thereon
assurance conclusion thereon.
statements
statements thetthat give
give a true
true and
and fair
fair view
view of the financial
of the financial
In connection with
In connection
with our
our audit
audit of the standalone financial
of the standalone
financial position, financial performance,
position, financial *rfcrmance, changes
changes in In equity
equity
statements,
statements, ourour responsibility
responsibility is to read
is to the other
read the other
and cash flows of the Company in accordance with
and cash flows of the Company in accordance with
information and, in
information end, in doing
doing so,
so, consider
consider whether
whether thethe
the accounting
the accounting principles
principles generally
generaly accepted
accepted in in India,
India,
other
other information
information is is materially
materially inconsistent
inconsistent with
with the
the
including the Indian
including the Indian Accounting
Accounting Standards
Standards specified
specified
standalone financial statements or our knowledge
standalone financial statements or our knowledge
under
under section
section 133 133 of the Act
of the Act. This
This responsibility
responsibility

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 83
M
*SHRIRA

Independent Auditor’s Report

Independent Auditor's Report (Contd.)
(Contd.)

also
also includes
includes maintenance
maintenance of of adequate accounting
adequate accounting The
The risk
risk of
of not
not detecting
detecting a
a material
material misstatement
misstatement
records
records inin accordance
accordance withwith the
the provisions
provisions ofof the
the Act
Act resulting
resulting from
from fraud
fraud is
is higher
higher than for one
than for one resulting
resulting
for
for safeguarding
safeguarding of of the
the assets
assets of the Company
of the Company and for
and for from
from error,
error, as
as fraud
fraud may
mey involve
involve collusion,
collusion, forgery,
forgery,
preventing
preventing and
and detecting frauds and
detecting freuds and other
other irregularities;
irregularities, intentional
intentional omissions,
omissions, misrepresentations,
misrepresentations, oror the
the
selection
selection and
and application
application of of appropriate accounting
appropriate accounting override
override of
of internal control.
interne' control

policies; making judgments and estimates

policies; making judgments and estimates that
that are
are Obtain
Obtain anan understanding
understanding of of internal financial
internal financial
reasonable
reasonable andand prudent;
prudent; andand design,
design, implementation
implementation controls relevant to the audit in order to design
controls relevant to the audit in order to design
and
end maintenance
maintenance of of adequate
Edequate internal
intern-I financial
financial controls,
controls, audit
audit procedures
procedures that that are
ere appropriate
appropriate in in the
the
that were operating effectively for ensuring the accuracy
that were operating effectively for ensuring the accuracy circumstances.
circumstances Under
Under section
section 143(3)(i)
1 of the Act,
of the Act
and
end completeness
completeness of of the
the accounting
accounting records,
records, relevant
relevant we
we are
are also
also responsible
responsible for
for expressing
expressing our
our opinion
opinion
to the preparation
to the preparation andand presentation
presentation ofof the
the financial
financial on whether the
on whether the Company
Company hash's adequate
adequate internal
internal
statements that give
statements thet give a true
true and
and fair
fair view and are
view end are free
free financial
financial controls
controls system
system in
in place
p'ace and
and the
the operating
0*rating
from
from material
material misstatements,
misstatements, whether
whether duedue to
to fraud or
fraud or
effectiveness
effectiveness
of such controls.
of such controls.

error.
error
Evaluate the appropriateness
Evaluatethe appropriateness of
of accounting
accwnting policies
policies
In
In preparing
preparing the financial statements,
the financial statements, management
management
used
used and the reasonableness
and the reasonableness of of accounting
accounting
is responsible for assessing the Company’s ability
is responsible for assessing the Company's to
ability to
estimates
estimates and
and related
related disclosures
disclosures made
made by by
continue
continue as as aa going
going concern,
concern, disclosing,
disclosing, as
as applicable,
applicable, management.
management
matters
matters related
related toto going
gong concern
concern andand using
using the
the going
going
Conclude
Conclude on the
the appropriateness
appropriateness of
of management’s
management's
concern basis of accounting unless management either
concern basis of accounting un'ess management either
use
use of
of the
the going
going concern
concern basis
bass of
of accounting
accounting and,
and,
intends
intends to to liquidate
'iquidate the
the Company
Comp-ny or or to
to cease
cease operations,
0*retions,
based
based on cr. the
the audit
audit evidence
evidence obtained,
obtained, whether
whether
or
or has
has no
no realistic
realistic alternative
alternative but
but to
to do
do so.
so.
a material uncertainty exists related to events or
e material uncertainty exists related to events or
The
The Board of Directors
Board of Directors is is also
also responsible
respnsible forfor overseeing
oversæing
conditions that may cast significant doubt on the
conditions thet may cgst significant doubt on the
the
the Company’s
C.ompanys financial
financial reporting
reporting process.
prccess.
Company’s
Company's ability
ability to continue as
to continue as aa going
going concern.
concerm
7. Auditor’s
Auditor's Responsibilities for the
Respnsibilities for the Audit
Audit of
of the
the Financial
Financial If
If we
we conclude
conclude thatthat aa material
material uncertainty
uncertainty exists,
exists,
Statements
Statements we are required to draw attention in our auditor’s
we are required to drew sttentiDn in our auditor's

Our
Our objectives
objætives are
are tto obtain
obtain reasonable
reasonable assurance
assurance report
report to
to the
the related
re'ated disclosures
disclosures inin the
the standalone
standalone

about
etout whether
whether the standalone
the standalone financial
finenciEI statements
ststements as
as financial
financial statements
statements or, or, if
if such
such disclosures
disclosures areere

a
e whole
whole areare free
free from
from material
meterial misstatement, whether
misstatement, whether inadequate,
inadequate, toto modify
modify our
our opinion.
opiniom Our conclusions
Our conclusions

due to fraud or error, and to issue an auditor’s report that

due to fraud or error, tc issue sn auditors report that are
ere based
based onon the
the audit
audit evidence
evidence obtained
obtEined up to the
up tc the

includes our opinion. Reasonable assurance is a high

includes our opinion Reasonable assurance is a high date
date of
of our
our auditor’s
auditor's report.
report However, future events
However,future events

level
level of
of assurance,
assurance, but but is
is not
not a
a guarantee
guarantee thatthat an
an audit
audit or conditions may
or conditions may cause
cause thethe Company
Company to to cease
cease to
to

conducted
conducted in In accordance
accordance withwith SAs will always
SASwill always detect
detect aa continue
continue as
as aa going
going concern.
concern

material
material misstatement
misstatement when
when it it exists.
exists Misstatements
Misstatements Evaluate
Evaluate the
the overall
overall presentation,
presentation, structure
structure and
and
can arise from fraud or error and are considered material
cen arise from fraud or error and are considered materisl content of the standalone financial statements,
content of the standalone financial statements,
if,
if, individually
individually or
or in the aggregate,
in the aggregate, they could reasonably
they could reasonably including
including the
the disclosures,
disclosures, andand whether
whether thethe
be expected to
be ex#cted to influence
influence thethe economic
economic decisions
decisions of of standalone
standalone financial
financial statements
statements represent
represent thethe
users taken on
users taken the basis
on the basis of these standalone
of these standalone financial
financial underlying
underlying transactions
transections and and events
events inin aa manner
manner
statements.
statements that
that achieves
achieves fair
fair presentation.
presentation

As
As part of en
part of an audit
audit in accordance with
in accordance with SAs, we exercise
SASIwe exercise Materiality
Meteriality is
is the
the magnitude
magnitude of of misstatements
misstatements in in the
the
professional judgment and maintain professional
professional judgment and maintain professional standalone financial statements that, individually or
standalone financial statements that, individually or
skepticism
skepticism throughout the audit.
throughout the We also:
audit We also: in
in aggregate,
aggregate, makes
makes it it probable
probable thatthat the
the economic
economic
Identify
Identify and
end assess
assess the the risks
risks ofof material
material decisions
decisions of of aa reasonably
reasonably knowledgeable
knowledgeable user user of
of the
the

misstatement
misstatement of
of the
the standalone
standalone financial
financial financial statements may be influenced. We consider
financial statements may be influenced. We consider

statements, whether due

statements, whether to fraud
due to fraud oror error,
error, design
design quantitative
quantitative materiality
materiality and
end qualitative
qualitative factors
factors inin (i)
(i)
and perform audit procedures responsive to those
and perform audit prccedures responsive to those planning
planning the
the scope
scope of
Df our
our audit
audit work
work and
and in
in evaluating
evaluating

risks,
risks, and
and obtain
obtain audit
audit evidence
evidence that
thet is
is sufficient
sufficient the
the results of our
results of our work;
work; and
and (ii) to evaluate
(i) tc the effect
evaluate the effect of
of

and
and appropriate
appropriate toto provide
provide aa basis
basis for our opinion
for our opinion. any
any identified
identified misstatements
misstatements in the financial
inthe financial statements.
statements

84 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Independent Auditor’s Report

Independent Auditor's Report (Contd.)
(Contd.)

We
We communicate
communicate with those charged
with those charged with
with governance
governance e) On
On the
the basis
basis ofof the
the written
written representations
representations received
received
regarding, among other
regarding, emong other matters, the planned
matters, the planned scope
scope from the directors as on March 31, 2021, and taken
from the directors as on March 31, 2021 , and taken
and
and timing of the
timing of the audit
audit and
and significant
significant audit findings,
sudit findings, on
cr. record
record by the Board
by the Board of
of Directors,
Directors, none
none of of the
the
including
including any
any significant
significant deficiencies
deficiencies in
in internal
internal control
control directors
directors is is disqualified
disqualified as
as on
on March
March 31,
31 2021, from
2021, from
that we identify during our audit.
that we identify during our audit. being
being appointed
appointed as as aa director
director in
in terms
terms ofof Section
Section
We
We also
also provide
provide those
those charged
charged with
with governance with
governance with 164 (2) of the Act;
64 (2) of the Act;

a statement that we have complied with

a statement that we have complied with relevant
relevant f) 
f) With
With respect to the
respect to the adequacy
edaluecy of the internal
of the internal financial
financial
ethical
ethical requirements
requirements regarding
regarding independence,
independence, and to
end to controls over financial
controls over financ.a' reporting
rez:rting of the Company
Dfthe Comp-ny and end
communicate
communicate with with them
them all
sl relationships and other
relationships end other the
the operating
operating effectiveness
effectiveness ofof such
such controls,
controls, refer
refer to
to
matters
matters that
thet may
may reasonably
reasonably be
be thought
thought toto bear
bear on our
on our our separate Report in “Annexure 2” to this report;
our separate Report in "Annexure2" to this report
independence, and where applicable, related safeguards.
independence, end where applicable, related safeguards
g) 
g) With
Wth respect
respect to the other
to the other matters
matters to to be
be included
included
From the matters
Fromthe matters communicated
communicated with with those
those charged
charged with
with in the Auditor’s Report in accordance with the
In the Auditor's Report in accordance with the
governance,
governance, we
we determine
determine those
thc,se matters that were
matters that were of
of requirements
requirements of of section
section 197(16)
197(16) of of the Act, as
the Act, as
most
most significance
significance in the audit
in the audit of the standalone
of the financial
stand-lone financisl amended,
emended, in in our
our opinion
opinion and
end toto the
the best
test of
of our
our
statements
statements of of the
the current year and
current year and are therefore the
are therefore the key
key information
information and and according
according tto thethe explanations
explanations
audit matters. We describe these matters in our auditor’s
audit matters We describe these mstters 'n our auditors given to us, the remuneration paid by the Company
given to us, the remuneration paid by the Company
report unless law
re;c-tunless law or
or regulation
regulation precludes
precludes public
pubic disclosure
disclosure to
to its
its directors
directors during
during the year is
theyeer is in
in accordance
accordance with with
about the matter
about the or when, in
matterorwhen, extremely rare
inextremely circumstances,
rarecircumstances, the
the provisions
provisions of of section
section 197
1g7 of
of the Act;
the Act;
we
we determine
determine that
that a
a matter
matter should
shDljd not
not be
be communicated
communiæted
h) 
h) With
Wth respect
respect to
to the
the other
other matters
matters to
to be
be included
included in
in
in our report because the adverse consequences of
in our report because the Edverseconsequences of doing
doing
the Auditor’s Report in accordance with Rule 11 of
the Auditor's Report in accordsnce with Rule 11 of
so
so would
would reasonably
reasonably be
t.e expected
expected to
to outweigh
outweigh the
the public
public the
the Companies
Companies (Audit
(Audit and
and Auditors)
Auditors) Rules,
Rules, 2014,
2014,
interest
interest benefits of such
benefits of such communication.
communication.
as
es amended,
amended, in our opinion
in our opinion and
and to the best
to the best of
of our
our
8. Report
Report on
on Other
Other Legal
Legal and
and Regulatory Requirements
Requirements information
information and
and according
according tto the
the explanations
explanations
given
given to
to us:
us
As
As required
required by the Companies
by the Companies (Auditor’s
(Auditor's Report)
Report) Order,
Order,
2016
2016 (“the
(the Order”),
Order"), issued
issued by the Central
by the Central Government
Government i. The
The Company
Compeny has has disclosed
disclosed thethe impact
impact of of

of
of India
India in terms of
in terms of sub-section
sub-section (11)
(11) of
of section
section 143 of
143 of pending litigations on its financial position in
pending litigations on its financial position in
the Act, we give in the “Annexure 1,” a statement on
the Act, we give in the "Annexure 1: a statement on its financial statements – Refer Note No. 43
its financial statements — Refer Note No 43

the
the matters
matters specified
specified in in paragraphs
paragraphs 33 and
and 44 of the said
of the said to the
to financial statements;
the financial statements,

Order, to the
Order,to the extent
extent applicable.
applicable. ii. The
The Company
Campeny did did not
not have
have any
any long-term
long-term

As
As required
required by
by Section
Section 143
143 (3)
(3) of the Act,
of the Act, we
we report that:
report that: contracts
contracts including derivative contracts for
includingderivetö.eccntracts for which
which
there were any material foreseeable losses;
there were any material foreseeable losses,
a) We have
a) We have sought
sought and
and obtained
obtained all
all the
the information
information and
and
explanations which
explanations which to
to the
the best
best of
cf our
our knowledge
knowledge and
and iii. 
Ill
There has
There hes been
ben no no delay
delay in
in transferring
transferring

belief were necessary for the purposes of our audit;

belief were necessary for the purposes of our audit amounts,
amounts, required
required to
to be
be transferred,
transferred, to
to the
the
Investor
Investor Education
Education and
and Protection
Protection Fund
Fund byby
b) 
b) In
In our opinion, proper
our opinion, proper books
bcoks of
of account
account as
as required
required
the Company.
the Company
by law have been kept by the Company so far
by law have been kept by the Company so far as
as itit
appears
appears from
from our examination of
our examination of those
those books;
books,

c) The Balance
c) The Balance Sheet,
Sheet, the
the Statement
Statement of of Profit
Profit and
end For
For G.
G. D. Apte & Co.
co.

Loss,
Loss, the
the Statement
Statement ofof Changes
Changes inin Equity
Equity and
and the
the Chartered Accountants
CharteredAccountants

Cash Flow Statement dealt with by this Report ere

Cash Flow Statement dealt with by this Report are Firm
Firm Registration
Registration Number:
Number 100515W
100515W
in
in agreement with the
agreement with the books of account;
books of account; UDIN: 21121007AAAACB5091
UDIN: 21121

d) 
d) In
In our
our opinion, the aforesaid
opinion, the aforesaid standalone financial
standalone financial
statements
statements comply
comply with the Ind
with the Ind AS
AS prescribed
prescri±d under
under
section
section 133
133 of
of the
the Act
Act read with the
read with the Companies
Companies Anagha M.
Anagha M. Nanivadekar
Nanivadekar

(Indian Accounting Standards)

(Indian Accounting Standards) Rules,
Rules, 2015,
2015, as
as Partner
Partner

amended;
amended; Membership Number: 121007
Membership Number: 121007

Pune, April 30,

Pune,April 30, 2021
2021

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 85
M
*SHRIRA

Annexure
Annexure 11
referred to in Paragraph 8 under the heading ‘Report on Other Legal and
referred to in Paragraph 8 under the heading •Report on Other and Regulatory
Regulatory Requirements’
Requirements' of of our
our report
report of
of even
even date
date
to the
to the members
members of of the
the Company
Company for for the
the year
year ended
ended March
March 31,
31, 2021.
2021.
(i) (a) The Company has maintained proper records
The Company has maintained proper records us,
us, directives
directives issued
issued by the Reserve
by the Resewe Bank Bank of
of India
Indie and
and
showing
showing fullfull particulars
particulars including
including quantitative
quantitative the
the provisions
provisions of of section
section 7373 to
to 76
76 and
and other
other relevant
relevant
details and situation
details end situation of
of fixed
fixed assets.
assets provisions
provisions of the Act
of the Act and
and the
the rules
rules framed
fremed there
there under,
under,toto
(b) 
(b) Fixed
Fixed assets
assets have
have been
been physically
physically verified
verified by the
by the the
the extent
extent applicable,
applicable, have
have been
been complied
compli± with.
with. We
We were
were

management
management during during thethe year
year and end no material
material informed
informed by by the
the management
man-gement thet that nono order
order has
has been
been
discrepancies
discrepancies werewere identified
identified on on such verification.
such verification passed by the Company Law Board, National Company
passed by the Company Law Baard Netional Company
Law
Law Tribunal
Tribunal oror Reserve
Reserve Bank
Bank ofof India
India or
or any
any Court
Court oror
(c)  According to
(c) According to the
the information
information and and explanations
explanations
any
any other
other Tribunal.
Tribunal
given
given byby the
the management
management and and based
based on on our
our
verification, we
verification, we report that, the
report that, the title
title deeds
deeds of of (vi) According
According to to the
the information
information and and explanations
explanations given
given
immovable
immovable properties
properties included
included in in property,
property, to us, the Central Government has not specified the
to us, the Central Government has not specified the

plant
plant and
and equipment
equipment are are held
held in the name
in the neme of the
of the maintenance of cost records under section 148 (1) of
maintenance of cost records under section 148 (1) of

Company.
Company. the Act for
the Act the activities
for the activities carried
carried out
out by the Company.
by the Company

(ii) 
(ii) The
The Company’s
Companfs business
business does
does not
not involve
involve inventories
inventories (vii) (a) 
(a) The
The Company
Company is is regular
regular in in depositing
delnsiting withwith
and
end accordingly,
accordingly, the
the requirements
—uirements under
under paragraph
paragraph 33 (ii)
(ii) appropriate
appropriate authorities
authorities undisputed
undisputed statutory
stetutory dues
dues

of the Order
of the are not
Orderere not applicable to the
applicable to the Company.
Compeny including
including provident
provident fund, employees’ state
fund,employees' state insurance,
Insurance,
income-tax, goods and service tax, duty of customs,
income-tax, gc&s end service tsx, duty of customs,
(iii) 
(iiÜ According
According to to the
the information
information andand explanations
explanations givengiven
value
value added
added tax,
tax, cess
cess andand other
other material
material statutory
statutory
to
to us,
us, and
and based
based on the audit
on the audit procedures conducted
procedures conducted
dues
dues applicable
applicable toto it.
it According
According to to the
the information
inform-tion
by
by us, we report
us, we report that
that the
the Company
Company has has notnot granted
granted
and
end explanations
explanations given
given toto us
us and
and from the records
from the records
any loans, secured or unsecured to companies, firms,
any loans, secured or unsecured to companies, firms,
of the Company, there were no undisputed statutory
of the Company,there were no undisputed statutory
limited
limited liability
'isbility partnerships
vrtnerships or or other
other parties
parties covered
covered inin
dues
dues asas at the last
et the last day
day of the financial
of the finsncial year
year which
which
the
the register
register maintained
maintained under
under section
section 189189 of of the
the Act.
Act
were
were outstanding
outstanding for for a a period
period of of more
more than
than six
six
Accordingly,
Accordingly, thethe provisions
provisions ofof clause
clause 3(iii)
3(iii) (a),
(a), (b)
(b) and
and (c)
(c)
months from the date they became payable.
months from the dete they became payable
of the Order
of the Orderereare not
not applicable to the
applicable to the Company.
Compeny
(b) 
(b) According
According to to the
the information
information and end explanations
explanations
(iv) 
(iv) Based
Based onon the audit procedures
the audit prnadures conducted
conducted byby us and
us end
given to us and on the basis of examination of
given to us and on the basis of examination of
according
according to the information
to the information and
-nd explanations
explenaticns given to
given to
books
books ofof account
account and
and records
records of
of the
the Company,
Company, wewe
us,
us, we are of
we ere the opinion
of the opinion that the provisions
that the provisions of
of section
section
report that there
report thet there are
are no
no dues
dues in
in respect
respect of
of Income
Income
185
185 of
of the Act have
the Act heve been
been complied
comp'ied with
with by
by the
the Company
Compeny
tax,
tax, Sales
Seles tax,
tax, Service
Service tax,
tax, Customs
Customs Duty,
Duty, Excise
Excise
and the provisions of section 186 of the Act are
end the provisions of section 186 of the Act are not
not
Duty, Value added tax, Goods and services tax
Duty, Value added tax, GccZs and services tax or
or
applicable to the
applicable to the Company.
Company.
cess
cess which
which have
have not
not been
teen deposited
deposited on account
account of
of
(v) In
In respect of deposits
respect of deposits accepted,
accepted, in
in our
our opinion and
opinion end
any
any dispute
dispute except
except for following cases:
for following cases
according
according to the information
to the information and
and explanations
explanations given to
given to

Name
Name of
of Statute
Statute Nature of dues
Nature of dues Amount Period
Period to
to which
which thethe Forum where dispute
Forum where dispute is
is pending
pending
(` In
In lacs)
lacs) amount
amount relates
relates

Finance
Finance Act,
Act, 1994
Igg4 Service Tax
Service Tax 7,687.17
7,68717 April
April 2008 toto Customs,
Customs, Excise
Excise and
and Service
Service Tax
Tax
Demands
Demands September 2014
September 2014 Appellate Tribunal
Appellate Tribunsl
Kerala Value Added
Kerele Value Added Value
Value Added
Added Tax
Tax 4.65
465 AY
AY 2007-08
2007-08 Dy.
Dy. Commissioner
Commissioner (Appeals)
(Appeals)
Tax, 2003
2003 Ernakulum, Kerala
Ernakulum, Kerala
Income
Income Tax Tax Act,
Act, Income
Income
Tax
Tax
15.71
1571
AY 2014-15
AY 2014_15
Commissioner
Commissioner
of Income Tax
of Income Tax

1961 (Appeals)
(Appeals)
Income
Income Tax Tax Act,
Act, Income
Income
Tax
Tax
398.80
3@880
AY 2018-19
AM 2018-19
Commissioner
Commissioner
of Income Tax
of Income Tax

1961 (Appeals)
eals

86 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 11 (Contd.)
Annexure (Contd)

(viii) 
(viii) IIn
n our
our opinion
opinion and according to
and according to the
the information
information and
end (xiii) According to
(xiii) According the information
to the information and explanations given
and explanations given
explanations
explanations given
given byby the
the management,
management, the the Company
Company tto us,
us, transactions
transactions with the related
with the related parties
parties are
are in
in
has
has not
not defaulted
defaulted inin repayment
repayment of of loans
loans or
or borrowing
borrowing compliance
compliance with
with section
section 177
177 and
and 188 of Companies
188 of Companies
to
to a financial institution,
a financial institution, bank
bank or
or government
government or or dues to
dues to Act, 2013
Act, 2013 where
where applicable
applicable and
end the
the details
detEils have
have been
been
debenture
debenture holders.
holders disclosed
disclosed in
in the
the notes
notes to the financial
to the financial statements,
statements, as
as

(ix) Based
Based on our audit
on our audit procedures performed
performed for for thethe required by the applicable accounting standards.
—uired by the applicable accounting standards.

purpose of reporting the true and fair view of the

purpose of repyting the true and fair view of the (xiv) 
According to
(xiv) According to the
the information
information and
and explanations
explanations given
given to
to
financial
finsncisl statements
statements and and according
according to the information
to the information us
us and
end on
on an
en overall
overall examination
examinstion of of the
the balance
balsnce sheet,
sheet,
and
and explanations
explanations givengiven by by the
the management,
menegement, the the the Company
the Company hashas not
not made
made any
Eny preferential
preferential allotment
allotment or
or
Company has not raised any money by way of initial
Company has not raised any money by way of initial private placement of shares or fully or partly convertible
private placement of shares or fully or partly convertible
public offer or
public offer or further
further public offer. Further,
public offer monies raised
Further,monies raised debentures
debentures during
during the
the year.
year.
by the Company
by the Company by by way
way of of debt
debt instruments
instruments andend term
term
(xv) According to
(xv) According the information
to the information and explanations given
and explanations given
loans
bens were
were applied
applied forfor the
the purpose
purpose for for which those
which those tto us,
us, the
the Company
Compeny has
has not
not entered
entered into
into any
any non-cash
non-cash
were
were raised, though funds
raised, though funds which
which were
were not
not required
required for for
transactions with
transactions with directors
directors or
or persons connected with
*rsons connected with
immediate utilisation were invested during intervening
immediate utilisation were invested during intervening
him
him as
as referred
referred to
to in
in section
section 192
1 92 of the Act.
of the Act
period.
(xvi) According to
(xvi) According the information
to the information and explanations given
and explanations given
(x) 
(x) Based
Based upon
upri the audit procedures
the audit procedures performed
performed for for the
the tto us,
us, we
we report
report that
that the
the Company
Company isis registered
registered with
with
purpose
purpose of of reporting
repyting thethe true
true and
and fair
fair view
view of of the
the Reserve
Resewe Bank
Benk of
of India
India as
as required
required under
under section 45-IA of
section 45-IA of
financial statements and according to the information
finsncisl statements and according to the information
the Reserve
the Reserve Bank
Bank of
of India
India Act,
Act, 1934.
1934
and
and explanations
explanations givengiven to
to us,
us, we
we report
report that
that no fraud by
no fraud by
the
the Company
Compeny or or fraud
fraud on
on the
the Company
Compeny by the officers,
by the officers,
employees
employees end and customers
customers ofof the
the Company
Company has has been
been
noticed or reported during the year except fraud of
noticed or reported during the year except fraud of
` 55 Lacs
Lacs in the nature
in the nature of
of misappropriation
misappropriation of of funds
funds
and
and availing
availing loans
loans byby submitting forged documents
submitting forged dæuments by by
employees
employees end and customers
customers against
against whom
whom thethe Company
Company For
For G.
G. D.
D. Apte & Co.
co.

has
has initiated
initiated legal
legal course of action.
course of action Chartered Accountants
Chartered Accountants

Firm
Firm Registration
Registration Number:
Number 100515W
100515W
(xi) 
(xi) According
According toto the
the information
information and
and explanations
explanations given
given
UDIN:
UDIN: 21121007AAAACB5091
21121
to us, the managerial remuneration has been paid //
to us, the managerial remunerstion hes been paid
provided
provided in accordance with
in accordance with the
the requisite
requisite approvals
approvals
mandated
mandated by the provisions
by the provisions of
of section
section 197
197 read with
reed with
Schedule V to the Companies Act, 2013.
Schedule V the C.ompaniesAct, 2013. Anagha M.
Anagha M. Nanivadekar
Nanivadekar
(xii) 
(Xid InIn our
our opinion,
opinion, the
the Company
O)mpany isIS not
not aa Nidhi
Nidhi Company.
Companyt Partner
Partner

Therefore, the provisions of clause 3(xii) of the order

Therefore, the provisions of clause 3(xii) of the are
order ere Membership
Membership Number:
Number: 121007
121CMJ7
not
not applicable to the
applicable to the Company.
Company. Pune, April 30,
Pune,April 30, 2021
2021

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 87
M
*SHRIRA

Annexure
Annexure 2
2
referred to in paragraph 8(f) under the heading ‘Report on Other Legal and
referred to in paragraph 8(f) under the heading •Report on Other and Regulatory Requirements’
Requirements' of our report
of our report on even
on even
date
date on
on the
the Internal
Internal Financial
financial Controls
Controls under
under Clause
Clause (i)
(i) of
of Sub-Section
Sub-section 3
3 of
of Section
Section 143
143 of the Companies
of the Companies Act,
Act, 2013
2013 (“the Act”)
("the Act")
Report
Report on
on the
the Internal
Internal Financial
Financial Controls
Controls under
under Clause
Clause (i)
(i) of
of Our
Our audit
audit involves
involves performing
performing procedures
prccedures to to obtain
obtain audit
audit
Sub-section
Sub-section 3 3 of
of Section
Section 143 of the
143 of the Companies Act, 2013
Companies Act, 2013 evidence about
evidence the adequacy
about the adequacy of of the
the internal financial
interne' financial
(“The
("The Act”)
Act") controls system
controls system over financial reporting
over financial reporting and
-nd their
their operating
0*rating

We have
We audited the
have audited the internal financial controls
internal financial controls over
over financial
financial effectiveness. Our
effectiveness
audit of internal financial
Our audit of Internal finencisl
controls
controls
over
over

reporting of Shriram
reporting of Shriram City
City Union
union Finance
Finance Limited
Limited (“the
('the financial reporting included obtaining an understanding of
financial —:rting included obtEining an understanding of
Company”) as of March 31, 2021 in conjunction with our audit
Company') as of Merch 31, 2021 in conjunction with our audit internal financial controls over financial reporting, assessing
internal financial contra's over financisl reporting, assessing

of
of the
the standalone financial statements
standalone financial statements ofof the
the Company
Company for for the risk
the that a
risk that e material
materiel weakness
weakness exists,
exists, andand testing
testing and
and

the year
the year ended
ended on that date.
on that date evaluating the
evaluating the design
design and
and operating
0*rating effectiveness
effectiveness of
of internal
internal
control based on the assessed risk. The procedures selected
control based Dnthe sssessed risk The procedures selected
Management’s
Management's Responsibility
Responsibility for
for Internal
Internal Financial
Financial Controls
Controls
depend
depend on the auditor’s
on the judgement, including
auditor's judgement, including the
the assessment
assessment
The Company’s
The Company's Management
Management is is responsible
responsible for
for establishing
establishing of the
of the risks
risks of material
of material misstatement
misstatement of
of the financial
the financial

and
and maintaining
maintaining internal
Internal financial controls based
finenciEI controls based on the
on the statements, whether due
statements, whether due toto fraud
fraud oror error.
error.
internal
Internal control
control over financial reporting
over financial reporting criteria
criteri- established
established
We believe
We believe that
thet the
the audit
audit evidence
e.ridencewewe have
have obtained
obtained is
is sufficient
sufficient
by the Company
by the Company considering the essential
considering the essentia' components
components of of
and
and appropriate
appropriate to
to provide
provide aa basis
basis for
for our
our audit
audit opinion
opinion on the
on the
internal
Internal controls
controls stated
stated in the Guidance
in the Guidance Note
Note on Audit of
on Audit of
internal financial controls system over financial reporting.
internal financial controls system over financial repartit-g
Internal
Internal Financial
Financial Controls
Controls Over
aver Financial
Finsncisl Reporting
Reporting (Guidance
(Guidance
Note)
Note) issued
issued by by the
the Institute
Institute ofof Chartered Accountants
Chartered Accountants Meaning
Meaning ofof Internal
Intemal Financial
Financial Controls
Controls over
over Financial
Financial
of
of India
India (ICAI). These responsibilities
(ICAI). These responsibilities include
include the
the design,
design, Reporting
implementation and maintenance of adequate internal
implementation end maintenance of adequate .nternsl A company"s
A company’s internal
interne' financial
financial control
control over
over financial
financial reporting
reporting
financial controls
financial that were
controls that were operating
0*rating effectively for ensuring
effectively for ensuring is a process designed to provide reasonable assurance
is a process designed to provide reasonable assurance
the orderly
the orderly andand efficient
efficient conduct
conduct of of its
its business,
business, including
including regarding
regarding the the reliability
reliability of financial reporting
of financial reporting andand thethe
adherence
adherence to to the
the Company’s
Company& policies,
policies, the
the safeguarding
sefeguarding of of preparation
preparation of of financial
financial statements
stetements for for external
external purposes
purposes in in
its assets, the prevention and detection of frauds and errors,
its assets, the prevention and detection of frauds and errors, accordance with generally accepted accounting principles. A
accordance with generally accepted accounting principles A
the accuracy
the accuracy and and completeness
completeness of of the
the accounting
accounting records,
records, company’s internal
company"s financial control
internal financial control over financial
financial reporting
repyting
and the timely
and the timely preparation
prep-ration ofDf reliable financial information,
reliable financial information, asas includes those policies
includes those policies andend procedures that (1)
prccedures thst (1) pertain to the
pertain to the
required
—uired underunder the
the Companies
Companies Act, Act, 2013.
2013 maintenance
msintenance of of records
records that,
that, in
in reasonable
reasonable detail,
detail, accurately
accurately
and
and fairly
fairly reflect
reflect the transactions and
the transactions end dispositions
disz:lsiticns ofof the
the
Auditor’s Responsibility
Auditor's
assets
assets ofof the
the Company;
Company, (2) (2) provide
provide reasonable
reasonable assurance
assurance that
that
Our
Our responsibility
responsibility is
is to
to express
express an
an opinion
opinion on
on the
the Company’s
Company's
transactions are
transactions are recorded
recorded as as necessary
necessery•to to permit
permit preparation
preparation
internal
Internal financial
financial controls over financial
controls over financial reporting
reporting based
based on
on
of financial
of financial statements
statements in in accordance
accordance withwith generally
general' accepted
accepted
our audit. We
our audit. We conducted
conducted our
cur audit
sudit inin accordance
eccordsnce with the
with the
accounting principles, and that receipts and expenditures
accounting principles, and thet receipts and expenditures
Guidance Note and the Standards on Auditing as specified
Guidance Note -nd the Stsndards on Auditing as specified
of the
of the Company
Company are are being made mede onlyonly inin accordance
accordance
under
under section
section 143(10)
14300) of the Companies
of the Companies Act, Act, 2013,
2013, tto the
the with authorisations
with authorisations of of management
management and end directors
directors of
of the
the
extent
extent applicable
applicable to
to an
an audit
eudit of
of internal financial controls
internal financial controls and,
and,
Company;
Company; and and (3) (3) provide
provide reasonable
reasonable assurance
assurance regarding
regarding
both
both issued
issued by
by the
the ICAI. Those Standards
ICALThcrse Stand-rds and the the Guidance
Guidance
prevention
prevention or times timely detection
detection of of unauthorised
unauthorised acquisition,
acquisition,
Note require that we comply with ethical requirements end
Note require that we comply with ethical requirements and use,
use,oror disposition
disp3sition of the Company’s
of the Company& assets that could
assets that could have
have aa
plan
plan and
and perform the audit
perform the to obtain
audit to obtain reasonable
reasonable assurance
assurance
material effect on
material effect on the
the financial
financial statements.
statements
about
about whether
whether adequate
adequate internal financial controls
internal financial controls over
over
financial reporting were established and maintained and ifif
financial repyting were established end maintained and
such controls operated
such controls operated effectively
effectively in all material
in ell material respects.
respects

88 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Annexure 22 (Contd.)
Annexure (Contd)

Inherent
Inherent
Limitations
Limitations
of Internal Financial
of Intemal Financial
Controls
Controls
over
over
reporting
reporting were
were operating
0*rating effectively
effectively as
as at
at March
Merch 31,
31, 2021,
2021,
Financial Reporting
Financial based
based on
on the
the internal
internal control
control over
over financial
financial reporting
reporting criteria
criteria
Because
BE-euse of the
of the inherent
inherent limitations
limitations of
of internal
internal financial
financial established
established by by the
the Company
Company considering
considering thethe essential
essential

controls over
controls over financial
financial reporting,
reporting, including
including the the possibility
possibility components
components of of internal
internal controls
controls stated
stated in the Guidance
in the Guidance Note
Note

of collusion
of collusion or
or improper
impro#r management
menagement override override of of controls,
controls, issued by the ICAI.
issued by the ICAL
material misstatements due to error or fraud may occur and
msterial misstatements due to error fraud mey acur end
not be detected. Also, projections of any evaluation of the
not be detected Also, projections of any evaluation of the For
For G.
G. D.
D. Apte & Co.
co.

internal
internal financial
financial controls
controls over financial reporting
over financial reporting to to future
future Chartered
Chartered Accountants
Accountants

periods
*riods areare subject
subject to to the
the risk that the
risk that the internal financial
internal financial Firm
Firm Registration
Registration Number:
Number 100515W
100515W
controls over
controls financial reporting
over financial reporting may may become
become inadequate
inadequate UDIN: 21121007AAAACB5091
UDIN: 21121

because of changes in conditions, or that the degree

because of changes In conditions, or thet the degree of of
compliance with
compliance with the
the policies or or procedures
prcædures may may deteriorate.
deteriorate

Opinion
Opinion Anagha M.
Anagha M. Nanivadekar
Nanivadekar
In
In our
our opinion,
opinion, the
the Company
Compeny has,has, in
in all
ell material
material respects,
respects, an
an Partner
Partner

adequate
adequate internal
internal financial controls system
financial controls system over financial
over financial Membership Number: 121007
Membership Number: 121CMJ7
reporting
reporting and such internal
and such financial controls
internal financial controls over financial
over financial Pune, April 30,
Pune,April 30, 2021
2021

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 89
M
*SHRIRA

Standalone
Standalone Balance
Balance Sheet
Sheet
as at March
as at March 31,
31, 2021
2021

` in
in lacs
lacs

Particulars Notes As at As at
March
March 31,
31 2021
2021 March
Wrch31 31, 2020
2020

I ASSETS
1 Financial
Financial Assets
Assets

Cash and and Cash

Cesti Equivalents
;quiva'ents 8 3,81,528.17 2,09,182.78
200.1827B

Bank balance
beleric* other than then above 9 1,39,908.12 97,053.53
g7.osas3

Receivables
P.ecetvgbles

(I)
(l) Trade
Trade Receivables
Receive 10 229.99
22@gg 89.76
(10 Other
(II) OtherReceivables
Receivables - -
Loans
Los rs 11 27,42,011.64
27.42011 26,61,252.96
26.61.2szgs

Investments 12 1,01,732.24 73,413.97

Other
Otter Financial
Anancial Assets
Assets 13 4,253.43 7,343.68
2 Non-Financial Assets
Non-FinanciaI Assets
CurrentTax
Current Tax Assets (net) (nek) 36 4,502.79
45027g 13,069.56
13.osgss
Deferred TaxAssets(net)
Deferred Tax Assets (net) 36 12,815.28
12.81 sz 5,072.77
5.07277

Property,
Property. Plant and and Equipment
Eguipment 14 6,437.72
6.42772 7,241.02
7.241 02

Intangible
Intangifle Assets 15 204.44 193.18
1 gale

Right
Right of of Use Assets
use Assets 16 15,618.41 15,487.33
Other
Otter Non-Financial
Nan-Financiel Assets
Assets 17 11,755.73 8,024.46
Total
Total Assets
Assets 34,20,997.96 30,97,425.00
3pß7,42sm
II LIABILITIES
LIABILITIES AND EQUITY
AND EQUITY

1 Financial
Financial Liabilities
Liabilities

Payables
Payables
(I) Trade
Trade Payables
Payables
(i) 
0) total outstanding
cutstardirgdues dues of
of micro
micro enterprises
enterprisesand small enterprises
enterprises - -
(ii) 
Qi) totaltotal outstanding
outstanding dues dues of
cf creditors other
other than
then micro
micro enterprises - -
and smallsmell enterprises
enterprises
(II) OtherOther Payables
Payables
(i) 
0) total outstanding
cutstardirgdues dues of
of micro
micro enterprises
enterprisesand small enterprises
enterprises 18 18.90
Iago -
(ii) 
Qi) totaltotal outstanding
outstanding dues dues of
cf creditors other
other than
then micro
micro enterprises 18 6,729.05
6.72005 6,077.83
507783
and smallsmell enterprises
enterprises
Debt Securities
Debt Securities 19 4,26,363.00 4,46,827.65
ezrrowings
Borrowings (pther
(other than thendebt s€urities)
debt securities) 20 15,77,279.14 14,44,625.56
Deposits
Oe;osits 21 5,52,888.78 4,01,206.80
Subordinated
Subordinated Liabilities
Liabilities 22 - 23,923.91
Other Financial Liabilities
Otter Anancial Liebi'ities 23 40,962.53 47,848.62
47.84882

2 Non-Financial
Non-FinanciaI Liabilities
Liabilities

Provisions
Prcr.'isions 24 2,631.25
2,621 3,926.79
e.g2ö7g

Other
Otter Non-Financial
Nan-Ananciel Liabilities
Liabilities 25 2,272.72
227272 2,192.27
2.1 g227

Total
Total Liabilities
Liab"ities 26,09,145.37 23,76,629.43
3
3 Equity
Equity
Equity
Equity ShareShare Capital
Capital 26 6,600.50 6,600.29
s.sooag

Other
Otter Equity
Equity 27 8,05,252.09
eos,zszog 7,14,195.28
Total
Total Equity
Equity 8,11,852.59 7,20,795.57
Total
Total Liabilities
Liabilities and and Equity
Equity 34,20,997.96 30,97,425.00
See
See accompanying
accompanying notes forming part
notes forming part of the financial
of the financial statements.
statements

As per
As per our
our report
report of even date
of even date For and on behalf of the Board of Directors of
For and on behalf of the Board of Directors
of
For G. D. Apte & Co.
For G. co. Shriram City
Shriram City Union
Union Finance
Finance Limited
Limited
Chartered
Chartered
Accountants
Accountants

Firm
Firm Registration
Registretion Number
Number : 100515W
IC0515W
Anagha M.Nanivadekar
Anagha M_Nanivadekar Yalamati Srinivasa
Yalamati Srinivasa Chakravarti
Chakravarti Venkataraman Murali
Venkataraman Murali
Partner
Psrtner Managing
Menacing Director
Director and
end CEO
CED Director
Director
Membership
Membership No.121007
NCI 21007 DIN:
DIN: 00052308
00052308 DIN:
DIN: 00730218
00730218

Pune, April 30,

Rune,April 30, 2021
2cr21
Place:
Place. Chennai
Chennai C
C R
R Dash
Dash R
R Chandrasekar
Chandrasekar
Date
Date : April
April 30,
30, 2021
2021 Company
Company Secretary
Secretary Chief
Chief Financial
Financial Officer
Officer

90 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Standalone
Standalone Statement
Statement of
of Profit
Profit &
& Loss
Loss
for the
for the year
year ended
ended March
March 31,
31 , 2021
2021

`{inin lacs
lacs
Particulars Notes Year ended Year ended
Year ended

March
March 31,
31 2021
2021 March
'larch 31,
31 2020
2020

REVENUE
REVENUE
FROM OPERATIONS
FROM OPERATIONS

(i) Interest
Interest income
income 28 5,57,155.86
ss.E6 5,69,715.83
(ii) Dividend
Oivider.t income
income 190.28 171.21
171 a

(iii) Fee and commission income

Fee and commission income
29 4,721.75
4721.75 1,369.08
1 zs•og

(iv) Net
Net gain
Ein ar on fair value changes
fair value changes 30 131.95
131.gs 238.73
23873

(v)
(y) Net Net gain
gain on derecognition of
on dereccgnito.n of financial
financial instruments
instruments underunder amortised
amortised cost
cost category
cat—gory - 2,241.46
2,241
(vi) Bad debts recovery recovery 10,869.81 14,657.28
1 4,ssT2g

I Total revenue
Total revenue from from operations
owations 5,73,069.65 5,88,393.59
II Other
Otter income
income 773.82
77282 320.90
III
Ill
Total income
Total income (I+II) (1+11) 5,73,843.47 5,88,714.49
EXPENSES
(i) Finance
Financ± cost
cost 31 2,13,388.43 2,14,044.86
2.1404486
(ii) Net
Net loss
boss on on derecognition
derecognition of financial instruments
of financial instruments under under amortised
amortised cost
cost category
category 167.03
7 8702
-
(iii) Fees and commission
commission expenses expenses 10,384.63
10284.82 13,026.94
(iv) Impairment on
'm,æirment on financial
financie instruments
instruments 32 285.73
285.72 11,847.86
11,84786
(v) Bad Debts
Oetts
Written Off
V*itter Off
84,799.87
84.7gg.E7 76,523.26
76.52326

(vi) Employee
Em;'zyee benefit Zenefit expenses
expenses 33 76,366.07
76.3807 84,767.10
84.76710

(vii) Depreciation, amortisation and impairment

Depreciation, an-artisgticn inppeirment 34 7,984.14 8,215.79
(viii)
(viii) Royalty
P.oyelty 6,254.89 6,417.14
(ix)
Ox) Professional
Professional Charges Chaæes 13,010.25 12,071.42
12,071 42

(x) Other
Otter expenses
expenses 35 22,263.68
22263. se 26,300.02
IV Total exwlses
Total expenses 4,34,904.72
434,904.72 4,53,214.39
453,214.39
V
V Profit/(loss)
Profit/(loss) before before exceptional
exceptional items items and tax (III
and tax (III - IV) 1,38,938.75 1,35,500.10
VI
VI Exceptional
Exæptjongl items items - -
VII
VII
Profit/(loss)
Profit/(loss) before before tax tax (V-
(V- VI)
VI) 1,38,938.75 1,35,500.10
VIII Tax expense:
VIII expense:

(1) Current
Current tax
tax 36 46,219.68
4ö21g.se 34,240.38
34.2402B
(2)
( Income
Income tax tax ofof the earlier yea,-s
tre earlier years 36 - 1,324.24
1.22424
6) Deferredtax
(3) Deferred tax (credit)
(credit) 36 (8,375.35)
(237535) t(116.52)
1852)
IX Profit/(loss)
Profit/(loss) for for thethe period
wiod (V-VIII)
(V-VII!) 1,01,094.42 1,00,052.00
X
X
Other
Other comprehensive
comprehensive income
income
A
A (i)
0) Items
Items that that will not be reclassified
Wil'not reclassifiedto to profit
profit or
or loss
Remeasurement
Remeasu,-ement gain/(loss) on on defined
defined benefit
&eneflt plan 1,178.74
1.17374 (340.60)
Gain/(Loss) on onFairvglugtiorof Pl_ztedinvestments
Fair valuation of quoted investmentsininequitysnares
equity shares 768.97
7seg7 GE4_10)
(664.10)
til) -it-come
(ii)  Income tax taxrelating
relating ttoo items
itemsthatwillnotte reclassified
that will not be reclassified toproftorloss
to profit or loss 632.84 (115.51)
(17±51)
Subtotal (A) (4) 1,314.87
1,314.87 (889.19)
(889*9)
B (i) Itemsthat
Items wili be reclassified
that will reclassifiedto profitor
to profit loss
or loss - -
(ii) Income tax relating to items that will be reclassified tto
Qi) -incometaxrelating to itemsthatwillbereclassified o profit
profitorloss
or loss - -
Subtotal
subtotal (B) (8) - -
Other
Other comprehensive
comprehensive income
income (A+B) 1,314.87
1,314.87 (889_i9)
(889.19)
XI Total Comprehensive
Total Comprehensive Income Income for for the
the year
year (IX+
(IX• X)X) 1,02,409.29 99,162.81
99, 16281
XII
XII Earnings
Eamngs per equity share
equity share
Basic
aasic (`) g) 37 153.16 151.60
Diluted
Oiluted (`) 37 152.81 151.57
151±7

See
See accompanying
accompanying notes forming part
rotes forming pert of
of the
the financial
financial statements.
statements

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

For
For G.
G. D.
D Apte & Co.
Apte&Co. Shriram City Union Finance Limited
Shriram City Union Finance
Chartered
Chartered
Accountants
Accountants

Firm
Firm Registration
Registration Number
Number :: 100515W
100515W
Anagha M.Nanivadekar
Anagha M _Nanivadekar Yalamati Srinivasa
Yalamati Srinivasa Chakravarti
Chakravarti Venkataraman Murali
Venkataraman Murali
Partner
Partner Managing
Man-ging Director
Cirector and
and CEO
CEZ Director
DirectDr
Membership
Membership No.121007
No.121CU DIN:
DIN 00052308
011152308 DIN:
DIN: 00730218

Pune, April 30,

Rune,April 2021
SO,2021
Place:
P'ace: Chennai
Chennai C
CRR Dash
Dash R
R Chandrasekar
Chandrasekar
Date
Date:: April
April 30,
30, 2021
2021 Company
Company Secretary
Secretary Chief
Chief Financial
Financial Officer
Officer

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 91
M
*SHRIRA

Standalone
Standalone Cash
Cash flow
flow statement
statement
for the year
for the year ended
ended March
March 31,
31, 2021
2021

` in
in lacs
lacs

Particulars
Particulars Year
Year ended
ended Year
Year ended
ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
A. CASH
CASH FLOWS
FLOWS FROM OPERATING ACTIVITIES
FROM OPERATING ACTIVITIES
Profit
Profit before
before Tax 1,38,938.75
138,938.75 1,35,500.10
1,3üCCID
Adjustments
Adjustments for for :-
Depreciation, amortisation and
Depreciation,amortisation and impairment
impairment 7,984.14
7,984.14 8,215.79
8.21579
Loss/(profit) on sale of property, plant
Loss/(prcflt) on sale of property, plant and
and equipment (net)
(net) 12.12 33.18
3318

Bad Debts Written Off

2.Ed Cebts Written aff 84,799.87
8479987 76,523.26
76152326
Impairment
Impairment of financial instruments
of financial instruments 285.73
285.73
11,847.86
11 E47E6
Unwinding
unwinding of Df Financial
FinenciEI Guarantee
Guarantee obligation
obligation (117.13)
(11713) (15.65)
Amortisation
Amortisation of Df premium
premium on on Government
Government securities
securities 71.20
71.20
123.94
12394

Interest
Interest on
on Lease
Lease Liabilities
Liabilities 1,718.12
1,718.12 1,610.59
Net
Net (Gain)/Loss
(GEin)/Loss on
on sale
sale of of investments
investments and
and (131.95)
(131&5) (238.73)
(23873)
Fair value changes
Feirvelue changes of
of Investment/
Investment/ Derivative
Derivative
Net
Net (Gain)/Loss
(Gein)/Loss on
on derecognition
dereccgnition of financial
of financial 167.03
167.03 (2,241.46)
(2,241 46)
instruments under amortised cost category
.nstrumentsunderamortisedcost catggory
Lease concessions received
Lease concessions received
(432.51)
(43251) -
Share
Share based
based payments
payments tc to employees
employees 1,847.93
1,847.93 -
Dividend Income considered as cash flow from investing
DividendIncomeconsideredas activity
investingactivity (190.28)
(191128) (171.21)
Operating
Operating profit
profit before
before working
working capital
capital changes
changes 2,34,953.02 2,31,187.67
Movements
Movements in in Working
Working capital:
capital-
(Increase) / decrease in loans
(Increase) / decrease In loans and
and advances
advances (1,65,666.23) (50,6i56Sj
(50,615.69)
(Increase)
Oncrease)// decrease
decreasein in other
other non financial assets
nonfinancial assets (3,714.30)
(3.71430) (2,370.32)
(Increase) / decrease in other financial assets
(Increase) / decrease in other financial assets 3,110.90
3, 110.90 (2,910.33)
(2,EID33)
(Increase) / decrease
(Ipcrease)/ decrease'n in Bank Deposits
BankDepsits (42,861.05)
05) (66,770.79)
Increase
Increase// (decrease)
(decrease) inin other financial liabilities
other financial liabilities (14,597.36)
(14,59736) 1,135.32
1,13582
Increase
Increase// (decrease)
(decrease) inin other
other non financial liabilities
non financial liabilities 80.45
80.45 665.11
66511

Increase
Increase// (decrease)
(decrease)in in other
other Payables
Payables 670.12
670.12 567.94
56794

Increase
Increase// (decrease)
(decrease) inin other
other Provisions
Provisions (302.76)
(30276) 964.86
96486

(Increase) / decrease
(Ipcrease)/ decrease'n in receivables
receivebles (146.50)
(146.59) (93.12)
(931?)
(Increase)
(Increase) // decrease
decrease in in Derivative
Derivative Financial
Financial Instruments
Instruments - (37900)
(379.00)
(Increase) / decrease in investments
Oncrease) / decreesein investments (27,495.03)
(274503) (8,404.13)
(8,4041
Cash
Cash generated
generated from
from operations
operations (15,968.75)
(15,968.75) 1,02,977.51
Direct taxes paid (net of refunds)
Direct taxes paid (net of refunds) (37,652.91) (44,409.68)
Net Cash from/(used in) operating
Net Cash in) operating activities
activities (A)(A) (53,621.66) 58,567.83
58,567.83
B. CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase
Purchaseof of property, plant and
property,plant and equipment
equipmentand and intangible assets
intangibleassets (1,945.96) (2,465.27)
Sale
Sale ofof Investment
Investment in
in Mutual
Mutual Funds
Funds - 20,235.50
20.23550
Sale
Sale ofof Investment
Investment in
in Shares
Shares - 1,252.24
125224
Capital
Capitel advance
advence forfor assets
essets (16.97) (4.45)
45)
Proceeds
Proceeds from
from sale
sele of
of fixed
fixed assets
assets 36.62
36.62 44.19
Dividend Income
Dividend Income
190.28
ngo.28
171.21
171

Net Cash
Cashfrom/(used in) investing activities (B) (p) (1,736.03) 19,233.43

92 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Standalone
Standalone Cash flow statement
Cash flow for the
statement for the year
year ended
ended March
March 31,
31 , 2021
2021 (Contd.)
(Contd_)

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year
Year ended
ended

March
March 31,
31, 2021
2021 March
March 31, 2020
31, 2020
C.
C. CASH FLOWS FROM
CASHFLOWS FROM FINANCING
FINANCING ACTIVITIES
ACTIVITIES

Proceeds
Proceeds from
from issue
issue of
of equity
equity share capital including
share capitel including securities
securities premium
premium and
end 0.74
0.74 3.44
share
share application
application money
money
Increase/(Decrease) of Debt
Increase'(üecrease)of securities
Debtsecurities (20,464.65)
(20,464.65) 78,137.69
78,137."
Increase/(Decrease)
'ncreasaf(üecrease) of
of Borrowings
Borrowings 1,32,653.58
1265358 (69,521 78)
(69,521.78)
Increase/(Decrease)
Increase'(üecrease)of of Deposits
*posits 1,51,681.98 89,266.19
89,266.1g
Increase/(Decrease) of Subordinated
'ncreasaf(üecrease) of Subordinated liabilities
liabilities (23,923.91) (41144704)
(41,447.04)
Payment Lease Liabilities
*yment of LeaseLiabilities (5,644.23)
(5,644.23) (5,690.52)
(5,690E?)
Dividend
Dividend paid
paid (6,600.43)
(6,6C043) (14,518.98)
(1451898)
Tax on Dividend
Tax on Dividend - (2,984.42)
Net
Net Cash from/(used in)
Cash from/(used in) financing activities (C)
financing activities (C) 2,27,703.08 33,244.58
33,244.58
Net
Net increase
increaseI/ (decrease)
(decrease)in in cash
cash and cash equivalents
equivalents (A+B+C)
(A+B+C) 1,72,345.39 1,11,045.84
Cash
Cash and
and cash
cash equivalents at at the
the beginning of of the
the year
year 2,09,182.78 98,136.94
98,136.94
Cash
Cash and
and cash
cash equivalents
ivalents at the
at the end
end of
of the
the year 3,81,528.17 2,09,182.78

` in
in lacs
lacs

Components
Components of
of cash
cash and cash equivalents
and cash As at As at
March
March 31,
31, 2021
2021 March
March 31, 2020
31, 2020
Cash
Cash on on hand
hend 5,427.01
5,427.01 885.21
885.21

Balances with
Salsnces with Banks
Banks
-- in
in current
current accounts
accounts 1,32,365.06
1236506 28,208.80
28,208.80
- in deposit accounts having
- ind osit sccounts havin
original
orl
maturity less
ins' msturi
than three months
less then three months
2,43,736.10
243,73610 1,80,088.77
Total
Total 3,81,528.17 2,09,182.78
Notes
Notes

1) 
1) The
The above
above cash-
cash- flow
flow statement
statement have
have been
treen prepared
prepared under
under the
the indirect
indirect method
method as
as set
set out
out in
in the
the Indian Accounting Standard
Indian Accounting Standard
(IND AS) -7, ‘Statement of Cash Flow’ as specified in the Companies (Indian Accounting Standards) Rules, 2015.
(IND AS) -7, 'Statement of Cash Flow' as spæified in the Companies (Indian Accounting Standards) Rules,2015.
2) 
2) Direct Taxes paid
Direct Taxes paid is
is treated
treated as
as arising
arising from
from operating activities and
operating activities end are
ere not
not bifurcated
bifurcated between
between investment
investment and
end financing
financing
activities.
activities

3)
3) All figures in
All figures in brackets
brackets indicate
indicate cash
cash outflow.
outflow.

See
See accompanying
accompanying notes forming part
rotes forming pert of
of the
the financial
financial statements.
statements

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

For
For G.
G. D.
D Apte & Co.
Apte&Co. Shriram City Union Finance Limited
Shriram City Union Finance
Chartered
Chartered
Accountants
Accountants

Firm
Firm Registration
Registration Number
Number :: 100515W
100515W
Anagha M.Nanivadekar
Anagha M _Nanivadekar Yalamati Srinivasa
Yalamati Srinivasa Chakravarti
Chakravarti Venkataraman Murali
Venkataraman Murali
Partner
Partner Managing
Man-ging Director
Cirector and
and CEO
CEZ Director
DirectDr
Membership
Membership No.121007
No.121CU DIN:
DIN 00052308
011152308 DIN:
DIN: 00730218

Pune, April 30,

Rune,April 2021
SO,2021
Place:
P'ace: Chennai
Chennai C
CRR Dash
Dash R
R Chandrasekar
Chandrasekar
Date
Date:: April
April 30,
30, 2021
2021 Company
Company Secretary
Secretary Chief
Chief Financial
Financial Officer
Officer

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 93
 M

94
Standalone Statement of changes in Equity
for the year ended March 31, 2021

ANNUAL
A. EQUITY SHARE CAPITAL
*SHRIRA

No. of shares ` In lacs

REPORT
ANNUAL REPORT
As at April 1, 2019 6,59,92,317 6,599.23
Changes in Equity share capital during the year 10,605 1.06

2020-2'
As at March 31, 2020 6,60,02,922 6,600.29

2020-21
Changes in Equity share capital during the year 2,100 0.21
As at March 31, 2021 6,60,05,022 6,600.50

B. OTHER EQUITY

Statement of changes in Equity for the year ended March 31, 2021
` in lacs
Particulars Reserves and Surplus Other Total
Statutory Share Securities Debenture Capital General Capital Retained Comprehensive
Reserve Options Premium Redemption Redemption Reserve Reserve Earnings Income
Outstanding Account Reserve Reserve
Balance as at April 1, 2019 1,08,411.30 53.37 1,75,492.24 2,844.29 2,328.98 85,339.27 7,871.88 2,50,924.56 (732.67) 6,32,533.22
Profit/ (Loss) for the period - - - - - - - 1,00,052.00 - 1,00,052.00
Remeasurement Gain/ (loss) on defined - - - - - - - - (340.60) (340.60)
benefit plan
Gain/(Loss) on Fair valuation of quoted - - - - - - - - (664.10) (664.10)
investments in equity shares
Income Tax on Remeasurement Gain/ (loss) - - - - - - - - 115.51 115.51
on defined benefit plan and Gain/(Loss) on
Fair valuation of quoted investments in equity
shares
Transferred from Retained Earnings up to - - - 2,930.90 - - - (2,930.90) - -
August 16, 2019
Amount transferred to General Reserve on - - - (2,911.54) - 2,911.54 - - - -
Redemption of Non convertible Debentures
up to August 16, 2019
Amount transferred to General Reserve upon - - - (2,863.65) - 2,863.65 - - - -
dispensation of requirement of DRR by MCA
vide notification dated August 16 ,2019
Share Premium received during the year on - - 26.67 - - - - - - 26.67
exercise of ESOPs
Adjustment on Exercise of Employee Stock - (24.02) - - - - - - - (24.02)
Option Plan
Final Equity Dividend FY 2018-19 - - - - - - - (10,559.22) - (10,559.22)
Tax on Final Equity Dividend FY 2018-19 - - - - - - - (2,170.48) - (2,170.48)
—syss

Interim Equity Dividend FY 2019-20 - - - - - - - (3,959.76) - (3,959.76)

Tax on Interim Equity Dividend FY 2019-20 - - - - - - - (813.94) - (813.94)
Transfer to Statutory Reserve 20,020.00 - - - - - - (20,020.00) - -
Transfer to General Reserve - - - - - 10,010.00 (10,010.00) - -
Balance as at March 31, 2020 1,28,431.30 29.35 1,75,518.91 - 2,328.98 1,01,124.46 7,871.88 3,00,512.26 (1,621.86) 7,14,195.28
 Standalone Statement of changes in Equity for the year ended March 31, 2021 (Contd.)

B. OTHER EQUITY (Contd.)

` in lacs
Particulars Reserves and Surplus Other Total
Statutory Share Securities Debenture Capital General Capital Retained Comprehensive
Reserve Options Premium Redemption Redemption Reserve Reserve Earnings Income
Outstanding Account Reserve Reserve
Balance as at March 31, 2020 1,28,431.30 29.35 1,75,518.91 - 2,328.98 1,01,124.46 7,871.88 3,00,512.26 (1,621.86) 7,14,195.28
Profit/ (Loss) for the period - - - - - - - 1,01,094.42 - 1,01,094.42
Remeasurement Gain/ (loss) on defined - - - - - - - - 1,178.74 1,178.74
benefit plan
Gain/(Loss) on Fair valuation of quoted - - - - - - - - 768.97 768.97
investments in equity shares
Income Tax on Remeasurement Gain/ (loss) - - - - - - - - (632.84) (632.84)
on defined benefit plan and Gain/(Loss) on
Fair valuation of quoted investments in equity
shares
Share Premium received during the year on - - 5.28 - - - - - - 5.28
exercise of ESOPs
Expenses on Employee Stock Option Plan - 1,847.93 - - - - - - - 1,847.93
(Refer Note No. 38)
Adjustment on Exercise of Employee Stock - (4.76) - - - - - - - (4.76)
Option Plan
Interim Equity Dividend FY 2020-21 - - - - - - - (13,200.93) - (13,200.93)
Transfer to Statutory Reserve 20,490.00 - - - - - - (20,490.00) - -
Transfer to General Reserve - - - - - 10,250.00 - (10,250.00) - -
Balance as at March 31, 2021 1,48,921.30 1,872.52 1,75,524.19 - 2,328.98 1,11,374.46 7,871.88 3,57,665.75 (306.99) 8,05,252.09
See accompanying notes forming part of the financial statements.

As per our report of even date For and on behalf of the Board of Directors of
OVERVIEW
CORPORATE

For G. D. Apte & Co. Shriram City Union Finance Limited

OVERVIEW
CORPORATE

Chartered Accountants

cvQ

SHRIRAM
Firm Registration Number : 100515W

SHRIRAM
Anagha M.Nanivadekar Yalamati Srinivasa Chakravarti Venkataraman Murali

CITY
Partner Managing Director and CEO Director
Membership No.121007 DIN: 00052308 DIN: 00730218

UNION
REPORTS

Pune, April 30, 2021

CITY UNION
STATUTORY

REPORTS
STATUTORY

Place: Chennai C R Dash R Chandrasekar

Date : April 30, 2021 Company Secretary Chief Financial Officer

FINANCE
FINANCE LIMITED
LIMITED
FINANCIAL
STATEMENTS
FINANCIAL

95
STATEMENTS
M
*SHRIRA

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements
for the year
for the year ended
ended March
March 31,
31, 2021
2021

1. CORPORATE
CORPORATE INFORMATION
INFORMATION an
an existing
existing accounting
accounting standard
standard requires
—uires aa change
change in the
in the
accounting
accounting policy
policy hitherto
hitherto in
in use.
use
Shriram
Shriram City
City Union
union Finance
7nence Limited
Limited (the
(the Company)
Company) is is
The
The preparation
preparation of of financial
financial statements
statements requires
requires the
the use
use
a
e public
public company
company domiciled
domiciled in
in India
India and
and incorporated
incorporated
of certain critical
of certain critical accounting
accounting estimates
estimates and
and assumptions
assumptions
under
under the
the provisions
provisions of
of the
the Companies
Companies Act,
Act, 1956.
1956. Its
Its
that
that affect
effect the
the reported
reported amounts
amounts of of assets,
assets, liabilities,
liabilities,
shares
shares are listed
ere listed onon BSE
BSE Limited
Limited and
end National
Netional Stock
Stock
revenues and expenses and the disclosed amount of
revenues and expenses and the disclosed amount of
Exchange of India Limited. The Company is primarily
Exchange of India Limited The C.ompany is primarily
contingent liabilities. Areas involving a higher degree of
contingent liabilities Areas involving a higher degree of
engaged
engaged in in the
the business
business of
of financing
financing small
smell and
and medium
medium
judgement or
judgement or complexity,
complexity, or or areas
-reas where
where assumptions
assumptions
enterprises,
enterprises, two-wheelers
mm-wheelers and and pledged
pled* jewels. It
jewels It also
also
are
are significant
significant toto the
the Company
Company are are discussed
discussed in in Note
Note
provides personal loans and auto loans. The Company
provides personal Iæns and euto bens The Compeny
7 - Significant accounting judgements, estimates and
7 - Significant accounting judgements, estimates and
is a Deposit
is e Accepting Non-
Deposit Accepting Non- Banking
Benking Finance
Finance Company
Compeny
assumptions.
assumptions.
(NBFC)
(N8FC) registered
registered as as as Loan Company with
LDEnCompeny with the
the Reserve
Resewe
Bank
Bank ofof India
India (RBI) and Ministry
(331)and Ministry of
of Corporate Affairs. The
Corporate Affairs. The The financial statements
The financial statements are
are presented
presented in
in Indian
Indian Rupees
Rupees
registration details
details are as follows:
are es follows. (INR)
('NR) and
and all
ell values
values are
are rounded
rounded off to the
off to the nearest
nesrest lacs
lacs
upto two decimals,
upto two decimals, except
except when
when otherwise
otherwise indicated.
indicated
RBI 07-00458
07-00458

Corporate Identity Number (CIN) L65191TN1986PLC012840

corporateldentltyNumber(CIN) L65ng1TN1986PL031284D
3. PRESENTATION
PRESENTATION
OF FINANCIAL STATEMENT
OF FINANCIAL STATEMENT
IRDA CA0652
IRDA CADE52
The
The Balance
Balance Sheet,
Sheet, Statement
Statement of of Profit
Profit and
and Loss
Loss and
and
Shriram
Shriram Capital
Capital Limited
Limited is
is the
the promoter
promoter of
of the
the Company.
Company
Statement
Statement of of changes
changes in in Equity
Equity of the Company
of the Company are are
The
The registered
registered office
office of the Company
of the O)mpany is is at
at No.123,
Nc123,
prepared and presented in the format prescribed in the
prepared and presented in the format prescrib± in the
Angappa
Angappa Naicken
Naicken Street,
Stræt, Chennai
Chennai – — 600
600 001. The The
Division
Division III
Ill of
of Schedule
Schedule III III of
of the
the Act
Act applicable
applicable to to NBFCs,
NSFCs,
principal
principal place
place ofof business
business isis at
at No.144,
No.144, Santhome
Santhome
as
as notified
notified by the Ministry
by the Ministry of of Corporate
Corporate Affairs
Affairs (MCA).
(MCAI
High
High Road,
Road, Mylapore,
Mylapore, Chennai
Chennai – 600 004.
—600 004. The
The financial
financial
The
The Statement
Statement of of Cash
Cash Flows
Flows hash's been
ten prepared
prepared and and
statements of the Company for the year ended March
statements of the Camp-ny for the year ended March
presented as per the requirements of Ind AS 7. Financial
presented as per the requirements of Ind AS 7 Financial
31, 2021 were approved for issue in accordance with the
31, 2021 were approved for issue in eccordsnce with the assets
assets and financial liabilities
and financial liabilities are
are generally
generally reported
reported on on
resolution of the
resolution of the Board
Board ofof Directors
Directors on
on April
April 30,
30, 2021.
2021
aa gross
gross basis
basis except
except when,
when, there
there isis an
an unconditional
unconditional
legally
legally enforceable
enforceable right to offset
right to the recognised
offset the reccnised amounts
amounts
2. BASIS
BASIS OF
OF PREPARATION
PREPARATION
without being contingent on a future event and
wthout ±ing contingent on a future event the
and the
The
The financial
financial statements
statements of of the
the Company
Company have
have been
teen parties intend to settle on a net basis in the following
parties intend to settle on a net bees in the following
prepared
prepared in in accordance
accordance with with Indian Accounting
Indian Accounting circumstances:
circumstances

Standards
Standards (Ind
(Ind AS)
AS) notified
notified under
under section
section 133
133 of the
of the i.i The normal course of business
The normal course of business

Companies Act, 2013 (“the Act”) read together with the

Compames Act, 201S ("the Act") read together with the
ii.
ii
The event of default
The event of default
Companies
Compames (Indian
(Indian Accounting
Accounting Standards)
Stendards) Rules,
Rules, 2015,
2015,
iii. The
The event
event of
of insolvency
insolvency oror bankruptcy
bankruptcy of
of the
the
as
es amended
amended fromfrom time
time to time, other
to time, other relevant
relevent provisions
provisions
Company
Company and/or
and/or its
its counterparties
counterparties
of
of the Act and
the Act end the
the RBI
RBI guidelines/regulations
guidelines/—ulations to the
to the
extent applicable on as accrual basis.
extent applicable cr. as accrual basis. Derivative
Derivative assets
assets and
and liabilities
liabilities with
with master
master netting
netting
arrangements
arrangements (e.g.
(e. International
International Swaps
Swaps and
and Derivative
Derivative
The
The financial
financial statements
statements havehave been
been prepared
prepared underunder the
the
Association
Association Arrangements)
Arrangements) are ere presented
presented net
net ifif all
all the
the
historical cost convention, as modified by the application
historical cost convention, ss modified by the application
above
atove criteria
criteria are
are met.
met.
of fair value
affair measurements required
valuemeasurements requiredor or allowed
allowed by by relevant
relevant
Accounting
Accounting Standards.
Standards Historical
Historical cost
cost is is generally
generally based
besed
4. STATEMENT
STATEMENT
OF COMPLIANCE
OF COMPLIANCE
on the fair value of the consideration given in exchange
on the fair value Df the consideration given in exchange
for
for goods
gads end and services.
services. Fair value is
Fair vslue is the
the price
price that
that would
v.CJld These
These standalone
standalone oror separate
separate financial
financial statements
statements ofof
be
be received
received to to sell
sell an
an asset
esset oror paid
paid toto transfer
transfer aa liability
liability the Company have been prepared in accordance with
the Compeny have been prepare: in accordance with
in an orderly
in en transaction between market
orderly trsnsactiDn market participants
participants Indian Accounting Standards
Indian Accounting Standards notified
notified under
under section
section 133
133
at
et the
the measurement
measurement date. Accounting policies
date. Accounting $icies have have of
of the
the Companies
Compames ActAct, 2013
2013 (‘the Act’) read
('the Actt reed together with
together with
been consistently applied to all periods presented,
been consistently applied to all perus presented, the
the Companies
Companies (Indian
(Indian Accounting
Accounting Standards)
Standards) Rules,
Rules,
unless
unless otherwise
otherwise stated
stated except
except where
where a a newly
nev."y – issued
—issued 2015,
2015, as
as amended
amended from time to
from time to time
time and the other
and the other
accounting
accounting standards
standards is is initially
initially adopted
adopted or or a
a revision
revision toto relevant
relevant provisions
provisions of
of the
the Act.
Act

96 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

5. RECENT
RECENT ACCOUNTING DEVELOPMENTS
ACCOUNTING DEVELOPMENTS 6. SIGNIFICANT
SIGNIFICANT ACCOUNTING
ACCOUNTING POLICIES
POLICIES

On
On March
March 24, 24 2021,
2021, thethe Ministry of Corporate
Ministry of Carprate Affairs
Affairs
6.1
6.1 Financial
Financial instruments
instruments
(“MCA”) through a
C'MCA')through a notification,
notification, amended
amended Schedule
ScheduleIII III of the
ofthe
Companies
CornpeniesAct, Act, 2013.
2013.The The amendments
amendments revise
revise Division
Divisionl,III, II (i)
(i) Classification
Classification of financial
of financial instruments
instruments

and III of Schedule III and are applicable from April 1, 2021.
and III of Schedule II' and areapplicable from April 1 2Cr21 a. Financial
Financial Assets
Assets

Key amendments relating

Key amendments re'ating to
to Division
Division III
Ill which
which relate
relate to to The
The Company
Company classifies
classifies its financial assets
its financial assets into
into the
the
Non-banking
Nan-banking financial companies whose
financial compenies whose financial
financial following
following measurement
measurement categories:
categories:
statements
statements are are required
required to to comply with Companies
comply with Companies
1. Financial
änenciel assets
assets to
to be
be measured
measured at
at amortised
amortised cost
cost
(Indian Accounting Standards) Rules 2015 are:
(Indian Accounting Standards) Rules2015 are:
(amortised cost)
(amortised cost)
Balance
Balance Sheet:
Sheet:
2. Financial
änenciel assets
assets to
to be
be measured
measured at
et fair
fair value
value

Certain
Certain additional
additional disclosures
disclosures in
in the
the statement
statement of
of through other comprehensive income (FVTCOI)
through other comprehensive income (FvTCOl)
changes in
changes equity such
in equity such as changes in
as chenges in equity
equity share
share 3. Financial
änenciel assets
assets to
to be
be measured
measured at
et fair
fair value
value

capital due to prior period errors and restated

capitel due to prior period errors and restated through
through profit
profit or
or loss
loss account
account (FVTPL)
(FV'TPL)
balances
balences at
at the
the beginning
±ginning ofof the
the current
current reporting
The
The classification
classification depends
depends onon the
the contractual
contractual terms
terms
period.
period
of
of the
the financial
financial assets,
assets, cash
cash flows
flows and
and the
the Company’s
Company's
Specified
Specified format for disclosure
format for of shareholding
disclosure of of
shareholding of business
business model
model for
for managing
managing financial
financial assets
assets which
which
promoters.
promoters are explained below:
are explained below
Specified format for
Specifial format for ageing
ageing schedule
schedule ofof trade
trade Business model assessment
receivables, trade payables, capital work-in-progress
receivables,trade payables,cepitsl work-in-progress
The
The Company
Company determines
determines itsits business
business model
model at
et the
the level
level
and
and intangible
intangible asset
asset under
under development.
development
that best reflects how it manages groups of financial
thet best reflects how it manages groups of financial
If
If a
a company
company has
has not
not used
used funds
funds for the specific
for the specific assets to achieve
assets to achieve its
its business
business objective.
objective.
purpose for which
purpose for which itit was
was borrowed from banks
borrowed from benks and
end
The
The Company’s
Compeny's business
business model
model isis not
not assessed
assessed on
on an
an
financial institutions,
financial institutions, then
then disclosure
disclosure of
of details of
details of
instrument-by-instrument
instrument-by-instrument basis,
basis, but
but at
et ae higher
higher level
level
where itit has
where has been
been used.
used
of
of aggregated
aggregated portfolios
portfolios and
and is
is based
based on
on observable
observable
Specific disclosure under
Specific disclosure under ‘additional
•additional regulatory
regulatory factors
factors such
such as:
as:

requirement’ such as compliance with approved

requirement' such es compliance with approved
How the performance
How the performance of of the
the business
business model
model and
and
schemes
schemes of of arrangements, compliance with
arrangements, compliance with the financial assets held within that business
the financial assets held within that business
number
number of of layers
layers of
of companies, title deeds
companies, title deeds ofof model
model are evaluated and
areevaluated and reported
reported tto the
the entity’s
entitys key
key
immovable property not held in name of company,
immovable property not held in name of company,
management personnel.
management personnel
loans
loans and
and advances
advances to to promoters,
promoters, directors,
directors, key
key
The
The risks
risks that
that affect the performance
affect the performance ofof the
the
managerial
msnegeris' personnel
personnel (KMP)
(KMP) and
end related
related parties,
perties,
business model (and the financial assets held
business mc.del (and the financial assets held
details
details of
of benami
benami property
property held
held etc.
etc
within
within that
that business
business model)
model) and
and the
the way
way those
those
Disclosures
Disclosures in
in respect of certain
respect of certain ratios
ratios including
including
risks
risks are
are managed.
meneged
capital adequacy ratio and liquidity coverage ratio.
capitel adequacy ratio end liquidity coverage ratio
How
How managers
menegers of of the
the business
business are
are compensated
compensated
Statement
Statement of
of profit
profit and
and loss:
loss: (for
(for example,
example, whether
whether the
the compensation
compensation is
is based
based
Additional
Additional disclosures
disclosures relating to Corporate
relating to Corprete Social
Sccial on the fair value of the assets managed or on the
cr. the fair value of the assets managed or on the
Responsibility
Responsibility (CSR),
(CSR), undisclosed
undisclosed income
income and crypto
and crypto contractual
contractual cash
cash flows
flows collected).
collected).
or
or virtual
virtual currency
currency specified
specified under the head
under the head ‘additional
'additional The
The expected
expected frequency,
frequency, value
velue and
and timing
timing of
of sales
sales
information’ in the notes forming part of the standalone
information' in the notes forming pert of the standalone are
ere also
also important
important aspects
aspects ofof the
the Company’s
Company's
financial
financial statements.
statements
assessment.
assessment. The
The business
business model
model assessment
assessment is
is

The amendments are

The amendments are extensive
extensive endand the
the Company will
Company will based on reasonably expected scenarios without
based on reasonably expected scenarios without
evaluate the same
evaluatethe same to
to give
give effect
effect to
to them
them as
as required
—uiræl byby law.
law taking
taking ‘worst
'worst case’
case' or
or ‘stress
•stress case’
cgse' scenarios
scenarios into
into
account.
account. IfIf cash
cash flows
flows after
after initial
initial recognition
recognition
are
ere realised
realised in
In aa way
way that
that is
is different
different from
from the
the
Company’s original expectations, the Company
Company's original expætetions, the Company

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 97
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

does
does notnot change
change thethe classification
classification ofof the
the b) 
b) are
are held
held within
within aa business
business model
model whose
whose objective
objective is
is
remaining financial assets
remaining financial assets held
held in
in that
that business
business achieved
achieved by
by holding
holding to
to collect
collect contractual
contractual cash
cash flows.
flows
model,
model, but
but incorporates
incorporates such
such information
information when
when Financial
Financial assets
assets are
are initially
initialty recognised
reccgnised at
at fair
fair value
value plus
plus
assessing
assessing newly originated or
newly originated or newly
newly purchased
purchased directly attributable transaction costs and subsequently
directly attributable transaction costs and subsequently
financial assets
financial assets going
going forward.
forward measured
measured at
at amortised
amortised cost.
cost

At
At initial
initial recognition
recognition of of a e financial
financial asset, the
asset, the These
These financial
financial assets
assets comprise
comprise bank
bank balances,
balances, Loans,
Loans,
Company determines whether newly recognised
Company determines whether newly recognised investments
investments
and other financial assets.
and other financial assets

financial assets
financial assets are
are part
part of
of an
sn existing
existing business
business
(iii) 
(iii) Financial
Financial assets
assets measured
measured at
at fair
fair value through other
value through other
model
model or whether they
or whether they reflect
reflect the commencement
the commencement
comprehensive
comprehensive income
income
of
of ae new
new business
business model.
model. TheThe Company
Company reassesses
reassesses
its business models each reporting period
its business models each reporting period toto Financial
Financial Assets
Assets other
other than
than equity
aquity instruments:
instruments

determine
determine whether the business
whether the business model/
model/ (s)(s) have
have These
These financial
financial assets
assets are
are measured
measured at
at fair
fair value
value

changed
changed sincesince the
the preceding
preceding period.
period For the current
For the current through
through other
other comprehensive
comprehensive income
income where
where they
they have:
have
and prior reporting period the Company has not
and prior reporting period the Company has not a) 
a) contractual
contractual terms
terms that
that give
give rise
rise to cash flows
to cash flows on
on
identified a change in its business model.
identified a change in its business model. specified dates,
dates, that
that represent
represent solely
solely payments
peyments
The Solely Payments of Principal and Interest (SPPI) test of
of principal
principal and
and interest
interest on
on the
the principal
principal amount
amount

As
As a
e second step of
second step of its
its classification
classification process the
prccess the outstanding; and
outstanding; and

Company assesses the contractual terms of

Company assesses the contractual terms of financial
financial b) 
b) are
ere held
held within
within aa business
business model
model whose
whose objective
objective
assets
assets to
to identify
identify whether they meet
whether they meet the
the SPPI test.
SPPItest. is achieved by both collecting contractual cash
is achieved by Ecth collecting contractual cash
‘Principal’ for the purpose of this
'Principal' for test is
this test is defined
defined as
as the
the fair
fair flows
flows and
and selling
selling financial
financial assets.
assets

value
value of
of the financial asset
the financial asset atEt initial
initial recognition
recognition and
and may
may These
These financial
financial assets
assets areare initially
initially recognised
recognised at et fair
fair
change
change over
over the
the life
life of
of the
the financial
financial asset
asset (for
(for example,
example, ifif value plus directly attributable transaction costs and
value plus directly Ettributsble transaction costs and
there are repayments
there ere repayments of of principal
principal oror amortisation
emortisation of the
of the subsequently
subsequently measured
me-sured at st fair value. Gains
fEir velue Gs.ns and
end losses
losses
premium/discount).
premium/discount). arising
arising from
from changes
changes in fair velue
in fair value are ere included
included in
in other
other
comprehensive income within a separate component of
comprehensive income within a separate component of
In
In making
making thisthis assessment,
assessment, the the Company
Compeny considers
considers
equity. Impairment losses or reversals, interest revenue
equity Impairment losses or reversals, interest revenue
whether the contractual cash flows are consistent with
whether the contractual cash flows are consistent with
and
and foreign
foreign exchange
exchange gains
Fins and
end losses
losses are
ere recognised
ræognised
a
e basic
basic lending
lending arrangement
arrangement i.e. [e interest
interest includes
includes only
only
in
in profit
profit and
and loss.
loss Upon
Llpon disposal,
dis;cssL the the cumulative
cumulative gain
gain
consideration for the time value of money, credit risk,
consideration for the time value of money, credit rises
or loss previously recognised in other comprehensive
or loss previously recognised in other comprehensive
other basic lending risks and a profit margin that is
other basic lending risks and a profit margin that is
income
income is is reclassified
reclassified from
from equity
equity to to the
the statement
statement ofof
consistent with aa basic
consistent with basic lending
lending arrangement.
arrangement. WhereWhere the
the
profit
profit and
end loss.
loss As
As atat the
the reporting
reporting date date the
the Company
Company
contractual
contractual terms
terms introduce
introduce exposure
expzsure to to risk
risk or volatility
or volatility
does
dcæs notnot have
have any financial instruments
any financial instruments measured
measured at at
that
that are
are inconsistent
inconsistent with with a basic
basic lending
lending arrangement,
arrangement
fair value through other comprehensive income.
fair value through other comprehensive income
the
the related financial asset
related financial asset isIS classified
classified and
and measured
measured at
at

fair
fair value
value through
through profit
profit or
or loss.
loss Equity
Equity instruments
instruments

b. Financial
änenciel Liabilities
Liabilities Investment
Investment in in equity
equity instruments
instruments that
thet are
ere neither
neither held
held
for trading nor contingent consideration recognised by
for trading nor contingent consideration rccgnised by
The
The Company
Company classifies
classifies itsits financial
financial liabilities
liabilities atat
the Company in a business combination to which Ind
the Company in a business combination to which Ind
amortised
amortised costs
costs unless
unless itit has
has designated
designated liabilities at fair
liabilities et fair
AS
AS 103
103 ‘Business
•ausiness Combination’
Combination' applies,
applies, are
are measured
measured atat
value through the
value through the profit
profit and
end loss
loss account
account oror is
is required
required
fair
fair value
value through
through other
other comprehensive
comprehensive income,
income, where
where
to
to measure
measure liabilities
liabilities at
at fair
fair value through profit
value through profit or
or loss
loss
an
an irrevocable
irrevocable election
election has
has been
been made
msde byby management
msnegement
such
such as
as derivative
derivative liabilities.
liabilities
and when such instruments meet the definition of
and when such instruments meet the definition of Equity
Equity
(ii) Financial
Financial assets
assets measured
measured at amortised cost
at amortised cost
under
under Ind
Ind AS
AS 32
32 Financial
Financial Instruments:
Instruments: Presentation.
Presentatiom

Financial
änenciel
assets are measured at
assets are measured
amortised cost
at emortised
where
cost where Such
Such classification
classification is
is determined
determined on cr. an
an instrument-by-
instrument-by
they have:
they have instrument
instrument
basis.
basis

a) contractual
contractual terms that give
terms that give rise to cash
riseto cash flows
flows on
on specified
specified Amounts
Amounts presented
presented in other comprehensive
in other comprehensive incomeincome are
ere
dates, that represent solely payments of principal end
dates, that represent solely vyments of principal and not subsequently transferred to profit or loss. Dividends
not subsequently transferred to profit or loss Dividends
interest
interest onon the
the principal
principal amount outstanding; and
amount outstanding; and on
on such
such investments
investments areare recognised
recognised inin profit
profit or
or loss.
boss

98 ANNUAL REPORT
ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

(iv)
(iv) Items at fair
Items at fair value
value through
through profit
profit or
or loss
loss Where
Where aa financial
financial liability
liability isis designated
designated at fair value
at fair value

Financial
Financial assets
assets which
which are
are not
not classified
classified in
in any
any of
of the
the through profit
through profit oror loss,
loss, the
the movement
movement in in fair
fair value
value
above categories are measured at FVTPL.
above categories are measured at Pv'TPL attributable
attributable toto changes
changes in the Company’s
in the Company"s ownown credit
credit
quality
quality is
is calculated
calculated by by determining
determining thethe changes
changes in in
Items
Items at
at fair
fair value
value through
through profit
profit or
or loss
loss comprise:
comprise:
credit spreads above observable market interest rates
credit spreads a&zve obsenrable market interest rates
a. Investments
Investments (including
(including equity
4;uity shares)
shares) held
held for trading;
for trading;
and
and isis presented
presented separately
separetely in in other
other comprehensive
comprehensive
A
A financial
financial instrument
instrument is classified as
is classified as held
held for
for trading
trading income.
income. AsAs at the reporting
at the reporting date, the Company
date, the Company hashes not
not
if
if itit is
is acquired
acquired or or incurred
incurred principally
principally for
for selling
selling or
or designated
designated any financial instruments
any financial instruments as es measured
measured at at
repurchasing in the near term, or forms part of a portfolio
repurchasing in the near term, or forms part of a portfolio fair value through profit or loss.
fair value through profit or loss
of
of financial
financial instruments
instruments thatthat are
are managed together and
menaged together end
(v)
(v) Investment
Investment in
in subsidiaries
subsidiaries
for
for which
which there
there is
is evidence
evidence ofcf short-term
short-term profit
profit taking,
taking, or
or
it
it is
is ae derivative
derivative not
not in
in aa qualifying
qualifying hedge
hedge relationship.
relationship. The
The Company
Company hashes accounted for its
accounted for its investments
investments in
in
subsidiary at cost.
subsidiary at cost.
Trading
Trading derivatives
derivatives and trading securities
and trading securities are classified
are classified
as held for trading and recognised at fair value.
as held for trading end recognised at fair value (vi) Derivatives
b. Items
Items specifically
s*ficelly designated
designated as fair value
as fair value through
through profit
profit AA derivative
derivative is
is a financial instrument
a financial instrument or other
or other contract
contract

or
or loss on initial
bosscr. initial recognition;
recognition, with all three of the following characteristics:
with all three of the following characteristics

Upon
IJp,n initial
initial recognition, financial instruments
recognition, financial instruments may may bete Its
Its value
value changes
changes in in response
response tto the
the change
change in in a
e
designated
designated as as measured
measured at Et fair
fair value
va'ue through
through profit or
profit or specified
specified interest
interest rate,
rate, financial
financial instrument
instrument price,
price,
loss. A financial asset may only be designated at fair value
IDss A financial asset mey only bedesignated at fair velue commodity
commodity price,
price, foreign
foreign exchange
exchange rate,
rate, index
index
through
through profit
profit or loss ifif doing
ores doing soso eliminates
eliminates oror significantly
significantly of
of prices
prices or
or rates,
rates, credit
credit rating
rating or
or credit
credit index,
indec or or
reduces
reduces measurement
measurement or recognition inconsistencies
DrrEognition incons.stenc.es (i.e.(Le other variable, provided that, in the case of a non-
other veriable, provided that, in the case of a non
eliminates
eliminates an an accounting
accounting mismatch)
mismatch) thatthet would
would otherwise
otherwise financial
financis' variable,
variable, it
it is
is not
not specific to aa party
specific to pert' to
to the
the
arise from measuring
arise from financial assets
measuring finencial assets oror liabilities
liebilities on
on aa contract
contract (i.e., the
the ‘underlying’).
'underlying').
different
different basis.
basis. AsAs at
at thethe reporting
reporting date the Company
dete the Company ItIt requires
requires no initial
initial net
net investment
investment or
or an
an initial
initial net
net
does
dcæs not
not have
have any financial instruments
any financial instruments designated
designet4i as as investment that is smaller than would be required
investment thet is smeller than would be required
measured
measured at at fair
fair value
value through
through profit
profit or
or loss.
loss. for other types
for other types ofof contracts
contracts expected
expected to
to have
have a e
c. Debt
Debt instruments
instruments with
with contractual
contractual terms that
terms that do
do not
not similar
similar response
response to to changes
changes in
in market
market factors.
factors.
represent solely payments of principal and interest. As at
represent solely payments of principal and interest As at ItIt is
is settled
settled at
ataa future
future date.
date

the
the reporting
reporting date
date the
the Company
Company doesdoes not
not have
have any
any such
such
The
The Company
Company entersenters into
into derivative
derivative transactions
transactions with with
financial
financial instruments
instruments measured
measured at at fair
fair value through
value through
various counterparties
various counterparties to to hedge
hedge its foreign currency
its foreign currency
profit
profit or
or loss.
loss.
risks
risks and
and interest
interest rate
rate risks.
risks. Derivative
Derivative transaction
transaction

Financial
Financial instruments
instruments heldheld at
at fair
fair value
value through
through profit
profit or
or consists of hedging of foreign exchange transactions,
consists of hedging Df foreign exchange transactions,
loss
loss are
are initially
initially recognised
recognised atst fair value, with
fair vs'ue, with transaction
transection which
which includes
includes interest
interest rate
rate and
-nd currency
currency swaps,
swaps, interest
interest
costs
costs recognised
recognised in in the
the statement
ststement of Df profit
profit and
and loss
loss as
as rate
rate options
options andand forwards.
forwerds The The Company
Compeny undertakes
undertakes
incurred.
incurred Subsequently,
Subsequently they they are
-re measured
measured at et fair
fair value
value derivative
derivetive transactions
transactions for for hedging
hedging on-balance
on-balance sheetsheet
and
and any
any gains
gains oror losses
uses areare recognised
rcc.gnised in the statement
in the statement liabilities.
liabilities
Derivatives
Derivatives
are recorded at
are recorded
fair value and
at fair value and

of profit and loss as they arise.

of profit and loss es they arise. carried
carried as as assets when their
assets when their fair
fair value
value is positive and
ISz:lsitive end as
as
A financial liability
A financial liability may
may be be designated
designated atat fair
fair value
value liabilities
lisbilities when
w,vhentheir
their fair
fair value
value isis negative.
negative The
The notional
notional

through
through profit or loss
profit or loss ifif itit eliminates
eliminates or
or significantly
significantly amount
amount
and fair value of such derivatives are
end fair value of such derivatives
disclosed
are disclosed

reduces
reduces an
an accounting
accounting mismatch
mismatch or: or: separately. Changes in the fair value of derivatives are
separately. Changes in the fair value of derivatives are
included
included in
in net
net gain
gain on
on fair
fair value
value changes.
changes
ifif ea host contract contains
host contract
contains one or more embedded
one or more embedded

derivatives; or
derivatives; or (vii)
(vii) Debt
Debt securities
securities and
and other
other borrowed
borrowed funds
ftmds

ifif financial
financial assets
assets and
and liabilities
liabilities are
are both
both managed
managed After
After initial
initial measurement,
measurement, debt
debt issued
issued andand other
other

and
and theirtheir performance
performance evaluated
evaluated oncr. a fair value
e fair value borrowed
borrowed funds funds are
are subsequently
subsequently measured
measured at at
basis
basis
in accordance with
in accordance with
aa documented
documented
risk
risk amortised
amortised cost.
cost Amortised
Amortised cost
cost is
is calculated
calcjated byby taking
taking
management or investment strategy.
management or investment strategy into
Into account
account anyany discount
discount or
or premium
premium on on issue
issue funds,
funds,

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 99
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

and
end transaction
transection costs
costs that
that are
are an
an integral
integral part
pert of the
of the assets)
assets) is is derecognised
deræognised when when thethe rights to receive
rights to receive
Effective
Effective Interest
Interest Rate
Rate (EIR).
(EIRI cash flows from the financial asset have expired.
cash flows from the financis' asset have

The
The Company
C.ompany also also derecognises
derecognises the financial
the financial
(viii)
(viii) Financial
Financial guarantees
guarantees
asset
asset if if it
it has
has both transferred the
both transferred the financial
financial asset
asset
Financial
änenciel guarantees
guarantees are ere initially
initially recognised
recognised in the
in the
and the transfer qualifies for derecognition.
end the transfer qualifies for deræcgnitiom
financial statements at fair value, being the premium
financial statements et fair value, being the premium
received. Subsequent to
received Subsequent to initial
initial recognition,
recognition, thethe The
The Company
Company has has transferred the financial
transferred the financial asset
asset if,
if,

Company’s
Company's liability
liability under
under each
each guarantee
guarantee is is measured
measured and
end only
only if,
if, either:
either.

at the higher
et the higher of the amount
of the amount initially
initially recognised
recognised less
less i. The
The Company
Company has transferred its
has transferred its contractual
contractual
cumulative amortisation recognised
cumulative emortisation recognised in the statement
in the statement of
of rights
rights to
to receive
receive cash
cash flows
flows from the financial
from the financial
profit
profit and
and loss.
loss asset,
asset or
or

The
The premium
premium isis recognised
recognised in in the statement of
the statement of ii. ItIt retains
retains the
the rights
rights toto the
the cash
cash flows,
flows, but
but
profit and loss on a straight-line basis over the life
profit and loss on e straight-line basis over the life has assumed an obligation to pay the
has assumed en obligation to pay the
of the guarantee.
of the guarantee. received cash flows in full without material
received cash flows in full without material

delay
delay to to a
a third
third party
part/ under
under ae ‘pass–through’
pass—through'
(ix)
Ox) Reclassification
Reclassification of financial
of financial assets
assets and
and liabilities
liabilities
arrangement
arrangement
The
The Company
Company does does notnot reclassify
reclassify its financial assets
its financial assets
Pass-through
Pass-through arrangements
arrangements are are transactions
transections
subsequent to their initial recognition apart from the
subsequent to their initiEI reccgnition apert from the
whereby the Company retains the contractual
whereby the Compeny retains the contractual
exceptional circumstances in
exceptional circumstances in which
which company
comp-ny changes
changes
its
its business
business model
model for for managing financial assets.
managing financial assets rights to receive the cash flows of a financial asset
rights to receive the cash flows of e financial asset

Financial
FinenciEI liabilities
liabilities are
-re never
never reclassified.
reclassified TheThe Company
Compeny (the
(the ‘original
'original asset’),
asset), but
but assumes
assumes aa contractual
contractual

did
did not
not reclassify
reclassify any
any ofof its
its financial
financial assets
assets or liabilities
liabilities obligation
obligation to to pay
pay those
those cash
cash flows
flows to
to one
one or
or more
more

until
until the year ended
the year ended March
March 31,31, 2021.
2021 entities (the ‘eventual recipients’), when all of the
entities (the 'eventual rcipients'), when ell of the
following three conditions are met:
following three conditions are met:
(x) 
(x) Recognition and
and Derecognition of financial assets
of financial assets and
and
i. The
The Company
Company has has nono obligation
obligation to to pay
pay
liabilities
liabilities
amounts
amounts to to the
the eventual
eventual recipients
recipients unless
unless itit
Recognition:
has
has collected
collected equivalent amounts
amounts from
from the
the

a) Loans
Loans and end Advances
Advances are are initially
initially recognised
raognised original asset, excluding short-term advances
original asset, exc'uding short-term advances
when the
when the funds
funds are ere transferred
trsnsferred to
to the
the customers’
customers'
with
with the
the right
right to
to full
full recovery
recovery of the amount
of the amount
account or delivery of assets by
account or delivery of assets by the dealer
the dealer lent
lent plus
plus accrued
accrued interest
interest at
et market
market rates
rates
whichever is earlier.
whichever is earlier.
ii. The
The Company
Company cannot
cannot sell
sell or
or pledge
pledge the
the
b) 
b) Investments
Investments are are initially
initially recognised
recognised on the
on the
original
original asset
asset other
other than
than as
es security
s4:urity to
to the
the
settlement date.
settlement date
eventual recipients
eventual raipients
c) 
c) Debt
Debt securities,
securities, deposits
deposits and
end borrowings
borrowings are
are
iii. The
The Company
Company has has to to remit
remit anyany cash
cash flows
flows itit
initially
initially recognised
recognised when
when funds
funds reach
reach the
the Company.
Company
collects on behalf of the eventual recipients
collects on behalf of the eventual recipients
d) 
d) Other
Other Financial
Financial assets
assets and
and liabilities
liabilities are
are initially
initially without
without material
material delay.
delay In In addition,
sddition, the
the Company
Company
recognised
recognised on on the
the trade
trade date,
date, i.e., the date
Le, the date that
that is
is not
not entitled
entitled to
tc reinvest
reinvestsuch such cash
cash flows, except
flows,except
the Company
the Company becomes
becomes aa party to the
party to the contractual
contractual for investments in cash or cash equivalents
for investments in cash or cash Eluivelents
provisions of the
provisions of the instrument. This includes
instrument This includes regular
regular including
including interest
interest earned,
earned, during
during the the period
period
way trades: purchases or sales of financial assets
way trades: purchases or sales of financial assets between the collection date and the date of
between the collection dste -nd the date of

that require
thet require delivery
de'ivery of
of assets within the
sssets within the time
time frame
frame
required
require} remittance
remittance to to the
the eventual
eventual recipients.
recipients
generally established by regulation or convention inn
generally established by regulation or convention
A transfer only
A transfer only qualifies for derecognition
qualifies for derecognition if either:
if either:
the market
the market place.
place
i. The
The Company
Company has transferred substantially
has transferred substantially all
Ell

D erecognition nf
Dprecnqnitlnr, of financial assets other
other than due to
tn
the
the risks
risks and
end rewards
rewards ofof the
the asset,
asset, or
or
substantial modification
ii. The
The Company
Company hashas neither
neither transferred
transferred nor
nor
a)
a) Financial assets:
Financial assets:
retained substantially all the risks and rewards
retained substantially sl the risks rewards
 A
A financial
financial asset
asset (or,
(or, where
where applicable,
applicable, a
a part
pert of
of aa of
of the
the asset,
asset, but
but has
has transferred
transferred control
control of
of the
the
financial asset
financial asset or
or part
part of
of a group of
e group of similar
similar financial
financial asset

100 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

The
The Company
Company considers
considers control
control to
to be
be transferred
transferred (xi)
(xi) Impairment
Impairment of financial assets
of financial assets
if and only if, the transferee has the practical ability
if and only if, the trensferee has the practical ability Overview
overview of the ECL grjnc:ales
nfthpFr.l principles
to sell
to sell the
the asset
asset inin its
its entirety
entirety to an
an unrelated
unrelated third
third
The Company records
TheCornpsny allowance for expected
recordsallowancefor credit losses
expectedcredit losses
party
zsrty and
and is
is able
able to
to exercise that ability
exercise that ability unilaterally
unilaterally
for
for all
all loans,
tans, other
other debt
deat financial
financial assets
assets not
not held
held at
at FVTPL,
Pv'TPl„
and
and without
without imposing additional restrictions
imposing additional restrictions on
on the
the
together with
tæether financial guarantee
with finencisl guar-rite contracts,
contracts, in
in this
this section
section
transfer.
transfer.
all
all referred
referredtoto as
as ‘financial
'fr,encisl instruments’.
instruments" Equity instruments
Equityinstruments
When
When thethe Company
Company has has neither
neither transferred
transferred nor nor are not subject to impairment under Ind AS
are not subjæt to impsirment under Ind AS 109.
ICA
retained substantially all the risks and rewards
retained substantially all the risks and rewards
The
The ECL allowance is
ECLallowance is based
basedonon the
the credit
credit losses
losses expected
expected
and
and has
has retained
retained control
control of the asset,
of the asset, the
the asset
asset
to arise over the life of the asset (the lifetime expected
to arise over the life of the asset (the lifetime expected
continues to
continues to be
be recognised
recognised only
only to
tc the
the extent
extent of the
of the
credit
credit loss),
loss), unless
unless there
there has
has been
ten nonc significant
significant increase
increase
Company’s
Company's continuing
continuing involvement,
involvement, in in which
which case,
case,
in
in credit
credit risk
risk since
since origination,
origination, in which case,
inwhich the allowance
case,the allowance
the Company
the Company alsoalso recognises
ezognises an an associated
assuisted liability.
liability
is
is based
based onon the
the 12
12 months’
months' expected
expected credit
credit loss.
loss
The transferred
The transferred asset
asset and the associated
end the associated liability
liability
Lifetime
Lifetime ECLECL are the expected
are the expected credit
credit losses
losses resulting
resulting
are measured on a basis that reflects the rights and
are measured Dna basis thet reflects the rights and
from
from all
all possible
possible default
defajt events
events over
over the
the expected
expect± life
life of
of
obligations that the Company has retained.
obligations thet the Company has retained
a financial instrument. The 12-month ECL is the portion
a financial instrument The 12-month ECL is the portion
On derecognition of
Onderecgnition of a
a financial
financial asset in its
sssetin its entirety, the
entirety,the
of
of Lifetime
Lifetime ECL that represent
ECLthat the ECLs
represent the that result
ECLSthat from
result from
difference between the carrying amount (measured
difference between the carrying amount (measured
default
default events
events on
on a financial
finenciEI instrument that are
instrument thet are possible
possible
at the date
at the date ofof derecognition)
derecognition) and the consideration
end the consider-tion
within
within the
the 12
12 months
months after
after the
the reporting
reporting date.
date
received
received (including
(including any
any new
new asset
asset obtained
obtained less less any
any
Both
30th Lifetime
Lifetime ECLs
ECLS and
and 12-month
12-month ECLs
ECLS are
ere calculated
calculated on
Dn
new
new liability
liability assumed)
assumed) is is recognised
recognised inin the
the statement
statement
individual
individual basis,
basis, depending
depending on the nature
Dnthe nsture of the underlying
ofthe underlying
of profit
of and loss.
profit end loss.
portfolio
portfolio of of financial
financial instruments.
instruments TheThe Company
Company has hes
Accordingly,
Accordingly, gaingain on on salesale or derecognition
derecognition of of
grouped its loan portfolio into Gold Loan, Auto Loans,
grouped its loan portfolio into Gold Loan, Auto Loans,
assigned portfolio are recorded upfront in the
assigned portfolio are recorded upfront in the
MSME
MSME Loans,
Loans, Two Wheeler Loans,
Tv.h) Wheeler Loans, Personal
Person-I loans,
Bens, Pre-
Pre-
statement
statement of of profit
profit and
and loss loss as
as per IndInd AS
AS 109.
ICA
Owned Two Wheeler
OwnedTwo Wheeler Loans
Loans and
and Loan
Loan Against
Against property.
proper-W
Also, the
A'so, the Company
Company recognises
recænises servicing
servicing income
income
The Company has established a policy to perform an
The Company has established a policy to perform an
as
as aa percentage
percentage of of interest
interest spread
spread over tenure
over tenure
assessment,
assessment, at
at the
the end
end ofof each
esch reporting
reprting period,
period, of
of
of loan
of loan in
in cases where it
cases where it retains
retains the
the obligation
obligation toto
whether a financial instrument’s
whether a financial instrument's
credit risk has increased
credit risk has increased
service the transferred financial asset. As per the
service the transferred finenciEI asset As per the
significantly since initial recognition, by considering
significantly since initial recognition, by considering the the
guidelines
guidelines ofof RBI, the Company
331,the Company is is required
required to
to retain
retain
certain portion of the loan assigned to parties in
certain portion of the loan assigned to perties In change in the risk of default occurring over the remaining
change in the risk cf default occurring over the remaining

its
its books
books esas Minimum
Minimum Retention Retention Requirement
Requirement life
life of
of the financial instrument.
the financial instrument The The Company
Comp-ny does does thethe

(“MRR”). Therefore,
Therefore, it it continue
continue to to recognise
recognise thethe assessment
assessment of of significant
significant increase
increase in in credit
credit risk
risk at
at ae

portion
portion retained
retained by
by itit as
as MRR.
MRR. borrower level. If a borrower has various facilities having
borrower level If a borrower has various facilities having
different
different past
past due
due status, then the
status, then the highest
highest days
days past
past due
due
b)
b) Financial
Financial liabilities
liabilities
(DPD)
(DPD) isis considered
considered to to be
be applicable
applicable forfor all
all the
the facilities
facilities
A
A financial
financial liability
liability isis derecognised
deræognised when when thethe of
of that
that borrower.
±rrower.

obligation under
obligation under the the liability
liability is is discharged,
discharged,
Based on the
3.ssed on the above, the Company
etc,'e, the Company categorises
categorises its
its loans
loans
cancelled or
cancelled or expires. Where an
expires Where an existing financial
existing financial
into
into Stage
Stage 1,
1, Stage
Stage 22 and
and Stage
Stage 3
3 as
es described
described below:
below.
liability
liability isis replaced
replaced by by another
another from from thethe same
same
lender on substantially different terms, or the
lender cr. substantially different terms, or the Stage
Stage 11

terms of an existing liability are substantially

terms of an existing 'isbility are substantially All
All exposures
exposures where there has
where there has notnot been
been ae significant
significant
modified,
modified, such such an an exchange
exchange or or modification
modification is is increase
increase in in credit
credit risk
risk since
since initial
initiEI recognition
recognition oror that
that
treated as
treated as aa derecognition
derecognition of the original
of the original liability
liability has low credit risk at the reporting date and that are not
hes low credit risk et the reporting dete and that are not
and
and the
the recognition
rccgnition of ofaa new
new liability.
lisbility The
The difference
difference credit impaired upon origination are classified under this
credit impaired upon origination are classified under this
between
between the the carrying
carrying value
value of of the
the original financial
origin-I financial stage.
stage. The
The Company
Compeny classifies
classifies allall standard
standard advances
advances
liability and the consideration paid is recognised in
liability end the consideration paid is reccgnised In and
and advances
advances upto
upto 30
30 days
days default
defeult under this category.
under this category.
profit
profit or
or loss.
loss. AsAs at
at the
the reporting
reporting date date the
the Company
Company Stage 1 loans also include facilities where the credit risk
Stage 1 loans also incude facilities where the credit risk
does
does notnot have
have any financial liabilities
any financial liabilities which
which have
have has improved and the loan has been reclassified from
hes improved and the loan hes been rælassified from
been
been derecognised.
derecænised Stage
Stage 2
2 or
or Stage
Stage 3.
3

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 101
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

Stage
Stage 2
2 does
does notnot result
result in
in accounts
accounts becoming
becoming pastpest due
due and
and

All exposures where

All exposures where there
there has
hes been
teen aa significant
significant increase
increase automatically triggering Stage 2 or Stage 3 classification
automatically triggering Stage 2 or Stage 3 classification
in credit risk since initial recognition but are not credit
in credit risk since initiEl recognition but are not credit criteria.
criteriå The
The provision
provision inin respect
respect of of expected
ex=cted credit
credit
impaired are classified under this stage. 30 Days Past Due
impaired areclassified underthis stage 30 Days Fest Due losses
losses oncr. loans
bens and
and advances
advances consequent
consequent to to COVID
COVIDlg 19
is considered as
is considered as significant
significant increase
increese in
in credit
credit risk.
risk. Stage
Stege pandemic
pandemic has hes been
been made
made on the basis
Dnthe bass of
of estimation
estimation ofof
2
2 loans
loans also
also includes
includes facilities
facilities where the
where the credit
credit risk
risk has
has probable defaults and future business estimates. These
probable defaults and future business estimates These
improved
improved and the loan
and the loan has
has been reclassified from
beenreclassified from stage
stage 3.
3 estimates
estimates would
would bebe periodically
*riodically reviewed
reviewed based
based onon the
the
future
future business
business scenario.
scenario. However,
However, actual
actus results
results are
ere
Stage 3
stage 3
uncertain and could be different from such estimates.
uncertain and could be different from such estimates

All
All exposures
exposures assessed
assessed as credit impaired
es credit when one
impaired when one
Loan commitments:
Loan commitments:
or
or more
more events
events that
that have
have a
a detrimental
detrimental impact
impact on the
on the
estimated
estimated future
future cash flows of
cest flows Df that
that asset
asset have
heve occurred
cccurred When
When estimating
estimating expected
exp42ted credit
credit loss
loss for
for undrawn
undrawn loan
loan
are
ere classified
classified in in this
this stage.
stage ForFor exposures
expsures thatthat have
have commitments, the Company estimates the expected
commitments, the Company estimates the expected
become credit impaired, a lifetime ECL is recognised end
become credit impaired, lifetime ECLis rEognised and portion
prtion of the loan
of the commitment that
'DEncommitment will be drawn
that will drawn down
down
interest
interest revenue
revenue is is calculated
calculEted by by applying the effective
applying the effective over
over its
its expected
expected life.
life The
The ECL
ECL is then based
is then besed on
on the
the
interest
interest rate
rate to
to the
the amortised
amortised cost cost (net
(net of
of provision)
provision) present
present value
value ofof the expected shortfalls
the exp€ted shortfalls inin cash
cash flows
flows ifif
rather than the
rether then the gross
gross carrying
carrying amount.
amount go 90 Days
Days Past
Past the
the loan
loan is
is drawn
drawn down.
down.

Due
Due isis considered
considered as as default
default for
for classifying
c'assifying a financial
financisl
Credit-impaired financial assets:
Credit-impaired financial assets:
instrument
instrument as as credit
credit impaired.
impaired Iff an event (for
an event (for eg. any
any
At each reporting
At each repyting date,
date, the
the Company
Company assesses
assesses whether
whether
natural calamity) warrants a provision higher than as
natural calamity) warrsnts a provision higher then as
financial assets carried at amortised cost and debt
finsncisl sssets carried at amortised cost and debt
mandated under ECL methodology, the Company may
mandated under ECL methodolcgy, the Company may
financial
finsncisl assets
assets carried
carried atat FVOCI
FOCCI are-re credit-impaired.
credit-imp-ired
classify
classifi/ the
the financial
financial asset
asset inIn Stage
Stege 3 3 accordingly.
accordingly
A
A financial
financial asset
asset is
is ‘credit-impaired’
'credit-imp-ired' when when one
one orDr more
more
As
As required
required by by RBI Circular
Circuler reference
reference no.
no RBI/2019-
RBI/201g-
events that have a detrimental impact on the estimated
events that have a detriment-I impact cn the estimated
20/170
20/170 DOR
OOR (NBFC).CC.PD.No.109/22.10.106/2019-20 g-20
future
future cash flows of
cash flows of the
the financial
finsncisl asset
asset have
have occurred.
occurred
dated
dated March
March 13,
13, 2020; where impairment
2020; where impairment allowance
allowance
Evidence
Evidence that
that aa financial
financial asset
asset is
is credit-impaired
credit-impaired
under
under Ind
Ind AS
AS 109
1Og is
is lower
lower than the provisioning
then the provisioning required
required
includes the following observable data:
includes the following observable data:
as per extant prudential norms on Income Recognition,
es per extant prudentisl norms on Income Recognition,
Asset
Asset Classification
Classification and
end Provisioning
Provisioning (IRACP)
(IRACP) including
including a) 
a) Significant financial difficulty of
Significantfinancialdifficulty of the
the borrower
torro,ver or
or issuer;
issuer

borrower/beneficiary wise classification, provisioning

borrower,eneficiary wise classification, provisioning b) 
b) AA breach
breach of
of contract
contract such
such as
as a
a default
default or
or past
past due
due
for
for standard
standard asas well
well as
as restructured
restructured assets,
assets, NPA ageing,
NPAageing, event;
event;

etc.,
etc, the
the Company
O)mpany shall shall appropriate
appropriate thethe difference
difference c) 
c) The
The restructuring
restructuring of
of a
e loan
loan or
or advance
advance by
by the
the
from their net
from their net profit
profit or
or loss
loss after
after tax to e
tax to a separate
separate Company on terms that the Company would
Company on terms that the Company would not
not
‘Impairment Reserve’.
Impairment Reserve' consider
consider otherwise;
otherwise;

In
In accordance
accordance with with the
the board
board approved
approved moratorium
moratorium d) 
d) It
It is
is becoming
becoming probable
probable that
that the
the borrower
±lrrower will
will enter
enter
policy read with the Reserve Bank of India
policy read with the Resewe Bank of India (RBI)(RBI) bankruptcy
bankruptcy or
or other financial reorganisation; or
other financial or
guidelines dated March 27, 2020, April 17, 2020 and May
guidelines dated March 27, 2020, April 17, 2020 end May
e) 
e) The
The disappearance
disappearance of of an
an active
active market
market for
for aa
23,
23, 2020
2020 relating
relating toto ‘COVID-19
'COVE- 1g -- Regulatory
RegulEtcry Package,
Package,the the security
security because
because of
of financial
financial difficulties.
difficulties
Company
Company has has granted
grant± moratorium
moratorium upto upto six
six months
months on on
the
the payment
payment of of instalments falling due
instalments 'sling due between
between March March Financial
Financial guarantee
guarantee contracts
contracts
1,
1 2020 and August
2020 end August 31, 81, 2020
2020 toto all
all eligible
e'igible borrowers.
turowers In In The
The Company’s
Company's liability
liability under
under financial
financial guarantee
guarantee isis
respect of accounts overdue but standard at February
respect of accounts overdue but standard at February measured at the higher of the amount initially recognised
measured at the higher cf the -mount initially ræognised
29,
29, 2020 where moratorium
2020 where moratorium benefit
benefit has
has been
been granted,
granted, less
less cumulative
cumulative amortisation
smartisatiDn recognised
recognised in in the
the
the
the staging
staging ofof such
such accounts
accounts remained
remsined stand
stand still
still during
during statement
statement of
of profit
profit and
and loss,
Ss, and the ECL
end the ECL provision.
provisiom For
For
the
the moratorium
moratorium period.
perid Based
3.ssed onon an
sn assessment
assessment by the
by the this
this purpose,
purpose, the
the Company
Company estimates
estimates ECLs
ECLSby by applying
applying
Company,
Company, thisthis relaxation
relexation hashas not
not been
been deemed
deemed to to be
be aa credit
credit conversion
conversion factor.
fsctor The
The ECLs
ECLS related to financial
related to financial
automatically triggering significant increase in credit risk.
automatically triggering significant increase in credit risk guarantee contracts are recognised within Provisions.
guarantee contracts are reccænised within Provisions
The
The Company
Company continues
continues tc to recognise
recc.gnise interest
interest income
income Currently,
Currently, the
the Company
Company has has not
not recognised
recænised anyany ECL
ECL
during
during the
the moratorium
moratorium period
period and
and inin the
the absence
absence of of other
other in
in respect
respect ofof financial
financial guarantee
guarantee based
based onon estimate
estimate of of
credit
credit risk
risk indicators,
indicators, thethe granting
granting ofof aa moratorium
moratorium period period expected
expected cash
cash flows.
flows

102 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

ECL on Debt instruments

ECL on Debt instruments
measured
measured
at fair value
at fair value
not
not be
te always
always reflective
reflective of
of such
such relationships,
relationships, temporary
temporary
through
through OCI
OCI overlays,
overlays, if
if any,
any, are
are embedded
embedded in in the
the methodology
methodology to
to
The
The ECLs
ECLS for
for debt
debt instruments
instruments measured
measured at
at FVOCI
FX/OCI do
do reflect
reflect such
such macro-economic
macro-economic trends
trends reasonably.
reasonably

not
not reduce
reduce the
the carrying
carrying amount
amount of these financial
of these financia' assets
assets The
The above
above calculated
calculated PDs,
PDs, EAD
EAD and
and LGDs
LCDs are
are reviewed
reviewed
in the balance
in the balance sheet,
sheet, which
which remains
rem.ns at at fair value. Instead,
fair value Instead, annually
annually and changes in
and changes in the
the forward
forward looking
Icoking estimates
estimates
an amount equal to the allowance that would arise if
an amount equal to the Ellowance that arise if the
the are
are analysed.
enetysevi
assets were measured at amortised cost is recognised
assets were measured at amortised cost is recognised
Collateral Valuation
in
in OCI
OCI as
as an
an accumulated
accumulated impairment
imp-irment amount,
amount, withwith aa
To
To mitigate
mitigate its credit risks
its credit risks onon financial
financial assets,
assets, the
the
corresponding
corresponding charge
charge to to profit
profit or
or loss. The accumulated
loss The accumulated
Company
Compeny seeks seeks to to use
use collateral,
collateral, where
where possible. The
possible The
loss
loss recognised
rccgnised in in OCI
OC' isis recycled to the profit
to the profit and
and loss
loss
collateral
collateral comes
comes in in various
various forms,
forms, such
such as -s movable
movable and
and
upon derecognition of the assets. As at the reporting
upon derecognition of the assets As at the
immovable assets, guarantees, etc. However, the fair
immovsble assets, guarantees, etc However, the fair
date the Company
date the Company does does not
not have
have any debt instruments
any debt instruments
value of collateral affects the calculation of ECLs. To
value of collateral Effects the calculation of ECLS To
measured
measured at at fair
fair value
value through
through OCI.
OCL
the extent
the extent possible,
possible, thethe Company
Company uses uses active
active market
market
The
Thp mechanics
mm-:hanirs of
n ( ECL:
FP.(
data
deta for valuing financial
for valuing financial assets
assets held
held as
as collateral.
colEtera[ Other
Other
The
The Company
Company calculates
calcuLetes ECLs
ECLS based
based on
on probability-
probability financial assets
financial which do
assets which do not
not have
have readily
readily determinable
determinable
weighted scenarios to measure the expected cash
weighted scenarios to measure the expeted cash market values are
market values are valued
valued using
using models.
mcZeIs. Non-financial
Non-financial
shortfalls,
shortfalls, discounted
discounted at
at an approximation to
an approximation to the
the EIR. A
A collateral,
collateral, such
such as as vehicles,
vehicles, is valued based
is valued based on
on data
date
cash
cash shortfall
shortfall is the difference
is the difference between
between the
the cash
cesh flows
flows that
that
provided
provided by third parties
by third parties or
or management judgements.
management judgements
are due to the Company in accordance with the contract
are due to the Comp-ny in accordsnce with the contract
Collateral repossessed
repossessed
and the cash
and the cash flows
flows that
that the
the Company
Campany expects to receive.
axpæts to receive.
In
In its
its normal
normal course
courseofof business
business whenever
whenever default occurs,
defau Itcccurs,
The mechanics of
The mechanics
the ECL calculations are
of the ECL calculations
outlined
are outlined
the Company
the Company may may take
take possession
possession of Df properties
properties or
or other
other
below
below and
end the
the key
key elements
elements are,
are, as
as follows:
follows.
assets
assets inIn its
its retail
retail portfolio
portfolio and
and generally
generally disposes
disposes such
such
P
 robability of
Probability of Default
Default (PD)
(PD) -- The
The Probability
Probability of of Default
Default assets through auction, to settle outstanding debt. Any
assets through suction, to settle outstsnding debt Any
is an estimate of the likelihood of default over a given
is en estimate of the likelihccZ of default over given surplus funds are returned to the customers/obligors. As
surplus funds ere returned to the customers/Dbligors As
time horizon. A default may only happen at a certain
time horizon. A default may only happen at a certain aa result
result of this practice,
of this practice, assets
essets under
under legal
legal repossession
repossession
time
time over
over the
the assessed
essessed period,
peri* ifif the
the facility
facility has
has not been
notbeen processes
prccesses are are not
not recorded
recorded on on the
the balance
balance sheet.
sheet
previously derecognised and
previously deræcgnised end is
is still
still in
in the
the portfolio.
portfolio.
(xii) Write-offs
(xii) Write-offs
E
 xposure at
Exposure at Default
Default (EAD)-
(EAD)- The
The Exposure
Exposure at
at Default
Default is
is
an estimate of the exposure at a future default date.
an estimate of the exposure et a future default dete The
The Company
C.ompany reduces
reduces thethe gross
gross carrying
carrying amount
armunt of of a
e
financial asset when the Company has no reasonable
financial asset w,vhen the Company hes no reasonable
L
 oss Given
Loss Given Default
Default (LGD)
(LGD) -- The
The Loss
Loss Given
Given Default
Default is
is an
an
expectations
expectations ofof recovering
recovering a financial asset
a financial asset in
in its
its entirety
entirety
estimate of the loss arising in the case where a default
estimate of the loss arising in the cese where a default
or
or aa portion thereof. This
portion thereofl This isis generally the case
generally the case when
when
occurs
acurs at a given
at e given time.
time It It is
is based on the
based on the difference
difference
the Company
the C.ompany determines
determines thatthat thethe borrower
borrower doesdoes not
not
between
between the contractual
the contractuel cash
cssh flows
flows due
due and
and those
those that
that
have assets or sources of income that could generate
have assets or sources of income that could generate
the Company would expect to receive, including from the
the Company would to receive,including from the
sufficient cash flows
sufficient cash flows tcto repay
repay thethe amounts
smounts subjected
subjected
realisation
realisation of
of any
any collateral.
collateral. It
It is
is usually
usually expressed
expressed asas aa
tto write-offs.
write-offs Any
Any subsequent
subsequent recoveries
recoveries against
against such
such
percentage
percentage of the EAD.
of the EAD
loans
loans are
ere credited
credited to the statement
to the statement of of profit
profit and
and loss.
loss
Forward looking information
(xiii)
(xiii) Determination
Determination of
of fair
fair value
value
While estimating the expected
Whileestimatingthe expæted credit
credit losses, the Company
losses,thecompany
reviews macro-economic developments occurring
renews macro-economic deve'opments occurring inin On
On initial
initial recognition,
recognition, all
all the
the financial
financial instruments
instruments are are

the economy and market it operates in. On a periodic

the economy and msrket it operates in. On a periodic measured at fair value. For subsequent measurement,
measured at fair vs'ue For subsequent measurement

basis, the Company

basis, the Compeny analyses
analyses ifif there
there is
is any
any relationship
relationship the Company
the Company measures
measures certain
certe.n categories
categories of of financial
financial

between
between keykey economic trends like
economic trends like GDP, unemployment
GDP,unemployment instruments
instruments (as(as explained
explained inin note
note 6.1(iii) to 6.1(vi))
61 (iii) to 61 (vi)) at fair
at fair

rates,
rstes, benchmark
benchmark rates
rstes set
set by the Reserve
by the Reserve Bank
Bank of
of India,
Indie, value on
value on each
each balance
balsnce sheet
sheet date.
dste

inflation
inflation etc. with the
etc with the estimate
estimate ofof PD,
PD, LGD
LCD determined
determined Fair
Fair value
value is
is the
the price
price that
that would
would be be received
received to
to sell
sell an
an
by the Company
by the Company based on its
bssed on its internal
interns' data.
data. While the
the asset or paid to transfer a liability in an orderly transaction
asset or paid to transfer s liabi'ityin an orderly transaction
internal
internal estimates of PD,
estimates of LGD rates by
PD,LGCrates by the
the Company
Company may
may between
between market
market participants
participants atat the
the measurement
measurement date.
date.

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 103
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

The fair value

The fair value measurement
measurement is is based
based on the presumption
on the presumption However, if such
However,if such adjustments
adjustments areare based
besed on
on unobservable
unobservable
that the transaction to sell the asset or transfer
that the transaction to sell the asset or transfer the
the inputs
inputs which
which are
ere significant to the
significant to the entire
entire measurement,
measurement,
liability takes place
liability takes place either:
either: the
the Company
Compeny will
will classify
classify the
the instruments
instruments asas Level
Level33.
i. In the principal
In the principal market
market for the asset
for the asset or
or liability,
liability, or
or Level
Level 3 financial instruments
3 financial instruments -- Those
Those that
that include
include one
one

ii. In
In the absence of
the absence of aa principal
principal market,
market, in the most
in the most or
or more
more unobservable
unobservable input that is
input thet is significant
significant toto the
the
advantageous market
market for the asset
for the asset or
or liability
liability measurement
measurement as
as whole.
whole

The
The principal or the
principal or the most advantageous market
most advantageous market must
must be
be The
The Company
Company recognises
recognises transfers
transfers between
between levels
levels
accessible
accessible by
by the
the Company.
Company. of the fair value hierarchy at the end of the reporting
of the fair value hierarchy Et the end of the repyting
period during which
peric»dduring which the
the change
change has
has occurred.
occurred. No
No such
such
The
The fair
fair value
value of
of an
an asset
assetor or a
e liability
liability is
is measured
measured using
using
instances
instances of
of transfers
transfers between
between levels
levels of
Df the
the fair
fair value
value
the assumptions that market participants would use
the assumptions that merket particivnts would use
hierarchy
hierarchy were
were recorded
recorded during
during the
the reporting
reporting period.
period
when
when pricing the asset
pricing the asset oror liability,
liability, assuming
assuming that
that market
market
participants
participants act
act in their economic
in their economic best best interest.
interest Difference
Difference between
between transaction
transection price
price and
and fair
fair value
value at
at
initial
initial recognition
recognition
A fair value
A fair value measurement
measurement of
of ea non-financial
nan-financial asset
asset takes
takes

into
into account
account aa market
market participant’s
particivnt's ability
ability toto generate
generate The best evidence of the fair value of a financial instrument
The best evidence of the fair value of e financial instrument

economic
economic benefits
benefits byby using
using the the asset
asset inin its
its highest and
highest end at initial recognition
at initial reccgnition is the transaction
is the transaction price
price (i.e. the fair
(i.e the fair

best use or by selling it to another market participant

best use or by selling it to another market participant value of the consideration given or received) unless the fair
valueofthe consideration givenor received)unless the fair

that
that would
would use the asset
use the asset inin its
its highest
highest and
and best
test use.
use value
value of
of that
thet instrument
instrument is
is evidenced
evidenced by
by comparison
comp-rison withwith
other
other observable
observable current
current market transactions in
merket trenssctions in the
the same
same
The
The Company
Company uses uses valuation
valuation techniques
techniques that
thet are
are
instrument
instrument (i.e. without
without modification
modification or Dr repackaging)
repackaging) or or
appropriate
appropriate inin the
the circumstances
circumstsnces and for which
and for which sufficient
sufficient
based on a valuation technique whose variables include
based on a valuation technique whose variables include
data
date are
are available
available totc measure
me-sure fair
fair value,
value, maximising the
maximising the
only
only data
date from
from observable
observsble markets.
msrkets WhenWhen such
such evidence
evidence
use of relevant observable inputs and minimising
use of relevant observable inputs and the
minimising the
exists, the Company recognises the difference between
exists, the C.ompanyrecænises the difference between
use
use of
of unobservable
unobservable inputs.
inputs
the
the transaction
transection price
price and
and the
the fair
fair value
value in
in profit or loss
profitor loss on
on
In
In order
order to
to show
show how
how fair values have
fair values have been
been derived,
derived, initial
initial recognition
recognition (i.e.
(Le onon day
day one).
one)
financial
financial instruments
instruments are
are classified
classified based on a
based on e hierarchy
hierarchy
When
When thethe transaction
transection price
price of the instrument
ofthe instrument differs
differs from
from
of valuation techniques,
of valuation techniques, as summarised below:
as summarised below:
the
the fair
fair value
value atat origination
origination and thethe fair value is
fsir va'ue is based
based
Level
Level 1 1 financial
financial instruments
instruments -- Those
Those where
where the the inputs
inputs on
on aa valuation technique using
valuation technique using only
only inputs
inputs observable
observable
used in the valuation are unadjusted quoted prices from
used in the valuation are unadjusted quoted prices from in market transactions, the Company recognises the
in market transactions, the Company recognises the
active markets for identical assets or liabilities that the
ective markets for identical assets or liabilities thet the difference
difference between
between the
the transaction
trsnssction price
price and
and fair
fair value
value
Company
Company has has access
access to to at
Et the
the measurement
me-surement date. date. The
The in
in net
net gain
gain on
on fair
fsir value
value changes.
chsnges In In those
those cases
cases where
where
Company
Company considers
considers markets
markets as as active
active only
only ifif there
there areare fair
fair value
value is
is based
based on on models
models for
for which
which some of the
some of the

sufficient trading activities with regards to the volume

sufficient trading ectivities with regards to the volume inputs
inputs are
are not
not observable,
observable, the the difference
difference between
between the
the
and
end liquidity of the
liquidity of the identical
identical assets
assets oror liabilities
liabilities and when
and when transaction price and the fair value is deferred and is
transaction price and the fair value is deferred and is
there
there areare binding
binding and and exercisable
exercisable price
price quotes
quotes available
available only recognised in profit or loss when the inputs become
only recognised in profit or loss when the inputs become
on the balance
cr. the balance sheet date.
sheet date observable,
observable, or when the
or when the instrument
instrument is is derecognised.
deræognised.

Level
Level 2 2 financial
financial instruments
instruments -- Those
Those where
where the
the inputs
inputs 6.2
6.2 Revenue
Revenue from
from operations
operations
that
that are
ere usedused for valuation and
for vs'ueticn and are
are significant,
significant, are
are
(i)
(i) Interest
Interest Income
Income
derived
derived from from directly
dirætly oror indirectly
indirectly observable
observable market
market
data
date available
available over
over the
the entire
entire period
period of
of the
the instrument’s
instruments Interest
Interest income
income isis recognised
recognised by by applying
applying the
the Effective
Effective

life. Such inputs include quoted prices for similar assets

life Such inputs include quoted prices for similar assets Interest Rate (EIR) to the gross carrying amount of
Interest Rete (EIR) to the gross carrying amount of
financial assets other than credit-impaired assets and
finsncisl assets other than credit-imp—red assets and
or
or liabilities
liabilities in
in active
active markets,
markets, quoted
quoted prices for identical
prices for identic-I
financial
finsncisl assets
essets classified
classified as
as measured
measured at
at FVTPL.
PdTPl_
instruments
instruments inin inactive
inactive markets
markets and observable inputs
end otsenrable inputs
other than quoted prices such as interest rates end
other then quoted prices such es interest rates and The
The EIR
EIR in
in case
case of
of a financial asset
a financial asset is
is computed
computed
yield
yield curves,
curves, implied volatilities, and
implied volati'ities, end credit spreads. In
credit spreads In a. As
As the
the rate that exactly
rate thet exactly discounts
discounts estimated
estimated future
future
addition,
addition, adjustments
adjustments maymay bebe required for the
required for the condition
condition cash
cash receipts
receipts through the expected
through the expected life
life of
of the
the
or
or location
lccation of the asset
of the asset or the extent
or the extent to which itit relates
to which relates
financial asset to the gross carrying amount of aa
financial asset to the gross carrying amount of
to
to items
items that
that are
are comparable
comparable toto the valued instrument.
the velued instrument financial
financial
asset.
asset

104 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

b. By
ay considering
considering all the contractual
all the contractual terms
terms ofof the
the an
an amount
armunt that
that depicts the amount
depicts the amount ofof consideration
consideration to
to
financial instrument
financial instrument in estimating the
in estimating the cash flows
cash flows which
which the
the Company
Company expects
expects to
to be
be entitled
entitled in
in exchange
exchange
c. Including all fees
Including ell fees received
received between
between parties
parties to
to the
the for
for satisfying
satisfying each
each performance
performance obligation.
obligation
contract that
contract that are
are an
an integral
integral part
part of the effective
of the effective S
 tep 5:
Step 5: Recognise
Recognise revenue
revenue when
when (or
(or as)
as) the
the Company
Company
interest
interest rate,
rate, transaction
transaction costs,
costs, and
and all other
all other satisfies
satisfies aa performance
performance obligation
obligation
premiums
premiums or or discounts.
discounts
(iv)
(iv) Net gain or
Net gain or loss
loss onon Fair
Fair value
value changes
changes
Any subsequent changes
Any subsequent changes in the estimation
in the estimation of
of the
the
AnyAny differences
differences between
between the fair values
the fair velues of of financial
financial
future cash flows is recognised in interest income
future cash flows is recognised in interest income
assets classified as fair value through the profit
assets classified as fair value through the profit or
or
with the corresponding
with the corresponding adjustment
adjustment to to the
the carrying
carrying
loss,
loss, held
held byby the
the Company
Company on on the
the balance
balance sheet
sheet date
date is
is
amount of the assets.
amount of the assets
recognised
r4:ognised as as an
en unrealised
unrealised gain
gain // loss.
loss In
In cases
cases there
there
Interest
Interest income
income on credit impaired
on credit impaired assets
assets is recognised
ISrecognised
is
is aa net
net gain
gain in
in the
the aggregate,
aggregate, the the same
same isis recognised
recognised in in
by applying the
by applying the effective
effective interest
interest rate
rate to
to the
the net
net amortised
amortised
“Net gains on fair value changes” under Revenue from
"Net gains on fair value chsnges" under Revenue from
cost
cost (net
(net of
of provision) of the
provision) of financial asset.
the financial asset
operations
operations and and ifif there
there is
is as net
net loss
loss the
the same
same is is disclosed
disclosed
Interest on delayed
Interest on delayed payments
payments by by customers
customers are
are treated
treated under
under “Expenses”
"Expenses" in in the
the statement
statement of of Profit
Profit and
end Loss.
Inss
to accrue only
to accrue only on
Dn realisation,
realis-tian, due
due toto uncertainty of
uncertainty of
Similarly,
Similarly, any
any realised
realised gain
gain or
or loss
loss on
cr. sale
sele of
of financial
financial
realisation and are accounted accordingly.
realisation and ere accounted accordingly
instruments
instruments measured
me-sured at
et FVTPL
F,/TPL and
and debt
debt instruments
instruments

(ii) Dividend
Dividend Income
Income measured
measured at at FVOCI is is recognised
reccænised in in net
net gain
gain // loss
loss on
on
fair value changes. As at the reporting date the Company
fair value changes As at the repyting date the Company
Dividend
Dividend income
income is
is recognised
racænised
does
dces not
not have
have any financial instruments
any financial instruments measured
measured at at
a. When
When thethe right to receive
right to the payment is established,
receivethepaymentisestablished
FVTPL
FVTPL and
and debt
debt instruments
instruments measured
measured at
et FVOCI.
b. it is probable that the economic benefits
it is probable that the economic benefits associated
asscciated
(v)
(v) Recoveries
Recoveries of financial assets
of financial written off
assets written off
with the
with the dividend
dividend will
will flow
flow to the entity
to the entity and
end
The
The Company
Company recognises
reccgnises income
income on on recoveries
recoveries of
of
c. the
the amount
amount of
of the
the dividend
dividend can
can be
be measured
measured
financial assets written off on realisation basis.
financial assets written off on realisation basis
reliably
reliably
(vi) Net
Net gain or loss
gain or on derecognition of
loss on of financial
financial
(iii)
(iii) Fees
Fees &
& Commission
Commission Income
Income
instruments
instruments under
under amortised
amortised cost category
cost category
Fees and commissions
Fees end commissions are are recognised
recognised when
when the
the
Net
Net gain
gain or
or loss
loss on
on derecognition
deræcgnition of financial instruments
offinancial instruments
Company satisfies the performance obligation, at
Company satisfies the *rfcrmance obligation, et fair
fair
under
under amortised
amortised cost cost category
category isis recognised
recognised upfront
upfront in
in
value of the consideration received or receivable based
value of the consideration received cr receivsble based
the statement of profit and loss, being the difference
the statement of profit and 'DSS,being the difference
on
on aa five-step
five-step model
model as as set
set out
out below,
below, unless
unless included
included in
in
between
between the
the carrying
carrying amount
amount (measured
(measured at the date
at the date of
of
the
the effective
effective interest
interest calculation:
calculatiom
recognition)
r4:ognition) and
and the
the consideration
consideration received
received (including
(including
S
 tep 1:
Step 1: Identify
Identify contract(s)
contract(s) with
with a
a customer:
customer. AA contract
contract
any
any new
new asset
asset obtained
obtained less
less any
any new
new liability
liability assumed).
assumed).
is defined as an agreement between two or more parties
is defned as en agreement between tv.h)or more parties
that creates enforceable rights and obligations and sets
that creates enforceable rights and obligations and sets 6.3
6.3 Expenses
Expenses

out the criteria for every contract that must be met.

out the criteria for every contract that must be met (i)
Finance
(i) costs
Finance costs

S
 tep 2:
step 2: Identify
Identify performance
performance obligations
obligations in
in the contract:
the contract Finance
Finance costs
costs represents
represents Interest
Interest expense
expense recognised
recognised
A
A performance
performance obligation
obligation is
is a promise
promise inin aa contract with
contract with by
by applying
applying the
the Effective
Effective Interest
Interest Rate
Rete (EIR)
(EIR) to
to the
the
a
a customer to transfer
custmer to transfer aa good
gnd oror service to the
service to the customer
customer. gross carrying amount of financial liabilities other than
gross carrying smount of financial liabilities other than
S
 tep 3:
Step 3: Determine the transaction
Determine the transection price: The transaction
price: The transaction financial liabilities
financial liabilities
classified
classified
as
as
FVTPL.
price
price is the amount
is the amount of of consideration
consideration to to which
which the
the The EIR in case of a financial liability is
The EIR in case of a financial liability is computed
computed
Company expects to be entitled in exchange for
Company expects to be entitled in exchange for
a. As
As the
the rate that exactly
rate that exactly discounts
discounts estimated
estimated future
future
transferring
transferring promised goods or
promised goods services to
or services to aa customer,
customer,
cash payments through the expected life of the
cash payments through the expected life of the
excluding
excluding amounts
emounts collected
collected on
on behalf of third
behalf of third parties.
parties
financial liability to the gross carrying amount of
financial liability to the gross carrying emount of
S
 tep 4:
Step Allocate the
4: Allozte the transaction
transection price
price to
to the
the performance
performance the
the amortised
amortised cost
cost ofof aa financial
financial liability.
liability
obligations
obligations in the contract:
in the contract: For
For a contract that
a contract that has
has more
more b. By
ay considering
considering all
all the
the contractual terms of
contractual terms of the
the
than
than one
one performance
*rfcrmance obligation,
cb'igation, the
the Company
Company allocates
allccetes
financial
financial instrument
instrument in
in estimating
estimating the
the cash
cash flows.
flows
the transaction price
the transaction price to each performance
to each performance obligation
obligation in
in

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 105
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

c. Including
Including all
all fees
fees paid
paid between
between parties
parties to the
to the services
services received
received before
t:efore the
the Balance
Balance Sheet
Sheet date,
date,
contract that ere
contract that are an
an integral
integral part
part of the
of the effective
effective then
then excess
excess is recognised as
ISrecognised ss an
an asset to the
ssset to the extent
extent
interest
interest rate,
rete, transaction
transection costs,
costs, and
and all
all other
other that the pre-payment
that the pre-payment will will lead to, for
lead to, for example,
example, aa
premiums
premiums or or discounts.
discounts reduction
reduction in
in future
future payment
payment or or aa cash
cash refund.
refund.
Any subsequent changes
Any subsequent changes in
in the
the estimation
estimation of
of the
the future
future b)
b) Defined
Defined Benefit
Benefit schemes
schemes

cash
cash flows
flows is
IS recognised
recognised inin Finance
Finance Cost
Cost with the
with the
The
The Company
Company provides
provides for
for the
the gratuity,
gratuity, a a defined
defined
corresponding adjustment to the carrying amount of the
correspnding adjustment to the carrying amount of the
benefit retirement plan covering all employees. The
benefit retirement plan covering al employees The
liabilities.
liabilities.
plan provides for lump sum payments to employees
plan provides for lump sum payments to employees
Interest
Interest expense
expense includes
includes issue
issue costs that are
costs that ere initially
initially upon
upon death
death while
while in
in employment
employment or or on
on separation
separation
recognised
rccgnised as as part
part of the carrying
of the carrying value
value of the financial
of the financial from
from employment
employment after after serving
serving for
for the
the stipulated
stipulated
liability
liability and amortised over
-nd -mortised over the expected life
the ex*cted life using
using years mentioned under ‘The Payment of Gratuity
years mentioned under "The Peyment of Gratuity
the effective interest
the effective interest
method.
method
These include fees
These include
and
fees end
Act, 1972’. The present value of the obligation under
Act, 1972' The present value ofthecb'igation under
commissions payable to advisers and other expenses
commissions pay-ble to Edvisers end other expenses such
such defined
defined benefit
benefit plan
plan is
is determined
determined basedbased onon
such
such as external legal
as external legal costs,
costs, Rating
Rsting Fee
Fee etc,
etc, provided
provided actuarial
actuarial valuation,
valuation, carried
carried out
out byby an
en independent
independent
these
these are
are incremental
increments' costs
costs that
that are
are directly
directly related to
related to actuary
actuary atat each
each Balance
Balance Sheet
Sheet date,
date, using
using the
the
the issue of a financial liability.
the issue of a financial liability Projected Unit Credit Method, which recognises
Projected unit Credit Mett* which recognises
each
each period
period ofof service
service as
as giving
giving rise
rise to
to an
an additional
additional
(ii) Retirement and other
Retirement and other employee
employee benefits
benefits
unit
unit of
of employee
employee benefit
teneflt entitlement
entitlement and and measures
measures
Short term employee
Short term employæ benefit
benefit
each unit separately to build up the final obligation.
each unit separately to build up the final obligatiom
All
All employee
employee benefits
t:eneflts payable
peysble wholly
wholly within twelve
within twelve
 The
The obligation
obligation isis measured
measured at the present
at the present value
value
months
months ofof rendering
rendering the
the service
service areare classified
classified as
as short-
short-
of the estimated future cash flows. The discount
of the estimated future cash flows The discount
term employee benefits. These benefits include short
term employee benefits. These benefits include short
rates
rates used
used for
for determining
determining the the present value of
present va'ue of the
the
term
term compensated
compensated absences
absences such such as
-s paid
Eid annual
annuel leave.
leave
obligation
obligation under
under defined
defined benefit
benefit plan
pl-n are
are based
based on on
The
The undiscounted
undiscounted amount
amount of of short-term
short-term employee
employee
the market yields on Government Securities as at
the market yields on Government Securities as at
benefits
benefits expected
expected toto be
be paid
paid inin exchange for the
exchange for the services
services
the
the Balance
Balance Sheet
Sheet date.
date
rendered by employees is recognised as an expense
rendered by employees is rccgnised as an expense
Net
Net interest
interest recognised
recognised in in profit
profit or
or loss
loss is
is calculated
calculated
during
during the
the period.
*riod Benefits
geneflts such
such asas salaries
salaries and wages,
-nd wages,
by
by applying
applying the
the discount
discount rate
rate used
used tcto measure
measure thethe
etc.
etc and the expected
and the expected cost
cost of the bonus/ex-gratia
of the bonus/ex-grstia are are
defined
defined benefit
benefit obligation
obligation to to the
the net
net defined
defined benefit
benefit
recognised
rccgnised in the period
in the period inin which the employee
which the employee renders
renders
liability
liability or
or asset.
asset. The
The actual
actual return
return on
on the
the plan
plen assets
assets
the
the related
related service.
sewice
above or below the discount rate is recognised
etc,'e or below the discount rete is recognised
Post-employment
Post-employment employee
employee benefits
benefits
as
es part
part of of re-measurement
re-meesurement of of netnet defined
defined
a)
e) Defined
Defined contribution schemes
contribution schemes
liability
liability or
or asset
asset through other comprehensive
through other comprehensive
All
All the
the employees
employees of of the
the Company
Company are are entitled
entitled income.
income An An actuarial
actuarial valuation
valuation involves
involves making
making
to receive benefits under the Provident Fund and
to receive benefits under the Provident Fund and various assumptions that may differ from actual
various assumptions that may differ from actual
Employees
Employees State State Insurance
Insurance scheme,
scheme, defined
defined developments
developments in in the
the future.
future These
These include
include the
the
contribution
contribution plans
plans in
in which
which both the employee
both the employee and and determination
determination of the discount
of the discount rate,
rste, attrition
attrition rate,
rate,
the Company contribute monthly at a stipulated
the Company contribute monthly et a stipulated future
future salary
salary increases
incresses andand mortality
mortality rates.
rates DueDue
rate.
rate. The
The Company
Company hashas nono liability
lisbility for
for future
future benefits
benefits to the complexities involved in the valuation and
to the complexities involved in the valuation and
other than its
other than ts annual
annual contribution
contribution and end recognises
recognises its
its long-term
long-term nature,
nature, these
these liabilities
liabilities are
are highly
highly
such
such contributions
contributions esas an an expense
expense in the period
in the *riod sensitive
sensitive tto changes
changes in these assumptions.
in these assumptions All All
in which employee renders the related service. IfIf
in which employæ renders the related service. assumptions
assumptions are
are reviewed
reviewed annually.
annually.
the contribution
the contribution payable
*yab'e to tc the
the scheme
scheme for for service
service
 The
The Company
Company fully fully contributes
contributes all ell ascertained
ascertained
received
received before
before the
the Balance
aa'ance Sheet
Sheet date
date exceeds
exceeds the
the
liabilities to The Trustees – SCUF Employees Group
liabilities to The Trustees —SCUFEmployees Group
contribution
contribution already
already paid, the deficit
paid, the deficit payable to the
payable to the
Gratuity Trust. Trustees administer contributions
Gratuity Trust Trustees administer contributions
scheme is recognised as a liability after deducting
scheme is recogmsed as e liability after deducting
made
made to the trust
to the trust andand contributions
contributions are
ere invested
Invested

the contribution
the contribution already
already paid.
paiff If
If the
the contribution
contribution in
in aa scheme
scheme of of insurance with the
insurance With the IRDA
IRDA approved
approved
already
already paid
paid exceeds
exceeds the the contribution
contribution duedue for
for
Insurance Companies.
Insurance Companies

106 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

Re-measurement, comprising
Re-measurement, comprising ofof actuarial
ectuarial gains
gains contract
contract contains
contains a e lease,
lease, at
at inception
inception of of aa contract.
contract AA
and
and losses and the
lcrssesend the return on plan
return on plan assets
assets (excluding
(excluding contract
contract is, or contains,
is, or contains, aa lease
lease ifif the
the contract
contract conveys
conveys
amounts
amounts included
included inin net
net interest
interest onon the
the net
net defined
defined the right
the right to
to control
control the
the use of an
use of en identified
identified asset
esset for
for a
e
benefit
tenefit liability),
liability), are
are recognised
recogmsed immediately
immediately in the
in the period
*rict of of time
time in
in exchange
exchange forfor consideration.
consideratiom To To assess
assess
balance sheet with a corresponding debit or credit to
balance sheet with a correspnding debit or credit to whether
whether a a contract
contract conveys
conveys thethe right
right to
to control
control the
the use
use
retained
retained earnings
earnings through
through OCI in the period
in the period inin which
which of an identified asset, the Company assesses whether:
of en identified asset, the O)mpany assesses whether:
they occur.
they occur Re-measurements
Re-measurements are are not
not reclassified
reclassified toto (i)
(i) the
the contract
contract involves
involves the
the use
use of
of an
en identified
identified asset
asset
profit and loss
profit end loss in
in subsequent
subsequent periods.
pericds
(ii) 
(ii) the
the Company
Company has
has substantially
substantially all
ell of
of the
the economic
economic
Other
Other long-term employee benefits
long-term employee benefits
benefits
benefits from
from use
use of
of the
the asset through the
asset through the period
period of
of
Company’s
Company's liabilities towards compensated
liabilities towards com#nsated absences
absences to to the
the lease
lease and
end

employees
employeesereare accrued
accrued on the basis
Dnthe basis of
of valuations, as at
valuations,as at the
the
(iii) 
(iiÜ the
the Company
Company has
has the
the right
right to
to direct the use
direct the use of
of
Balance Sheet date,
aalanceSheet carried out
date,csrried by an
DLitby an independent actuary
independentactuary
the asset.
the asset
using Projected Unit Credit Method. Actuarial gains and
using Projected Unit Credit Meth'S Actusria' gains and
At
At the
the date
date of of commencement
commencement of the lease,
of the lease, the
the
losses comprise experience adjustments and the effects
losses cc.mpnse sdjustments and the effæts
Company recognises a right-of-use asset (“ROU”) and
Compeny recognises a right-of-use asset ("ROU') and
of
of changes
changes inin actuarial
sctusrial assumptions
assumptions andand are
are recognised
reccgnised
aa corresponding
corresponding lease lesse liability
lisbility for
for all
all lease
lease arrangements
arrangements
immediately
immediately in in the
the Statement
Statement ofof Profit
Profit and
end Loss.
Inss
in
in which
which itit is
is aa lessee,
lessee, except for leases
except for leases with
with aa term
term of
of
The
The Company
Company presents the Provision
presents the Provision for
for compensated
compensated
twelve months
twelve months or or less
less (short-term
(short-term leases)
leases) and
end low
low
absences
absences under
under provisions
provisions in
in the
the Balance
Balance Sheet.
Sheet.
value leases.
value leases For
For these
these short-term
short-term and
and low
low value
value leases,
leases,
Employee Stock Options
Employee Stock Options the Company
the Company recognises
recognises the
the lease
lease payments
peyments as as an
an

Eligible employees in
Eligible employees terms of
in terms of the
the Employees
Employees Stock
Stcck operating
operating expense
expense onon aa straight-line
straight-line basis over the
besis over the
Options
Options Scheme
Scheme of the Company
ofthe Company receive
receive remuneration
remuneretion in
in term of
term the lease.
of the lease. Certain
Certain lease
lesse arrangements
arrangements includes
includes
the
the form
form of
of share-based
shsre-based payments, whereby employees
payments, whereby employees the options
the to extend
options to extend or
or terminate the lease
terminste the lease before
before the
the
render services as
render services as consideration
consideration for
for equity
equity instruments
instruments end
end of the lease
of the term. ROU
lease term ROLI assets
assets andand lease
lease liabilities
liabilities

granted (equity-settled transactions).

granted (equity-settled transactions) includes
includes these
these options
options when
when itit is
is reasonably
reasonably certain
certain thatthat
they will
they will be
be exercised.
exercised
The
The cost of equity-settled
cost of transactions is
equity-settled transactions is determined
determined by
by
the fair value at the date when the grant is made using
the fair value at the date when the grant is made using The
The right-of-use
right-of-use assets
assets areare initially
initially recognised
rccgnised at et cost,
cost,
an
an appropriate valuation model.
appropriate veluation model which comprises the initial amount of the lease liability
which comprises the initial amount of the lease liability

That
That cost
cost is
IS recognised,
r4:ognised, together
together with
with aa corresponding
corresponding adjusted
adjusted for
for any
any lease
lesse payments
payments made msde at at or
or prior
prior toto the
the

increase
increase inin Share
Share Option
Option Outstanding
Outstanding Reserves
Reserves in in equity,
equity, commencement
commencement date date ofof the
the lease
lease plus
plus any
any initial
initial direct
direct

over
over the
the period
pericd in in which the performance
which the performance andand // or
or service
service costs
costs less
less any
any lease
lease incentives.
incentives They They are
are subsequently
subsequently

conditions
conditions areare fulfilled
fulfilled in employee benefits
in employee benefits expense
expense // measured
measured at at cost
cost less
'ess accumulated
accumulated depreciation
depreciation and and

vesting
vesting period. The The cumulative
cumulative expense
expense recognised
reccænisedfor for impairment losses. Right-of-use assets are depreciated
impairment losses Right-of-use assets ere depreciated

equity-settled
equity-settled transactions
transactions at each reporting
at each reporting datedate until
until from
from the
the commencement
commencement date date onon aa straight-line
straight-line basisbes.s

the
the vesting date reflects
væting date the extent
reflects the extent to
to which
which thethe vesting
vesting over
over the
the shorter
shorter of the lease
of the lease term
term and
and useful
useful life
life of
of the
the

period has expired and the Company’s best estimate

peilc»d has expired and the Company"s best estimate underlying asset.
underlying asset

of
of the
the number
number of of equity
equity instruments
instruments that will ultimately
that will ultimately The
The lease
lease liability
liability is is initially
initially measured
measured at et amortised
amortised
vest. The Statement of Profit and Loss expense or
væt. The Statement of Profit and Loss expense credit
or credit cost at the present value of the future lease payments.
cost et the present velue of the future lease payments.
for
for aa period
period represents
represents the the movement
movement in in cumulative
cumulative The
The lease
lease payments
payments are are discounted
discounted using the interest
using the interest
expense
expense recognised
recognised es as at the beginning
at the teginning andand end
end ofof that
that rate
rate implicit
implicit in the lease
in the lease or,or, ifif not
not readily
readily determinable,
determinable,
period and is recognised in employee benefits expense.
peilc»dand is recognised in empty* teneflts expense using
using the the incremental
incremental borrowing
borrowing rates. After the
rates. After the
No
No expense
expense is is recognised
recognised for for awards
awards that that dodo notnot commencement date, the lease liability is adjusted
commencement date, the lease liability is adjusted
ultimately vest.
ultimately vest by
by increasing
Increasing the the carrying
carrying amount
amount to to reflect
reflect interest
interest
on
on the
the lease
lease liability;
liability, reducing
reducing the the carrying
carrying amount
-mount to to
(iii)
(iii) Lease
Lease
reflect the lease payments made; and remeasuring the
reflect the lease payments made; and remeasuring the
The
The Company
Company as a lessee
as a lessee
carrying
carrying amount
amount to to reflect
reflect anyany reassessment
reessessment or or lease
lease
The
The Company’s
Companfs lease
lease asset
asset classes
classes primarily
primarily consist of
consist of modifications.
modifications The The lease
lease liability
liability is is also
also remeasured
remeasured
leases for buildings. The Company assesses whether aa
leases for buildings The Company assesses whether when
when there
there is
is aa change
change in in future
future lease
lease payments
payments arising
arising

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 107
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

from
from aa change
change in in an
an index
index or
or rate,
rate, if there is
if there is aa change
change cash
cash flows
flows are
are discounted
discounted to their present
to their value using
present value using aa
in
in the
the Company’s
Company"s estimate
estimate ofof the
the amount
smount expected
ex=cted to to pre-tax
pre-tax discount
discount rate
rate that
that reflects
reflects current
current market
market
be
be payable
payable under
under a a residual value guarantee,
residue' value guarantee, or or ifif the
the assessments
assessments of of the time value
the time value of of money
money andand risks
risks
Company
Company changes
changes its its assessment
assessment of of whether
whether itit willvilll specific
specific to
to the
the asset.
asset
exercise a purchase, extension or termination option.
exercise purchase, extension or termination option In
In determining
determining net net selling
selling price,
price, recent
recent market
market
When
When thethe lease
lease liability
liability is
is remeasured
remeasured in in this
this way,
way, a a
transactions are taken into account, if available. If
transactions are taken into account, if evailable If no
no
corresponding
correspnding adjustment
adjustment is is made
made to the carrying
to the carrying
such transactions can be identified, an appropriate
such transections can tre identified, an appropriate
amount
amount of the right-of-use
of the asset, or
right-of-use asset, or is
is recorded
recorded in n valuation
valuation model
model is
is used. After impairment,
useff After impairment, depreciation
depreciation
profit or loss if the carrying amount of the right-of-use
profit or loss if the carrying amount of the right-of-use
is
is provided
provided on
on the
the revised
revised carrying
carrying amount
amount of of the
the asset
asset
asset has been reduced to
asset hes teen reduced
zero. The interest on
to zero. The interest
on the
the over its remaining useful life.
over its remaining useful life
lease
lease liability
liability is
is recognised
recognised in the statement
in the statement of of Profit
Profit
& Loss
Loss except
except to to the
the extent that it
extent thet it can
can be
be allocated
allccated to to (vi)
(vi) Taxes
Taxes

any Property, Plant & Equipment. Lease liabilities are

any Property, Plent & Equipment Lease liabilities are Current
Current Tax
Tax

remeasured
remeasured wth with a e corresponding adjustment to
corresponding adjustment to the
the Current
Current tax
tax assets
assets and and liabilities
liabilities are
are measured
measured at the
at the

related
related right
right of
of use
use asset
asset ifif the
the Company
Company changes
changes its its amount
amount expected
expected to to be
be recovered
recovered from, from, oror paid
paid to, the
to, the
assessment
assessment
ifif whether
whether
itit will exercise an extension or
will exercise an extension
a
or a
taxation authorities. The tax rates and tax laws used
taxation authorities The tax rates and tax 'aws used

termination option. Lease liability and ROU asset have

termination option Lease lisbility and ROLIasset have to
to compute
compute thethe amount
amount are ere those
thcrse that
thet are
ere enacted,
enacted
been
been separately
separately presented
presented in in the
the Balance
Balance Sheet.
Sheet. or
or substantively enacted, by
substantively enacted, by the the reporting
reporting date
date in the
in the
Rent
Rent concession
concession consequent
consequent to
to modification
modification of of lease
lease countries
countries where
where the the Company
Company operatesoperates and and generates
generates
terms due to
terms due to COVID
COVID1g19 pandemic
pandemic have
have been
been accounted
accounted taxable
taxable income.
income

for
for as
as other
other income
income with
with a reduction
reduction in
in lease
lease liability
liability in
n Current
Current income
income tax tax relating
relating toto items
items recognised
recognised
terms of practical expedient under IND AS 116 Leases.
terms of practical expedient under INDAS 116 Leases. outside
outside profit
profit or
or loss
loss is
is recognised
recognised outside
outside profit
profit or
or loss
loss
The
The Company
Company as
as aa lessor
lessor (either
(either inin other
other comprehensive
comprehensive income income or or in
in equity).
equity)

Leases
Leases for which the
for which the Company
Company is is ae lessor
lessor is
is classified
classified Current
Current taxtax items
items are
are recognised
recognised in in correlation
correlation toto the
the

as a finance or operating lease. Whenever the terms

es a finance or operating lease. Whenever the terms ofof underlying transaction either in OCI or directly in equity.
underlying transaction either in OCI or directly in equity

the
the lease
lease transfer
transfer substantially
substantiElly all
all the
the risks
risks and
and rewards
rewards Management
Menagement periodically
pericdically evaluates
evaluates positions
psitions taken
taken

of ownership to
of ownership to the
the lessee,
lessee, the contract is
the contract is classified
classified in the tax
in the tax returns
returns with
with respect
respect toto situations
situations in which
in which

as
es a finance lease.
a finance All other
lease. All other leases
leases areare classified
classified as
as applicable
applicable taxtax regulations
regulEticns are are subject
subject toto interpretation
interpretation

operating leases. When the Company is an intermediate

operating leases. when the Comvny is an intermediate and
and establishes
establishes provisions where appropriate.
provisions where appropriate.

lessor,
lessor, it
it accounts for its
accounts for its interests
interests in the head
in the heed lease and
lease end Deferred tax
Deferred tax

the
the sublease
sublease separately.
separately. TheThe sublease
sublease is is classified
classified as as Deferred
Deferred tax
tax assets
assets andand liabilities
liabilities are
are recognised
rccgnised for for
a finance or operating lease by reference to the right-
e finance or 0*rating lease by reference to the right- temporary differences arising between the tax bases
temporary differences arising between the tax bases
of-use asset arising
of-use asset from the
arising from the head
head lease.
lease. For
For operating
operating of
of assets
assets and and liabilities
'iEbilities and
and their carrying amounts.
their carrying amounts
leases,
lesses, rental
rent-I income
income is is recognised
racænised on on e a straight
straight line
line Deferred
Deferred income
income taxtsx is
is determined
determined using
using tax
tex rates
retes (and
(and
basis
basis over the term
over the term of the relevant
of the relevant lease.
lease
laws) that have been enacted or substantively enacted
laws) that have been enacted or substantively enacted

(iv)
(w) Other
Other income and expenses
income and expenses by
by the
the reporting
repyting date
dete and areare expected
expect± to to apply
apply when
when
the
the related
related deferred
deferred income
income taxtax asset
esset is
IS realised
realised or
or the
the
All
All Other
Other income
income and
and expense
expense are
are recognised
recognised in the
in the
deferred
deferred income
income taxtax liability
liability is
is settled.
settled
period
period they
they occur.
cccur.
Deferred
Deferred taxtax assets
assets are
ere only
only recognised
r4:ognised for
for temporary
temprary
(v)
(v) Impairment of non-financial
Impairment of non-financial assets
assets
differences, unused tax losses and unused tax credits
differences, unused tax losses and unused tax credits
The
The carrying
carrying amount
amount of of assets
assets isIS reviewed
reviewed at at each
each if it is probable that future taxable amounts will arise to
if it is probable thet future taxable Emcunts will arise to
balance sheet date
balancesheet date if
if there
there is
is any
any indication
indicetion of
of impairment
impairment utilise
utilise those
those temporary
temporary differences
differences and and losses.
losses Deferred
Deferred
based
based onon internal/external
internel/external factors. An impairment
fectDrs An impairment loss
loss tax
tax assets
assets are
are reviewed
reviewed at st each
each reporting
reporting date
dste and
and are
ere
is recognised wherever the carrying amount of an asset
is recognised wherever the carrying amount of en asset reduced to the extent that it is no longer probable that
reduced to the extent that it is no longer probable that
exceeds
exceeds its
its recoverable
recoverable amount.
Emcunt The
The recoverable
recoverable amount
emount the
the related tax benefit
related tax teneflt will
will be
be realised.
realised

is
is the
the greater
greater of the assets,
of the essets, net
net selling
selling price and value
price end value Deferred
Deferred tax
tax assets
assets and
and liabilities
liabilities are
ere offset
offset where
where there
there
in
h use.
use. In
In assessing
assessing value
value in
in use, the estimated
use, the estimated future
future
is
is a
a legally
legally enforceable
enforceable right
right to to offset
offset current tax assets
current tax assets

108 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

and
and liabilities
liabilities and
end they
they relate to income
relate to income taxes
taxes levied
levied byby 6.4
6.4
Foreign
Foreign currency
currency translation
translation
the
the same
same tax tax authority
authority on
on the
the same taxable entity,
ssme taxable entity, or
or on
on
(i)
(i) Functional
Functional and
and presentational
presentational currency
currency
different tax entities,
different tax entities, but they intend
but they intend to
to settle
settle current
current tax
tax
liabilities
liabilities
and assets on a net basis or their tax assets
and assets on a net basis or their tax assets The
The standalone
standalone financial
financial statements
statements are
are presented
presented in
in

and liabilities are realised

and liabilities ere realised simultaneously.
simultana)usl}! Indian Rupees which is also functional currency of the
Indi-n Rupees which is also functional currency of the
Company
Compeny and the currency
and the currency of
of the
the primary
primary economic
economic
Minimum
Minimum Alternate Tax (MAT)
Alternate Tax (MAT)
environment
environment inin which
which the
the Company
Company operates.
operates
Minimum
Minimum alternate
alternate taxtax (MAT)
(MAT) paid
paid is
is charged to to the
the
statement of profit and loss as current tax. The Company
statement of profit and loss es current tax The Company (ii) Transactions
Transactions and
and balances
balances

recognises
recognises MATMAT credit
credit available
available as
as an asset only
an asset only to
to the
the Initial
Initial recognition:
recognition:
extent
extent that
that it is probable
itis probable that the Company
thatthe will pay normal
Companywilpay normal
Foreign
Foreign currency
currency transactions
transactions areare translated
translated into
into the
the
income tax during
income tax during thethe specified
s—ified period, i.e.,
i e, the
the period
period for
for
functional currency using the exchange rates prevailing
functional currency using the exchange rates prevailing
which
which MAT credit is
MAT credit is allowed
allowed to be
to be carried
csrned forward.
fanvsrff In
In
at
at the
the dates
detes of
of the
the transactions.
transactions.
the
the year
year in which the
in which the Company
Company recognises
recognises MAT credit
MAT credit
Conversion:
Conversion:
as
as an
an asset
asset inin accordance
accordance with the Guidance
with the Guidsnce Note
Note on
on

Accounting for Credit Available in respect of Minimum

Accounting for Credit Available in respect of Minimum Monetary
Monetary assets
assets and
and liabilities
liabilities denominated
denominated in in foreign
foreign
Alternative Tax under
Alternative Tax under the
the Income-tax
Income-tax Act,
Act, 1961, the said
1@61,the said currency,
currency, which
which areare outstanding
outstanding as es at the reporting
at the reporting
asset
asset isIS created
created by
by way
way of of credit
credit to
to the
the statement
statement ofof date,
deter are translated at
are translated at the
the reporting
reporting date
date at
at the
the closing
closing
profit
profit and
and loss
'oss and
end shown
shown as as “MAT
"MAT Credit
Credit Entitlement.”
Entitlement" exchange rate and the resultant exchange differences
exchange rate and the resultant exchange differences
The
The Company
Company reviews
reviews the
the MAT
MAT Credit
Credit Entitlement
Entitlement asset
asset are
are recognised
rccgnised in the Statement
in the Statement of of Profit
Profit and
and Loss.
Loss
at each reporting date and writes down the asset to the
at each repyting date and writes down the asset to the Non–monetary
Nan—monetary itemsitems that
that are
are measured
measured atat historical
historical
extent the Company
extent the Company does
does not
rot have
have convincing evidence
convincing evidence cost
cost in
in a
e foreign
foreign currency
currency are translated using
are translated using the
the spot
spot
that
that it
it will
will pay
pay normal tax during
norms' tax during the
the specified period.
peric.d exchange rates as at the date of recognition.
exchange rates as at the date of recognitiom
Goods
Goods and services tax
and services tax /value added taxes
[value added taxes paid on
paid on
6.5
6.5 Cash
Cash and
and cash
cash equivalents
equivalents
acquisition of assets or on incurring expenses
acquisition of assets or on incurring expenses
Cash
Cash andend cash
cash equivalents comprise the
equivalents comprise the net
net amount
amount
Expenses
Expenses and assets are
and assets are recognised
recognised net
net of
of the
the goods
gcods
of short-term, highly liquid investments that are readily
of short-term, highly liquid investments that ere readily
and services tax/value added taxes paid, except:
and services tayJvalue added taxes paid, except
convertible
convertible to to known
knyun amounts
amounts of of cash
cash (short-term
(short-term
i. 
i. When the
When the tax
tax incurred
incurred onon a a purchase
purchase of of assets
assets deposits
deposits with
with an
an original
origin-I maturity
maturity of
of three
three months
rncnths or
or less)
less)
or services is not recoverable from the taxation
or services is not recoverable from the texation
and are subject to an insignificant risk of change in value,
and ere subject tc an insignifent risk of change In value,
authority,
authority, in which case,
in which case, the
the tax
tax paid
paid isis recognised
recognised
cheques
cheques on on hand
hand and
end balances with banks.
±lances with banks. They
They are
are held
hebd
as
as part
part of the ccst
of the cost of
of acquisition
scguisition of the asset
of the or as
asset or as for the purposes
farthe purposesof of meeting
meeting short-term
short-term cash
cash commitments
commitments
part of the expense item, as applicable
of the expense item, as applicable (rather
(rather than
than for
for investment
investment oror other
other purposes).
purposes).
ii. 
ii When receivables
When receivables and
and payables
payables are
are stated
stated with
with the
the
For the purpose
For the purpose ofof the
the statement
statement of
of cash
cash flows,
flows, cash
cash
amount of tax included
amount of tax included
and cash equivalents consist of cash and short- term
and cash equivalents consist of cash and short- term
The
The net
net amount
amount of of tax
tax recoverable
recoverable from,
from, or
or payable
payable to,
to, deposits, as defined above.
deposits, as defined ebove.
the taxation authority
the taxation authority is
is included
included as
es part of receivables
pert of receivables
6.6
66
Property, plant
plant and
and equipment
equipment
or
or payables
payables in
in the
the balance
belance sheet.
sheet.
Property,
Property, plant
plant and equipment (PPE)
and equipment (PPE) are
are measured
measured at at
(vii)
(vii) Dividends
Dividends on
on ordinary shares
ordinary shares
cost
cost less
less accumulated
accumulated depreciation
depreciation and and accumulated
accumulated
The
The Company
Company recognises
rccgnises aa liability
liability to
to make
make cash
cash or
or impairment,
impairment, (if(if any).
any} The
The total
total cost
cost ofof assets
sssets comprises
comprises
non-cash
non-cesh distributions
distributions to
to equity
equity holders
ho'ders of
of the
the Company
Company its purchase price, freight, duties, taxes and any
its purchase price, freight, duties, taxes and any other
other
when the distribution
when the distribution is
is authorised
suthorised and
end the
the distribution
distribution
incidental expenses directly attributable to bringing the
incidental expenses dirEtIy attributab'e to bringing the
is no longer at the discretion of the Company. As
is no longer at the discretion of the Companyt As per
per asset
asset to
to the
the location
location and
and condition
condition necessary
necessary forfor itit to
to
the
the Companies
Companies Act, final dividend
Act, final dividend is is authorised
authorised when when itit be
be capable
capable ofof operating
opereting inin the
the manner
manner intended
Intended by by the
the
is approved by
ISapproved by the
the shareholders
shareholders and and interim
interim dividend
dividend is is management.
management Changes Changes in in the
the expected
expected useful
useful life
life are
are
authorised
authorised when
when itit isis approved
approved by by the
the Board
3aard ofof Directors
Directors accounted for by changing the amortisation period or
accounted for by changing the smortisation pef10d or
of the Company.
of the Company A A corresponding
corresponding amountamount is is recognised
recænised methodology,
methodology, as as appropriate,
appropriate, andand treated
treated as
es changes
changes in in
directly
directly in equity.
in equity. accounting estimates.
accounting estimates

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 109
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

Subsequent
Subsequent expenditure
expenditure related
related to
to an
an item
item of of tangible
tangible between
between thethe net
net disposal
dispose' proceeds
prææds and end the
the carrying
carrying
asset
asset are added to
are added to its
its gross value only
gross velue only ifif itit increases the
increases the amount
amount of of the
the asset)
asset) isis recognised
reccænised in in other
other income
income //
future
future benefits of the
benefits of the existing
existing asset,
asset, beyond its its previously
previously expense
expense inin the
the statement
statement of of profit
profit and
and loss
loss in the year
in the year
assessed standards of
assessed standards Df performance
*rfcrmance and and cost cost can
can be
be the
the asset
asset is
is derecognised.
derecognised The The date
date of
of disposal
disposal of
of an
an
measured reliably. Other repairs and maintenance costs
measured reliably. Other reps.rs and maintenance costs item of property, plant and equipment is the date the
item of property, plent equipment is the date the
are
ere expensed
expensed offoff as
as and
and when
when incurred.
incurred recipient
recipient obtains
obtains control
control of that item
of that item in
in accordance with
accordsnce with
the
the requirements
requirements for for determining
determining when when a e performance
performance
Depreciation
Depreciation
obligation
obligation is
is satisfied
satisfied in
in Ind
Ind AS
AS 115.
115
Depreciation
Depreciation is is calculated
calculated using
using the
the straight–line
straight—line
method to write down the cost of property end
methcd to write down the cost of property and 6.7 Intangible
6.7 Intangible assets
assets
equipment
equipment toto their
their residual
residual values
values over
over their estimated
their estimated An
An intangible
intangible asset
asset is
is recognised
r4:ognised only when its
only when its cost
cost cancan
useful
useful lives
lives which
which is is in
in line
line with
with the the estimated
estimated useful
useful
be measured reliably and it is probable that the expected
be measured reliably and it is probable that the expected
life as specified in Schedule II of the Companies Act,
life as specified in Schedule II of the Compenies Act, future
future economic
economic benefits
benefits that are
thst are attributable
attributable to itit will
to will

2013
2013 except
except forfor Leasehold
Leasehold Improvements
Improvements which which areare flow
flow to the Company.
to the Company
amortised
amortised on on aa straight-line
straight-line basis
basis over the period
overthe period of
of lease
lease
Intangible
Intangible assets
assets acquired
acquired separately
separately are
are measured
measured
or
or estimated
estimated period
period of of useful
useful life
life of
of such
such improvement,
improvement
on
on initial
initial recognition
recognition at
et cost.
cost The
The cost
cost of
of an
an intangible
intangible
subject
subject to to aa maximum
maximum period pericd ofof 60
60 months.
months Leasehold
Leasehold
asset comprises its purchase price and any directly
asset comprises its purchase price any directly
improvements include all expenditure incurred on
improvements include all expenditure incurred the
on the
attributable expenditure on making the asset ready for
attributable ex*nditure on making the asset ready for
leasehold
leasehold premises
premises thatthet have future economic
have future economic benefits.
benefits
its
its intended
intended useuse and
end netnet of
of any
any trade
trade discounts
discounts and
and
Land
Land isis not
not depreciated.
depreciated .
rebates.
rebates Following
Following initial
initial recognition,
recognition, intangible
intangible assets
assets
The
The estimated
estimated useful
useful lives are as
lives ere follows:
as follows
are
are carried
carried at cost less
at cost less any
any accumulated
accumulated amortisation
amortisation
Particulars
Particulars
Useful life as Useful
Useful life as useful
life
life and any accumulated impairment losses.
and any accumulated impairment losses.
prescribed estimated by
prescribed estimated by The
The useful
useful lives
lives of
of intangible
intangible assets
assets are
are assessed
assessed to to
by
by Schedule
Schedule Company
Company be
be either finite or
either finite or indefinite.
indefinite Intangible
Intangible assets
assets with
with finite
finite
II of the
II of the
lives
lives are
are amortised
amortised over
over the
the useful
useful economic
economic life.
life The
The

Companies
Companies amortisation period and the amortisation method for an
amortisation pericd and the amortisstion method for an
Act, 2013
Act, 2013 intangible
intengible asset
asset with
with aa finite
finite useful
useful life
life are
are reviewed
reviewed at at
Building
Building 60 years
60 years 60
60 years
years least
least at
et each financial year-end.
each financial year-end Changes
Changes in in the
the expected
expected
Plant
Plent and
end machinery
machinery 15
15 years
years 15
15 years
years useful
useful life,
life, or
or the
the expected
expected pattern
pattern of
of consumption
consumption of of
Electrical equipment
Electricalequipment 10 years
1Dyears 10o years
years future
future economic
economic benefits
benefits embodied
embcdied in the asset,
in the asset, are
ere
Generator
Generator 10
1D years
years 10
10 years
years
accounted
accounted for for by
by changing
changing thethe amortisation
amortisation period
period or
or
Furniture
Furniture andand fixture
fixture 10 years
1Dyears 10o years
years
methodology,
metho±Dlogy, as es appropriate,
appropriate, which
which areare then treated
then treated
Air conditioner
Air conditioner
10
1D years
years 10
10 years
years
as
as changes
changes in In accounting
accounting estimates.
estimates The The amortisation
amortisation
Electronic equipment
Electronicequipment 10 years
1Dyears 10 years
10 years
expense on intangible assets with finite lives is
expense on intangible assets with finite lives is presented
presented
Office
Office equipment
equipment 55 years
years 55 years
years
as
as ae separate
separate line
line item
item in
in the
the statement
statement of of profit
profit and
and
Refrigerator
Refrigerator 10 years
1D years 10 years
10 years
loss.
loss Amortisation
Amortisation on assetsassets acquired/sold
acquired/sold during
during the
the
Motor car
Motor car
8 years
8 years 8 years
8 years
year is recognised on a pro-rata basis to the Statement
year is recognised on a pro-rata ±s.s to the Ststement
Vehicles
Vehicles 10
1D years
years 10
10 years
years
of
of Profit
Profit and
end Loss
Loss from
from // upto the date
upto the dete of of acquisition/
acquisition/
Server
Serverandand networking
networking 66 years
years 66years
years
Computer
Computer 3 years 3
3
years
ars sale.
sale

The
The residual values, useful
residual values, useful lives
lives and
end methods
methods of of Amortisation
Amortisation is calculated using
is calculated using the
the straight–line
straight line
depreciation
depreciation of of property,
property, plant
plent and equipment are
and equipment are method
method to
to write
write down
down the
the cost
cost of
of intangible
intangib'e assets
assets to
to
reviewed
reviewed et at each
each financial year end
financial year end and
and adjusted
adjusted their
their residual
residual values over
velues their estimated
over their estimated useful
useful lives.
lives

prospectively,
prospectively, ifif appropriate.
appropriate Intangible assets comprising of software are amortised
Intangible assets comprising of software are amortised

Property
Property plant
plent and equipment is
and equipment is derecognised
derecognised on on on
on a a straight-line
straight-line basis
basis over
over a
a period
period of
of 3 years, unless
3 years, unless itit

disposal
disposal or when no
or when no future
future economic
economic benefits
benefits are
are has
has a
a shorter
shorter useful
useful life.
life

expected
expected from
from itsits use.
use Any
Any gain or loss
gain or loss arising
arising on
on The
The Company’s
Compeny's intangible
intangible assets
assets consist
consist of
of computer
computer
derecognition of the asset (calculated as the difference
derecognition of the asset (calculatad es the difference software with definite life.
software with definite life

110 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

Gains
Gains or
or losses from derecognition
losses from derecognition of
of intangible
intangible assets
assets 6.11
6.11 Earning
Eaming Per
Per Share
Share
are
are measured
measured as the difference
as the difference between
between thethe net
net disposal
disposal The
The Company
Company reports
reports basic
basic and
end diluted
diluted earnings
earnings per
per
proceeds
prcce±s and -nd the
the carrying
carrying amount
amount of of the
the asset are
asset ere share in accordance with Ind AS 33 on Earnings per
share in accordance with It-rdAS 33 on Earnings per
recognised
recognised inin the
the Statement
Statement of
of Profit
Profit and
end Loss
Loss when
when the
the share. Basic EPS is calculated by dividing the net profit
share Basic EPS is calculated by dividing the net profit
asset
asset is derecognised.
is deræc.gniseff or
or loss
loss for
for the
the year
yesr attributable
Ettributsble toto equity
equity shareholders
shareholders

6.8
6.8 Provisions
Provisions (after
(after deducting
deducting preference
preference dividend
dividend andend attributable
attributable
taxes) by the weighted average number of equity shares
taxes) by the weighted average number of equity shares
Provisions
Provisions are
are recognised
ræognised whenwhen thethe enterprise
enterprise has
hes aa
outstanding during the year.
outstanding during the year
present
present obligation
obligation (legal
(legal or constructive)
constructive) as as aa result
result
of past events, and it is probable that an outflow of
of past events, and it is prob-ble that an outflow of For
For the
the purpose
purpose of of calculating
calculating diluted
diluted earnings
earnings perper

resources embodying economic

resources embodying economic benefits
benefits will
will be required
required share, the net
share, the net profit
profit or
or loss
Ic,ss for
for the
the year
year attributable
attributable toto

to
to settle the obligation,
settle the Dbligetion, and
and aa reliable
reliable estimate
estimate cancan be
be equity
4;uity shareholders
shareholders and the weighted
and the weighted average
aver-ge number
number

made
made of the amount
of the amount of the obligation.
of the obligation. of
of shares
shares outstanding
outstanding during
during thethe year
year are
are adjusted
adjusted forfor
the effects
the effects ofof all
all dilutive
dilutive potential
potential equity
equity shares.
sherey Dilutive
Dilutive
When
When thethe effect
effect of
of the time value
the time value ofof money
money is is material,
material,
potential
potential equity
equity shares
shares are
are deemed
deemed converted
converted as as of
of the
the
the
the enterprise
enterprise determines
determines the the level
level of
of provision
provision by by
beginning of the year, unless they have been issued at a
beginning of the year, unless they hsve ten issued ate
discounting the expected cash flows at a pre-tax rate
discounting the cash flows at a pre-tax rate
later
later date.
date. In
In computing
computing the the dilutive
dilutive earnings
earnings per share,
share,
reflecting the current
reflecting the current rates
rates specific
specific to the liability.
to the liability The
The
only
only potential
potential equity
equity shares
shsres that
that are
ere dilutive
dilutive and
and that
that
expense
expense relating to any
relating to any provision
provision is is presented
presented in in the
the
either
either reduces
reduces thethe earnings
earnings per
per share
share or
or increases
increases loss
loss
statement
statement of of profit
profit and
-nd loss
loss net of any
net of any reimbursement.
reimbursement
per share are included.
per share are included
As
As at
at reporting
reporting date, the Company
date, the Company does does not
not have
have any
any
such provisions where the effect of time value of money
such provisions where the effect of time value of money
7. SIGNIFICANT
SIGNIFICANT ACCOUNTING JUDGEMENTS,
ACCOUNTING JUDGEMENTS,
is material.
is material.
ESTIMATES AND ASSUMPTIONS
ESTIMATES AND ASSUMPTIONS
6.9
6.9 Contingent
Contingent Liabilities
Liabilities
The
The preparation
preparation of of financial
financial statements
statements in in conformity
conformity
A
A contingent
contingent liability
liability is
is aa possible
possible obligation
obligation that
thet arises
arises with the Ind AS requires the management to
with the Ind AS —uires the man-gement to make
make
from past events whose existence will be confirmed
from past events whose existence will be confirmed judgments, estimates and assumptions that affect
judgments, estimates and assumptions that affect
by the occurrence
by the cccurrence or or non-occurrence
ron-ncurrence of of one
one oror more
more the reported
the reported amounts
emounts of of revenues,
revenues, expenses,
expenses, assets
assets
uncertain
uncertain future
future events
events beyond thethe control
control ofof the
the and
and liabilities
liabilities and the accompanying
end the accompanying disclosuredisclosure and and
Company
Company or aa present present obligation
obligation that
that isis not
not recognised
recognised the disclosure
the disclosure of of contingent
contingent liabilities,
liabilities, at
at the
the endend of
of
because
because itIt is is not
not probable
prob-ble thatthat an
an outflow
outflow of of resources
resources the reporting period and reported amounts of income
the pericd and reported amounts of income
will be required to settle the obligation. A contingent
will be required to settle the obligatiom A contingent and
and expenses
expenses for the reporting
for the reporting period.period Estimates
Estimates and and
liability also arises
liability also arises in 'n extremely
extremely rare
rare cases
cases where
where there
there underlying assumptions are reviewed on an ongoing
underlying assumptions are reviewed an ongoing
is
is aa liability
liability that
that cannot
csnnot be be recognised
recognised because
because it cannot
cannot basis. Accounting estimates
basis. Accounting estimates couldcould change from period
change from period
be
be measured
measured reliably. The Company
reliablb{The Company doesdoes not
not recognise
recognise tto period.
peric.d. Appropriate
Appropriate changes
chenges in in estimates
estimates are are made
made
a contingent liability but discloses its existence in
a contingent liability but discloses its existence in the
the as the Management becomes aware of changes in
as the Management becomes -ware of changes in
financial
financial
statements.
statements circumstances surrounding the estimates. Revisions
circumstances surrounding the estimates. Revisions
tto accounting
accounting estimates
estimates are ere recognised
ræc»gnised in the period
in the period
Contingent
Contingent liabilities
liabilities are
ere reviewed at each
reviewed et each Balance
aalence
Sheet date.
Sheet date in
in which
which the the estimates
estimates are are revised
revised and and future
future periods
periods
are
are affected.
affected Although
Although these
these estimates
estimates are ere based
besed on on
6.10
6.10 Contingent asset
Contingent asset
the management’s best knowledge of current events
the management's best knowl±ge of current events
A
A contingent
contingent asset
asset is
IS a
a possible
possible asset
asset that
thet arises
arises from
from and
and actions,
actions, uncertainty
uncertainty about
s±ut these these assumptions
assumptions and and
past events and whose existence will be confirmed only
past events end whose existence will be confirmed only estimates could result in the outcomes requiring a
estimates could result in the outcomes requiring e
by
by the
the occurrence
occurrence oror non-occurrence
non-occurrence of of one
cr,e or
or more
more material
material adjustment
adjustment tc to the
the carrying
carrying amounts
amounts of of assets
assets
uncertain
uncertain future
future events
events not
not wholly
wholty within
within the
the control
control of
of or
or liabilities
liabilities inin future
future periods
periods in in which
which changes
changes are are made
mede
the Company. Contingent assets are not recognised in
the Company Contingent assets are not recognisal 'n and,
and, if
if material, their effects
material, their effects are
are disclosed
disclosed in the notes
in the notes to
to
the financial statements. Contingent assets are disclosed
the financial statements. Contingent assets are disclosed the financial
the financial statements.
statements

where an inflow
where en inflow of
of economic
economic benefits
benefits is
is probable.
probable In
In particular,
particular, information
information about
ebout significant
significant areas
areas of
of
Contingent
Contingent assets
assets are
are reviewed
reviewed at
et each
each Balance
Balance estimation,
estimation, uncertainty
uncertainty and
and critical judgments in
critic-I judgments applying
inapplying
Sheet date.
Sheet date accounting
accounting policies
policies that
that have the most
have the most significant
significant effect
effect

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 111
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

on the amounts
cr. the amounts recognised
recognised in the financial
in the financial statements
statements such
such as
as liquidity
liquidity risk, credit risk
risescredit risk and volatility. Changes
and volatility Changes
is
is included
included in the following
in the following notes:
notes. in
in assumptions
assumptions about these factors
E±ut these factors could
could affect
affect the
the
reported
reported fair
fair value
value of financial instruments.
of financial instruments
7.1
7 _1 Business
Business Model
Model Assessment
Assessment

Classification
Classification and
and measurement
measurement of
of financial
financial assets
assets 7.4
7.4 Impairment
Impairment of
of loans
loans portfolio
portfolio
depends on the results of the SPPI and the business
depends on the results cf the SPPI end the business The
The measurement
measurement of of impairment
impairment losses
losses across
across allEll
model
model testtest. The
The Company
Compeny determines
determines the the business
business categories
categories of of financial
financial assets
assets requires judgement, in
—uires judgement, in
model
model at et aa level that reflects
level thet reflects how groups of
how groups of financial
financisl particular,
particular, the
the estimation
estimation ofof the
the amount
amount and timing of
-nd timing of
assets are managed together to achieve a particular
assets are managed tcgether t achieve a particular future
future cash
cash flows
flows and
end collateral
colsteral values
values when
when determining
determining
business
business objective.
objective. This This assessment
assessment includes includes impairment losses and the assessment of a significant
Impairment losses and the assessment of significant
judgement reflecting
judgement reflecting all all relevant
relevant evidence
evidence including
including increase
increase inin credit
credit risk.
risk These
These estimates
estimates are
are driven
driven by
by
how
how thethe performance
*rformance of of the
the assets
sssets is is evaluated
evaluated end and aa number
number of of factors,
factors, changes
changes in in which
which can
cen result
result in
in
their performance measured, the risks that affect
their performance measured, the risks that affect different
different
levels of allowances.
levels of allowances.

the
the performance
performance of of the
the assets
assets end and how how these
these are are ItIt has
hes been the Company’s
been the Company's policy
policytoto regularly
regularly review
review its
its
managed
managed and and how how thethe managers
managers of of thethe assets
essets are are
models in the context of actual loss experience and adjust
mcdels inthe context of actual loss experience and adjust
compensated.
compensated The The Company
Compeny monitors
monitors financial assets
finsncisl assets
when
when necessary.
necessary.
measured
measured at at amortised
amortised costcost or fair
fair value
value through
through other
other
The
The impairment
impairment loss
loss on
on loans
loans and
and advances
advances is
is disclosed
disclosed
comprehensive income that are derecognised prior
comprehensive income that are derecognised prior
in
in more
more detail
detail in
in Note
Note 6.1(xi)
61 (xi) Overview
Overview of
of ECL
ECLprinciples.
principles
to their maturity
to their maturity to to understand
understand the the reason
reason for for their
their
disposal
disposal and and whether
whether the the reasons
reasons are are consistent
consistent with with 7.5 
7.5
C ontingent liabilities
Contingent liabilities andand provisions
provisions other than
other than
the objective of the business for which the asset was
the objective of the business for which the asset was impairment
impairment on
on loan
loan portfolio
portfolio
held.
held Monitoring
Monitoring is is part
part ofof the
the Company’s
C.ompanys continuous
continuous Provisions
Provisions and end liabilities
liabilities are
are recognised
recognised in the period
in the peri-Z
assessment
assessment of whether the
of whether the business
business model for which
model for which
when
when it it becomes
becomes probable
probab'e that
that there
there will
will be
be aa future
future
the
the remaining
remaining financial
financia' assets
assets are
are held
held continues
continues to
to be
be outflow of funds resulting from past operations or
outflow of funds resulting from past operations or
appropriate and if it is not appropriate whether there has
appropriate end if it is not appropriate whether there has events and the amount of cash outflow can be reliably
events and the smount of cash outflow can be reliably
been
been aa change
change in in business
business model and so
mcZel end so a
a prospective
prospective estimated.
estimated The The timing
timing of of recognition
recognition and
end quantification
quantification
change
change to the classification
to the classification of of those
those assets.
assets of
of the
the liability
liability requires
—uires the the application
applicstion of judgement to
of judgement to

7.2 Defined employee benefit

Defined employee benefit assets
assets and
and liabilities
liabilities existing facts and circumstances, which can be subject
existing facts and circumstances, which can be subject
to
to change.
change. The The carrying
carrying amounts
amounts of of provisions
provisions andand
The
The cost
cost of the defined
of the defined benefit
benefit gratuity
gratuity plan and the
plan end the
liabilities
liabilities are
are reviewed
renewed regularly
regularly and
and revised
revised to take
to take
present value of the gratuity obligation are determined
present value of the gratuity cdigstion ere determined
account
account of of changing
changing facts
facts and
and circumstances.
circumstances.
using actuarial valuations.
using actuarial va'uatiDns.An An actuarial valuation involves
sctuarial veluaticn involves
making various assumptions
making various assumptions that that maymay differ from
differ from 7.6
7.6 Effective
Effective Interest
Interest Rate
Rate (EIR)
(EIR) method
method
actual developments in the future. These include the
ectual developments in the future These include the The
The Company’s
Compeny's EIR EIR methodology,
methodology, recognises
rac„gnises interest
interest
determination
determination ofof the
the discount
discount rate; future salary
rate,future selery increases
increases income
Income// expense
expense using
using a
a rate
rate of
of return that represents
return the: represents the
the
and
end mortality
mortality rates.
rates DueDue to the complexities
to the complexities involved
involved best
best estimate
estimeteofaof a constant rate of return over the expected
overtheexpected
in the valuation
In the valuation andend its
its long-term
long-term nature,
nature, aa defined
defined behavioural
behavioural life
life of
of loans
loans given
given // taken
taken and
-nd recognises
reccgnises thethe
benefit obligation is highly sensitive to changes in these
benefit obligation is highly sensitive to changes in these effect of potentially different interest rates at various stages
effectofpotentiallydifferentinterestratesetverioussteges
assumptions.
assumptions and
and other characteristics of the product life cycle (including
othercharacteristicsoftheproductlifecycletncluding

7.3 Fair value measurement

Fair value measurement prepayments
prepayments and and penalty
penalty interest
interest and
and charges).
charges)

When
When the the fair
fair values
values of financial assets
of financial assets and
and financial
financial This estimation, by
This estimation, by nature,
nature, requires
requires an element
an element

liabilities recorded in the balance sheet cannot be

liabilities recorded in the balance sheet cannot be of judgement regarding the expected behaviour and
of judgement regarding the expected behaviour and

measured
measured based based on on quoted
quoted prices
prices inin active
active markets,
markets, life-cycle
life-cycle of the instruments,
of the instruments, asas well
well expected
ex#cted changes
changes

their
their fairfair value
value isis measured
measured usingusing various
various valuation
valuation to
to India’s
India's base
base rate
rate and
and other
other fee
fee income/expense
income/ex*nse that
that

techniques.
techniques The The inputs
inputs to these models
to these models areare taken
teken fromfrom are
are integral
integral parts
parts of the instrument.
of the instrument

observable markets where possible, but where this is not

observable markets where possible, but where this is not 7.7
7.7 Other
Other estimates
estimates

feasible,
feasible, a a degree
degree of judgment is
of judgment is required
required in
in establishing
establishing
These
These include
include contingent
contingent liabilities,
liabilities, useful
useful lives
lives of
of
fair values. Judgments
fair values Judgments include considerations of
include considerations of inputs
inputs
tangible
tangible and
and intangible
intangible assets
assets etc.
etc.

112 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

8. CASH
CASH AND
AND CASH
CASH EQUIVALENTS
EQUIVALENTS

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Cash on hand
Cash on hend 5,427.01
5,427.01 885.21
38521

Balances with banks

Balances with banks (of the nature
(of the nature of
of cash
cash and
and cash
cash equivalents)
equivalents)
-Current
-Current Account
Account 1,32,365.06 28,208.80
28,20880
-Bank deposit with
-Bank deposit original maturity
with original maturity less than three
less than three months
months 2,43,736.10
243,736.10 1,80,088.77
1180,'8377
Total
Total 3,81,528.17 2,09,182.78
2,09, 182_78

Balances with banks

Balances with banks earn
earn interest
interest at fixed rates.
at fixed rates Short term deposits
Short term deposits are
ere made
made for
for varying
varying periods
*riods of of between
between one
one day
day and
and three
three
months,
months, depending
de*nding on the immediate
on the immediate cash
cash requirements
requirements ofof the
the company
company and
and earn
earn interest
interest at the respective
at the res=ctive short-term
short-term deposit
deposit
rates. The company
rates The company has has not
not taken
taken bank
bank overdraft, therefore the
overdraft therefore the cash
cash and
and cash
cash equivalent for cash
equivalent for cash flow
flow statement
statement isis same
same ases
cash and for cash equivalent given above.
cash and for cash equivalent given

9. BANK
BANK BALANCE
BALANCE OTHER THAN CASH
OTHER THAN CASH AND
AND CASH
CASH EQUIVALENTS
EQUIVALENTS

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Balances
Balances with banks
with banks

Unclaimed dividend accounts

unclsimed dividend accounts 86.42 92.88
g288

Bank deposits with original maturity

Sank depcsits with original maturity for
for more
more than
then 33 months*
months* 41,238.45
41,238.45 25,185.45
25,18545
Balances with banks
Salsnces with Osnks toto the
the extent
extent held
he'd as
as Margin
Margin Money
Money oror security
security against
against the
the 98,583.25
gs,583.25 71,775.20
71,77520
borrowings,
±lrrowings, guarantees,
guarantees, other
other commitments.
commitments
Total
Total 1,39,908.12 97,053.53
Fixed deposit and
Fixed deposit end other
other balances
balences with
with banks
banks earns
earns interest
interest at
at fixed
fixed rate.
rate

*Includes
*Includes deposits
deposits March
March 31,
31, 2021: 21,197.76
2021 `(21 ,lg7 76 lacs
lacs (March
(March 31,
31 2020:
2020: ` 20,181.02
20,181.02 lacs)
lacs) towards
towards SLR
SLR requirement
requirement for
for Public
Public
Deposits Outstanding.
Deposits

10. RECEIVABLES
RECEIVABLES

(I)
(l) Trade
Trade Receivables
Receivables

` in lacs
in lacs

Particulars
Particulars As at As at
March
March
31, 2021
2021
March
March 31,
31, 2020
2020
Trade
Trade receivables
receivables 239.62
23962 93.12
Less:
Less: Impairment
Impairment loss loss allowances
allowances (9.63)
(g 63) (S.36)
(3.36)
Total
Total 229.99
229.99 89.76
89_76

No
No trade
trade or other receivable
or other receivable are
are due from directors
due from directors or
or other officers of
other officers of the
the Company
Compeny either
either severally
severally or jointly with
or jointly with any
any other
other
person or from firms or private companies respectively in which any director is a partner, a director or a member.
person or from firms or private companies respectively In which any director is a partner, a director or e member

Trade
Trade receivables
receivables are
are non-interest
nan-interest bearing
bearing and
and are
are generally on terms
generally on terms of
of 30
30 days.
days

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 113
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

10. RECEIVABLES (Contd.)

RECEIVABLES(Contd_)

As at
As at March
March 31,
31, 2021
2021

`tinin lacs
lacs

Particulars
Particulars Outstanding for following
Outstanding for following periods Total
Total

from
from due
due date
date of
of payment
ent

Less
Less than
than 6 months 1-2 years 2-3 years
6 months 1-2 years 2-3 years More
More than
than

6
6 months
months -1 year 3 years
Undisputed
undisputed Trade
Trade receivables
receivables -- considered
considered good
gr_cd 239.62 - - - - 239.62
23962

Undisputed Trade Receivables

undisputed Trade Receivables -- which
which have
have - - - - - -
significant
significant increase in credit
increase'n credit risk
risk
Undisputed
undisputed Trade Receivables - credit
TradeReceivables credit impaired
impaired - - - - - -
Disputed Trade Receivables
Disputed Trade Receivables -- considered
considered good
good - - - - - -
Disputed Trade Receivables
Disputed Trede Receivebles-- which
which have
have significant
significant - - - - - -
increase
increase inin credit
credit risk
risk

Disputed Trade Receivables - credit

DisputedTradeReceivables credit impaired
impaired - - - - - -
Total
Total 239.62
239.62 - - - - 239.62
239.62

ECL
ECL -- Simplified approach
Simplified approach (9.63)
(9.63) - - - - (9.63)
(9.63)
Net carrying amount
Net carrying amount 229.99
229.99
- - - - 229.99
229.99

As at
As at March
March 31,
31, 2020
2020

`{inin lacs
lacs

Particulars
Particulars Outstanding for
Outstanding for following
following periods Total
Total

from
from due
due date
date of
of payment
payment
Less
Less than
than 6
6 months
months 1-2
1-2 years
years 2-32-3 years
years More
More than
than

6 months
6 months -1 year 3 years
3 years
Undisputed
undisputed Trade receivables – consideredgood
Tradereceivables— considered good 93.12
9312 - - - - 93.12
9312

Undisputed
undisputed TradeTrede Receivables
Receivables – which which have
have
- - - - - -
significant increase in credit risk
significantincrease 'n creditrisk
Undisputed
undisputed Trade
Trade Receivables
Receivables – - credit
credit impaired
impaired - - - - - -
Disputed Trade Receivables–considered good
DisputedTradeReceivables—considered grad - - - - - -
Disputed
Disputed TradeTrade Receivables
Receivables – which which have
have
- - - - - -
significant increase in credit risk
significent increase in credit risk
Disputed Trade Receivables
Disputed Trade Receivables – credit impaired
—credit impaired - - - - - -
Total
Total 93.12
93.12 - - - - 93.12
93.12

ECL
ECL -- Simplified approach
Simplified approach (3.36)
(3.36) - - - - (3.36)
(3.36)
Net
Net carrying
carrying amount
amount 89.76
89.76 - - - - 89.76
89.76

Reconciliation
Reconciliation of
of impairment allowance on
impairment allowance on trade
trade receivable
receivable

` in
in lacs
lacs

Particulars
Particulars Amount
Amount

Impairment
Impairment allowance
allowance measured
measured as as per
per simplified
simplified approach
a roach
Impairment
1m -rment allowance
allowance as as perr March
March 31,
31, 2019
201 g -
Add:
Add Addition
Addition during
during the year
the year 3.36
3.36

(Less): Reduction during the

Less Reduction durin the year -
Impairment allowance as per
Impairment allowance as per March
March 31,
31, 2020
2020 3.36
Add: Addition during the year
Add Addition durin the 6.27
(Less):
Less Reduction
Reduction during
durin the
the year -
Impairment allowance as perr March
1m -rment allowance as March 31,
31, 2021
2021 9.63

114 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 Notes to Standalone Financial Statements for the year ended March 31, 2021 (Contd.)

11. LOANS AND ADVANCES

` in lacs

2
Particulars As at March 31, 2021 As at March 31, 2020
At amortised At fair value Total At amortised At fair value Total
Cost Through Other Through Designated Cost Through Other Through Designated
Comprehensive profit at through Comprehensive profit at through
Income and loss profit Income and loss profit
account and loss account and loss
account account
(A)
i) Term loans 29,46,518.91 - - - 29,46,518.91 28,65,652.55 - - - 28,65,652.55
ii) Others - - - - - - - - - -
Total (A) - Gross 29,46,518.91 - - - 29,46,518.91 28,65,652.55 - - - 28,65,652.55
Less: Impairment loss 2,04,507.27 - - - 2,04,507.27 2,04,399.59 - - - 2,04,399.59
allowance
Total (A) - Net 27,42,011.64 - - - 27,42,011.64 26,61,252.96 - - - 26,61,252.96
(B)
i) Secured by 25,64,333.68 - - - 25,64,333.68 24,36,453.02 - - - 24,36,453.02
tangible assets
ii) Unsecured 3,82,185.23 - - - 3,82,185.23 4,29,199.53 - - - 4,29,199.53
Total (B) - Gross 29,46,518.91 - - - 29,46,518.91 28,65,652.55 - - - 28,65,652.55
Less: Impairment loss 2,04,507.27 - - - 2,04,507.27 2,04,399.59 - - - 2,04,399.59
allowance
Total (B) - Net 27,42,011.64 - - - 27,42,011.64 26,61,252.96 - - - 26,61,252.96
(C)
Loans in India
OVERVIEW

i) Public Sector - - - - - - - - - -
CORPORATE

OVERVIEW

ii) Others
CORPORATE

SHRIRAM
Corporate 70,712.74 - - - 70,712.74 1,09,639.30 - - - 1,09,639.30

SHRIRAM
Retail 28,75,806.17 - - - 28,75,806.17 27,56,013.25 - - - 27,56,013.25
Total (C)- Gross 29,46,518.91 - - - 29,46,518.91 28,65,652.55 - - - 28,65,652.55

CITY
Less: Impairment loss 2,04,507.27 - - - 2,04,507.27 2,04,399.59 - - - 2,04,399.59

UNION
allowance
REPORTS

CITY UNION
STATUTORY

REPORTS

Total (C)- Net - - - 27,42,011.64 26,61,252.96 - - - 26,61,252.96

STATUTORY

27,42,011.64

FINANCE
(D)

FINANCE
Loans outside India - - - - - - - - - -
Less: Impairment loss - - - - - - - - - -

LIMITED
LIMITED
allowance
FINANCIAL

Total (D) - Net - - - - - - - - - -

STATEMENTS
FINANCIAL

115
Total 27,42,011.64 - - - 27,42,011.64 26,61,252.96 - - - 26,61,252.96
STATEMENTS
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

11. LOANS
LOANS AND
AND ADVANCES (Contd.)
ADVANCES(Contd_)

Credit
Credit Quality
Quality of
of Assets
Assets

The table
The table below
below shows
shows the
the credit
credit quality
quality and the maximum
and the maximum exposure
exposure to credit risk
to credit risk based
based on
on the
the Company’s
Company's internal
internal credit
credit rating
rating
system
system and year-end stage
and year-end stage classification. The amounts
c'assificatiDtmThe amounts presented
presented are
are gross
gross of
of impairment
impairment allowances.
allowances Details
Details of
of the
the Company’s
Compeny's
internal
Internal grading
grading system
system are
are explained
explained in
in note
note 47.2
472 and
and policies
*icies on whether ECL
on whether ECL allowances
allowances are
ere calculated
calculated on
on an
en individual
individual or
or
collective basis are set out in note 47.2.
collective basis are set out in note 472

` in lacs
in lacs

Particulars
Particulars As
As at
at March
March 31, 2021
31,2021 As
As at
at March
March 31,
31, 2020
2020
Stage
Stage 1I Stage 2
stage 2 Stage
stage 3 3 Total Stage
Stage 1I Stage
stage 2 2 Stage
Stage 33 Total
Collective
Collectlve Collective
Collective Collective
Collectlve Collective
Collectlve Collective
Colletlve Collective
Collectlve

Internal
Internal rating grade
ratlng grade
Performing
Perform Ing
High
High grade
gr:d2 17,55,270.88 - - 17,55,270.88 21,30,932.70
21 - - 21,30,932.70
21

Standard grade
Standard grade 7,70,117.07 - - 7,70,117.07 3,40,429.28 - - 3,40,429.28
Sub-standard grade
Sub-standard grade - 1,10,721.99 - 1,10,721.99 - 1,36,241.26 - 1,36,241.26
1"241.25
Past
Fast due but not impaired
im*ired - 1,22,810.23
122,8102 - 1,22,810.23 - 31,755.58
31175558 - 31,755.58
31,753S8
Non-
Non- performing
performing - - 1,87,598.75 1,87,598.75 - 2,26,293.73
2125.29373 2,26,293.73
Total 25,25,387.95
25,25387.95 2,33,532.22 1,87,598.75
2,3353222 29,46,518.91 24,71,361.98 1,67,996.84 2,26,293.73 28,65,652.55
206565285

An analysis
An of changes
analysis of changes in the gross
in the gross carrying
carlying amount as follows:
amount as follows:
` in
in lacs
lacs

Particulars
Particulars Year
Year ended
ended March
March 31, 2021
31, 2021 Year
Year ended
ended March 31, 2020
March 31, 2020
Stage
Stage 1I Stage
Stage 2
2 Stage 3
stage 3 Total Stage
stage 11 Stage
Stage 2
2 Stage
Stage 33 Total
Gross
Gross carrying amount
carrying amount 24,71,361.98
24,71E61.gg 1,67,996.84 2,26,293.73
2.26129373 28,65,652.55
28,6565255 21,75,299.36 4,58,591.8484 2,57,668.91 28,91,560.11
opening balance
New
NE*' assets
assets originated
originated or
or 16,45,829.62 57,095.43
57,0E43 12,470.98 17,15,396.03
17,153'603 22,01,678.34 46,984.19 22,501.62
62 22,71,164.15
purchased
;urth2Séd
Assets derecognised or
Assets or (i41$7ig.gs)
(14,16,719.93) (83,7233ij (E77,06d.54) (2,49,649.63)
(83,725.31) (49,284.56) (15,49,729.80) (18,77,060.54) (gseS28)
(93,838.28) (22054845)
(22,20,548.45)
repaid
rep:it (excluding
(exc"dir,; write
write
offs)
offs)
Transfers to
Transfers to Stage
Stage 1I 72,877.88 (67,932.14) (4,945.74)
(4,94574) - 1,59,130.15 (1,55,330.42) (3,799.73) -
Transfers to
Transfers to Stage
Stage 2
2 ti,77E05.13)
(1,77,805.13) 1,84,215.77
IE4,21577 (6,410.64) - (1,20,582.98) 1,24,790.35 (420737)
(4,207.37) -
Transfers
Transfers to Stage 3 S (64,389.05) (23,883.92)
(23±83.92) 88,272.97 - (65,703.46)
(65,703.46) (51,246.35) 1,16,949.80 -
Changes
Changesto to contractual
contractual (406.77)
(405.77) 239.35 167.41
1 6741 - - - - -
cash
cash flows
tlcws due
due to

modifications
mcditxiors not
rot

resulting
resulting in
in derecognition
derecogniton
Amounts written
Amounts written off
ott (5,360.65) (473.82) (78,965.40) (84,7gg.87)
(84,799.87) (1,398.89) (6,143.14) (68,981.24) (76,523.26)
Gross carrying amount
Gross carrying amount 25,25,387.95
25,25387.95 2,33,532.22 1,87,598.75
2,3353222 29,46,518.91 24,71,361.98 1,67,996.84 2,26,293.73 28,65,652.55
206565285
closing balance
closlng balance

116 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

11. LOANS
LOANS AND
AND ADVANCES (Contd.)
ADVANCES(Contd_)

Reconciliation of ECL
Reconciliation of ECL balance
balance is
is given
given below:
below.
`t in lacs
in lacs

Particulars Year ended

Year ended March
March 31,
31 , 2021
2021 Year ended
Year ended March
March 31,
31 , 2020
2020
Stage
stage 1
1 Stage 2
stage 2 Stage
stage 3
3 Total Stage
Stage 1
I Stage
Stage 22 Stage
stage 3
3 Total
ECL
ECL allowance
allcwær.ce -- o;ening
opening 83,680.54 11,043.90 1,09,675.14
1/267514 2,04,399.59
204.3ggsg 58,916.21 21,358.29
21.esa2g 1,12,374.68
1.123748B 1,92,649.18
balance
New
New assets
assets originated
originated 41,177.23
41.17723 2,207.62
2.20762 2,523.54
2.52354 45,908.39 49,659.61 2,300.18 6,059.59
aosgsg 58,019.38
or purchased
or purchased
Transfers to
Transfers to Stage
Stage 1 - 7,895.83 (5,261.93)
(3261.02) (2,633.90)
(2,saago) - 10,238.61 (8,491.18) (1,747.43) -
Transfers to Stage
Transfers Stege 2 Z (6,921.23)
(n21.22) 10,237.08 (3,315.85)
(2.21sss) - (3,403.65)
(3403 ss) 5,261.92
5.261 g2 (1,858.27)
(1.85@27) -
Transfers to Stage
Transfers Stege 3 2 (2,545.34)
(Zigs 24) (2,127.16)
(2127.16) 4,672.50
4872 so - (2,038.49)
(202840) (2,959.43)
ago. 42) 4,997.92 -
Impact on year end ECL
Impect on year era ECL (29,804.02) 888.64 67,914.55 38,999.16 (28,292.86)
(2029286) (282.75)
(28275) 58,829.89
sang n 30,254.29
of
of exposures transferred
exposures transferred
between
tetween stages
stages during
during
the year
the year ant and reversal
reversal
of ECL
of ECL on on account
account of
of

recovery
Amounts written
An-aunts written
off
off
(5,360.65)
("EO.ss) (473.82)
(47382) (78,965.40)
(7826340) (84,799.87) (1,398.89) (6,143.14) (68,981.24) (70S23_is)
(76,523.26)
ECL allowance -- closing
ECL allowance closing 88,122.34
88,122.34 16,514.34
16>14.34 99,870.58 2,04,507.27
_27
83,680.54
83,680.54 11,043.90
11,043M 1,09,675.14 2,04,399.59
Z04,399.59
balance
Out
Out of
of loan
loan balances
balances written
Mitten off
off during the year
during the year ` 84,799.87
84,79gs7 lacs
lacs (March
(Mar± 31,
31. 2020
2020 ` 76,523.26
76.52326 lacs),
Lacs). ` 77,527.99
77.s27gg lacs
lacs and
end ` 66,310.43 lacs
lacs
respectively
respectively are
ere subject
subject to
to enforcement
enforcement activity
activity by the company.
by the company

12. INVESTMENTS
INVESTMENTS

` in lacs
in lacs

Particulars
Particulars
Amortised
Amortised
At Fair value
At Fair value
Sub-total
Sub-total
Others
Others
Total
Total

Cost
Cost
Through Other
Through Other Through
Through Designated
Designated (( At
At Fair
Fair (( At
At Cost)
cost)
Comprehensive
Comprehensive profit at Fair
profit at value
Fair value Value)
Value)
Income
Income and
and loss
loss through
through
account
account
profit and
profit and
loss
loss account
account

As at March
Asat March 31, 2021
31, 2021
i) Mutual
Vutuzl funds
funds - - 434.03 - 434.03 - 434.03
ii) Government securities
Government securities
8,638.94 - - - - - 8,638.94
8,638ß4
iii) Equity instruments
iii) Equity instruments - 9,686.10
g,68ö10 - - 9,686.10
10
- 9,686.10
g,68ö10
iv)
w) Subsidiary
Sutsidi:ry - - - - - 16,544.00 16,544.00
1s,54400
v) Subsidiary-
Subsidiary- DeemedDeemed - - - - - 183.91
183&1 183.91
183ß1

investment
investment in in subsidiary
subsidiary
vi) Treasury Bills Sills 66,090.73
ss,ogc 73 - - - - - 66,090.73
ss,ogo 73
vii) Investments
vii) Investments in
in Pass
Pass 161.00
181 n - - - - - 161.00
181 oo

Through
Through Certificate
Certificate
Total Gross
Total Gross (A)
(A) 74,890.67
74,890.67 9,686.10
9,686.10 434.03
434.03 - 10,120.13
10,12m13 16,727.91
16,727.91 1,01,738.71
(i) Investments outside
(O Investments outside India
India - 9,686.10
g,68ö10 - - 9,686.10 - 9,686.10
g,68ö10
(ii) Investments
O!) Investmentsin in India
India 74,890.67 - 434.03 - 434.03 16,727.91
18,727M 92,052.61
Total Gross
Total Gross (B)
(B) 74,890.67
74,890.67 9,686.10
9,686.10 434.03
434.03
- 10,120.13
10,12m13 16,727.91
16,727.91 1,01,738.71
Less : Allowance for
Less : Allowance for
(6.47)
(647) - - - - - (6.47)
(6.47)
impairment
Impalment loss loss (C)(C
Total -- Net
Total Net D = (A) -- (C (C)) 74,884.20
74,884.20 9,686.10
9,686.10 434.03
434.03
- 10,120.13
10,12m13 16,727.91
16,727.91 1,01,732.24

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 117
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

12. INVESTMENTS (Contd.)

INVESTMENTS(Contd_)

` in lacs
in lacs

Particulars
Particulars Amortised
Amortised At Fair
At value
Fair value Sub-total
Sub-total Others
Others Total
Total

Cost
Cost Through Other
Through Other Through Designated
Through Designated ((At
At Fair
Fair (( At
At Cost)
cost)
Comprehensive
Comprehensive profit
profit at
at Fair
Fair value
value Value)
Value)
Income
Income and loss
and loss through
through
account profit
profit and
and
loss account
loss account

As at
As at March
March 31,
31, 2020
2020
i) Mutual
Mutual funds
tunes - - 302.08
302.08 - 302.08 - 302.08
802.08

ii) Government securities

iff Government securities 21,018.89 - - - - - 21,018.89
21,018.8g
iii) Equity instruments
iii) Eguiry instruments - 8,917.14
8,g1714 - - 8,917.14
83714 - 8,917.14
8,g17.14
iv) Subsidiary
Subsidiary - - - - - 16,544.00
16,544.00 16,544.00
18,544.00
v) Subsidiary-
v) Subsidiary- DeemedDeemed - - - - - 183.91
183.g1 183.91
183.?1

investment in subsidiary
investment in subsidiary
vi) Treasury Bills Sills 26,447.95
28,447ß5 - - - - - 26,447.95
vii) Investments
Vli) Investments in
in Pass
Pass - - - - - - -
Through
Through Certificate
Certificate
Total Gross
Total Gross (A)
(A) 47,466.84
47,466.84 8,917.14 302.08
302.08 - 9,219.22
9,219.22 16,727.91
16,727.91 73,413.97
(i)
(i) Investments
Investments outside outside India
India - 8,917.14
8,g1714 - - 8,917.14
8,g1714 - 8,917.14
8,g17.14
(ii)
(ii) Investments
Investments in in India
India 47,466.84
84 - 302.08
302.08 - 302.08 16,727.91 64,496.83
Total Gross
Total Gross (B)
(B) 47,466.84
47,466.84 8,917.14 302.08
302.08 - 9,219.22
9,219.22 16,727.91
16,727.91 73,413.97
Less : Allowance for
Less : Allowance for
- - - - - - -
impairment loss (C)
Impalrment loss (C)
Total - Net D = (A) - (C
Total-NetD-(A)- C) 47,466.84
47,466.84 8,917.14
917_14 302.08
302.08 - 9,219.22
9 219.22 16,727.91
16,727.91 73,413.97
More
More information
information regarding
—arding the valuation methodologies
the veluation methodolcæies can
can be
be found
found in
in Note
Note 46.7
467

The Company
The Company received
ræeived dividends of ` 190.28
dividends of 190.28 lacs
lacs (March
(Merch 31,
31 2020:
2020: ` 171.21
17121 lacs)
lacs) from
from its
its investments
investments measured
measured at
at FVTOCI
FVTCb•CI
securities,
securities, recorded
recorded as
es dividend
dividend income.
income.

The Company
The Company has on dune
hes on June 30,
30, 2019,
201g, reclassified
reclassified its
its investments
investments inin Quoted
Quoted Equity
Equity instruments
instruments held
held in
in Ceylinco
Ceylinco Insurance
Insurance PLCPLC
(carrying value as
(carrying value as at the date
at the date of the transfer ` 10,603.97
the transfer 10.60397 lacs)
lecs) from
from FVTPL to
to FVTOCI. The
The reclassification
reclassification to
to FVTOCI
FVTOCIisis irrevocable
irrevocable
and
and was
was necessitated
necessitated since
since the
the Company
Company revised
revised its
its business
business model
rnc&l on that date
on that dete to
to hold these investments
hold these investments as as aa long
long term
term
investment
Investment unlike
unlike the
the earlier
earlier business
business model
model ofDf its
its disposal
disz:lssl in
in near future. Accordingly,
near future. Accordingly, the fair value
the fair value loss
loss of
of ` 1,022.73
1,02273 lacs
lacs till
till
June 30, 2019
dune 30, 201g has
h's been
been recorded through profit
recorded through profit and
end loss
loss and
and fair value loss
fair velue loss of
of ` 664.10
66410 lacs
lacs thereafter
thereafter has
has been
teen recorded through
recorded through
the other
the other comprehensive
comprehensive income.
income

The table
The table below
below shows
shows the
the credit
credit quality
quality and the maximum
and the maximum exposure
exposure to credit risk
to credit risk based
based on
on the
the Company’s
Company's internal
internal credit
credit rating
rating
system and year-end stage classification. The amounts presented are gross of impairment allowances . Details of the Company’s
system and year-end stage classificstion The amounts aregross of impairment allowances. Details of the Compeny's
internal
internal grading
grading system
system are
are explained
explained inin note
note 47.2.
472

` in lacs
in lacs

Internal
Internal Grade
Grade Rating
Rating As
As at
at March
March 31,
31, 2021
2021 As at
As at March
March 31,
31, 2020
2020
Stage
stage 1 1 Stage
stage 2 2 Stage
stage 33 Total
Total
Stage
Stage 1 1 Stage
Stage 2 2 Stage
Stage 3
3 Total
Total

Individual
Individual Individual
Individual Individual
Individual Individual
Individual

Performing
Perform In g
High
High grade
grade 1,01,738.71 - - 1,01,738.71 73,413.97 - - 73,413.97
73,413G7
Standard
Standard grade
grade - - - - - - - -
Non-performing
Individually
Individually impaired
impaired - - - - - - - -
Total 1,01,738.71 - - 1,01,738.71 73,413.97 - - 73,413.97
73,413.97

118 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

12. INVESTMENTS (Contd.)

INVESTMENTS(Contd_)

An analysis
An analysis of
of changes
changes in gross carrying
in gross carrying amount
amount and
and the
the corresponding
corresponding ECLs is as
ECLSis as follows:
follows:
` in
in lacs
lacs

Particulars
Particulars As
As at
at March
March 31, 2021
31, 2021 As at
As at March
March 31,
31, 2020
2020
Stage 1 Stage 2 Stage 3 Total
Total Stage
Stage 1 1 Stage 2 Stage 3 Total
Total

Gross carrying
Gross carrying amount
amount 73,413.97
73,413.97 - - 73,413.97
73,413.97 86,965.30
86,965.30 - - 86,965.30
86,965.30
–
— opening balance
balance

New assets originated

New assets originated 82,880.04 - - 82,880.04
82,880.04 757,705.10
757,70310 - - 757,705.10
757,705.10
or purchased
ar purchased
Assets derecognised
Assets derecognised or or (58,255.78)
(58,25578) - - (58,255.78)
(5825578) (772,385.95)
(772,385.g5) - - (772,385.95)
(772385ß5)
matured
maured

Other changes
Other changes
Amortisation
Amortisation of
at (71.20)
(71 20) - - (71.20)
(7120) (123.94)
(123.g4) - - (123.94)
(123g4)
G-sec
G-sec Premium
Premium

Interest
Interest on
on 2,870.77
2E7077 - - 2,870.77
2,870.77 2,951.00
2,g51 OO - - 2,951.00
2851.00
investment
investment at
amortised
amortised
cost
cast

Change in
Change fair value
In fair value
OCI 768.97
768G7 - - 768.97
768.g7 (664.10)
(884.10) - - (664.10)
(68410)
Profit
Profit & & Loss
Loss 131.94
131 - - 131.94
131 (1,033.44)
(1033.44) - - (1,033.44)
(1,03344)
Closing balance
Closlng balance 1,01,738.71 - - 1,01,738.71 73,413.97
73,413M - - 73,413.97
73,413.97

Reconciliation of ECL
Reconciliation of ECL balance
balance is
is given
given below:
below.
` in lacs
in lacs

Particulars
Particulars As
As at
at March
March 31, 2021
31, 2021 As at
As at March
March 31,
31, 2020
2020
Stage
Stage 11 Stage
Stage 2
2 Stage
Stage 3
3 Total
Total
Stage
Stage 1
1 Stage
Stage22 Stage
Stage 3
3 Total
Total

Opening balance
Opening balance in
In ECL
ECL - - - - - - - -
New
New assets
assets originated
originated 6.47
47 - - 6.47
.47 - - - -
or purchased
ar purchased
Transfers to
Transfers to Stage
Stage 1
1 - - - - - - - -
Unwind
Unwind of
of discount
discount - - - - - - - -
(recognised in interest
(recognised in interest
income)
income)
Changes
Changes to to models
models andgnd - - - - - - - -
inputs
inputs used used tar for ECL
ECL
calculations
calculations

Recoveries
Recoveries - - - - - - - -
Closing balance
Closlng balance in In ECL
ECL 6.47
6.47
- - 6.47
6.47
- - - -

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 119
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

13. OTHER
OTHER FINANCIAL
FINANCIAL ASSETS
ASSETS

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Security deposits
Securitydeposits 2,296.02
2,296.02 2,249.73
2,249.73
Assignment receivable
Assignment receivable 1,036.67
1,036.67 1,730.97
1,730.97
Less: ECL on AssignmentReceivable
Less ECLon Assignment Receivable (41.67)
(41f?) (62.32)
$232)
Other
Other receivables
receivables 0.16
0.16 2,434.44
2,434.44
Employee benefits recoverable from former employers
Employeebenefitsrecoverablefrom em,plpyersfor transfer
transfer of employees
employees 962.25
962.25 990.86
ggo.86

Total
Total 4,253.43
4,253.43 7,343.68
7,343.68

Reconciliation
Reconciliation of
of impairment allowance on
impairment allowance on Assignment
Assignment receivable
receivable

` in
in lacs
lacs

Particulars
Particulars Amount
Impairment
Impairment allowance
allowance measured
measured as
as per
per simplified
simplified approach
approach
Impairment allowance as per March 31, 2019
Impairment allowance as per March 31, 201g -
Add:
Add Addition
Addition during
during the year
the year 62.32
62.32

Less:
Less Reversal
Reversal during
during the year
the year -
Impairment
Impairment allowance
allowance asas per
per March
March 31,
31, 2020
2020 62.32
Add:
Add Addition
Addition during
during the year
the year -
Less:
Less Reversal
Reversalduring the year
duringtheyear 20.65
20.65

Impairment allowance as
1m -rment allowance as perr March
March 31,
31, 2021
2021 41.67
41.67

120 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 Notes to Standalone Financial Statements for the year ended March 31, 2021 (Contd.)

14. PROPERTY, PLANT AND EQUIPMENTS

` in lacs
Particulars Land- Building Office Electrical Computer Furniture & Vehicles Leasehold Total
Freehold equipments Installations Equipments Fixtures Improvements
Cost:
As at April 01, 2019 2.31 12.94 3,230.84 3,305.96 7,259.95 2,576.91 57.35 12,464.66 28,910.92
Additions - - 58.94 385.73 594.37 197.75 13.45 1,044.20 2,294.44
Disposals - - 65.20 98.43 351.92 18.86 0.54 89.27 624.22
As at March 31, 2020 2.31 12.94 3,224.58 3,593.26 7,502.40 2,755.80 70.26 13,419.59 30,581.14
Additions - - 30.19 178.31 793.72 108.40 27.52 658.42 1,796.56
Disposals - - 5.77 89.03 505.88 15.54 16.57 64.39 697.18
As at March 31, 2021 2.31 12.94 3,249.00 3,682.54 7,790.24 2,848.66 81.21 14,013.62 31,680.52
Accumulated depreciation
and impairment:
As at April 01, 2019 - 3.85 2,555.89 1,348.37 5,432.67 1,437.57 25.38 10,182.72 20,986.45
Disposals - - 57.23 66.83 333.80 17.24 0.36 71.39 546.85
Depreciation charge for the year - 0.17 206.71 320.31 955.75 197.27 5.91 1,214.40 2,900.52
As at March 31, 2020 - 4.02 2,705.37 1,601.85 6,054.62 1,617.60 30.93 11,325.73 23,340.12
Disposals - - 5.51 72.89 480.62 13.66 11.80 63.96 648.44
Depreciation charge for the year - 0.17 145.04 329.06 786.31 194.98 7.77 1,087.79 2,551.12
OVERVIEW
CORPORATE

As at March 31, 2021 - 4.19 2,844.90 1,858.02 6,360.31 1,798.92 26.90 12,349.56 25,242.80
OVERVIEW
CORPORATE

Net carrying amount as at March 31, 2020 2.31 8.92 519.21 1,991.41 1,447.78 1,138.20 39.33 2,093.86 7,241.02

SHRIRAM
SHRIRAM
Net carrying amount as at March 31, 2021 2.31 8.75 404.10 1,824.52 1,429.93 1,049.74 54.31 1,664.06 6,437.72

CITY
Carrying value of Property, plant and equipment pledged as collateral for liabilities or commitments as at March 31, 2021 is ` 2.31 lacs (March 31 2020: ` 2.31 lacs).

UNION
REPORTS

CITY UNION
STATUTORY

REPORTS
STATUTORY

FINANCE
FINANCE LIMITED
LIMITED
FINANCIAL
STATEMENTS
FINANCIAL

121
STATEMENTS
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

15. OTHER
OTHER INTANGIBLE
INTANGIBLE ASSETS
ASSETS

` in
in lacs
lacs

Particulars
Particulars Computer Software
Software

Cost:
As at
As at April
April 01,
01, 2019
2019 3,886.42
Additions
Additions 170.83
17083

Disposals
Disposals -
As at
As at March
March 31,
31, 2020
2020 4,057.25
Additions
Additions 149.41
Disposals
Disposals -
As at
As at March
March 31,
31, 2021
2021 4,206.66
Accumulated amortisation and impairment:
Accumulatedamortisation impairment:
As at
As at April
April 01,
01, 2019
2019 3,729.06
Depreciation charge for the year
Depreciationchargefor year 135.01
13501

Disposals
Divrssls -
As at
As at March
March 31,
31, 2020
2020 3,864.07
Depreciation
Depreciation charge
charge for the year
for the year 138.15
13815

Disposals
Disposals -
As at
As at March
March 31,
31, 2021
2021 4,002.22
Net carrying amount as
Net carrying amount as at
at March
March 31,
31, 2020
2020 193.18
193.18

Net carrying amount as at March 31, 2021

amount as at March 31, 2021 204.44
20444

16. RIGHT OF USE

RIGHT OF ASSETS
USE ASSETS

As at
As at March
March 31,
31, 2021
2021

` in lacs
in lacs

Sr
Sr Class
Class of
of Opening
Opening Balance
Balance Additions to
Additions to Reduction
Reduction in
in Amortisation
Amortisation for
for Amount
Amount ofof Right-
Right-
No.
No. Underlying Asset
Underlying Asset of
of Right-of-Use
Right-of-Use Right-of-Use
Right-of-Use Right-of-Use
Right-of-Use the
the year
year Of-Use Asset as
Of-Use Asset as
assets (Balance
assets (Balance asas Assets, made
Assets, made Assets
Assets due to
due to on
on March
March 31,
31, 2021
2021
on April 1, 2020)
on April 1, 2020) during the year
during the year termination of
termination of

Lease
Lease agreement
reement

1 Office
Office Premises
Premises 15,487.33
15,48733 6,385.90
6,385.90 959.95 5,294.87 15,618.41
15,61841

As at
As at March
March 31,
31, 2020
2020

` in lacs
in lacs

Sr
Sr Class of
Class of Opening
Opening Recognised Additions
Additions to
to Reduction
Reduction in
in Amortisation
Amortisation Amount
Amount of
of

No.
No. Underlying Asset
underlying Asset Balance
Balance of of on transition
on transition Right-of-Use
Right-of-Use Right-of-Use
Right-of-Use for
for the year
the year Right-Of-Use
Right-of-Use
Right-of-
Right-of- as
as on
on April
April 1,1, Assets,
Assets, made
made Assets due
Assets due to
to Asset as
Asset as on
on

Use
Use assets
assets 2019 of IND
2019 of IND As As during
during the year
the year termination
termination March
March

(Balance
(Balance as
as onon 116 - Leases
116 -Leases
of Lease
of Lease
31,
31, 2020
2020
April 1,
1, 2019)
2019 agreement
reement

1 Office Premises
Office Premises
- 15,630.81
15,630.81 5,656.31
5,65631 619.53
61953
5,180.26
5,18026 15,487.33
15,487.33

122 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

17. OTHER
OTHER NON-FINANCIAL
NON-FINANCIAL ASSETS
ASSETS

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31, 2020
31, 2020
Goods
GDCZsandand Service tax credit
Servicetax credit (input)
(input) receivable
receivable 8,681.43
8,68143 6,055.83
6,055.83
Other Advances
Other Advsnces 121.67
121.67 165.21
165.21

Statutory duties paid under

Statutoryduties protest
underprotest 766.66
76666 766.66
766.66

Capital
Cepital advances
advances 88.06
88.06 71.09
71

Prepaid expenses
Prepaidexpenses 622.36
622.36 965.67
965.67

Deposit
Deposit with
with gratuity
gratuity fund
fund in excess of
in excess of obligation
obligation 1,475.55
1,475.55 -
Total
Total 11,755.73 8,024.46
8ß24_46

18. OTHER
OTHER PAYABLES
PAYABLES

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
(i)
(i) total outstanding dues
tote' outstanding duesofof micro
micro enterprises and small enterprises
enterprisesandsmall enterprises 18.90
18.90 -
(ii) total outstanding dues of creditors other than micro
toteloutstandipgduesofcreditorsotherthan enterprises and small enterprises
microenterprisesendsmallenterprises 6,729.05
6,72905 6,077.83
6,077B
Total
Total 6,747.95
6,747.95 6,077.83
6,077.83

As at
As at March
March 31,
31, 2021
2021

` in
in lacs
lacs

Particulars
Particulars Outstanding
Outstandi for
for following
fol periodss from
from due
due date
date of
of payment Total
Total

Less than
Less than
1-2 years
1-2 years 2-3
2-3 years
years More than
More than

1 year 3 years
MSME
MSME
18.90
18.90
- - - 18.90
Others
Others 6,727.06
6,727.06 1.99 - - 6,729.05
6,729.05
Disputed
Disputed dues
dues – MSME
MSME
- - - - -
Disputed
Disputed dues
dues – Others
—Others - - - - -
Total
Total
6,745.96 1.99 - - 6,747.95
6,747.95

As at
As at March
March 31,
31, 2020
2020

`tinin lacs
lacs

Particulars
Particulars
Outstanding
Outstanding for following periods from
for following from due
due date
date of
of payment
payment Total
Total

Less
Less than
than 1-2 years
1-2 years 2-3
2-3 years
years More
More than
than

1 year
1 year 3 years
3 years
MSME
MSME - - - - -
Others
Others
6,077.83
6,077.83 - - - 6,077.83
6,07783
Disputed
Disputed dues
dues –
—MSME
MSME - - - - -
Disputed
Disputed dues
dues – Others
Others - - - - -
Total
Total 6,077.83
6,077.83 - - - 6,077.83

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 123
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

19. DEBT
DEBT SECURITIES
SECURITIES

` in
in lacs
lacs

Particulars
Particulars As at
As at March
March 31,
31, 2021
2021 As at
As at March
March 31,
31, 2020
2020
At At
At fair
fair Designated Total
Total At At fair
At fair Designated
Designated Total
Total

Amortised
Amortised value at
value fair value
at fair value Amortised
Amortised value at
value at fair
fair value
value

cost
cost through
through through
through cost
cost through
through through
through
profit
profit profit
profit profit
profit profit
profit
and
and loss
loss and
and loss
loss and
and loss
loss and
and loss
loss

account
account account
account account
account account
account

Redeemable
Redeemable

Non-Convertible
Non-Convertible

Debentures
Debentures

(Secured)
(Secured)
Public
Public issue
issue * 86,924.21
86,g2421 - - 86,924.21
86,92421 84,955.43
84,955.43 - - 84,955.43
84,955.43
Privately
Privately placed
placed 3,39,438.79 - - 3,39,438.79 3,61,872.22 - - 3,61,872.22
**
Total
Total 4,26,363.00 - -- 4,26,363.00
426,363.00 4,46,827.65
4,46327.65 - - 4,46,827.65
Debt
Debt securities
securities in
in 4,26,363.00 - - 4,26,363.00
426,363m 4,46,827.65
446,827.65 - - 4,46,827.65
446,827.65
India
Indis

Debt
Debt securities
securities - - - - - - - -
outside India
outside India

Total
Total
4,26,363.00 - -- 4,26,363.00
426,363.00 4,46,827.65
4,46327.65 - - 4,46,827.65
* Includes
Includes ` 5,192.17
5,192.17 lacs
lacs (March
(March 31,
31, 2020
2020 ` 5,167.81
5,167.81 lacs)
lacs) issued to related
issued to related parties.
parties
** Includes
Includes ` 2,389.31
2,3031 lacs
lacs (March
(March 31,
31, 2020
2020 ` 2,311.51
2,311.51 lacs)
lacs) issued to related
issued to related parties.
parties

A.
A. Public
Public Issue
Issue of
of Redeemable
Redeemable Non-Convertible
Non-Convertible Debentures
Debentures (NCDs)
(NCDs) Secured
Secured of
of ` 1,000/- each -- Quoted
1,000/- each Quoted

(i)
(l) Issued
Issued in
in 2019
2019

` in lacs
in lacs

Tranche
Tranche II Series
Series Rate
Rate of
of As
As at
at As at Redemption
Interest
Interest
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020 Date
Date

Series
Senes I 9.55%
g.550/, 42,330.07
42E3007 41,656.21
41,65621 30-Apr-21
30-Apr-21
Series
Senes
IIII 9.54%
g.540/,
2,955.37
2,g5ö37 2,650.23
2,65023 30-Apr-21
30-Apr-21
Series III
Senes Ill 9.65%
g.650/, 6,985.01
6,g8501 6,910.72 30-Apr-22
30-Apr-22
Series IV
Senes
9.26%
g.260/,
4,034.35
403485 3,986.74
3,98674 30-Apr-22
30-Apr-22
Series
Senes VV 9.64%
g.640/, 2,902.22
2,g0222 2,615.41
2,61541 30-Apr-22
30-Apr-22
Series VI
Senes VI 9.75%
g.750/, 7,065.31 7,020.61
7,02061 30-Apr-24
30-Apr-24
Series VII
Series VII 9.35%
g.350/, 3,431.69
3,431 3,407.24
3,40724 30-Apr-24
30-Apr-24
Series VIII
Series VIII 9.75%
g.750/, 2,450.56 2,216.93
2,216Æ8 30-Apr-24
30-Apr-24
72,154.58
72,154.58 70,464.09
70,464.09

124 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

19. DEBT SECURITIES (Contd.)

DEBTSECURITIES(Contd_)

` in
in lacs
lacs

Tranche
Tranche II
II Series
Series Rate
Rate of
of As at As at Redemption
Redemption
Interest March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020 Date
Date

Series I
Series I
9.55% 3,098.30
3,098.30 3,069.75
3,06975 25-Sep-21
25-sep-21
Series IIII
Series 9.55% 617.73
617.73 558.28
55328 25-Sep-21
25-sep-21
Series
Series III
III 9.70%
970% 1,646.07
1,646.07 1,636.06
1,63606 25-Sep-22
25-sep-22
Series IV
Series IV 9.30%
930% 1,313.58
1,313.58 1,305.02
1,30502 25-Sep-22
25-sep-22
Series V
Series V 9.71%
971% 938.58
938.58 850.15
85015 25-Sep-22
25-sep-22
Series VI
Series VI 9.85% 5,420.43
5,420.43 5,401.17
5,401A7 25-Sep-24
25-sep-24
Series VII
Series VII 9.45% 1,092.30
1,092.30 1,088.07
1,08307 25-Sep-24
25-sep-24
Series VIII
Series VIII 9.88%
988%
642.64 582.84
58284
25-Sep-24
25-sep 24
14,769.63
14,76963 14,491.34
14,49134
Grand Total - Tranche II and
Grand Total - Tranche
II
and II
86,924.21
86,924.21 84,955.43
84,955.43

Nature
Nature of
of security
security
The
The repayment
repayment ofof secured
secured redeemable
redeemable nonron convertible
convertible debentures
debentures of of ` 1,000/-
1,CZO/- each
ach at face velue
at face value on
on maturity together
maturity together
with
with interest
interest thereon
thereon are
-re secured
secured by
by mortgage
mortgage of of immovable
immovable property
property and
and byby way
way of
of charge
charge on
on the
the Company’s
Company"s specifically
specifically
identified
identified assets
assets such as book debts
such es debts // loan
Ben receivables
receivables in
in favour
favour of the Trustees
of the Trustees appointed.
appointed

The
The Company
Company hadhad utilised the entire
utilised the entire sum of ` 78,200.81
sum of 78,20081 lacs
lacs raised from public
raised from public issue
issue (net
(net off
off expenses)
expenses) towards
towards financing
financing
activities as per the objects stated in the prospectus for the issue, and will have the flexibility in deploying the net proceeds
activities as per the objects stated in the prospectus for the issue, -nd will have the flexibi'ity in deploying the net prcceeds
and
and pending
pending utilisation,
utilisation, ifif any,
any, in
in temporarily investment
investment in
in mutual
mutual funds,
funds, deposits
depsits with
with banks/institutions.
banks/institutions

Secured
Secured redeemable
redeemable non-
ron- convertible
convertible debentures
debentures may
mey be
be bought
bought back
back subject
subject to
to applicable
applicable statutory
statutry and/
end/ or
or regulatory
regulatory
requirements,
requirements, upon the terms
upon the terms and
end conditions
conditions as
as may
may be
be decided
decided by the Company.
by the Company

B.
B.
Redeemable
Redeemable
Non-Convertible
Non-Convertible
Debentures
Debentures
-- Secured
Secured

Privately
Privately Placed
Placed Redeemable
Redeemable Non-Convertible
Non-Convertible Debenture
Debenture -Institutional
-Institutional

Details
Details of
of Privately
Privately Placed
Placed Redeemable
Redeemable Non-Convertible
Non-Convertible Debenture
Debenture (NCDs)
(NCDs) of
of ` 10,00,000/- each
each -- Quoted
Quoted and for two
and for two
INEs - INE722A07AG5 and INE722A07AH3, the face value is ` 1,00,000/- each
INES - INE722A07AG5 and INE722A07AH3, the face value is 1 each

` in
in lacs
lacs

Rate
Rate of
of Interest
Interest As at As at
As at
Redemption
Redemption
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020 Date
Date

8.20%
820% - 14,645.08 16-Apr-20
8.15%
315% - 43,630.87
43.63087 27-May-20
27-May-20
9.30% - 5,366.91 17-Jun-20
170un 20

9.30% - 5,358.07
"5807 22-Jun-20
220un 20

8.15%
315% - 623.85
62385 30-Jun-20 20

7.97%
7Æ7'/0
- 24,174.40
2417440 6-Oct-20
6-oct-20

7.97%
7Æ7'/0 - 31,002.56
31100256 27-Oct-20
27-oct-20

9.40% - 23,734.92 30-Dec-20

30-Dec-20

10.75%
10.75% * - 100.68 4-Feb-21
4-Feb-21

9.80% # - 63,017.54
63.01754 21-Sep-21
21-sep-21
9.70% ** 54,807.61
54,80761 54,173.67
5417367 5-Mar-22
5-Mar-22

8.98% 15,540.55
15,54055 - 9-Mar-22
Y-Mar-22

9.90% 10,290.26 9,390.72

g:g072 4-Apr-22 -22

8.98% 20,713.25
20,71325 - 6-Apr-22
6_Apr-22
8.15%
315%
2,529.63
2,52963 - 18-May-22
18-May-22
8.95% 20,034.55
20,03455 - 18-Aug-22
18-Aug -22

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 125
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

19. DEBT SECURITIES (Contd.)

DEBTSECURITIES(Contd_)

` in
in lacs
lacs

Rate
Rate of
of Interest
Interest As at As at Redemption
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020 Date
9.90% 10,992.93 10,013.85 29-Sep-22
29-sep-22
8.09% 8,202.91 8,201.41
8,20141 5-Dec-22
5-0ec-22

8.60% 14,825.47
14,825.47 - 27-Jan-23
27-.Jan-23

9.25%
9.25", 49,812.53
49,812.53 49,515.13
4g,51513 28-Feb-23
28-Feb-23

8.60% 47,903.37
47,903.37 - 1-Mar-23
1-Mar-23

9.25%** 2,479.95
2,479k 2,460.66
2,46D66 5-Mar-23
5-Mar-23

8.90% 11,513.58
11 11,511.94
11,511 94 27-Mar-23
27-Mar-23

8.40% 19,705.94
1g,7D5.gz - 30-Mar-23
so-Mar-23

8.40%
8.40", 29,091.02
29,091.02 - 17-May-23
17-Mey-23
9.25%
9.25",
4,970.79
4,970.7g 4,949.96
4,g49S6 28-May-24
28-Mey-24
9.25% 975.18
975.18 - 8-Feb-30
8-Feb-30

9.25% 4,833.76
4,833.76 - 22-Feb-30
22-Feb-30

9.50% 2,926.36
2,926.36 - 7-Feb-31
7-Feb-31

9.50% 7,289.15
7.28@.15 - 21-Feb-31
21-Feb-31

Total
Total 3,39,438.79 3,61,872.22
*• Repaid
Repaid in
in instalments.
instalments.

#
* Preclosed
Preclosed in
in Sep
Sep 2020.
2020

** Two
Two NCDs having
having INEs INE722A07AG5 and INE722A07AH3
INESINE722A07AG5and INE722A07AH3 have face value
have fece value of e 1,00,000/-
of ` 1 each
each

Nature of security
Nature of security
The
The redemption
redemption of
of principal
principal amount of secured
amount of secured redeemable
redeemable non-
ron- convertible
convertible debentures
debentures with
with all
all interest thereon are
interest thereon are secured
secured
by a mortgage on the specified immovable property and by way of charge on the Company’s specifically identified assets
by a mortgage Dnthe immovab'e pro#rty and by way of charge on the Company"s specifically identified assets
such
such as
as book-
bnk- debts/
debts/ loan
loan receivables
receivables in
in favour
favour of
of the trustee appointed.
the trustee appointed

These
These secured
secured redeemable
redeemable non-convertible
non-convertible debentures are redeemable
debentures ere redeemable at
at par
par over
over a
a period of 18
peri-Z of 18 months
months tto 120
120 months
months
from
from the
the date
date of
of allotment
allotment depending on the
depending on the terms
terms of the agreement.
of the agreement.
Out
out of
of the above, the
the above, the following
following INE722A07AE0,
INE722Å07AEO, INE722A07AF7
INE722A07AF7 and end INE722A07AG5
INE722A07AG5 totalling
totalling to
to ` 57,263.26
57,263.26 lacs
lacs
(March 31, 2020 : 56,925.75 lacs) are having put option facility, as may be subject to applicable statutory and/ or regulatory
(Merch 31 2020 56,g2575 lacs) are hsving put option faci'ity, as may be subject to applicable statutory and/ or regulatory
requirements, upon
upon the terms and
the terms and conditions
conditions as
as may
mey bebe decided
decided by the Company.
by the Company

126 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

20. BORROWINGS (OTHER THAN DEBT

BORROWINGS(OTHERTHAN SECURITIES)
DEBTSECURITIES)

` in
in lacs
lacs

Particulars
Particulars As at
As at March
March 31,
31, 2021
2021 As
As at
at March
March 31,
31, 2020
2020
At
At At
At fair
fair Designated
Designated Total
Total At
At amortised
amortised At fair Designated
At fair Designated Total
Total

amortised
amortised value at
value fair value
at fair value cost
cost value at fair
value fair value
value

cost through through profit

cost through ough profit through
through through
through
profit
profit and loss
and loss
profit
profit profit
profit
and
and loss
loss account and loss
loss and
and loss
loss

account
account account
account account
account

Secured
Secured

Term Loan
Term Loan

from bank
fram bank in in 7,62,526.16
7±2526.18 - - 7,62,526.16 7,89,133.69
7æ,1sssg - - 7,89,133.69
INR
from financial
fram financial 2,63,930.95 - - 2,63,930.95 64,040.47 - - 64,040.47
47

institution/
institution,'
NBFC
NBFC in in INR
INR

from fram bank bank 38,605.98

38605.g8 - - 38,605.98
38,805.g8 58,553.69 - - 58,553.69
in
in INR-

Securitisation
Securitisation

from financial
fram financial 2,99,853.14 - - 2,99,853.14
2,ggass.14 3,19,206.50
s,lgzosso - - 3,19,206.50
institution/
institution/
NBFC in INR-
NBFC in INR-

Securitisation
Securitisation

Loans
Loans repayable
repayable an on
demand
demand

Cash credit
Cash credit 35,847.57
35847.57 - - 35,847.57
35,847.57 48,037.90
48,osngo - - 48,037.90
43037go
// Overdraft
Overdraft
facilities
facilities from
from

banks
03 nks

Working
Working 1,76,515.34 - - 1,76,515.34 1,54,488.98 - - 1,54,488.98
Capital
demand
demand loan
Baan

from
fram banksbanks

Unsecured
Unsecured

Commercial
Commercial Papers Papers - - - - 11,164.33
11
- - 11,164.33
11,18433
Total 15,77,279.14 - - 15,77,279.14 14,44,625.56 - - 14,44,625.56
Borrowings
Barrowings in in India
India 15,77,279.14 - - 15,77,279.14 14,44,625.56 - - 14,44,625.56
144462556
Borrowings outside
Barrowings outside - - - - - - - -
India
India

Total 15,77,279.14 - - 15,77,279.14 14,44,625.56 - - 14,44,625.56

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 127
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

20. BORROWINGS (OTHER THAN DEBT

BORROWINGS(OTHERTHAN SECURITIES) (Contd.)
DEBTSECURITIES)(Contd_)

Term Loan
Term from Bank
Loan from Bank in
in Indian
Indian currency-Secured

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2021
2021

` in
in lacs
lacs

Tenor (from the

Tenor(from the date
date of
of Balance
Balance Sheet date)
Sheet date Rate
Rate of
of Interest
Interest Repayment
Repayment Details
Details Total
Total Amount
Amount

Upto 12 Months
upto 12 Months 7.20% to 11.50%
7.20% to 3 to 24 installments of
3 to 24 installments of monthly,
monthly, 2,06,881.75
ZE881.75
quarterly, Half-yearly frequency and
quarterly, Half-yearly frequency end
Bullet
Bullet Payment
Payment
12-24
12-24 Months
Months 7.80%
7.80'/zto to 10.60% 3 to 36
3 to 36 installments
installments ofof monthly,
monthly, 2,27,252.09
227,252.og
quarterly
quarterly frequency
frequency
24-36
24-36 Months
Months 8.15%
8.15'/zto to 10.20%
10.20% 8 to 33
8 to 33 installments
installments ofof monthly,
monthly, 1,83,430.03
quarterly frequency
quarterly frequency
36-48
36-48 Months
Months 8.50%
350", to
to 9.45%
945", 14
14 to
to 15
15 installments
installments ofof quarterly
quarterly 1,44,962.29
1,44E622g
frequency
frequency
Total
Total 7,62,526.16
Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2020
2020

`tinin lacs
lacs

Tenor (from
Tenor the date
(from the date of
of Balance
Balance Sheet date)
Sheet date Rate
Rate of
of Interest
Interest Repayment
Repayment Details
Details Total
Total Amount
Amount

Upto
upto 12
12 Months
Months 8.80% to
to 10.85%
10.85% 22 to
to 12
12 installments
instalments of
of quarterly,
quarterly, Half
Half 1,59,251.37
yearly and
yearly and annual frequency
annualfrequency
12-24
12-24 Months
Months 8.55%
8.55% to
to 10.85%
10.85% 3 to 24 installments of
3 to 24 installments of monthly,
monthly, 2,88,843.96
quarterly, Half yearly frequency
qvarterty,Halfyearlyfrequency
24-36
24-36 Months
Months 9.55% to 10.60% 44 to
to 36
36 installments
installments of
of monthly,
monthly, 1,84,151.96
quarterly frequency
qvartertyfrequency
36-48 Months
36-48 Months
9.20% to 10.75%
to 10.75%
11
11 to
to 19
lg installments
installments of
of quarterly
quarterly 1,56,886.41
41

frequency
frequency
Total
Total 7,89,133.69
Nature
Nature of
of Security
Security

Term Loans
Term from banks
Loans from banks are
are secured
secured by
by an exclusive charge
en exclusive charge by
by way
way of
of hypothecation
hypothaation of
of specific
speific assets
assets under
under financing.
Term Loan
Term from Financial
Loan from Financial Institutions/
Institutions/ NBFC-Secured

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2021
2021

` in lacs
in lacs

Tenor (from
Tenor the date
from the date of
of Balance
Balance Sheet date)
Sheet date Rate of Interest
Rate of Interest Repayment nt Details
Details Total Amount
Total Amount
Upto
upto 12
12 Months
Months 6.21% to 9.00% 4 Quarterly
4 Quarterly installments
installments & & Bullet
gullet 43,882.35
43,88235
Payment
Payment
12-24 Months
12-24 Months
7.60% to 9.40% 12
12 to
to 20
20 Quarterly
Quarterly Installments
Installments 12,851.91
12,851
24-36
24-36 Months
Months 8.25%
325'/, 10 Quarterly Installments
Quarterly Installments 4,359.24
435924
36-48 Months
36-48 Months 10.50%
1050% 20
20 Half-yearly
*Elf-years installments
installments 27,875.40
27,87540
48-60 Months
43-60 Months 7.20% to 9.75% 20
20 Quarterly
Quarterly Installments
Installments 1,44,803.84
14480384
Above 60 Months
Above Months 8.75%
375% 20
20 Quarterly Installments
QuarterlyInstallments 30,158.21
30,15821
Total
Total
2,63,930.95

128 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

20. BORROWINGS (OTHER THAN DEBT

BORROWINGS(OTHERTHAN SECURITIES) (Contd.)
DEBTSECURITIES)(Contd_)

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2020
2020

` in
in lacs
lacs

Tenor (from
Tenor the date
(from the of Balance
date of Sheet date)
Balance Sheet date Rate
Rate of
of Interest
Interest Repayment
Repayment Details
Details Total
Total Amount
Amount

24 to 36 Months
24 to 36 Months 8.65%
365% to
to 10.00% 12 to 20 Quarterly Installments
12 to 20 Cuarterty Installments 20,922.83
20,g2283
48 to
48 to 60
60 Months
Months 10.50% 20 Half yearly installments
20 Half yearly installments 43,117.64
Total
Total 64,040.47
64,040.47

Nature
Nature of
of security
security

Term loans
Term from institutions
bens from institutions are
ere secured
secured by
by an
an exclusive charge by
exclusive charge by way
way of
of hypothecation
hypothecation of
of specific
specific assets
assets under financing.
under financing

Term loan
Term loan from banks -- INR
from banks INR -Securitisation
-Securitisation

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2021
2021

` in
in lacs
lacs

Tenure (from
Tenure the date
(from the date of the Balance
of the Balance Sheet)
Sheet) Rate of interest
Rate of interest
Repayment
Repayment details
details Total Amount
Total Amount

48-60 Months
48-60 Months 9.10% to 10.00% 11 to
to 70
70 installments
installments of
of monthly
monthly 38,605.98
38,605Æ8

frequency
frequency
38,605.98
38,605.98

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2020
2020

` in
in lacs
lacs

Tenure (from
Tenure the date
from the date of the Balance
of the Balance Sheet)
Sheet Rate
Rate of
of interest
interest Repayment
ent details
details Total
Total Amount
Amount

Above 60
Above 60 Months
Months 9.10% to 10.00% 11 to
to 70
70 installments
installments of
of monthly
monthly 58,553.69
545536?

frequency
frequency
58,553.69
58,553.69

Nature
Nature of
of security
security

Secured
Secured by
by an
an exclusive charge by
exclusive charge by way
way of
of hypothecation
hypothaation of
of specific
speific movable
movable assets
assets being fixed/current assets
±ing fixed/current assets relating
relating to
to
hypothecation
hypothecation loans.
dans
Term loan
Term loan from
from Financial
Financial Institutions/
Institutions/ NBFC
NBFC -- INR
INR -Securitisation
-Securitisation

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2021
2021

` in lacs
in lacs

Tenor (from
Tenor the date
from the of Balance
date of Sheet date)
Balance Sheet date Rate
Rate of
of interest
interest Repayment
ent details
details Total
Total Amount
Amount

Upto
upto 12
12 Months
Months 10.40%
10.40% 11 to
to 23
23 installments
installments of
of monthly
monthly 445.01
44501

frequency
frequency
12-24 Months
12-24 Months
8.20%
820%
to 10.55%
to 11155%
11 to
to 30
30 installments
installments of
of monthly
monthly 72,922.50
72,g2250

frequency
frequency
24-36 Months
24-36 Months
8.20%
820%
to 10.25%
to
11 to
to 52
52 installments
installments of
of monthly
monthly 76,426.41
76,42641

frequency
frequency
36-48 Months
36-48 Months
10.25% to
to 10.30%
1030%
11 to
to 72
72 installments
installments of
of monthly
monthly 40,005.80
4003580

frequency
frequency
48-60 Months
48-60 Months 9.00% to 10.25% 11 to
to 72
72 installments
installments of
of monthly
monthly 45,937.46
45,g3746

frequency
frequency
Above 60
Ahve 60 Months
Months 9.11% 11 to
to 75
75 installments
installments of
of monthly
monthly 64,115.96
frequency
frequency
Total
Total 2,99,853.14

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 129
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

20. BORROWINGS (OTHER THAN DEBT

BORROWINGS(OTHERTHAN SECURITIES) (Contd.)
DEBTSECURITIES)(Contd_)

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2020
2020

` in
in lacs
lacs

Tenor (from
Tenor the date
(from the date of
of Balance
Balance Sheet date)
Sheet date Rate of interest
Rate of interest Repayment
Repayment details
details Total
Total Amount
Amount

12-24 Months
12-24 Months 7.05%
705% to
to 10.65%
11165% 1 to 54 installments of
1 to 54 installments of monthly
rnnthly 28,631.34
28,631 34
frequency
frequency
24-36
24-36 Months
Months 8.50% to 10.55%
8.50% to 10 11 to
to 30
30 installments of monthly
installments of rnnthly 136,482.01
136,48201
frequency
frequency
36-48
36-48 Months
Months 10.25% 11 to
to 52
52 installments of monthly
installments of rnnthly 9,744.04
g,74404
frequency
frequency
48-60 Months
43-60 Months
10.25%
10.25%
to 10.30%
to 10.30",
11 to
to 72
72 installments of monthly
installments of rnnthly 66,043.16
66,04316

frequency
frequency
Above
Above 60 Months
Months 9.00% to 10.25%
1025%
11 to
to 72
72 installments of monthly
installments of rnnthly 78,305.94
78,305Æ4

frequency
frequency
Total
Total 3,19,206.50
3, 19,206.50

Nature of security
Nature of

Secured
Secured by
by an exclusive charge
en exclusive charge by
by way of hypothecation
way of hypothecation of
of specific
s*cific movable
movable assets
assets being
being fixed/current
fixed/current assets
assets relating
relating to
to
hypothecation loans.
hypothæation bens

Loans
Loans repayable
repayable on demand-Secured
on demand-secured

Cash
Cash Credit
Credit from
from Banks
Banks

` in
in lacs
lacs

Particulars
Particulars Rate
Rate of
of As at As at
Interest
Interest
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Secured with exclusive
Secured with exclusive charge
charge by
by way
way of
of hypothecation
hypthæation ofof specific
specific 7.30%
730% to
to 35,847.57
35,84757 48,037.90
48,037.90

assets under financing.

assets under 11.80%
11

Total
Total 35,847.57 48,037.90
48,037M

Working capital
Working capital Demand
Demand loan from Banks
loan from Banks

` in
in lacs
lacs

Particulars
Particulars
Rate of
Rate of
As at As at
Interest
Interest March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Secured with exclusive
Secured with exclusive charge
charge by
by way
way of
of hypothecation
hypthæation ofof specific
specific 7.20%
720%
to
to
1,76,515.34 1,54,488.98
assets
assets under financing.
underfinancirg 11.05%
11

Total
Total
1,76,515.34 1,54,488.98
Commercial
Commercial
Papers-Unsecured
` in lacs
in lacs

Particulars
Particulars Rate
Rate of
of Repayment
Repayment As at As at
Interest
Interest
Details
Details
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Upto
upto 12
12 Months
Months 7.40% to Bullet
Bullet - 11,164.33
11,164.33

9.45% Repayment
Repayment
Total
Total - 11,164.33
11,164.33

130 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

21. DEPOSITS
DEPOSITS

` in
in lacs
lacs

Particulars
Particulars As at
As at March
March 31,
31, 2021
2021 As at
As at March
March 31,
31, 2020
2020
At amortised
At amortised At fair value
At fair value Designated
Designated Total
Total At At
At fair value
At fair value Designated Total
Total

cost
cost through
through atat fair
fair value
value amortised
amortised through
through at
at fair
fair value
value
profit
profit through
through cost profit
profit through
through
and loss
and loss
profit
profit and loss
and loss
profit
profit
account
account and
and loss
loss account
account and
and loss
loss

account account
account

Deposits
Depsits
Public
Public 5,52,881.69
5,52E8V69 - - 5,52,881.69
552,381 4,01,206.80
4,01 ,20680 - - 4,01,206.80
deposits
depsits
Recurring
Recurring 7.09 - - 7.09 - - - -
deposits
depsits
Total
Total 5,52,888.78
5, 52,888.78 - - 5,52,888.78 4,01,206.80 - - 4,01,206.80
Deposits
Deposits issued to directors
issued to directors : Nil
Nil (March
(March 31,
31, 2020:
2020: Nil)
Nil)

Details
Details of
of Public
Public Deposits
Deposits -- Unsecured
Unsecured

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2021
2021

`tinin lacs
lacs

Redeemable
Redeemable at at par
par Rate
Rate of
of interest
interest Total
Total

(from the date of Balance

from the date of Balance Sheet
Sheet Date)
Date >= 6% < 8% >= 8% < 10% >= 10% < 12%
Upto
upto 12
12 months 65,754.95
65,754'5 97,205.09
97.20509 - 1,62,960.04
1162,960.04
12-24
12-24 months
months 23,585.51
23,58551 1,22,138.47 - 1,45,723.98
145,723.98
24-36
24-36 months
months 17,871.37
17,871 Z7 1,17,186.77 - 1,35,058.15
1E5,058.15
36-48
36-48 months
months 775.24
77524 43,779.59 - 44,554.83
44,554.83
48-60 months
48-60 months - 64,584.70
6458470 - 64,584.70
64,584.70
Total
Total
1,07,987.07 4,44,894.62 - 5,52,881.69

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2020
2020

` in
in lacs
lacs

Redeemable
Redeemable at at par
par Rate
Rate of
of interest
interest Total
Total

(from the date of Balance

from the date of Balance Sheet
Sheet Date)
Date >= 6% < 8% >= 8% < 10% >= 10% < 12%
Upto
upto 12
12 months 73,326.28
73,326.28 48,075.09 82.00
8200 1,21,483.37
1,2148337
12-24
12-24 months
months 12,598.21
12,598.21 88,697.07 - 1,01,295.28
1,01
24-36 months
24-36 months 9,590.74 1,10,306.60 - 1,19,897.34
36-48 months
36-48 months
1,014.82
11014.82 18,843.11
18,848 n 1 - 19,857.93
48-60 months
48-60 months - 38,672.87
38,67287 - 38,672.87
38,67287
Total
Total
96,530.05 3,04,594.75 82.00
82.00
4,01,206.80

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 131
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

21. DEPOSITS (Contd.)

DEPOSITS(Contd_)

Details
Details of
of Recurring
Recurring deposits -- Unsecured

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2021
2021

` in
in lacs
lacs

Redeemable
Redeemable at at par
par Rate
Rate of
of interest
interest Total
Total

(from the date of Balance

(from the date of Balance Sheet
Sheet Date)
Date) >= 6% < 8% >= 8% < 10% >= 10% < 12%
Upto 12 months
upto 12 months 2.10
210 - - 2.10
210

12-24
12-24 months
months 0.49 - - 0.49
04g

24-36 months
24-36 months - 0.70
070 - 0.70
070

36-48 months
36-48 months - 0.05
0 05 - 0.05
0 05

48-60 months
43-60 months - 3.75
375 - 3.75
375

Total
Total 2.59 4.50 - 7.09

Terms of
Terms of Repayment
Repayment as at March
as at March 31,
31, 2020
2020
Outstanding
Outstanding as
es at
at March
Merch 31,
31 2020
2CZ0 : Nil
Nil

22. SUBORDINATED
SUBORDINATED LIABILITIES
LIABILITIES

` in
in lacs
lacs

Particulars
Particulars As at
As at March
March 31,
31, 2021
2021 As at
As at March
March 31,
31, 2020
2020
At At
At fair
fair Designated
Designated Total
Total At
At At
At fair
fair Designated
Designated Total
Total

amortised
amortised value at fair
value at fair value
value amortised
amortQi value at fair
value at fair value
value

cost
cost through
through through
through cost
cost through
through through
through
profit
profit profit
profit profit
profit profit
profit
and loss
and loss and loss
and loss and loss
and loss and loss
and loss

account
account account
account account
account account
account

Subordinated
Subordinated Debts
Debts - - - - 23,923.91
23.92391 - - 23,923.91
23,923.91
(Unsecured)
(unsecured)
Total
Total - - - -- 23,923.91
23,923.91 - - 23,923.91
23,923.91
Subordinate
Subordinate liabilities
liabilities in
in India
India - - - - 23,923.91
23.92391 - - 23,923.91
23,923.91
Subordinate
Subordinate liabilities
liabilities outside
outside - - - - - - - -
India
Indis

Total
Total - - - -- 23,923.91
23,923.91 - - 23,923.91
23,923.91

Terms of
Terms of repayment as at
repayment as at March
March 31,
31, 2021
2021
Privately
Privately Placed Subordinated Debts
Placed Subordinated Debts of
of Rs
Rs 1,000/-
1 Each
Each -- Unquoted:
unquoted: Nil
Nil

Terms of
Terms of repayment as at
repayment as at March
March 31, 2020
31, 2020

Privately
Privately Placed
Placed Subordinated
Subordinated Debts
Debts of
of ` 1,000/-
1 Each
Each -- Unquoted
Unquoted

` in lacs
in lacs

Redeemable
Redeemable at at par
par Rate of interest
Rate of interest Total
Total

(from the date

(from the date of
of Balance
Balance Sheet
Sheet Date)
Date >= 10% < 12%
Upto
U to 12
12 months*
months* 23,923.91
23,g23Æ1 23,923.91
23,923.91
Total
Total 23,923.91
23,923.91 23,923.91
23,923.91

* Includes
Includes ` 4.70
4.70 lacs
lacs issued to related
issued to related parties
parties

132 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

23. OTHER
OTHER FINANCIAL
FINANCIAL LIABILITIES
LIABILITIES

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Investor
Investor education
education and
and protection
protection fund
fund shall
shall bebe credited
credited by the following
by the following amounts
amounts
(as
(es and when due)
andwhen due) #
- Unpaid
unpeid dividend
dividend 86.42
8642 92.88
g288

-- Unclaimed
IJnc'aimed matured
matured deposits
dep3sits andand interest thereon
interest thereon 6,156.82
6,15682 10,983.54
1D,98354
-- Unclaimed
IJnc'aimed matured debentures and interest
matured debentures and interest thereon
thereon 573.98
573'8 756.45
75645
-- Unclaimed
IJnc'aimed matured subordinate debts and interest accrued
matured subordinate debts and interest accrued thereon
thereon 2,059.81 5,486.68
5,48668
Payable
Payableon on account
account of Assignment
Assignment 1,587.76
1,58776 6,992.62
6,gg2E2
Royalty
Royalty payable
peysble 1,641.31 1,554.29
1,554 u
Financial
Financial guarantee
guarantee obligation
obligation - 117.13
11713

Creditors for Supply

Creditors for Supply && Services
Services 353.48
35348
184.99
184gg

Employee related payables

Employeerelatedpayables 5,005.11
5,00511 5,702.66
5,702 56
Lease Liability
Leese Liability 16,757.24
16,75724 15,977.38
15,97738
COVID-19
COVID-1g Ex-gratia
Ex-gretia relief
relief Payable
Payable 140.10
14010 -
Dividend payable*
Dividendpayable• 6,600.50
6,60D50 -
Total
Total 40,962.53
40,962.53 47,848.62
There are no amounts due to be transferred to Investor Education and Protection Fund (IEPF)
# There are no amounts due to be transferred to Investor Education and Protection Fund (IEPF)

* Represents
Represents Interim
Interim dividend
dividend declared
declared on March
Merch 26,
26, 2021 which is
2021 which is payable
payable to
to the
the shareholders whose names
shareholders whose nemes appeared
appeared on
on the
the
register
register of
of members
members asas at
at April
April 7,
7, 2021
2021 being
being record
record date. This second
date This second interim
interim dividend
dividend was
wes paid
paid to
to shareholders
shareholders on April 19,
on April 1g,
2021.
202L

Financial
Financial Guarantee
Guarantæ Obligation
Obligation

Credit quality of exposure

quality of exposure
` in
in lacs
lacs

Particulars
Particulars
As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Financial
Financial guarantee
guarantee obligation
obligation - 2,500.00
Total
Total - 2,500.00
2,500.00

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 133
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

23. OTHER FINANCIAL LIABILITIES

OTHERFINANCIAL LIABILITIES (Contd.)
(Contd_)

An analysis
An of changes
analysis of changes in the gross
in the gross carrying
carlying amount
amount in
in relation
relation to
to financial
financial guarantee
guarantee exposure is, as follows:
is, as follows:

Gross
Gross exposure
expsure reconciliation
reconciliation

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Opening
Opening Balance of outstanding
Balance of outstanding exposure
exposure 2,500.00
2,500m 2,500.00
2,500 m
Additions
Additions - -
Deletions
Deletions 2,500.00
2,5C3.CMJ -
Closing
Closing Balance
Balance of
of outstanding exposure
outstandingexposure - 2,500.00
No ECL has been provided for
No ECL hes been provided financial guarantee
for financial guarantee obligation
obligation based
based on
on past
past history.
history

Lease
Lease Liability
Liability

As at
As at March
March 31,
31, 2021
2021

` in
in lacs
lacs

Class of Underlying
Class of Asset
Underlying Asset Opening
Opening Additions Reduction
Additions Reduction
Finance
Finance
Payment
Payment Rent Lease
Rent Lease
Amount
Balance
Balance to
to Lease
Lease in
in Lease
Lease Cost
Cost of
of lease
lease Concession
Concession of
of Lease
Lease

of Lease Liabilities, Liabilities

of Lease Liabilities, Liabilities Accrued
Accrued Liabilities
Liabilities Liabilities
Liabilities

Liabilities
Liabilities made
made due to
due to during the
during the during the
during the as
as on
on March
March

(Balance
(Balance as as during
during the termination
the termination period year 31,
31, 2021
2021
on
on April
April 1,1, year
year of Lease
of Lease

2020) agreement
reement

Office Premises
Office Premises
15,977.38
15,977.38 6,147.24
6,147.24 1,008.76
11008.76 1,718.12
171812 5,644.23
5.64423 432.51
43251
16,757.24
16,75724

As at
As at March
March 31,
31, 2020
2020

` in
in lacs
lacs

Class of Underlying
Class of Asset
Underlying Asset Opening
Opening Recognised Additions Reduction
Additions Reduction
Finance
Finance
Payment of
Payment of Amount
Balance
Balance on
on to
to Lease
Lease in
in Lease
Lease Cost lease
lease of
of Lease
Lease

of
of Lease
Lease transition
transition Liabilities,
Liabilities, Liabilities
Liabilities Accrued Liabilities
Liabilities Liabilities
Liabilities as
as

Liabilities
Liabilities as
as on
on April
April made
made due to
due to during the
during the during on March 31,
during on March 31,
(Balance
(Balance as as 1,
1, 2019
2019 of of during the
during termination
the termination period the
the year
year 2020
on
on April
April 1,1, IND As 116 116 year
year of Lease
of Lease
2019) - Leases agreement
ræment

Office Premises
Office Premises
- 15,467.61 5,215.62
5,215.62 625.93
6252
1,610.59 5,690.52
5.69052 15,977.38
15,97788

The table
The table below
below provides details regarding
provides details regarding the
the contractual
contractual maturities
maturities of
of lease
lease liabilities
liabilities as
as on
on March
March 31,
31, 2021
2021

` in lacs
in lacs

Particulars
Particulars As
As at
at March
March 31,
31, 2021
2021 As at
As at March
March 31,
31, 2020
2020
Undiscounted
Undiscounted Discounted
Discounted Undiscounted
Undiscounted Discounted
Discounted

Basis
Basis Basis
Basis Basis
Basis Basis
Basis

Not
Not later than one
Laterthan one year
year 5,591.36
5,5E1.36 4,128.59
4,128.5g 5,525.59
5,525.5g 4,138.94
Later than one year but
Later than one year but not
not later than five
Laterthan five years
years 12,141.59
12,141.5g 9,314.95 11,851.56
1 1,851.56 9,417.04
9,417.04
Later
Later than
then 55years
years 3,840.74
3,840.74 3,313.70
3,313.70 2,841.87
2,841.87 2,421.40
2,421.40
Total
Total 21,573.69 16,757.24
16,757.24 20,219.02
20,219.02 15,977.38
15,977.38

Qualitative
Qualitative Disclosures
Disclosures -- Lease
Lease Liability:
Liability.

The leased
The leased building
building are
are used to carry
used to carry out
out business
business operations
0*retions and
end related
related support
support activities.
activities. The
The future
future cash
cash outflows
outflows on
on lease
lease
payments
payments are fixed in
are fixed in nature,
nature, subject
subject to
to escalations.
escalations TheThe lease
lease agreements
agreements tenor
tenor extensions
extensions and
and termination
termination conditions
conditions are
ere
subject
subject to
to respective
respective lease
lease agreements.
agreements. NoNo restrictions
restrictions or
or covenants
ccp.renantsare
are imposed
imposed by
by lease
lease agreements.
agreements

134 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

24. PROVISIONS
PROVISIONS

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
For Employee benefit
ForEmployeebenefit
-- Gratuity
Gratuity - 1,133.36
1,13336
- Provision for compensated
Provisionfor absences
compensatedabsences 2,413.52
241352 2,761.66
2,76166
For
For Others
Others

-- Undrawn
undrawn loan
loan commitment
commitment 217.73
21773 31.77
3177

Total
Total
2,631.25
2,631.25 3,926.79

Loan Commitment
Loan Commitment

Credit quality of exposure

quality of exposure
The table
The table below shows the
below shows credit quality
the credit quality and the maximum
and the maximum exposure
exposure to
to credit
credit risk
risk based
based on the Company’s
on the Companfs internal
internal credit
credit rating
rating
system and year-end stage classification. The amounts presented are gross of impairment allowances. Details of the Company’s
system and year-end stage classification. The amounts presented are gross of impairment allowances Details of the Company's
internal
internal grading
grading system
system are
are explained
explained inin Note 47.2 along
Note 47.2 along policies on whether
policies on whether ECL
ECL allowances
allowances are
are calculated on an
calculated on en individual
individual or
or
collective basis.
collective basis.

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Stage
Sta 11 Collective
Collective Stage 11 Collective
Collective

Internal
Internal Rating
Rating Grade
Grade
Performing
Performing
High
High Grade
Grade 5,378.39
5,37339 691.57
sgr57

Total
Total 5,378.39
5,378.39 691.57
691 _57

An analysis
An analysis of
of changes
changes in the gross
in the gross carrying
carrying amount
amount and the corresponding
end the corresponding ECL
ECL allowances
allowances in
in relation
relation to
to other
other undrawn
undrawn loan
loan
commitments is, as follows:
commitments is, as follows:

Gross
Gross
exposure reconciliation
reconciliation

` in lacs
in lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Stage 1 Stage 1
Opening balance
balance of
of outstanding
outstanding exposure
exposure 691.57
691.57
-
New exposures
New exposures 5,378.39
5,37339 691.57
s
Exposure
Exposures deræcgnised matured/re#id(excluding
derecognised or matured/repaid (exclOdingwriteoffs)
write offs) (691.57) -
Closing balance of outstanding exposure
Closi balance of outsta 5,378.39
5,378.39 691.57
691 _57

Reconciliation of ECL
Reconciliation of ECL balance
balance in relation to
in relation to other
other undrawn
undrawn loan
loan commitments
commitments is given below:
is given below:

`tinin lacs
lacs

Particulars
Particulars
Year ended
Year ended
Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Stage
Stage 1 1 Stage
Stage 11
ECL allowance -- opening
ECLallowance balance
ppeningbalance 31.77
31.77 -
New exposures
New exposures 217.73
21773
31.77
3177

s
Exposure
Exposures deræcgnisedmatured/repid (exclOding
derecognised or matured/repaid (excluding writeoffs)
write offs) (31.77)
(31 77) -
ECL allowance - closing balance
ECL allowance - 217.73
217.73 31.77
31_77

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 135
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

25. OTHER
OTHER NON-FINANCIAL
NON-FINANCIAL LIABILITIES
LIABILITIES

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31, 2021
2021 March
March 31,
31, 2020
2020
Statutory dues payable
Statutorydues payable 2,246.33
2,24633 2,155.19
Retention
Retention money
money and
end other sundry liabilities
other sundry liabilities 26.39
263 37.08
37.08

Total
Total 2,272.72 2,192.27
2,192.27

26. EQUITY SHARE CAPITAL

EQUITY SHARE CAPITAL

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Authorised:
Authorised:

1,18,500,000 (March
(March 31,
31, 2020:
2020: 1,18,500,000)
1 equity
equity shares
shares of
of ` 10/-
10/- each
each 11,850.00 11,850.00
11,850uI
40,00,000 (March 31, 2020: 40,00,000) cumulative redeemable preference shares
(March 31, 2020: cumulative redeemable preference shares of
of 4,000.00 4,000.00
` 100/- each
100/- each

Total
Total 15,850.00
15,850m 15,850.00
15,850m
Issued share capital
Issued share capital
6,60,05,022 (March 31, 2020
(March31, 2020 :: 6,60,02,922) equity
equity shares of ` 10/-
sharesof? 10/- each
each 6,600.50
6,60050 6,600.29
6,603.2g
Subscribed share capital
Subscribed share capital
6,60,05,022 (March
(March 31,
31, 2020
2020 :: 6,60,02,922) equity
equity shares
shares of
of?` 10/-
10/ - each
each 6,600.50
6,60050 6,600.29
6,603.2g
Paid
Paid up (fully paid up)
6,60,05,022 (March
(March 31,
31, 2020
2020 :: 6,60,02,922) equity
equity shares
shares of
oft` 10/-
10/ - each
each 6,600.50
6,60050 6,600.29
6,6cz.2g
Total Equity
Total Equity 6,600.50 6,600.29
6,600.29
Issued,
Issued, Subscribed
Subscribed and
and fully
fully paid
paid up
up Equity
Equity Shares
Shares
6,60,05,022 (March 31, 2020
(March31, 2020 :: 6,60,02,922) equity
equity shares of ` 10/-
sharesoft 10/- each
each 6,600.50
6,60050 6,600.29
6,6cz.2g
Total Equity
Total Equity 6,600.50
6,600.50 6,600.29
6,600.29

a.
a. Reconciliation
Reconciliation of
of the
the number of shares
number of shares and
and amount
amount outstanding at the
outstanding at the beginning and
and at
at the end of the
the endof the period
period

Particulars
Particulars No. of Shares
No. of Shares ` in
in lacs
lacs

As
As at April 1,
at April 2019
1, 2019 6,59,92,317 6,599.23
6,599.23
Issued
Issued during the year
during the yeer 10,605
10.605 1.06
1.06

As
As at
at March
March 31,
31, 2020
2020 6,60,02,922 6,600.29
6,600.29
Issued during the year
Issuedduringthe yeer 2,100 0.21
As at March 31, 2021
Asat March 31, 2021 6,60,05,022 6,600.50
6,600.50

136 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

26. EQUITY SHARE CAPITAL (Contd.)

EQUITYSHARECAPITAL (Contd_)

b.
b. Terms/
Terms/ rights
rights attached
attached to
to equity
equity shares
shares
The
The Company
Company hashas only
only one
one class
class of
of equity
equity shares
shares having
having a a par
par value
value of ` 10/-
of e 10/- per
per share.
share. Each
Each holder
holder of of equity
equity shares
shares isis
entitled to one vote per share. The dividend is subject to the approval of the shareholders in the ensuing annual general
entitled to one vote per shsre The dividend is subject to the Epprova' of the shareholders in the ensuing annual general
meeting. During the year
Curing the year ended
ended March 31, 2021,
March 31, the amount
2021,the amount of of per
per equity
equity share
share dividend
dividend proposed
prvrsed in in total
total for
for distributions
distributions toto
equity
equity shareholders
shareholders is is ` 33.00
33.00 (March
(March 31,
31, 2020
2020 : ` 6.00).
6001 OutOut of
of the
the said
said total
total dividend
dividend proposed
proposed for the year
for the year ended
ended March
Merch 31,
81,
2021,
2021 amount of interim
amount of interim dividend
dividend paid
Fid during
during the year was
the year was ` 20.00
2003 (March
(March 31,
31, 2020
2020 : ` 6.00)
600) per
per equity
equity share
share and
and amount
amount of of
final dividend proposed by the Board of Directors is ` 13.00 (March 31, 2020: Nil) per equity share. In the event of liquidation
fin-I dividend proposed by the Board cf Directors is 1300 (Merch 31 2020: Nil) per equity share In the event Df liquidation
of the Company,
of the Company, thethe holders
holders of equity shares
of equity shares will
wil bebe entitled
entitled to
to receive
receive remaining
remaimng assets
essets of
of the
the Company,
Company, afterafter distribution
distribution
of
of all
all preferential
preferential amounts.
armunts. TheThe distribution
distribution will
will be
be in
in proportion
proportion to to the
the number
number of of equity
equity shares
shares held
held byby the
the shareholders.
shareholders

c. Aggregate
c. Aggregate number of equity
number of equity shares
shares issued
issued for
for consideration
consideration other than cash
other than during the
cash during the period of
of five
five years
years immediately
preceding
preceding the
the reporting date:
relX)rting date:

The
The Company
Company has
has issued total 77,870
issued total 77,870 (March
(March 31,
31 2020
2020 : 97,310)
97,310) equity
equity shares
shares during the period
during the *riod of five years
of five years immediately
immediately
preceding
preceding the
the reporting
rez:lrting date
date on
on exercise of options
exercise of options granted
grant± under the employee
under the employee stock
stock option
option plan
plen (ESOP),
(ESOP),wherein
wherein aa part
part of
of
the consideration was received in form of employee service.
the consideration wes received in form of employæ service.

d.
d. Details of shareholders
Details of shareholders holding
holding more
more than
than 5% shares in
5%shares in the
the Company
Company

Particulars
Particulars As
As at
at March
March 31,
31, 2021
2021 As
As at
at March
March 31,
31, 2020
2020
No. of Shares
No. of Shares % holding
% holding No. of Shares
No. of Shares %
% holding
holding
in
in the
the class
class in the class
in the class

Shriram
Shriram Capital
Capitel Limited
Limited 2,23,71,594 33.89%
33.89, 2,23,71,594 33.89%
3szg'/,

Dynasty Acquisition FPI Limited

DynastyAcquisitionFRILimited 1,34,21,889 20.33%
20.33% 1,34,21,889 20.34%
20.34%

Piramal Enterprises Limited

Piremel Enterprises Limited 65,79,840 9.97%
9.97", 65,79,840 9.97%
As
As per
per the
the records
records of
of the
the Company,
Company, including
including its
its register of shareholders/members
register of shareholders/mem&rs and and other
other declarations
declarations received from
received from
shareholders/members regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships
shareholders/mem±rs regarding beneficial interest, the atove shareholding represents legal and beneficial ownerships
of
of shares.
shares

Refer
Refer note 45 -- Capital
note 45 Capital for the Company’s
for the Company's objectives,
objectives, policies
policies and
and processes for managing
processes for managing capital
capital

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 137
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

27. OTHER
OTHER EQUITY
EQUITY

` in
in lacs
lacs

Particulars
Particulars Amount
Amount

Securities
Securities Premium
Premium Account
Account

As at
As at April
April 01,
01, 2019
2019 1,75,492.24
Add:
Add Premium
Premiumon on sharesissued
shares issued under Employee Stock Option
underEmployeeStak pption Plan
Plen 26.67
2567

As at March 31, 2020

As at March 31, 2020 1,75,518.91
Add: Premium
Adi Premiumon on sharesissued
shares issued under Employee Stock Option
underEmployeeStak pption Plan
Plen 5.28
5.28

As at March 31, 2021

As at March 31, 2021 1,75,524.19

Share
Share Option
Option Outstanding
Outstanding
As at
As at April
April 01,
01, 2019
2019 53.37
Less:
Less Adjustment on Exercise
Adjustmenton of Employee
Exerciseof Stock Option
EmployeeStock pption Plan
Plen (24.02)
02)
As at
As at March
March 31,
31, 2020
2020 29.35
29 u

Add: Expenses
Add: Expenseson Employee Stock Option
EmployeeStock Plan (Refer Note No.
OptionPlan(ReferNote ND 38)
34 1,847.93
11847.93
Less: Adjustment on Exercise of Employee Stock Option Plan
Less Adjustment on Exercise of Employee Stock Option Plen (4.76)
(476)
As at
As at March
March 31,
31, 2021
2021 1,872.52

Statutory Reserve pursuant to Section

Reservepyrsuant Section 45-IC of the RBI Act, 1934
RBIAct, 1934
As at
As at April
April 01,
01, 2019
2019 1,08,411.30
Add:
Add Amount transferred from Retained
Amounttransferredfrom Earnings
RetainedEarnings 20,020.00
20,020.00
As at
As at March
March 31,
31, 2020
2020 1,28,431.30
Add: Amount
Add transferred from Retained
Amounttransferredfrom Earnings
RetainedEarnings 20,490.00
As at
As at March
March 31,
31, 2021
2021 1,48,921.30

Debenture Redemption Reserve (DRR)

DebentureRedemptionReserye(PR*)
As at
As at April
April 01,
01, 2019
2019 2,844.29
2,844.29
Add: Amount transferred from Retained
Add Amounttransferredfrom Earnings
RetainedEarnings 2,930.90
2,930.90
Less: Amount transferred to General Reserve
Less Amount transferred to General on redemption
Reserveon redemption ofof debentures
debentures (2,911.54)
(2,g11
Less: Amount transferred
Less: Amount transferred to
to General
General Reserve
Reserve as
as DRR is not
ORRis not required vide MCA
required vide MCA notification
notification dated
dated August
August (2,863.65)
(2E6365)
16, 2019
As at
As at March
March 31,
31, 2020
2020 -
Add: Amount transferred from
Add Amount transferred from Retained
Retained Earnings
Earnings -
Less:
Less Amount
Amount transferred
transferredtoto General
GeneralReserve on redemption
Reserveon redemptionofof debentures
debentures -
As at
As at March
March 31,
31, 2021
2021 -

General
General Reserve
Reserve

As at
As at April
April 01,
01, 2019
2019 85,339.27
85,339.27
Add: Amount transferred from Retained
Add Amounttransferredfrom Earnings
RetainedEarnings 10,010.00
10,010.00
Add: Transfer from Debenture redemption reserve
Add Transfer from Debenture redemption reserve on
cr. redemption
redemption of
of debentures
debentures 2,911.54
2,911.54
Add: Amount transferred from Debenture Redemption Reserve as DRR is not
Add Amount transferred from Debenture Redemption Reserveas ORRis not required vide MCA
required vide notification
MCAnotification 2,863.65
2,863.65
dated August 16,
dated August 16, 2019
201@
As at
As at March
March 31,
31, 2020
2020 1,01,124.46
Add: Amount
Add transferred from
Amount transferred from Retained
Retained Earnings
Earnings 10,250.00
As at March 31, 2021
As at March 31, 2021 1,11,374.46

138 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

27. OTHER EQUITY (Contd.)

OTHEREQUITY(Contd_)

` in
in lacs
lacs

Particulars
Particulars Amount
Capital
Capital Reserve
Reserve
As at
As at April
April 01,
m, 2019
2019 7,871.88
7,871.88
As at
As at March
March 31,
31, 2020
2020 7,871.88
7,871.88
As at March 31, 2021
As at March 31, 2021 7,871.88
7,871M

Capital
Capital Redemption Reserve
Reserve
As at April 01, 2019
As at April m, 2019 2,328.98
2,328.98
As at
As at March
March 31,
31, 2020
2020 2,328.98
2,328.98
As at
As at March
March 31,
31, 2021
2021 2,328.98
2,328.98

Other
Other Comprehensive
Comprehensive Income
Income
As at
As at April
April 01,
m, 2019
2019 (732.67)
(732_67)
Remeasurement
Remeasurement gain/
gain/ (loss) on defined
(loss) on defined benefit
benefit plan
plan (340.60)
(340.60)
Gain/(Loss) on Fair
Gain/(Loss)on valuation of quoted
Fsirvsluation quoted investments in equity shares
investmentsinequity shares (664.10)
(664.10)
Income Tax Provision/ (Reversal) on above
Income Tax Provision/ (Reversal)on above 115.51
As at
As at March
March 31,
31, 2020
2020 (1,621.86)
Remeasurement gain/
Remeasurement gain/ (loss) on defined
(loss) on defined benefit
benefit plan
plan 1,178.74
1.17874
Gain/(Loss) on Fair
Gain'(Loss)on valuation of quoted
Fsirvsluation quoted investments in equity shares
investmentsinequity shares 768.97
768.97

Income
Income Tax
Tax Provision/
Provision/ (Reversal) on above
(Reversal)on above (63284)
(632.84)
As at
As at March
March 31,
31, 2021
2021 (306.99)
(306_99)

Retained
Retained Earnings
Earnings
As at April 01,
As at April m, 2019
2019 2,50,924.56
Add: Profit for the year
Add: Profit for the yeer 1,00,052.00
1100,052.111
Add/(Less): Appropriations and other
Add/(Less):Appropriationsend Adjustments
other Adjustments
Transfer to Debenture Redemption Reserve
Transfer to Detenture R±emption Reserve (2E30_goV
(2,930.90)
Final
Final Dividend
Dividend on
on Equity
Equity Shares
Shares FY
FY 2018-19
2018-1 g (10,559.22)
(10.55922)
Tax
Tax on
on Final
Final Dividend
Dividend onon Equity
Equity Shares
Shares FY
FY 2018-19
2018-1 g (2,i 70.48)
(2,170.48)
Interim
Interim Equity
Equity Dividend
Dividend FY 2019-20
2D1g-20 (3,959.76)
(495976)
Tax
Tax on
on Interim
Interim Dividend
Dividend on on Equity
Equity Shares
Shares FY 2019-20
FY2019-20 (813.94)
(813.94)
Transfer
Transfer toto Statutory
Statutory Reserve
Reserve go,020.ooj
(20,020.00)
Transfer
Transfer toto General
General reserve
reserve (10,010.00)
(101010.00)
As at March 31, 2020
As at March 31, 2020 3,00,512.26
Add: Profit for the year
Add:Profit yeer 1,01,094.42
Add/(Less): Appropriations end
Add/(Less): Appropriations and other Adjustments
other Adjustments
Interim
Interim Equity Dividend FY 2020-21
EquityDividend 2020-21 (13,200.93)
(13,200.93)
Transfer
Transfer toto Statutory
Statutory Reserve
Reserve (20,490.00)
Transfer to General reserve
Transfer to General reserve (10,250.00)
(10250.00)
As at
As at March
March 31,31, 2021
2021 3,57,665.75

Total other equity

As at
As at April
April 01,
m, 2019
2019 6,32,533.22
As at March 31, 2020
As at March 31, 2020 7,14,195.28
As at March 31, 2021
As at March 31, 2021 8,05,252.09

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 139
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

27. OTHER EQUITY (Contd.)

OTHEREQUITY(Contd_)

Proposed Dividend
Dividend on equity shares
on equity shares

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
The Board
The Board proposed
proposed dividend
dividend onon equity shares
shares
Proposed dividend on equity shares
Propsed dividend cn eguity for the
shares for the year
year ended
ended on March
March 31,
31 2021:
2021 8,580.65
8,58065 -
` 13.00
13.00 (March 31, 2020:
(March 31 2020: Nil)
Nil) per
per share
share
Total
Total 8,580.65 -

Nature
Nature and
and purpose
purpose of
of reserves
reserves
Securities
Securities Premium
Premium Reserve:
Reserve: The
The amount
amount received
received in excess of
in excess of face
face value
value of
of the
the equity
equity shares
shares isis recognised
recognised in in Securities
Securities
Premium
Premium Reserve.
Reserve. In
In case
case of
of equity-settled
equity-settl± share
share based
based payment
payment transactions,
transections, the
the difference
difference between
between fair value on
fair velue on grant
grant date
date
and
and nominal
nominal value of share
value of share is
is accounted
accounted asas securities
securities premium
premium reserve. The reserve
resen,e The reserve can
csn bebe utilised
utilised only
only for
for limited
limited purposes
purposes
such as issuance
such es issuance of
of bonus
tonus shares
shares inin accordance with the
accordance with the provisions of the
provisions of the Companies
Compenies Act,
Act, 2013.
2013
Capital
Capital Reserve:
Reserve: Capital
Capital reserve
resewe is
is the excess of
the excess of net
net assets taken over
assets taken over cost
cost of consideration paid
of consideration paid during
during amalgamation.
amalgamation
Capital
Capital Redemption
Redemption Reserve: The Company
Reserve: The Company hashas recognised
recognised Capital
Capital Redemption
Redemption Reserve
Reserve on
on redemption
redemption ofof Non-Convertible
Non-Convertible
Redeemable Preference Shares from its retained earnings. The amount in Capital Redemption Reserve is equal to
Redeemable Preference Shares from its retained earnings. The -mount in Capital Redemption Reserve is equal to nominal
nominal
amount
amount ofof the
the Non-Convertible
Non-Ccnvertible Redeemable
Redeem-ble Preference
Preference Shares
Shares redeemed.
redeemed. The
The Company
Company may
may issue
issue fully
fully paid
paid up
up bonus
bonus shares
shares
tto its
its members
members out of the
out of capital redemption
the capital redemption reserve
reserve account.
account.
Debenture
Debenture Redemption
Redemption Reserve:
Reserve: Pursuant
Pursuant toto Section
Section 7171 of
of the
the Companies
Companies Act, Act, 2013
2013 and
and circular
circular 04/2013,
04/2013, read
read with
with notification
notification
issued
issued date June 19,
date dune 1g, 2016
2016 issued
issued byby Ministry
Ministry ofDf Corporate Affairs, the
C.orporateAffairs, the Company
Comp-ny is is required
required toto transfer
transfer 25% of of the
the value
value ofof the
the
outstanding debentures issued through public issue as per the present SEBI (Issue and Listing of Debt Securities) Regulation,
outstanding debentures issued through public issue as per the present SEEI (Issue and Listing Df Debt Securities) Regulation,
2008 to Debenture
2008 to Detenture Redemption
3±emptiDn Reserve
Reserve (DRR)
(JAR) and
and nono DRR isis required
r.;uired in in case
case ofDf privately
privately placed
placed debenture.
debenture Also
Also the
the Company
Company
is
is required
required before
before 30th
30th day
day ofcf April of each
April of each year
yeer tcto deposit
deposit oror invest,
invest, as the case
as the case may
may be,
be, a
a sum which shall
sum which shall not
not be less
less than
than
15% of the amount
of the amount of of its
its debenture
debenture issued
issued through
through public
public issue
issue maturing
maturing within
within one
one year
year from
from the
the balance
balsnce sheet
sheet date.
date
In
n respect
respect of
cf the
the debentures
debentures issued
issued through
through public
public issue,
issue, the
the Company
Company is is not
not required
required toto create
create DRR vide MCA
ORRvide MCA notification
notification dated
dated
August 16 ,2019. The Company has deposited a sum of Nil (March 31, 2020: Nil) with scheduled banks, as there are no debentures
August 16 1201 g. The Compeny hes deposited s sum of Nil (Msrch 31, 2020: Nil) with scheduled banks, as there are no debentures
issued
issued through
through public
public issue,
issue, which
which were
were due
due for
for redemption
redemption during
during the
the year.
year.
General
General Reserve:
Reserve: Under the erstwhile
Underthe erstwhile Companies Act 1956,
Companies Act 1956, general
general reserve
reserve was
wes created
created through
through an
an annual
ennual transfer
transfer of
of net
net income
income
at
at a
e specified
specified percentage
percentage inin accordance
accord-nce with applicable regulations.
with applicable regulations. Consequent
Consequent to to introduction
intr±ucticn of of Companies Act 2013,
Companies Act 2013, the
the
requirement
requirement to to mandatorily
mandatorily transfer
transfer a
a specified
specifl± percentage
percent-ge ofcf the
the net
net profit
profit to
to general
genet-I reserve
reserve has
has been
been withdrawn.
withdrawm However,
However,
the amount
the amount previously
previously transferred
transferred to the general
to the general reserve
reserve can
can be
be utilised
utilised only
only inin accordance
accordance with
with the
the specific
specific requirements
requirements ofof
Companies
Companies Act Act, 2013.
2013.
Statutory
Statutory Reserve:
Reserve: Every
Every year the Company
year the transfers a
Compeny transfers a of
of sum
sum of
of not
not less than twenty
less than twenty per
per cent
cent of
of net
net profit
profit of that year
of that year as
es
disclosed
disclosed in
in the
the statement
statement of
cf profit
profit and
and loss to its
loss to its Statutory
Statutory Reserve
Reserve pursuant
pursuant to
to Section
Section 45-IC
45-IC of the RBI Act,
of the Act, 1934.
1934.
The conditions
The conditions and
and restrictions
restrictions for
for distribution
distribution attached
attached to
to statutory
statutory reserves
reserves as
as specified
sp€ified in
in Section 45-IC(1) in
Section 45-IC(I) in The
The Reserve
Reserve
Bank
Bank of
of India
India Act,
Act, 1934:
lg34:

(1) 
(1) Every
Every non-banking
non-banking financial
financial company
company (NBFC)
(NBFC) shall
shall create
create aa reserve
reserve fund
fund and transfer therein
end transfer therein aa sum
sum not
not less
less than
than twenty
twenty
percent
percent of
of its
its net
net profit
profit every
every year
year as
as disclosed
disclosed in the profit
in the profit and
and loss
loss account
account and
and before
before any
any dividend
dividend is
is declared.
declared.
(2) 
(2) No appropriation of any sum from the reserve fund shall be made by the NBFC except for the purpose as may be specified by the RBI
NoappropriationofanysumfromthereservefundshellbemedebytheN3FCexceptforthepurposeasmaybespecifiedbytheRaI
from time
from to time and every such appropriation shall be reported to the RBI within
timetotimeandeverysuch twenty-one days from the date of such withdrawal.
with intwenty-onedaysfromthedatæofsuchwithdrawal
Provided that the RBI may, in any particular case and for sufficient cause
Provided that the may, in -ny particular case -nd for sufficient cause being
±ing shown,
shown, extend the period
extend the *riod ofof twenty-one
twenty-one
days by such further period as it thinks fit or condone any delay in making such report.
days by such further period as it thinks fit or condone any delay in making such reprt

140 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

27. OTHER EQUITY (Contd.)

OTHEREQUITY(Contd_)

(3) 
(3) Notwithstanding
Notwithstanding anything
anything contained
contained inin sub-section
sub-section (1)
(1) the
the Central
Central Government
Government may,
may,onon the
the recommendation
recommendation of the RBI
of the RBI and
and
having regard to the adequacy of the paid-up capital and reserves of a NBFC in relation to its deposit liabilities, declare by
having regard to the ade;uscy of the paid-up capita' and reserves of NSFC in reletion to its depcsit liabilities, declare by
order
order in
in writing that the
writing that the provisions
provisions of
of sub-section
sub-section (1)
(1) shall
shall not
not be
be applicable to the
applicable to the NBFC
N8FCforfor such
such period
peilDd as
as may
maybe be specified
specified
in the order.
in the order.

Provided that no
Provided that no such
such order
order shall
shall be
be made
made unless
unless the
the amount
amount inin te
te reserve fund under
reserve fund under sub-section
sub-section (1) together
(1) together
with the
with the amount
amount in the share
in the share premium
premium account
account is
is not
not less than the
less then the paid-up
paid-up capital
capital of
of the
the NBFC.
NSF'
Retained
Retained earnings:
eamings: Retained
Retained earnings
eernings are the profits
are the that the
profits thet the Company
C.ompany hashas earned
earned till
til date,
date, less
less any
any transfers
transfers to
to statutory
statutory
reserve, debenture redemption reserve, general reserve, dividends distributions paid to shareholders and transfer from debenture
reserve,debenture redemption reserve,general reserve, dividends distributions paid to shareholders and transfer from debenture
redemption
redemption reserve.
reserve
Other Comprehensive
Other Comprehensive Income:
Income: Other
Other comprehensive
comprehensive income
income consists
consists ofof remeasurement
remeasurement of
of net
net defined
defined benefit
benefit liability/
liability/ asset,
asset,
FVTOCI financial liabilities
Fv'TOClfinancial liebilities and
end financial
financial assets
assets and
and currency translation.
currency translation.

Share Option
Share Option Outstanding: The share-based
Outstanding: The share-based payment
payment reserve
reserve is
is used to recognise
used to r4:ognise the the value
value of
of equity-settled
equity-sett14i share-based
share-based
payments
vyments provided
provide: to
to employees,
employees, including
including key
key management
management personnel,
personnel, as
es part
part of their remuneration.
oftheir remuneration Refer
Refer to
to Note
Note 38
38 for
for further
further
details
details of these plans.
of these plans

28. INTEREST
INTEREST INCOME
INCOME

` in
in lacs
lacs

Particulars
Particulars
Year ended
Year ended March
March 31,
31, 2021
2021 Year
Year ended
ended March
March 31,
31 , 2020
2020
On On Interest Total On On Interest
Interest Total
Total

Financial Financial income on Financial

Financial
Financial
Financial
income
Income

Assets Assets
Assets Financial
Financial Assets Assets
Assets on
measured
measured measured
measured Assets
Assets measured
measured measured
measured securities
securities

at
at FVTOCI
FVTOCI at
at classified
classified at
at FVTOCI
FVTOCI at
at classified
classified

Amortised at
Amortised at FVTPL
FVTPL Amortised
Amortised at
at FVTPL
FVTPL

cost cost
Interest
Interest on Loans
an Loans - 5,42,044.23 - 5,42,044.23 - 5,59,283.18
5±283.18 - 5,59,283.18
59283.18
Interest income from
Interest income from - 2,799.65
2,7ggss - 2,799.65
2,7gg85 - 2,827.05
2827.05 - 2,827.05
2827.05
investments
investmerts

Interest
Interest an on deposits
deposits
with Banks
with Banks

-- M argin money
Margin money - 4,163.87
418387 - 4,163.87
4,16387 - 2,384.22
2384.22 - 2,384.22
2±4.22
deposit
deposit
-- Other
Other deposits
deposits - 8,144.84
84
- 8,144.84
8,14484 - 5,221.38
5221.38 - 5,221.38
5221.38
Interest on Others
Interest an Others - 3.27 - 3.27
327 - - - -
Total - 5,57,155.86 - 5,57,155.86 - 5,69,715.83 - 5,69,715.83

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 141
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

29. FEE
FEE AND
AND COMMISSION
COMMISSION INCOME

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31, 2021
2021 March
March 31,
31, 2020
2020
Income from commission
Income from commission services
services 3,066.09 781.98
781

Income from collection

Income from collection services
services 236.97
236Æ7 571.45
571 45

Income from other services

Income from other services 1,301.56 -
Unwinding
unwinding of
of financial guarantee obligation
financial guarantee obligation 117.13
11713 15.65
1565

Total
Total 4,721.75 1,369.08
1,369.08

Revenue from contracts

Revenue from contracts with customers
with customers

Set out below

Set out below is the revenue
is the revenue from
from contracts
contracts with
with customers
customers and
and reconciliation
reconciliation to
to profit
profit and
and loss
loss account
account

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Type of
Type of Services
Sewices oror Service
Service
Fee and commission income
Fee and commission income 4,604.62
4,604 62 1,353.43
1,35343
Total revenue from contract with
Total revenue from contract with customers
customers 4,604.62 1,353.43
1,353.43
Geographical
Geographical markets
markets
India
Indis
4,604.62
46-0462 1,353.43
135343
Outside
Outside India
Indie - -
Total revenue from
Total revenue from contract
contract with customers
with customers 4,604.62 1,353.43
1,353.43
Timing of revenue recognition
Timing of revenue recognition
Services transferred at aapoint
Servicestransferredet point inin time 3,414.15
3,41415 1,353.43
135343
Services transferred over
Services transferred over time
tme 1,190.47 -
Total revenue
Total revenue from
from contracts
contracts with customers
with customers 4,604.62 1,353.43
1,353.43

Contract
Contract Balance
Balance

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31, 2021
2021 March
March 31,
31, 2020
2020
Trade Receivables
Trade Receivables 239.62
23962 93.12
9312

Less:
Less Impairment
Impairment loss
loss allowances
allowances (9.63)
(g 63) (3.36)
(3 36)
Net Trade Receivables
Net Trade Receivables
229.99
229.99
89.76
89.76

Contract
Contract Assets
Assets - -
Total
Total
229.99
229_99
89.76
89.76

The Company
The does not
Company does rot have
have any
any contract
contract assets
assets or
or liability,
liability, hence
hence disclosures
disclosures related
related to
to it
it has
has not
not been
been presented.
presented.

142 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

30. NET
NET GAIN/(LOSS)
GAIN/(LOSS) ON
ON FAIR
FAIR VALUE CHANGES
VALUECHANGES

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Net
Net gain/ (loss) on financial
financial instruments
instruments at fair valuethrough
value through profit or loss
loss
-- Investments
Investments 131.95
131 320.34
32024

-- Derivatives
Derivatives - (81.61)
(81E1)
Total Net
Total gain/(loss) on
Net gain/(loss) fair value
on fair value changes 131.95
131.95 238.73
238.73

Fair Value changes

FairVeluechanges
-- Realised
Realised
- 1,309.64
-- Unrealised
unrealised 131.95
131 (1,070'1)
(1,070.91)
Total Net
Total Net gain/(loss)
in/ loss on fair value
on fair value chan
changes 131.95
131.95 238.73
238.73

31. FINANCE
FINANCE COST
COST

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended March
March 31,
31, 2021
2021 Year ended
Year ended March
March 31,
31, 2020
2020

On Financial On
On Financial
Financial
On Financial
Total
Total
On Financial On
On Financial
Financial
On Financial
Total
Total

liabilities
liabilities liabilities
liabilities liabilities
liabilities liabilities
liabilities

measured
measured measured
measured at
at measured
measured measured
measured at
at

at fair value
at fair value Amortised
Amortised at fair value
at fair value Amortised
Amortised

through
through Cost through
through Cost
profit
profit or or profit
profit or or
loss
loss loss
Interest
Interest expense
expense on
on
Fixed
Fixed Deposits
ærsits - 42,630.98 42,630.98
42,630.98 - 31,490.80
31,490.80 31,490.80
31,4080
Subordinated
Subordinated
liabilities
liabilities
- 612.93
61293
612.93
612.93
- 5,619.14
5,619.14 5,619.14
5,61Y14
Borrowings (other than debt securities)
Borrowings(otherthen securities) 
-- Loans from Banks
Loans from Banks - 73,250.09
73,251109 73,250.09
73,250.og - 85,793.17
85,7E3.17 85,793.17
85,7g317
-- LLoans
oans from
from Financial
Financial Institution/
Institution/ - 10,854.27
IOE5427 10,854.27
10,854.27 - 6,054.09
6,054.og 6,054.09
6,05419
NBFC
NFC

-- LLoans
oans from
from Financial
Financial Institution/
Institution/ - 27,114.83
27,114 83 27,114.83
27,114.83 - 21,336.22
21,336.22 21,336.22
21,33622
NBFC-Securitisation
NSFC-Securitisation

-- Loans from Banks-

Loans from Banks- Securitisation
Securitisation - 4,295.51 4,295.51
4,2S5.51 - 1,208.38
1,208.38 1,208.38
1,20338
- Working Capital Demand
WorkingC.4pital DemandLoansLoans - 15,947.32
15,g4732 15,947.32
15,947.32 - 13,624.44
13,624.44 13,624.44
13,62444
-- Cash
Cash Credit
Credit - 1,922.69
1,g2269 1,922.69 - 4,012.56
4,012.56 4,012.56
401256
- Commercial
Commercial*per Paper - 35.67
3367 35.67
35.67 - 7,327.90
7,327.50 7,327.90
7,327go
Debt securities
Debt securities
- 34,839.48
34E3g 48 34,839.48
34,839.48 - 35,874.20
35,874.20 35,874.20
35,87420
Interest
Interestcn on Tax Liability
TaxLiability - 89.0202 89.02
89.02 - 83.19
83.1g 83.19
8319

Interest on Defined Benefit Plans

Interest cn Defined Benefit Plans
- 77.52
7752
77.52
77.52
- 10.18
10.18
10.18
1018

Finance
FinanceCoston Cost on Lease liability
Leeseliability 1,718.12
1,71312 1,718.12
1,718.12 - 1,610.59 1,610.59
Total
Total
- 2,13,388.43
2, 13,388.43 2,13,388.43 - 2,14,044.86 2,14,044.86

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 143
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

32. IMPAIRMENT
IMPAIRMENT ON
ON FINANCIAL
FINANCIAL INSTRUMENTS
INSTRUMENTS

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended March
March 31,
31, 2021
2021 Year
Year ended
ended March
March 31,
31 , 2020
2020
On Financial On
On Financial
Financial
On Financial
Total
Total
On Financial On
On Financial
Financial
On Financial
Total
Total

instruments
instruments instruments
instruments instruments
instruments instruments
instruments

measured
measured at
at measured
measured at
at measured
measured at
at measured
measured at
at

Fair Value
Fair Value Amortised
Amortised Fair Value
Fair Value Amortised
Amortised

through
thro h OCI
OCI cost through
th OCI cost
Loans
Loans and end advances
advances to customers
to customers - 107.68
10768 107.68
ID7.68 - 11,750.41
111750.41 11,750.41
11,750.41
Others
Others

-- Undrawn
Undrawn Commitments
Commitments - 185.96
185'6 185.96
185.96 - 31.77
31.77 31.77
31.77
-- Trade
Trade receivables
receivebles - 6.27
627 6.27 - 3.36
3.36 3.36
3.36

- Assignment Receivables
AssignmentReceivables - (20.65)
(2065) (20.65)
(21169) - 62.32
62.32 62.32
62.32

-- Investment Through PTC

Investment Through PTC - 6.47
647
6.47
6.47
- - -
Total
Total - 285.73
285.73 285.73 - 11,847.86
11,847M 11,847.86
11,847.86

The table
The table below
below shows
shows thethe ECL
ECL charges
charges on
on financial
financial instruments
instruments for the year
for the year recorded
recorded in
in the
the profit
profit and
end loss
loss based
based onon evaluation
evaluation
stage:
stage:

Year ended
Year ended March
March 31,
31, 2021
2021

` in
in lacs
lacs

Particulars
Particulars General
General Approach
ach Simplified Total
Total

Stage
Stage 1 1 Stage
Stage 2 2 Stage
Stage 3 3 POCI
POCI Approach
Approach
Collective
Collective Collective
Collective Collective
Collective

Loans
Loans andend advances
advances to customers
to customers 4,441.80
4441.80 5,470.43
5,47043 (9,804.56)
(g,80456) - - 107.68
10768

Others
Others

-- Undrawn
Undrawn
Commitments
Commitments
185.96
185.96
- - - - 185.96
185Æ6

-- Trade
Trade receivables
receivebles - - - - 6.27 6.27
627

-- Assignment
Assignment Receivables
Receivables - - - - (20.65)
(2065) (20.65)
@065)
-- Investment Through PTC
InvestmentThroughPTC - - - - 6.47
647 6.47
647

Total impairment
Total i irment loss
loss 4,627.76
4,627.76 5,470.43 (9,804.56) - (7.91) 285.73
285.73

Year ended
Year ended March
March 31,
31, 2020
2020

` in lacs
in lacs

Particulars
Particulars General
General Approach
Approach Simplified Total
Total

Stage
Stage 1 1 Stage
Stage 2 2 Stage
Stage 3 3 POCI
POCI Approach
Approach
Collective
Collective Collective
Collective Collective
Collective

Loans
Loans andend advances
advances to customers
to customers 24,764.15
24764.15 (10,314.53) (2,699.21) - - 11,750.41
11,750 41
Others
Others

-- Undrawn
Undrawn Commitments
Commitments 31.77
31.77 - - - - 31.77
31 77

-- Trade
Trade receivables
receivebles - - - - 3.36
336
3.36
336

-- Assignment
Assignment Receivables
Receivables - - - - 62.32
6232 62.32
6232

Total impairment loss

Total impairment loss 24,795.92
24,795M (10,314.53) (2,699.21)
2,69921 - 65.68
65.68
11,847.86
11,847.86

144 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

33. EMPLOYEE
EMPLOYEE BENEFIT
BENEFIT EXPENSES
EXPENSES

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Salaries,
Salaries, other
other allowances and bonus
allowances end bonus 67,880.14
67,38014 77,589.19
77,58gng
Contribution to provident
Contribution to provident and
and other
other funds
funds 4,830.88
4,83D88 5,387.96
5E87S6
Staff
Staff welfare expenses
welfareexpenses 1,101.34
1,101 1,187.72
1,18772
Gratuity
Gratuity expenses
expenses 705.78
70578 602.23
50223

Share based payments to employees

Sharebased_payments employees 1,847.93
1,847'3 -
Total
Total
76,366.07
76,366.07 84,767.10
84,767.10

34. DEPRECIATION,
DEPRECIATION, AMORTISATION AND IMPAIRMENT
AMORTISATION AND IMPAIRMENT

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Depreciation
Depreciation of tangible assets
of tangible assets 2,551.12 2,900.52
2,g0D52
Amortisation of
Amortisation cf intangible
intsngible assets
assets 138.15 135.01
Amortisation on right of use
Amortisationon use assets
assets 5,294.87
5,29487 5,180.26
5,18D26
Total
Total 7,984.14
7,984.14 8,215.79
8,215.79

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 145
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

35. OTHER
OTHER EXPENSES
EXPENSES

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31, 2021
2021 March
March 31,
31, 2020
2020
Power
Power and
and fuel
fuel 814.49
81 4 •g 993.93
gg3Æ3

Repairs
Repairs and
and maintenance
maintenance
- Buildings
Buildings 1,108.89
1,10889 1,197.71
1,19771
-Office
-Office equipments
equipments 38.84 45.64
Office expenses
OfficeexFnses 1,501.86
1,50186 1,341.86
1,341 86
Rates and taxes
Rates and taxes
1,460.84 1,903.40
1,g0340
Printing
Printing and stationery
andstationery 1,692.62
1,6E262 2,820.11
2,82011
Travelling and conveyance
Travellingend conveyance 1,834.56 3,853.89
3,85389
Advertisement
Advertisement 292.09
2g-zog 608.05
60305

Business promotion
Businesspromotion 4,640.93 4,547.28
454728
Directors'
Directors' sitting fees
sitting fees 41.97
41 g7 36.24
3624

Insurance
Insurance 436.69
43669 403.37
40337

Communication
Communication expenses
expenses 2,345.57
2,345 57 2,935.36
2,g3536
Bank
Bank charges
charges 1,586.11
1,586 n 1 1,551.59
1,551 Eg
Legal
Leg-I and
and Professional
Professional Fees
Fees 1,159.24
1,15924 1,085.24
108524
Loss
Loss onon sale
sale of
of Property,
Property, plant
pl-nt and
and equipment
equipment 12.12
1212 33.19
3319

Public issue expenses for non-convertible debentures

Public issue expenses for non-convertible debentures - 0.83
CSR expenses
CSR expenses 2,195.23
2,1E523 1,036.39
Miscellaneous
Miscella neous expenses 1,045.03
1,D4503 1,843.87
1,84387
Auditor fees
Auditor fees

(a) Audit
Audit Fees
Fes 39.57
3957 39.57
(b) Tax Audit
(b) Tax Audit Fees
Fees 6.59 6.59
659

(c) Certification
(g) Fees
CertificationFees 9.86 6.70
(d)
(d) Out
Out of
of Pocket
Pocket 0.58 9.21
921

Total
Total 22,263.68 26,300.02

Details
Details of
of CSR
CSR expenditure:

` in
in lacs
lacs

Particulars
Particulars
Year ended
Year ended
Year ended
Year ended

March
March 31, 2021
2021 March
March 31,
31, 2020
2020
a)
a) Gross
Gross amount
emount required
required to
to be
be spent
spent by
by the
the Company
O)mpany during
during the year
the year 2,617.31
2,61731 2,281.33
2,281
b)
b) Amount spent during the year
Amountspentduringtheyear 2,195.23
2,1E523 1,036.39
(On
(On purposes
purposes Other
Other than
than construction/acquisition of any
construction/acquisition of any asset)
asset - -

146 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

36. INCOME
INCOME TAX
TAX

The compnents
The components of
of income
income tax expense for
tax expense the year
for the year ended
ended March
March 31,
31, 2021
2021 and year ended
and year ended March
March 31,
31, 2020
2020 are:
are:

` in
in lacs
lacs

Particulars
Particulars
Year ended
Year ended
Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Current
Current
tax
tax
46,219.68
46,21968 34,240.38
34241188
Income
Income tax
tax of
of earlier
earlier years
years - 1,324.24
1,324 24
Deferred tax relating
Deferredtex to originationend
relatingto origination and reversal of temporary
reversalof differences
temporarydifferences (8,375.35)
(8,37535) (116.52)
(11652)
Total tax
Total tax charge
cha 37,844.33
37,844.33 35,448.10
35,448.10

Reconciliation of the
Reconciliation of total tax
the total tax charge:
charge:

The tax
The tax charge shown in
charge shown in the
the statement
statement ofof profit
profit and
and loss differs from
loss differs from the
the tax charge thet
tax charge that would
would apply
apply ifif all
all profits
profits had
had been
been
charged et
charged at Indian
Indian corporate
corporate tax
tax rate.
rate. A
A reconciliation
reconciliation between
between thethe tax
tsx expense
expense and and the
the accounting
accounting profit
profit multiplied
multiplied by
by India’s
India's
domestic tax rate
domestic tex rate for the year
for the year ended
ended March
March 31,
31, 2021
2021 and
and March
March 31,
31, 2020
2020 is,
is, as follows:
as follows

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Accounting profit
Accounting profit before
before tax
tax 1,38,938.75 1,35,500.10
1 10

At India’s statutory income

India'sstatutory tax rate
incometax rete of 25.168%
25168% (March
O,/arch3131, 2020: 25.168%)
2020:25168%) 34,968.09
34,gæzg 33,838.89
Tax specislrate
Tax at special rateonCapital Geinof
on Capital Gain of Nil
Nil(March 31,2020:
(March 31, 11043.04jacs@2288%)
2020: ` 1,048.04 lacs @ 22.88%) - 239.79
Total Tax
Total Tax 34,968.09
34,968.09 34,078.69
34,078.69
Corporate
Corporate social
social responsibility expenditure not
responsibility expenditure not allowable
allowable for
for tax
tax purpose
purpose 552.50
55250
260.84
Deduction under chapter VIA of the Income Tax Act, 1961 (2019:section 80G
Deduction under chapter VIA of the Income Tax Act 1961 (201g:section and
BOGend (198.92)
(1gsg2) (384.33)
(38433)
80JJAA)
80.JUA.A)
Income
Income tax
tax of
of earlier
earlier year
year - 1,324.24
1,324 24
Tax impact of Bonus payable
Tax impact Df Bonus to employees
payable to employees allowable
allowable onon payment
payment basis
basis 1,035.22
1,03522 415.71
41571

Others
Others 1,487.46 (24705)
(247.05)
Income
Income taxtax expense
expense reported in
in the statement ofprofit
the statement of profit or
or loss
loss 37,844.33
37,844.33 35,448.10
35,448.10
Effective income tax rate %
Effective income tax rate 27.24
2724 26.16
2616

Deferred Tax
Deferred Tax

The following
The following table
table shows
shows deferred
deferred tax
tax recorded
ræorded in
in the
the balance
balance sheet
sheet and
and changes
changes recorded
recorded in the Income
in the tax expense:
Income tax expense:

` in
in lacs
lacs

Particulars
Particulars Deferred Tax
Deferred Tax Deferred
Deferred Tax
Tax Income
Income OCI
Assets Liabilities
Liabilities Statement
Statement

As
As atat As at Year
Year ended
ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2021
2021 March
March 31,
31, 2021
2021 March
March 31, 2021
31,2021
Property, plant end
Property,plent and equipment
equ(pmentend and intangible assets
intangibleassets 1,820.79 - (98.22)
(9822) -
Net
Net Right to use
Right tc use Asset
Asset and future rent
and future rent liability
liability 286.62
28662 - (163.29)
(16329) -
Expenses allowable for tax purpose
Eypensesallowablefor when paid
purposewhenpaid 1,072.52
1,07252 - 961.59 439.31
439.31

EIR
EIR impact
impact oncr. debt
debt instrument
instrument measured
measured at Amortised
et Amortised 44.41
4441
25.43 (113.69)
(11369) -
Cost
Impact
Impact of of Fair valuation on
Fair valuation on Investments
Investments measured
measured at at 48.14
4314
58.90 33.21
3321
193.53
Fair
Fair value
value through
through Profit
Profit and
and loss Account
loss Account
Impact
Impact of amortisation of
of emortisation of processing
praessing feesfees onon Loans
Loans 292.82
29282
- 144.28
14428
-
and Advances
and Advances

Provision
Provision for for Impairment
Impairment of of Financial
Financial Assets
Assets atat 9,090.12 - (9,090.12)
(g,ogo -
amortised cost
amortised cost

Other temporary differences

Othertemporary differences 244.19
2441 g - (49.11) -
Total
Total 12,899.61 84.33 (8,375.35)
8,375. 632.84

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 147
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

36. INCOME
INCOME TAX
TAX (Contd.)
(Contd_)

The following
The table shows
following table shows deferred tax recorded
deferred tex recorded in the balance
in the balance sheet
sheet and
end changes
changes recorded
recorded in the Income
in the Income tax
tax expense:
expense:

` in
in lacs
lacs

Particulars
Particulars
Deferred Tax
Deferred Tax
Deferred Tax
Deferred Tax
Income
Income
OCI
Assets
Assets Liabilities
Liabilities Statement
Statement

As at As at Year ended
Year ended
Year ended
Year ended

March 31, 2020 March 31, 2020 March 31, 2020 March 31,
March 31, 2020 March 31, 2020 March 31, 2020 March 31, 2020
2020
Property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets 1,722.57
1,72257 - 470.77
47037
-
Net
Net Right
Right to
to use
use Asset
Asset and future rent
and future rent liability
liability 123.33
12333 - (123.33)
(123 -
Expenses
Expenses allowable
sllowab'e for
for tax
tsx purpose when paid
purpose when paid 2,473.42
2,47342 - (249.48) 51.63
51.63

EIR
EIR impact
im*ct onon debt
debt instrument
instrument measured
measured et at Amortised
Amortised - 94.71
94.71 (313.64)
(31364) -
Cost
Impact
Impact of of Fair
Fair valuation
valuation onon Investments
Investments measured
measured at at 241.67
241 67 25.69 (347th)
(347.11) (167_i4)
(167.14)
Fair value through
Fsir vslue through Profit
Profit and
and loss
loss Account
Account
Impact
Impact of of amortisation
amortisation of of processing
prccessing fees
fees onon Loans
Loans 437.10
43710 - 540.62
54062 -
and Advances
and Advences

Other temporary differences

Othertenpporarydifferences 224.57
22457 29.49
294g (94.35)
(E435) -
Total
Total
5,222.66
5,222.66 149.89
149M
(116.52)
(116.52) (115.51)
(115_51)

Amount recognised in
Amount in respect
respect of
of current tax/ deferred
current tax/ deferred tax
tax directly
directly in
in equity:
equity.

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Amount recognised
Amount reco nised in
in respect
ectofof current
current tax/
tax/ deferred tax directly
deferred tex directl in
in equity - -

Tax losses
Tax and Tax
losses and Tax credits
credits
` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Unused
Unused Capital
Capital Gains tax losses
Gainstax for which
losses for which no deferred tax asset
deferred tax asset has
has been
teen recognised
rac„gnised - -
Unused Tax Credits-MAT credit entitlement
Unused Tax Credits-MAT credit entitlement - -

Current Tax Assets

Current Tax Assets (Net)
(Net)

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31, 2021
2021 March
March 31,
31, 2020
2020
Advance income
Advance tax (net
income tax (net of
of provision
provision for tax) [provision
for tax) [provision for
for income tax March
income tax Merch 31,
31 4,502.79
450279 13,069.56
13,00E6
2021:
2021 ` 3,65,826.04 lacs
lacs March
March 31,
31, 2020:
2020 ` 3,19,606.36 lacs]
lacs]
Total
Total 4,502.79 13,069.56
13,069.56

148 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

37. EARNINGS
EARNINGS PER SHARE
PER SHARE

Basic
Basic earnings
earnings per share
share (EPS) is calculated
(EPS)is calculated by
by dividing the net
dividing the net profit for the
profit for the year
year attributable
attributable tto equity
equity holders
holders of
of the
the Company
Company
by
by the weighted average
the weighted average number
number of
of equity
equity shares
shares outstanding
outstanding during the year.
during the year.

Diluted
Diluted EPS
EPSisis calculated
calculated by by dividing
dividing the
the net
net profit
profit attributable
attributable tto equity
aquity holders
holders of
of company
company (after
(after adjusting
adjusting for
for interest
interest on
on the
the
convertible preference
convertible preference shares
shares and
and interest
interest on
Dn the
the convertible
convertible bond,
bond, in
in each
each case,
case, net
net of
of tax)
tax) by the weighted
by the weighted average
sverage number
number
of equity
of equity shares
shares outstanding
outstanding during the year
during the yesr plus the weighted
plus the weighted average
sverage number
number ofof equity
equity shares
shares that
that would
would be
be issued
issued on
on the
the
conversion of all the dilutive potential ordinary shares into ordinary shares and issue of Employee Stock Options.
conversion of all the dilutive potential ordinary shares into ordinary shares and issue of Employee Stock Options

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Net
Net Profit after tax as
Profitafter as per Statement of Profit
perStatementof Profit and
and Loss
Loss (`
g in
in lacs)
lacs) (A)
(A) 1,01,094.42 1,00,052.00
Weighted average number
number ofof equity
equity shares
shares for
for calculating
calculating 660.04
04
659.97
basic earnings per
basic earnings per share
share (`
(f in lacs) (p)
(B)
Effect of dilution:
Effect Df dilutiom

Stock options granted

Stcck options granted under
under ESOP (Nos. in
ESOP(Nos. in lacs)
lacs) 1.54 0.13
D13

Weighted average number

number ofof equity
equity shares
shares for
for calculating
calculating 661.58 660.10
diluted earnings per share
earningsper share (`
(t in lacs) (C)
(C)
Earnings per share
Eamings per share
Basic earnings per share (`)
Basicearningspershare (A/B)
(e)(A/B) 153.16
15316 151.60
151

Diluted
Diluted earnings
earnings per
per share
share (`)
(e) (A/C)
A/C) 152.81
15281
151.57
151E7

38. EMPLOYEE
EMPLOYEE STOCK
STOCK OPTION
OPTION PLAN
PLAN

38.1
38.1 EMPLOYEE STOCK OPTION PLAN (2006)
EMPLOYEESTOCKOPTIONPLAN

The Company
The Company provides
provides share-based
share-based payment
payment schemes to its
schemes to its Employees.
Employees There
There are two ongoing
aretwo ongoing Employee stock option
Employeestock option schemes:-
schemes:

SCUF EMPLOYEE
SCUF EMPLOYEE STOCK
STOCK OPTION
OPTION SCHEME 2006
SCHEME 2006

38.1.1.
381 n. This
This employee equity-settled
employee equity settled compensation
compensation scheme
scheme known
known as
es Shriram
Shriram City
City Union
Union Finance
7nence Limited
Limited Employees
Employees Stock
Stock
Option Scheme 2006 (“SCUF ESOP Scheme 2006” or the “Scheme”). The scheme is approved and authorised by the shareholders
Option Scheme 2006 ("SCLF ESC? Scheme 21116"o r the "Scheme"). The scheme is approv4i and authorised by the shareholders
of the
of the Company
Compeny at the Extra
et the Extra Ordinary
Ordinary General
General Meeting
Meeting held
held on
on October
October 30,
30, 2006.
2006.
Under
under the
the said
said scheme the Board
scheme the aoerd of
of Directors
Directors has
hes granted
granted following
following number
number of options to
of options to eligible
eligible employees
employees of
of the
the Company.
C.ompany.

Particulars
Particulars Grant
Grant Date
Date No
No of
of Options
Options
Granted
Granted

Series
Series I October
October 19,
u, 2007
2037 13,55,000
The option
The option shall
shall vest
væt in the hands
in the hands ofof the
the Option
Option holder
holder after
after a
e minimum
minimum period
period of
of 12
12 months
months from
from the
the date
date of
of grant
grant of option or
of option or
such
such longer
longer period
*riod asas may
msy be
be determined
determined by by the
the Committee
Committee subject
subject to
to the
the condition
condition that
that the
the Option
Option grantee
grantee continues
continues toto be an
an
employee of
employee of the
the Company
Comp-ny and-nd the
the performance
performance or or other
other conditions
conditions as
as may
mey be
be determined
determined byby the
the Committee.
O)mmittee The The maximum
maximum
period of vesting shall be 5 years from the date of grant.
*riod of væting shall te 5 years from the date of grant

The options
The vested shall
options vested shsll be exercised within
beexercised within period
period of
of ten
ten years
years from
from the
the vesting
vesting date. When exercisable,
date When exercisable, each
each option
option is
is convertible
convertible
into
into one
one equity
equity share.
share Any option granted
Any option granted shall
shell be exercisable according
be exercisable according to
to the terms and
the terms conditions as
and conditions es determined
determined byby the
the
Scheme.
Scheme

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 149
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

38. EMPLOYEE STOCK OPTION PLAN

EMPLOYEESTOCKOPTION PLAN (Contd.)
(Contd_)

Particulars
Particulars Year ended
Year ended 31
31 March
March 2021
2021 Year
Year ended
ended 31 31 March
March 2020
2020

Weighted
Weighted Number
Number of
of Weighted
Weighted Number of
Number of

Average
Average Options
Options Average
Average Options
Options
exercise
exercise price
price exercise
exercise price
pnce
per share
share per per
per share
share per
per
option ` option
o on `

Outstanding
Outstanding at the beginning
at the beginning of
of the
the period 35 12,960
12,960 35 23,565
23,565
Granted
Granted during the period
during the pericd - - - -
Exercised during the period
Exercisedduringthe period 35 2,100 35 10,605
10,505
Forfeited
Forfeited during
during the
the period
*riod - - - -
Expired
Expired during
during the
the period
*riod - - - -
Outstanding at the end
Outstanding at the end of the period
of the peri(Xl 35 10,860
10,860 35 12,960
12,g6D
Weighted average share price *
Weightedaverageshareprice 953.84
953.84 - 1,407.69
,407 -
Weighted
Weighted average
average remaining
remaining contractual
contractual life
life of
of options
options - 0.55 - 1.55
outstanding at the end of the year
outstandin at the end of the

* based
based on
on market
market price on National
price on National Stock
Stcck Exchange
Exchange Limited
Limited where
where maximum
maximum volume
volume of
of the
the shares
shares of
of the
the Company
Compeny were
were traded
traded
during the year
during the year

38.1.2. Fair value

38_1_2_Fair value of the options
of the granted:
options granted:

The Company
The Company hashas recorded
recorded employee
employee stock-based
stock-based compensation expense relating
compensation expense relating to
to the
the options
options granted to the
granted to the employees
employees on
on
the basis
the of fair
basis of fair value
value of
of options.
options
The fair
The fair value
value of the options
of the options granted
granted isis mentioned
mentioned below
below as
es per
per vesting
væting period. The
The fair
fair value
value of
of the
the options
options is
is determined
determined using
using
Black-Scholes model which takes into account the exercise price, the term of the option (time to maturity), the share price as
Black-Scholes model which takes into account the exercise price, the term of the option (time to maturity), the Shereprice as at
at
the grant date and expected price volatility (standard deviation) of the underlying share, the expected dividend yield and risk-free
the grant date and expected price volatility (standard deviation) of the underlying share, the ex*ed dividend yield end risk-free
interest
interest rate
rete for the term
for the term of
of the
the option.
optiom
Fair value and
Fair value and assumptions for the
assumptions for the equity-settled
4;uity-settIed grants
grants under the Scheme
under the Scheme is
is as
as under;
under,

Particulars
Particulars Series
Series II

Grant
Grant
Date
Date
October
October 19,
19, 2007
2007 October
October 19,
u, 2007
2007 October
October 19, 2007 October
October 19,
u, 2007
2007
Vesting Date
Vesting Date 10% of grant on
10'/, cf grant Dn 20% of grant on
20',' of grant on 30% ofof grant
grant on
on 40% of grant on
of grant on
October 19, 2008 October 19, 2009
October 19, 2008 October u, October 19, 2010
October 2010 October 19, 2011
October u,
Exercise Price (in `)
ExercisePrice(in t) 35 35 35 35
Fair value of
Fair value of option
option (in
One)
`) 227.42
227.42
227.42
22742
227.42
22742
227.42
22742

Input Variables:
Input Variables:
Standard
Standard deviation
devistion (Volatility)
Ololatility) 55.36%
55.36%
55.36%
55.36%
55.36%
5536%
55.36%
55.36%

Risk-free
Risk-free rate
rate 7.70%
7.70% 7.67%
7.67% 7.66% 7.67%
7.67%

Time to maturity (in

Time to maturity on years)
years) 1.5 2.5 3.5 4.5
Expected Dividend per annum(O
Expected Dividend Fr annum (`) 3 3 3 3
Dividend
Dividend yield
ield 0.84% 0.84%
0.84', 0.84% 0.84%
0.84%

38.2
38_2 EMPLOYEE STOCK OPTION PLAN
EMPLOYEESTOCKOPTION PLAN (2013)
(2013)
38.2.1
38.21 This
This employee
employee equity-settled
equity-settled compensation
compensation scheme
scheme known es Shriram
known as Shriram City
City Union
Union Finance
Finance Limited
Limited Employees
Employees Stock
Stock
Option
Option Scheme
Scheme 2013
2013 (“SCUF ESOP Scheme 2013”
("SCLIFESOPScheme 2013" or
or the
the “Scheme”). The scheme
"Scheme') The scheme is
is approved
approved and
and authorised
authorised by
by the
the shareholders
shareholders
of
of the
the Company at the
C.ompanyat the Extraordinary
Extraordinary General
General Meeting
Meeting held
held on
on May
Mey 31,
31 2013.
2013

Under
under the
the said scheme the
said scheme the Nomination
Nomination and
and Remuneration
Remuneration Committee
C.ommittee of
of the
the Board
Board of
of Directors
Directors has
has granted
granted following
following number
number of
of
options
options on various dates
on various dates to eligible employees
to eligible employees of the Company.
of the Company

150 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

38. EMPLOYEE STOCK OPTION PLAN

EMPLOYEESTOCKOPTION PLAN (Contd.)
(Contd_)

Particulars
Particulars Grant
Grant Date
Date No.
No. of
of

Options Granted
Options Granted
Grant
Grant II August
August 11,1 2020
2020 3,00,221
soo,221
Grant
Grant IIII November
November 2, 2, 2020
2020 3,00,030
Grant III
Grant Ill January 29, 2021
Janua 2021 3,15,396
The options
The options shall
shall vest
væt in the hands
in the hands of the Option
of the Option holder after a
holder after e minimum
minimum period
period of
of 12
12 months
months from
from the
the date
dete of
of grant
grant of
of option
option
or such
or such longer
longer period
pericZ as
as may
may be
be determined
determined byby the
the Committee
Committee subject to the
subject tc the condition that the
condition thst the Option
Option grantee
grantee continues
continues to
to be
be
an
an employee
employee of of the
the Company
Company and the performance
and the performance or or other
other conditions
conditions as
es may
may be
be determined
determined by by the
the Committee.
Committee The The maximum
maximum
period
*riod of cf vesting
vesting shall
shal be 55 years from the
years from the date
date of
of grant.
grant

The options
The vested shall
options vested shall be exercised within
beexercised within period
period of
of ten
ten years
years from
from the
the vesting
vesting date. When exercisable,
date When exercisable, each
each option
option is
is convertible
convertible
into one equity share. Any option granted shall be exercisable according to the terms and conditions as determined by
into one equity share Any option granted shell be exercisable according to the terms and conditions es determined by the
the
Scheme.
Scheme

Particulars
Particulars
Year ended 31 March 2021
Year ended 31 March 2021

Weighted Average
Average Number
Number

exercise
exercise price
price per of
of Options
Options
share
share per option
o -on ` t

Outstanding at
Outstanding the beginning
at the Ik-ginning ofof the
the period - -
Granted
Granted during
during the
the period
period 300 9,15,647
Exercised
Exercised during the period
during the pericd - -
Forfeited
Forfeited during the period
during the period 300 5,194
Expired
Expired during the period
during the period - -
Outstanding at
Outstanding the end
at the of the
end of the period 300
300 9,10,453
Weighted average
Weighted average share
shera price*
price* Not
Not Applicable
Applicable Not Applicable
Not Applicable
Weighted average remaining contractual life of options outstanding at the end of the year
Weightedeverageremainingcontractual lifeof options outstanding at the end of the year - 10.6
106

* Weighted
Weighted average
average share
share price
price disclosure
disclosure is not applicable
ISnot applicable since
since share
share options
options are
are not
not exercised
exercised during the year.
during the year.

All outstanding
All options are
outstanding options are yet
yet to
to be
be vested
vested and
and as
as such
such are
are not exercisable as
not exercisable as on
on March
March 31,
31, 2021.
2021

38.2.2 Fair
382.2 value of
Fair value of the
the options
options granted:
granted:

The Company
The Company hashas recorded
recorded employee
employæ stock-based compensation expense
stcck based compensation expense relating
relating to the options
to the options granted
granted to
to the
the employees
employees on
on
the basis
the basis of fair value
of fair value of
of options.
options
The fair
The fair value
value of the options
of the options granted
granted is
is mentioned
mentioned below
below as
as per vesting period.
per vesting The fair
peric.d.The fair value
value of the options
of the options is
is determined
determined using
using
Black-Scholes model which takes into account the exercise price, the term of the option (time to maturity), the share price as
Black-Scholes model which takes into sccount the exercise price, the term of the option (time to maturity), the shsre price as at
et
the grant
the grant date
date and
and expected
expected price
price volatility
volatility (standard
(standard deviation)
deviation) of the underlying
of the underlying share, the expected
share, the expected dividend
dividend yield
yield and
and risk-free
risk-free
interest
interest rate for the
rate for term of
the term of the option.
the option

Fair
Fair value
value and
and assumptions
assumptions for
for the equity-settled
the equity settled grants
grants under
under the
the Scheme
Scheme is
is as
as under;
under;

Particulars
Particulars Grant
Grant II Grant
Grant II
II Grant
Grant IIIIll

Grant Date
Grant Date
11-Aug-20 2-Nov-20
2-Nov-20
29-Jan-21
2g-.Jan-21

Vesting Date
Vesting Date 11-Aug-21 2-Nov-21
2-Nov-21 29-Jan-22
2g-._Ian-22

Exercise Price (in `)

ExercisePrice(in t) 300 300 300
Fair value of option (in `)
Fair value of option 399.2
3gg:2
560.18
560 18
756.39
756.3g

Input Variables:
Input Variables:
Shareprice
Share priceasongent date(in `)
as on grant date 661.8
6618
822.75
82275
1018.7
10137

Standard deviation (Volatility)

Standarddeviation(Volatility) 38.28%
3828% 44.52%
4452% 47.21%
47.21%

Risk-free
Risk-free rate
rate 5.85%
585%
5.88%
588%
6.20%
6.20%

Time to
Time to maturity
meturity (in
(in years)
years) 2 2 2
Expected Dividend per annum
ExpectedDividendper annym (in `) 20 25 30
Dividend
Dividend
yield
e'd
3% 3% 3%

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 151
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

38. EMPLOYEE STOCK OPTION PLAN

EMPLOYEESTOCKOPTION PLAN (Contd.)
(Contd_)

Since
Since the
the SCUF
SCUF ESOP scheme 2013
ESOPscheme 2013 is
is already
already recorded
recorded by
by applying
applying fair
fair value
value method, the disclosure
method, the disclosure required
required under
under para
para 48
48 of
of
guidance
guidance note on “Accounting
note on "Accounting for
for Employees
Employees Share
Share Based
Based Payments”
Payments" issued
issued by
by ICAI
ICAI for
for reconciling
reconciling the
the impact
impact on
on net
net profit
profit and
and
earnings
earnings per
per share
share is
is not
not required.
required

38.2.3 Rationale
Rationale for the variables
for the variables used :
The variables
The variables used for calculating
used for calculating the
the fair
fair values
values and their rationale
and their rationale are
are as
es follows:
follows

A.
A. Stock
Stock Price
Price

The
The latest
latest available closing market
available closing market price
price on the National
on the National Stock
Stuk Exchange
Exchange (NSE)
(NSE) prior
prior to
to date on which
date on which options
options are
are granted
granted
has been considered for the purpose of valuation.
has been considered for the purpose of valuation.

Under
under the
the ESOP Plan of
ESOPPlan the Company,
of the Company, one
one option
option entitles
entitles an
en employee
employee to
to one
one equity
equity share
share of
of the
the Company.
Compeny

B. Volatility
Volatility

Volatility
Volatility is
is a
e measure
measure of of the
the amount
amount byby which
which a a price
price has
has fluctuated
fluctuated oror is
is expected
expected to fluctuate during
to fluctuate during aa period.
period The
The
measure of volatility used in the Black-Scholes option pricing model is the annualised standard deviation of the continuously
measure of volatility used in the Slack-Scholes option pricing model is the annualised standard deviation of the continuously
compounded
compounded ratesrates ofof return on the
return on the stock
stcck over
over aa period
peri-Z of
of time.
time.
The
The period
*riod to to be
be considered
considered for volatility must
for volatility must be
be adequate
adequate to
to represent
represent a
e consistent
consistent trend
trend in
in the
the price
price movements.
movements
Accordingly,
Accordingly, the annualised volatility
the annualised volatility has
has been
been computed
computed based
based on the share
on the share price
price data
date of
of past
past one
one year, from the
year,from the date
dete of
of the
the
valuation.
valuatiom

The
The fair
fair value
value is very sensitive
is very sensitive to this variable.
to this variable. Higher
Higher the
the volatility,
volatility, higher
higher is the fair
is the fair value.
value The
The rationale
rationale being,
being, the
the more
more
volatile a stock is, the more is its potential to go up (or come down), and the more is the probability to gain from the
volatile a stock is, the more IS its PZtentiEI to go up (or come down), and the more is the probability to gain from the
movement in the price. Accordingly, an option to buy a highly volatile stock is more valuable than the one to buy a less
movement in the price Accordingly, an option to buy s highly vo'atile stock IS more valuable than the one to buy e less
volatile
volatile stock,
stock since
since the
the probability
probability of
of gaining
gaining is
is lesser
lesser in
in the
the latter
latter case.
case.

C. Risk free interest rate

Risk free interest rate

The
The risk-free
risk-free interest
interest rate
rate being
being considered for the
considered for the calculation
calculation is
is the
the interest
interest rate
rete applicable
applicable on
on government
government securities
securities –
—
having
having 10 year maturity
10 year maturity period.
pericd

D.
D. Exercise
Exercise price
price
We
We have considered the
have considered the exercise
exercise price
price of
of the
the options
options granted to employees
granted to employees based
based on
on the
the Scheme
Scheme approved
approved by
by the
the Board
Board of
of
Directors.
Directors

E. Time
Time to
to maturity
maturity I/ expected life
life of
of options
options

Time to maturity
Time to maturity // expected
expected life of options
life of options is the period
is the from the
pericd from the grant
grant date
dete to
to the
the date
date on
on which
which option
option is
is expected
expected to
to be
be
exercised. The minimum life of stock option is the minimum period before which the options cannot be exercised and
exercised The minimum life of stcck option is the minimum period before which the options cannot be exercised and
maximum
maximum life
life is the period
is the after which
*riod after which the
the options
options cannot
cannot be
be exercised.
exercised

Considering
Considering the
the deep
deep discount
discount on the market
on the market price
price i.e.
le 55% to to 70%,
70%, itit is
is expected that the
expected that the options will be
options will exercised in
be exercised in 1
1 year
year
from
from the
the vesting
væting date.
date As
As such
such the
the average
average expected
expected life
life of
of options
options is
is considered
considered at
at 2 years.
2 years

Effect
Effect of the employee
of the employæ share-based
share-based payment
payment plans on the
plans on the profit and loss
profit and loss account
account and
and on
on its
its financial
financial position
position

The
The Company
Company hashes recorded
recorded employee
employee stock-based
stck-based compensation
compensation cost
cost of ` 1,847.93
1E47S3 lacs
lacs in
in the
the Statement
Statement of
of Profit
Profit and
and
Loss for the
Loss for the year
year ended
ended March
March 31,
31, 2021
2021 (March
(Merch 31,
31 2020:
2020: Nil).
Nil).

The
The share option outstanding
share option outstanding in
in the
the Balance
Balance Sheet
Sheet as
as at
et March
March 31,
31, 2021
2021 is
is ` 1,872.52
1,872.52 lacs
lacs (March
(Merch 31,
31, 2020:
2020: 29.35
29E5 lacs)
lacs)

152 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

39. INVESTMENT
INVESTMENT IN
IN SUBSIDIARY
SUBSIDIARY

Name
Name of
of the
the Country
Country of
of Principal
Principal place
place Principal
Principal For the year
For the year No. of Equity
No. of Equity %
% of
of equity
equity
subsidiary
subsidiary Incorporation
Incorporation of business
of business activities
activities ending
ending Shares
Shares Held
Held (FV
(FV interest
interest

of ` 10 /- each)
of? 10/- each
Shriram
Shriram Housing
Housing India
Indis Mumbai
Mumbai Housing
Housing March
Merch 31,
31, 2021
2021 16,54,40,000
16, 77.25%
77.25%

Finance
Finance Limited
Limited Finance
Finance
March 31, 2020
Merch 31 2020 16,54,40,000 77.25%
77.25%

40. RETIREMENT
RETIREMENT
BENEFIT
BENEFIT
PLAN
PLAN

Defined
Defined Contribution
Contribution Plan
Plan

A defined
A contribution plan
defined contribution plan is
is a
a pension
pension plan
plan under
under which
which the
the Company
Company pays
pays fixed
fixed contributions;
contributions; there
there is
is no
no legal
legal or
or constructive
constructive
obligation to
obligation to pay further contributions
pay further contributions. The
The Company
Company makes
makes Provident
Provident Fund,
Fund, Employee
Employee State
State Insurance
Insurence Scheme
Scheme contributions,
contributions,
National
National Pension
Pension scheme
scheme contributions
contributions and
and Labour welfare Fund
Labour welfare Fund contributions
contributions which
which are
are defined
defined contribution
contribution plans
pl-ns for
for qualifying
qualifying
employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund
employees Under the Schemes, the Company is —uired to contribute specified percentage of the payroll costs to fund the
the
benefits. The Company recognised ` 3,745.45 lacs (March 31, 2020: ` 4,068.99 lacs) for Provident Fund contributions, ` 1,011.95
benefits The Company recognis± 3,74345 lacs (March 31 2020: 4,068gg lecs) for Provident Fund contributions, 1,011
lacs
lacs (March
(March 31,
31, 2020:
2020: ` 1,235.21
1,23521 lacs)
Iscs) for
for Employee
Employee State
State Insurance
Insurance Scheme
Scheme contributions,
contributions, ` 11.88
1188 lacs
lacs (March
(March 31,
31 2020:
2020: ` 13.16
1316
lacs)
lacs) for
for Labour welfare Fund
Labour weltere Fund contributions
contributions and
and ` 50.20
5020 lacs
lacs (March
(March 31,
31 2020:
2020: ` 56.20
5620 lacs)
[ecs) for
for National
National Pension
Pension scheme
scheme inin the
the
Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the
Statement of Profit and Loss The contributions payable to these plans by the Company are at rates specified in the rules of the
Schemes.
Schemes.

Defined
Defined Benefit
Benefit Plan
Plan

The Company
The Company has
hes aa defined
defined benefit
benefit gratuity
gratuity plan
plan (funded). The Company’s defined
(funded) The defined benefit
benefit gratuity
gratuity plan
plan is
is a
a final
final salary
salary plan
plan for
for
employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the
employees, which requires contributions to be made to separetely administered fund The gratuity plan is governed by the
Payment
Payment of
of Gratuity Act, 1972
Gratuity Act, IE72 (the Act). Under
(the Act). under the
the act,
act, employee
employee who
w,vhohas
has completed five years
comp'eted five years of
of service
service isis entitled
entitled to
to specific
specific
benefit.
benefit The
The level
level of
of benefits
teneflts provided
provided depends
depends on on the
the member’s
rnernter& length
'ength ofof service
service and
and last
last drawn
drewn salary. The The fund
fund is
is managed
managed
by third party fund managers. Each year the level of funding in the gratuity plan is reviewed. Such a review includes the asset-
by third party fund managers Esch yesr the level cf funding in the gratuity plan is reviewed Such a review includes the asset-
liability matching strategy and investment risk management policy. This includes employing the use of annuities and longevity
liablity mstching strategy and investment risk man-gement policy This includes employing the use of annuities end longevity
swaps
swaps to to manage
manage the the risks.
risky The
The contribution
contribution is
is decided
decided based
based on
on the
the results
results of
of annual
snnual review.
review Generally,
Generslly,itit aims
aims to
to have
have aa portfolio
portfolio
mix
mix ofof equity
equity instruments,
instruments, property
property and
and debt
debt instruments.
instruments Generally
Generally equity
equity instruments
instruments andend property
property should
should notnot exceed
exceed 30% of of
total portfolio. The Aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation
total portfolio The Aim to keep annual contributions relatively stable et a level such that no plan deficits (based on valuation
performed)
*rformed) will will arise.
arise

Risk
Risk associated with defined
associated with defined benefit
benefit plan
plan

Gratuity
Gratuity is
is a defined benefit
a defined benefit plan
plan and company is
and company is exposed to the
exposad to the following
following Risks:
Risks:
Interest
Interest Risk:
Risk: A fall in
A fell in the
the discount
discount rate
rate which
which is
is linked
linked to
to the
the Govt. Sec. Rate
Govt.Sec. will increase
Ratewill increase the
the present
present value
value of
of the
the liability
liability requiring
requiring
higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration
higher provision A fall in the discount rate generally increases the mark to market value of the assets depending on the duration
of asset.
of asset.

Salary Risk:
Salary Risk The
The present
present value
value of
of the
the defined
defined benefit
benefit plan
plan liability
liability is
is calculated
calculated byby reference
reference to the future
to the future salaries
salaries of
of members.
members As
As
such, an increase
such, en increase in
in the
the salary
salary of
of the
the members
members more than assumed
more than assumed levellevel will
will increase
increase the
the plan’s
plan's liability.
liability

Investment
Investment Risk: The present
Risk: The present value
value of
of the
the defined
defned benefit
benefit plan
plen liability
liability is
is calculated
calculated using
using aa discount
discount rate
rate which
which is
is determined
determined byby
reference
reference to to market
market yields
yields at
Et the
the end
end of
of the
the reporting
reporting period
pericZ on on government
government bonds.
bonds. IfIf the
the return
return on
Dn plan
p'an asset
asset is
is below
below this
this rate,
rate,
itit will
will create
create aa plan
plan deficit.
deficit. Currently,
Currently for
for the
the plan
plan in
in India,
India, it
it has
has a
e relatively
relatively balanced
balanced mix
mxofof investments
investments inin government
government securities,
securities,
and
and other
other debt
debt instruments.
instruments.

Asset Liability
Asset Liability Matching
Matching Risk: The plan
Risk: The plen faces
faces the
the ALM
ALM risk
risk as
es to
to the
the matching
matching cash flow. Since
cash flow the plan
Since the plen is
is invested
invested in
in lines
lines of
of Rule
Rule
101 of the Income Tax Rules, 1962, this generally reduces ALM risk.
101 of the Income Tax Rules, 1962, this generally reduces ALM risk

Mortality
Mortality Risk:
Risk: Since the benefits
Since the benefits under the plan
under the plen is
is not
not payable
Eyeble for
for life
life time
time and
end payable
payable till
till retirement
retirement age
age only,
only, plan
plan does
does not
not
have
have any
any longevity
longevity risk.
risk

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 153
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

40. RETIREMENT BENEFIT PLAN (Contd.)

RETIREMENTBENEFITPLAN (Contd_)

Concentration
Concentration Risk:
Risk Plan
Plan is
is having
having a
e concentration
concentration risk
risk as
as all
ell the
the assets
assets are
are invested
Invested with
with the
the insurance
insurance company
company and
and a
a default
default
will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.
will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

Characteristics of defined
Characteristics of benefit plans
defined benefit plans

During the year,

During the there were
year,there were no
no plan
plan amendments, curtailments and
emendments, curtailments and settlements.
settlements.

Compensated absences
absences

The Company
The Company has
has a
a policy
policy on
on compensated
compensated absences
absences which
which is
is accumulating
accumulating in
in nature.
nature The
The expected
expect4i cost
cost of
of accumulating
accumulating
compensated
compensated absences
absences is
is determined
determined by
by actuarial valuation performed
actuarial vs'ueticn performed by
by an
an independent
independent actuary
actuary at
at each
each balance
bslence sheet
sheet date
date
using
using Projected
Projected Unit
Unit Credit
Credit method
method on the additional
Dnthe addition-I amount
amount expected
ex—ted toto be
be paid/availed
Fid/avail&d as
ss a result
result of
of the
the unused
unused entitlement
entitlement
that has accumulated at the balance sheet date. The Company Recognised/(Reversed) expense amounting to ` (88.34) lacs
thet has accumulated st the OEIsncesheet date The Company Recognised/(Reversed) expense amounting to (8334) lacs
(March
(March 31,
31, 2020: e64142 lacs)
2020: `641.42 for Leave
Lacs)for encashment.
Leaveencashment

The Following
The Table Summarises
Following Table Summarises the
the components
components ofof net
net benefit
benefit expense
expense recognised
ræognised in
in statement
statement of
of profit
profit and
and loss
loss and
end funded
funded
status
status and
and amounts
amounts recognised
recognisad in
in balance
balance sheet
sheet for the gratuity
for the gratuity plan.
plan

Amount recognised in
Amount in the statement of
the statement of profit and loss
profit and loss in
in respect
respect of the defined
of the defined benefit
benefit plan
plan are
are as
as follows:
follows:

` in
in lacs
lacs

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Amounts recognised
Amounts recognised in statement of
in statement of profit and loss
profit and loss
in respect of defined benefit plans are as follows :-
in respect of defined benefit plans are as follows
Current
Current Service
Service Cost
Cost 705.78
70578 602.23
Interest
Interest expense
evense 397.87
3@787 365.01
36501

Interest
Interest Income
Income (320.35)
(320.35) '(354.82)
(354.82)
Past service cost
F-st service cost - -
Components
Components of of defined
defined benefit
benefit costs
costs recognised
recognised in
in profit
profit or
or loss
loss (A)
(A) 783.30
783_30
612.41
61241

Remeasurement
Remeasurement of of gains/(losses)
gains/(losses) in
in other
other comprehensive
comprehensive income
income :
Return
Return on on plan
plan assets
assets (excluding
(excluding amounts
amounts included
included in
in net
net interest expense)
interest ex*nse) (63.24)
(63.24) (i6_S5)
(16.35)
actuarial changes arising from changes
actuarialchanges-rising changesin in demographic
demæraphic assumptions
assumptions 19.71 (12.69)
actuarial changes arising from changes in financial assumptions
actuarial changes arising from changes in financial assumptions (873.77)
(873.77) 170.48
170.48

Experience
Experience adjustments
adjustments (261.45)
(261.45) 199.17
ngg.17

Components of
Components of defined
defined benefit
benefit costs
costs recognised
recognised inin (1,178.74)
(1,178.74) 340.61
340.61

other
other comprehensive income (B)
comprehensiveincome (B)
Total (A+B)
Total (A (395.44) 953.02
953.02

Movement
Movement in the present
in the value of
present value of the defined benefit
the defined benefit obligation
obligation are
are as follows :
as follows

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Change
Change in the obligation
in the obligation during
during the year ended
the year ended
Present value of defined obligation at
Presentvalueof definedobligationat the beginning of the year
±ginning year 5,816.83
5,81683 4,809.03
4,809.03
Expenses recognised in the statement of profit
Expenses in the statement of and loss:
profit and loss:
Current
Current Service
Service Cost
Cost 705.78
70578 602.23
Interest expense/(income)
Interest expense/(income) 397.87
3@787
365.01
36501

Recognised
Recognise: in in other comprehensive income
other conpprehensive income remeasurement
remeasurement(gains)/Loss. (1,115.50)
(1,115.50) 356.95
356.95

Past service cost

F-st service cost
- -
Net
Net Liabilities transferred out/
Liabilities transferred out/ Divestments
Divestments (13.48)
(1348) 46.21
Benefits
Benefits paid
Eid from
from the
the fund
fund (389.47) (362.60)
(36260)
Present
Present value
value of of defined
defined obligation
obligation at the end
at the end of the year
of the 5,402.03 5,816.83
5,816.83

154 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

40. RETIREMENT BENEFIT PLAN (Contd.)

RETIREMENTBENEFITPLAN (Contd_)

Change
Change in
in the
the Fair value of
Fair value of plan
plan assets
assets :-
`tinin lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Fair value of
Fair value of plan
plan assets
assets at
at the
the beginning
beginning ofof the year
the year 4,683.46
4,683.46 4,674.89
4,674.89
Interest Income
Interest Income 320.35
32035 354.82
35482

Contributions
Contributions by by the
the Employer
Employer 2,200.00
220010 -
Benefits paid from the fund
Benefits paid from the fund (389.47) (362.60)
(362.60)
Return
Return on Dn plan
plan assets
assets excluding
excluding interest
interest income
income 63.24
6324
16.35
Fair
Fair value
value of
of plan
plan assets
assets at
at the
the end
end of the year
of the 6,877.58
6,877.58 4,683.46

Calculation of benefit
Calculation of benefit liability/(asset)
liability/(asset) :

`tinin lacs
lacs

Particulars
Particulars
As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Defined
Defined benefit
benefit obligation
obligation 5,402.03
5,40203 5,816.83
Fair value of plan assets
Fair value of plan assets 6,877.58
6,87758 4,683.46
468346
Benefit liability/ (Deposit with
Benefit liability/ with Gratuity
Gratuity Fund
Fund in
in excess
excess of
of obligation)
obligation) (1,475.55)
(1,475.55) 1,133.37

The principal
The principal assumptions
assumptions used
used in
in determining
determining gratuity
gratuity obligations
obligations for
for the
the Company’s
Company's plans
plans are
are shown
shown below:
below:

Particulars
Particulars As at As at
March
March 31,31, 2021
2021 March
March 31,31, 2020
2020
Expected
Expected return
return on
on Plan
Plan assets
assets 6.86%
686% 6.84%
Rate
Rate of
Df discounting
discounting 6.86%
686%
6.84%
6.841,

Expected
Expected rate
rate of
of salary
salary increase
increase 5.00% 0% p.a for the next
500% pa for the next
11 year
year and
-nd 7% p.a.
p..
thereafter
thereafter starting
starting
from
from thethe 2nd
2nd year
year
Rate
Rete of
of employee
employee turnover
turnover For service 4 years For service 4 years
For sewice 4 years For service years
and
and below
below 27.00%
27.00% and
and below
below 29.00%
29110%

p.a. For
For service
service p.a
p a & For
For service
service
55 years
years and
and above
above 55 years
years andend above
above
4.00% p.a 3.00% p.a
SCO'/,

Mortality
Mortality rate
rete during
during employment
employment Indian
Indian Assured
Assured Indian Assured
Indian Assured

Lives
Lives Mortality
Mortality Lives
Lives Mortality
Mortality
(2006-08) Ult Ult (2006-08)
(21336-#) Ult ult
Mortality
Mortality rate
rete after
after employment
employment N.A NA

Investments quoted in
Investments quoted in active
active markets:
markets:

`{inin lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Investment
Investment Funds
Funds 6,877.58
6,87758 4,683.47
4,68347
Total
Total
6,877.58
6,877.58 4,683.47

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 155
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

40. RETIREMENT BENEFIT PLAN (Contd.)

RETIREMENTBENEFITPLAN (Contd_)

Sensitivity Analysis
Sensitivity Analysis

` in
in lacs
lacs

Assumptions
Assumptions Discount rate
Discount rate Future salary increases
Future salary increases Attrition rate
Sensitivity
Sensitivi level
level 1% increase
increase 1% decrease
decrease 1%
1% increase
increase 1% decrease
decrease 1%
1% increase
increase 1% decrease
decrease
Impact on defined benefit obligation for
Impact on defined benefit obligation for (486.79)
(48679) 576.72
57672
576.14
57614
(494.25)
(494.25) 87.75
8775
(101.62)
(101E2)
FY 20-21
20-21

Impact
Impact on on defined
defined benefit
benefit obligation
obligation for
for (64239)
(642.39) 778.40
778 40 766.43
76643 (598.93) (2085)
(20.35) 22.26
2226

FY 19-20
The sensitivity
The sensitivity analysis
analysis presented
presented above
above may
may not
not be
be representative
representative ofof the
the actual change in
actual change in the
the defined
defined benefit
benefit obligation
obligation as
as itit is
is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
unlikely that the change in assumptions would occur in isolation of one another es some of the assumptions may be correlated

Furthermore,
Furthermore, in
in presenting
presenting the the above
above sensitivity
sensitivity analysis,
analysis, the
the present value of
present value of the
the defined
defined benefit
benefit obligation
Dbligeticn has
has been
been calculated
calculated
using the projected unit credit method at the end of reporting period, which is same as that applied in calculating the defined
using the projæted unit credit method at the end of *ric.d, which is same as that applied in calculating the defined
benefit
benefit obligation
obligation liability
liablity recognised
recognised in
in the
the balance
balance sheet.
sheet

There was
There was no
no change
change in
in the
the methods
methods and
end assumptions
assumptions used
used in
in preparing the sensitivity
preparing the sensitivity analysis
analysis from
from prior
prior years.
years.

Maturity Analysis of
Maturity Analysis of Benefit
Benefit Payments
Payments from the fund
from the fund
` in
in lacs
lacs

Expected payment for future

payment for years
future years As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Within the
Within the next
next 12
12 months
months (next
(next annual
ennual reporting
reprting period)
period) 534.59
53459
587.01
53701

2nd following Year

2nd following Year 338.26
33326 223.96
223.96

3rd
3rd following Year
following Year 383.74
38374
243.53
243.53

4th following
4th Year
following Year 356.07
35607 289.35
289.35

5th following Year

followingYear 351.25
351 25 282.91
23221

sum
sum of years 6
of years to 10
6 to 10 1,724.74
1,72474 1,480.38
1,480.38
sum
sum of years 11
of years 11 and
and above
stav 9,052.02
g,D5202 13,404.36
13,404.36
Total expected
Total expected payments
payments (( Undiscounted
Undiscounted )) 12,740.68 16,511.51
16,511.51

The Company
The Company not
not required to contribute
required to to the
contribute to fund in
the fund in the
the next
next financial
financial year.
year.

The weighted
The weighted average duration of
average duration the defined
of the defined benefit
benefit obligation
obligation as
as at
et March
March 31,
31, 2021
2021 is
is 11
11 years
years (March
(March 31,
31, 2020:
2020: 14 years)
14 years)

Asset Liability
Asset Liability Matching
Matching Strategies
Strategies

The Company
The Company has has purchased
purchased insurance
insurance policy, which is
plicy, which a year-on-year
is e year-on-year cash
cash accumulation
accumulation plan
plen in which the
in which the interest
interest rate
rete is
is
declared
declared on
on yearly
yearly basis
Ossis and
and is
is guaranteed
guaranteed for
for a
a period
period of
of one
one year.
year The
The insurance
insurance Company,
Company, as
as part
psrt of
of the
the policy
policy rules,
rules, makes
makes
payment
payment of
of all
all gratuity
gratuity outgoes
outgoes happening
happening during
during the
the year
year (subject
(subject to
to sufficiency
sufficiency of
of funds
funds under the policy).
under the policy) The
The policy
policy thus,
thus,
mitigates
mitigates thethe liquidity
'iquidity risk.
risk However,
However, being
being as cash
cash accumulation
accumulation plan,
plan, the
the duration
duration ofof assets
assets is
is shorter
shorter compared
compare: to to the
the duration
duration
of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which
of liabilities Thus, the Company is ex;csed to movement in interest rste (in particular, the significant fall in interest rates, which
should
should result
result in
in aa increase
increase inin liability without corresponding
liability without corresponding increase
increase in the asset).
in the asset).

156 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

41. MATURITY
MATURITY ANALYSIS
ANALYSIS OF
OF ASSETS
ASSETS AND
AND LIABILITIES
LIABILITIES

The table
The table below
below shows
shows an
en analysis of assets
enatysis of assets and
and liabilities
liabilities analysed according
according to
to when
when they
they are
are expected to
to be
be recovered
recovered or
or
settled.
settled

` in
in lacs
lacs

Particulars
Particulars As at
As at March
March 31,
31, 2021
2021 As
As at
at March
March 31,
31, 2020
2020
Within 12
Within 12 After
After 12
12 Total
Total Within
Within 12
12 After
After 12
12 Total
Total

months
months months
months months
months months
months

Assets
Financial
Financial assets
assets

Cash
Cest andand cash equivalents
cash equivalents 3,81,528.17
"1,528.17 - 3,81,528.17
"1,528.17 2,09,182.78 - 2,09,182.78
209,132.78
Bank Balance other than
Sank ælance other than above
atove 1,22,953.17 16,954.95 1,39,908.12 97,053.53
97,05353 - 97,053.53
g7,053.53
Receivables
Receivables

-- Trede
Trade Receivables
Receivables 229.99
229.gg - 229.99
22g.gg 89.76
8976 - 89.76
0.76

-- Other
Other Receivables
Receivables - - - - - -
Loans
Loans 15,34,058.56
15E4,058.56 12,07,953.08 27,42,011.64 14,05,728.59 12,55,524.37 26,61,252.96
Investments
Investments 66,946.31
66,946.31 34,785.93 1,01,732.24
,732.24 39,350.11
sg,35D11 34,063.86
3406386 73,413.97
73,413.97
Other financial assets
Other financial assets 874.43
874.43 3,379.00 4,253.43
4,253.43 3,513.35
3,51335 3,830.33
"31133 7,343.68
7,343.68
Non-financial
Non-financial Assets
Assets

Current
Current
tax asset
tax asset
- 4,502.79
4,50279 4,502.79
4,502.7g - 13,069.56
13.06956 13,069.56
13,069.56
Deferred
Deferred tax tax assets
assets (net)
(net) - 12,815.28
12,81528 12,815.28
12,81 5.28 - 5,072.77
5,07277 5,072.77
5,072.77
Property, plant and equipment
Property, plant end equipment - 6,437.72
6,43772 6,437.72
6,437.72 - 7,241.02
7241 02 7,241.02
7,241.02
Other
Other intangible
intangib'e assets
assets - 204.44 204.44
204.44 - 193.18
19318 193.18
Right of Use Assets
Right of use Assets - 15,618.41
15,61841 15,618.41
15,618.41 - 15,487.33
1548783 15,487.33
15,487.33
Other
Other non financial assets
non financial assets 1,597.74
1,5E7.74 10,157.99
10,157'? 11,755.73
11,755.73 165.21
16521 7,859.25 8,024.46
8,024.46
Total assets
Total assets 21,08,188.37 13,12,809.59 34,20,997.96 17,55,083.33 13,42,341.67 30,97,425.00
Liabilities
Liabilities

Financial
Financial Liabilities
Liabilities

Other
Other payables
payables
(i) 
(i) total outstanding dues
tote' outstanding dues 18.90 - 18.90 - - -
of
of micro
micro enterprises
enterprises end and
small enterprises
enterprises
(ij total
(ii)  tote'outstanding
outstanding dues duesof of 6,729.05
6,729.05 - 6,729.05
6.72905 6,077.83
6,077B - 6,077.83
6,077.83
creditors other than micro
creditors other then micro

enterprises
enterprises and and smallsmell
enterprises
enterprises
Debt
Debt Securities
Securities 1,79,481.81
1179,481.81 2,46,881.19 4,26,363.00
426,363B] 1,57,961.69 2,88,865.96
2,38E65.96 4,46,827.65
446,827.65
Borrowings
Borrowings (other than debt
(other then debt 9,73,788.98 6,03,490.16 15,77,279.14 8,14,152.90 6,30,472.66 14,44,625.56
1444625.56
securities)
securities)
Deposits
üepcsits 1,62,962.13
1162,962.13 3,89,926.65 5,52,888.78 1,21,486.63
1,21 ,48663 2,79,720.17 4,01,206.80
401,206.80
Subordinated
Subordinated Liabilities
Liabilities - - - 23,923.91 - 23,923.91
23,923.91
Other
Other Financial
Financis' liabilities
liabilities 24,205.29
24,205.2g 16,757.24
16,75724 40,962.53
40,962.53 31,754.11
31,75411 16,094.51 47,848.62
47,848.62
Non-financial
Non-financial Liabilities
Liabilities

Provisions
Provisions 2,631.25
2,631.25 - 2,631.25
2,631.25 1,603.89
1,60389 2,322.90
2E22SD 3,926.79
3,9267g
Other non-financial liabilities
Other non-financial liabilities
2,272.72
2,272.72 - 2,272.72
2,272.72 2,187.45
218745 4.82
482
2,192.27
2,1E2.27
Total Liabilities
Total Liabilities 13,52,090.13 12,57,055.24 26,09,145.37 11,59,148.41 12,17,481.02 23,76,629.43
Net 7,56,098.24 55,754.35
55,754.35( 8,11,852.59 5,95,934.92 1,24,860.65 7,20,795.57

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 157
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

42. CHANGE
CHANGE IN
IN LIABILITIES
LIABILITIES ARISING FROM
ARISING FROM FINANCING
FINANCING ACTIVITIES
ACTIVITIES

Changes
Changes in
in liabilities
liabilities arising from financing
arising from financing activities during FY
activities during FY 2020-21
2020-21

` in
in lacs
lacs

Particulars
Particulars As
As at
at Cash
Cash Flows
Flows Exchange
Exchange Other
Other *
• As at
March
March31 31, 2020
2020 difference
difference March
March 31,
31 2021
2021

At Amortised
At Amortised Cost
Cost

Debt
Debt Securities
Securities
-- NCD
NCO Public
Public Issue
Issue 84,955.43
84,g5543 918.31 - 1,050.47
1105047 86,924.21
86,924.21
-- NCD
NCC Institutional
Institutional 3,61,872.22 (18,596.05) - (3,837.38) 3,39,438.79
339,438.7g
Subordinated
Subordinated Liabilities
Liabilities
-- Sub
Sub Debt
Debt Retail
Ret-il 23,923.91
23,g23E1 (23,961.29) - 37.38
3738 -
Borrowings other than debt securities
Borrowings other than debt securities
-- Term
Term Loan
Loan fromfrom Banks
3anks 7,89,133.69 (23,096.74) - (3,5iD7g)
(3,510.79) 7,62,526.16
-- Term
Term Loan
Loan fromfrom Institution
Institution 64,040.47
64, 04047 2,00,077.41 - (186.93)
(186Æ3) 2,63,930.95
263,930.95
-- Commercial
Commercial paper paper 11,164.33
11,1 6433 (11,200.00)
(1 ,20D00) - 35.67
8567 -
-- Cash
Cash Credit
Credit fromfrom Banks
Banks 48,037.90
48,037Æ0 (12,190.33)
(721gD33) - - 35,847.57
35,847.57
-- Working
Working Capital
Capital Demand
Demand LoansLoans 1,54,488.98 22,026.36
22,02686 - - 1,76,515.34
-- Term
Term Loan
Loan fromfrom Bank-
3ank- Securitisation
Securitisetion 58,553.69
58,553 6? (20,225.24) - 277.53
27753 38,605.98
38,605.98
--Term
Term LoanLoan from from financial
financial Institution/
Institution/ 3,19,206.50 (19,250.56)
(lg,25D56) - (10280)
(102.80) 2,99,853.14
NBFC- Securitisation
N3FC- Securitisation

Deposits
Deposits
-- Public
Public Deposits
Deposits 4,01,206.80 1,52,815.49 - (i,i4060j
(1,140.60) 5,52,881.69
-- Recurring deposits
Recurringdeposits - 7.09 - - 7.09
Total
Total
23,16,583.92
23, 2,47,324.45 - (7,377.45) 25,56,530.92
* Represents
Represents adjustments
adjustments on on account
account of of processing
processing fees
fees and
and other
other transaction
transection cost.
cost.

Changes
Changes in
in liabilities
liabilities arising from financing
arising from financing activities during FY
activities during FY 2019-20
2019-20

` in
in lacs
lacs

Particulars
Particulars As at
As at Cash
Cash Flows
Flows Exchange
Exchange Other
Other *
• As at
March
March 31,
31 2019
2019 difference
difference March
March 31,
31 2020
2020

At Amortised
At Amortised Cost
Cost

Debt
Debt Securities
Securities
-- NCD
NCC Public
Public Issue
Issue 11,377.17
11,377.17 75,282.55
75282.55 - (1,70429j
(1,704.29) 84,955.43
84,955.43
-- NCD
NCC Institutional
Institutional 3,57,312.77 6,585.83
#8583 - (2,026.38)
(2,02638) 3,61,872.22
3,61187222
Subordinated
Subordinated Liabilities
Liabilities

-- Sub
Sub Debt
Debt Retail
Ret-il 57,685.07
57,685.07 (34,033.43)
(34033.43) - 272.27
27227 23,923.91
23,923.91
-- Sub
Sub Debt
Debt Institutional
Institutional 7,685.88
7,685.88 (7,705.28)
(7,705.28) - 19.40
1940 -
Borrowings other than debt securities
Borrowings other than debt securities
-- Term
Term LoanLoan fromfrom Banks
3anks 9,55,771.26 (1,65,566.62) - (1,070.95)
(1,070 E5) 7,89,133.69
7,891133."
-- Term
Term LoanLoan fromfrom Institution
Institution 30,593.06 33,593.25 - (145.84)
(14584) 64,040.47
-- Commercial
Commercial paper paper 1,78,583.47 (1,67,419.14) - - 11,164.33
11,164.33
-- Cash
Cash Credit
Credit fromfrom Banks
Banks 1,58,186.86 (1,10,148.96) - - 48,037.90
48,037.90
-- Working
Working Capital
Capital Demand
Demand Loans Loans 76,685.16
76,685.16 77,803.82
77.80882 - - 1,54,488.98
-- Term
Term LoanLoan fromfrom Bank-
Bank- Securitisation
Securitisation - 59,507.38 - 85369)
(953.69) 58,553.69
58,553."
- Term Loan
Term Loan from from financial
financial Institution/
Institution/ 1,14,327.54 2,09,299.40 - (4,420.44)
(4,420 44) 3,19,206.50
NBFC- Securitisation
N3FC- Securitisation

Deposits
Deposits
-- Public
Public Deposits
Deposits 3,11,940.60
3,) 1,940.60 90,073.35
gp,p73.35 - (80th5)
(807.15) 4,01,206.80
-- Recurring
Recurring deposits
deposits - - - - -
Total
Total 22,60,148.84 67,272.16
67,272.16 - (10,837.08)
10 837.08 23,16,583.92
2 16 .92

* Represents
Represents adjustments
adjustments on on account
account of of processing
processing fees
fees and
and other
other transaction
transection cost.
cost.

158 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

43. CONTINGENT
CONTINGENT LIABILITIES
LIABILITIES AND COMMITMENTS
AND (I)MMITMENTS

(A)
(A) Contingent
Contingent Liabilities
Liabilities

`tinin lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
a. In
In respect of Income
respect of Income tax tax demands where the
demands where the Company
Compeny has filed appeal
has filed appeal 116.45
1 1645 116.45
116.45

before various authorities

before various authorities

b. VAT demand where

VATdemand the Company
where the Company has
has filed
filed appeal
appeal before
before various
various Appellate
Appellate 259.95 259.95
259.95

c. Service tax demand

Service tax demend 8,019.29
8,01gæ 8,019.29
8,019.2g
d.
d Guarantees
Guarantees givengiven for
for subsidiary
subsidiary - 2,500.00
2,533.111
Total
Total 8,395.69
8,395.69 10,895.69
10,895.69

Future
Future cash
cash outflows
outflows inin respect of (a), (b)
respect of (b) and
and (c)
(c) above
above are
are determinable
determinable only
only on
on receipt
receipt of judgements /decisions
of judgements /decisions pending
*nding
with various forums/authorities. The Company is of the opinion that above demands are not sustainable and expects to
with various forums/authorities The Company is Df the opinion thst Etcve demands ere not sustainable and expects to
succeed
succeed in in its
ts appeals.
appeals TheThe management
menagement believes
believes that
that the
the ultimate outcome of
ultimate outcome these proceedings
of these præædings will will not
not have
have a
a material
material
adverse effect on the
adverse effect the Company’s financial position
Companfs financial psition andand results
results of
of operations.
D*retions.

The
The Company
Compeny has
has issued
issued a
a guarantee
guarantee of
of Nil
Nil (March
(March 31,
31 2020
2020 :: ` 2,500
2,500 lacs)
lacs) for
for refinance
refinance obtained
obtained by
by subsidiary,
subsidiary, Shriram
Shriram
Housing
Housing Finance
Finance Limited
Limited from
from NHB.
NH3

(B)
(B) Commitments
Commitments not
not provided
provided for
for

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
a. Estimated
Estimated amount
amount of contracts remaining
of contracts remaining to
to be
be executed
executed on
on capital
capital 302.41
30241 295.37
2E5.37

account,
account, net
net of
of advances
'dvances
b. Commitments
Commitments related to loans
related to loans sanctioned
sanctioned but
but undrawn
undrawn 5,378.39
5,37339 691.57
01.57

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 159
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

44. RELATED
RELATED PARTY
PARTY DISCLOSURES
DISCLOSURES

Relationship
Relations Name
Name of
of the
the party

(i)
(i) Enterprises
Enterprises having
having : Shriram
Shriram Capital
Capital Limited
Limited (SCL)
(SCL)
significant
significant influence
influence
over the Company
over the Shriram Ownership Trust (SOT)
ShriramOwnershipTrust (SOT)
DynastyAcquisition
Dynasty AcquisitionFPiLimited
FPI (DAFLj
Limited (DAFL)

(ii)
(ii) Subsidiary
Subsidiary : Shriram
Shriram Housing
Housing Finance
7nence Limited
Limited ( SHFL)

(iij Associates
(iii) Associates* :. -ihsight Commodities
Insight Commodities andFutures
and PrivateLimited
Futures Private Limited(ICFPL)
(ICFPLj
Shriram Asset Management Company Limited (SAMCL)
ShriramAsset MsnegementCompanyLimited (SAMCL)
Shriram Credit Company
ShriramCredit Limited (SCCL)
CompanyLimited (SCCL)
Shriram Financial
Shriram änenciel Products Solutions (Chennai)
ProductsSo'utions Private Limited (SFPSPL)
(Chennai)PrivateLimited (SFPSPL)
Shriram Financial
Shriram Ventures (Chennai) Private Limited (SFVPL)
änenciel Ventures(Chennai)PrivateLimited (SFVPL)
Shriram Fortune
Shriram Fortune Solutions
Sdutions Limited
Limited (SFSL)
(SFSL)
Shriram General
Shriram GeneralInsurance Company Limited (SGICL)
InsuranceCompanyLimited (SGICL)
Shriram Insight
Shriram Insight Share
Shsre Brokers
Brokers Limited
Limited (SISBL)
(SISSL)
Shriram Life
Shriram Life Insurance Company Limited (SLICL)
InsuranceCompanyLimited (SLICI_)
Shriram Overseas I nvestments Private Limited
Shriram Overseas Investments Private Limited (SOIPL) (SOIPLj
Shriram Wealth Advisors Limited (SWAL)
ShriramWealthAdvisors Limited (SWAI_)
Shriram Value
Shriram Value Services
Services Limited
Limited (SVSL)
(SVSL)
Bharath Investments Pte. Limited, Singapore
aharath Investments Pte. Limited, Singapore (BIPL)
(BIPL)
SGI Philippines
SGI General Insurance Co. Inc.
PhilippinesGeneralInsuranceCD lnc (SGIPGICI)
(SGIPGICI)
Novac Technology Solutions
Novec Technology Solutions Private
Private Limited
Limited (NTSPL)
(NTSPL)
Novac
NovacDigital
DigitalServices
ServicesPrivate
PrivateLimited (formerly T
Limited(former"/ Techfactory
echfactoryServices
ServicesPrivate
PrivateLimited.
Limited.)) (NDSPL)
(NDSPL)
Snottor Technology
Snottor Technology Services
Services Private
Private Limited
Limited
SEA Funds Management India Private
SEAFundsManagementIndia Limited
PrivateLimited
Way2wealth Insurance
Way2wealth 'nsurance Brokers
Brokers Private
Private Limited
Limited
Way2wealth Securities Private Limited
Way2wealth Securities Private Limited
Way2wealth Brokers
Way2wealth Brokers Private
Private Limited
Limited
Way2wealth Commodities Private Limited
Way2wealthCommoditiesPrivateLimited

(iW Key
(iv) KeyManagement
Management : SriYS Chakreverti,
Sri Y.S. Chakravarti, Managing
Managing Director(Appointed
Director (Appintedwef dulyO',20igj
w.e.f July 01, 2019)
Personnel
Personnel
SriRDuruvasan, Director
Sri R Duruvasan, Director (C,eased
(Ceased fromManaging
from Director
Managing Director wef
w.e.f dune 30,2019)
June 30, 201g)
Sri Debendranath
Sri Debendranath Sarangi,
Serangi, Chairperson
Chairperson
SriCRMuralidharan, Director(Ceased
Sri C R Muralidharan, Director (Cessed wef October
w.e.f October08, 2020)
2020)
Sri Diwakar
Sri Bhagwati Gandhi,
Diwakarahegweti Director (Appointed w.e.f April
Gandhi,Director(Appointedwef April 01,
01 2019)
2019)
Sri Gerrit
Sri Gerrit Lodewyk Van Heerde,
Lodewyk Van Heerde, Director
Director (Ceased
(Ceased w.e.f.
wei July
July 29,
2g, 2019)
2019
Smt Maya
MayaS S Sinha, Director
Sinha,Director
SriPranab Prakash
Sri Pranab Prakash Pettanayak,
Pattanayak, Director(Reappointed
Director (Reappoint4i wef
w.e.f April 0112019)
April 01, 20ig)
Sri Ranvir Dewan, Director (Ceased w.e.f. December 02, 2019)
Sri RenvirDewan,Director(peasedw.e.f December02, 201g)
Sri Shashank
Sri Shashank Singh,
Singh, Director
Director
SriVenkataraman Murali, Director
Sri Venkataraman Murali, Director (Reappoint&d
(Reappointed wef
w.e.f April Ot,201g)
April 01, 2019)
Sri R Chandrasekar, Chief Financial Officer
Sri R Chandrasekar, Chief FinenciEI Officer
Sri C
Sri CRR Dash,
Dash, Company
Company Secretary
Secretary
Sri Ignatius
Sri Michael Viljoen,
IgnatiusMichael Vi)jcæn,Director
Director(Appointed
(Appinted w.e.f
wef July 29, 2019)
duly29,201?)

160 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

44. RELATED PARTY DISCLOSURES (Contd.)

RELATEDPARTYDISCLOSURES(Contd_)

Relationship
Relationship Name
Name of the party
of the

(v)
(v) Relatives
Relatives of
of Key
Key : Relatives
Relatives ofof Sri
Sri R
R Duruvasan,
Ouruvasan, Director
Director
Management
Menagement Personnel
Personnel (Ceased
(Ceased from
from Managing
Managing Director
Director &
& CEO w.e.f June
CEOwef June 30,
30, 2019)
201g)
Late Sri Ayneni
LateSri Ramachandra Naidu (Father)
AyneniRsmechandraNaidu(Father)
Late
Late Smt
Smt Ayneni
Ayneni Ammayamma
Ammayamma (Mother)
(Mother)
Smt A Komaleeswari (Spouse)
Smt A Komaleesweri (Spouse)
Sri
Sri Ayneni Vamshi Krishna (Son)
AyneniVemshiKrishna
Sri R
Sri R Perumal
Perumal (Brother)
(Brother)
Smt P P Padmaja (Brother’s Wife)
Padmaja(Brother'sWfe)
Smt
Smt S S Usha
Usha Rani
Rani (Sister)
(Sister)
Sri
Sri R Selvam (Sister’s Husband)
RSelvam(Sister'sHusband)

Relatives of Sri
Relativesof Sri YS
Y.S. Chakravarti,
Chakreverti,Managing
Men—gingDirector
Director&& CEO (Appointed w.e.f
CEO(Appointedw ef July 01, 2019)
01,2019b
Late
Late Sri
Sri Satyanarayana
Satyanareysna Y Y (Father)
(Father)
Smt
Smt Rajamannar
Rajamannar (Mother)
(Mother)
Smt Sujata Yalamati (Spouse)
Smt Sujata Yelemati (*use)
Sri Sree Bhargav (Son)
Sri Sree Bhargav (Son)
Smt Nayana Sri
SmtNeyana (Daughter)
Sri(PaughterL
Smt Aruna S (Sister)
Smt Aruna S (Sister)
Smt Rama
RamaDevi
DeviDD (Sister)
(Sister)
Sri
Sri S
SRR Krishna
Krishna (Sister’s
(Sister's husband)
husband)
Sri
Sri Venkateswara Rao D (Sister’s
VenkateswareRao husband)
(Sister'shusband)
Sri
Sri M
MSSRR Choowdary
Chnwdary (Brother
(arcther of
of spouse)
spouse)
*- The Company
v- The Company neither
neither holds
holds any
any shares
shares in
in the
the above
above entities
entities nor
nor these
these entities
entities hold
hold any
any shares
shares in
in the
the Company except Shriram
C.ompanyexcept Shriram
Financial Ventures (Chennai)
Financial Ventures (Chennai) Private
Private Limited
Limited (SFVPL). However these
(SF•JPI_)However these entities
entities are
are “subsidiaries/
"subsidiaries/ associates”
assccistes" of
cf Shriram
Shriram Capital
Capital
Limited and hence these entities are treated as “associates” as per paragraph 9(b)(ii) of IND- AS 24 and transactions made with
Limited and hence these entities are treated as "associates" as per paragraph of IND- AS 24 and transactions made with
these entities
these entities are
are disclosed.
disclosed

There are
There are no transactions with
no transactions with relatives of Key
relatives of Key Management
Management Personnel
Personnel for
for the
the year
year ended
ended March
March 31,
31, 2021.
2021

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 161
 Notes to Standalone Financial Statements for the year ended March 31, 2021 (Contd.)
M

162
44. RELATED PARTY DISCLOSURES (Contd.)

ANNUAL
Related party transactions during the year
*SHRIRA

REPORT
ANNUAL REPORT
` in lacs
Particulars Enterprises having Subsidiary Company Associates Key Management Total

2020-2'
significant influence Personnel

2020-21
over the Company
As at As at As at As at As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Payments/Expenses
Royalty to SOT - 3,246.30 - - - - - - - 3,246.30
Royalty to SVSL - - - - 6,254.89 3,170.84 - - 6,254.89 3,170.84
Commission & Other expenses- SFPSPL - - - - 3,037.05 2,311.44 - - 3,037.05 2,311.44
Commission & Other expenses- SFSL - - - - 3,610.18 2,800.01 - - 3,610.18 2,800.01
Commission & Other expenses- SISBL - - - - 135.59 59.39 - - 135.59 59.39
Commission & Other expenses- SWAL - - - - 3.59 - - - 3.59 -
Interest Expenses- SFPSPL - - - - 95.24 54.57 - - 95.24 54.57
Interest Expenses- SLICL - - - - 603.84 423.72 - - 603.84 423.72
Interest Expenses - SAMCL - - - - 63.01 5.05 - - 63.01 5.05
Insurance - SGICL - - - - 435.22 402.08 - - 435.22 402.08
Insurance - SLICL - - - - 486.39 577.91 - - 486.39 577.91
IT Services & Other expenses- SVSL - - - - - 1,339.39 - - - 1,339.39
Professional Charges to NTSPL - - - - 5,461.61 3,812.26 - - 5,461.61 3,812.26
Reimbursement of Rent and other expenses- 0.13 14.61 - - - - - - 0.13 14.61
SCL
Fees to SCL 1,934.36 1,842.24 - - - - - - 1,934.36 1,842.24
Rent and other expenses to SHFL - - 86.38 326.60 - - - - 86.38 326.60
Payment for Assignment to SHFL - - 2,550.74 1,137.74 - - - - 2,550.74 1,137.74
Payments to Key Managerial Personnel (MD,
CFO & CS)
Short–term employee benefits - - - - - - 168.50 165.12 168.50 165.12
Post–employment pension (defined - - - - - - 24.81 29.90 24.81 29.90
contribution)
Other long term employee benefits - - - - - - 6.91 46.56 6.91 46.56
Directors Sitting Fees - - - - - - 41.97 36.24 41.97 36.24
Equity dividend to SCL 4,474.32 4,921.75 - - - - - - 4,474.32 4,921.75

ffff
Equity dividend to DAFL 2,684.38 2,952.82 - - - - - - 2,684.38 2,952.82
 0
Notes to Standalone Financial Statements for the year ended March 31, 2021 (Contd.)

44. RELATED PARTY DISCLOSURES (Contd.)

` in lacs
Particulars Enterprises having Subsidiary Company Associates Key Management Total
significant influence Personnel
over the Company
As at As at As at As at As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Equity dividend to SFVPL - - - - 97.68 3.63 - - 97.68 3.63
Equity dividend to KMP - - - - - - 1.63 1.80 1.63 1.80
Receipts/Income
Reimbursement of expenses from SHFL - - 11.32 15.35 - - - - 11.32 15.35
Receipt for Assignment from SHFL - - - 9,784.26 - - - - - 9,784.26
Commission- SGICL - - - - 596.18 247.82 - - 596.18 247.82
Commission - SLICL - - - - 1,570.40 458.26 - - 1,570.40 458.26
Interest income from Financial Guarantee- - - 117.13 15.65 - - - - 117.13 15.65
SHFL
Rent Income - SFSL - - - - 14.61 15.06 - - 14.61 15.06
Rent Income - SISBL - - - - 2.63 4.50 - - 2.63 4.50
Rent Income - SLICL - - - - - 3.69 - - - 3.69
Rent Income - SHFL - - 40.36 45.83 - - - - 40.36 45.83
Collection Fees Income - SHFL - - 1.02 0.34 - - - - 1.02 0.34
Electricity, Telephone and other charges
Received
Expenses reimbursement -SFSL - - - - 8.06 8.16 - - 8.06 8.16
OVERVIEW
CORPORATE

Expenses reimbursement -SISBL - - - - 1.89 1.56 - - 1.89 1.56

OVERVIEW
CORPORATE

Expenses reimbursement -SLICL - - - - 1.22 1.92 - - 1.22 1.92

SHRIRAM
SHRIRAM
Balance outstanding as at
Share Capital held by SCL 2,237.16 2,237.16 - - - - - - 2,237.16 2,237.16

CITY
Share Capital held by DAFL 1,342.19 1,342.19 - - - - - - 1,342.19 1,342.19

UNION
REPORTS

Share Capital held by SFVPL - - - - 48.84 1.65 - - 48.84 1.65

CITY UNION
STATUTORY

REPORTS

Share Capital held by KMP - - - - - - 0.82 0.82 0.82 0.82

STATUTORY

Interim Dividend Payable to SCL 2,237.16 - - - - - - - 2,237.16 -

FINANCE
FINANCE
Interim Dividend Payable to DAFL 1,342.19 - - - - - - - 1,342.19 -
Odiill!iiiZdiiilllillli'

Interim Dividend Payable to SFVPL - - - - 48.84 - - - 48.84 -

LIMITED
LIMITED
Interim Dividend Payable to KMP - - - - - - 0.82 - 0.82 -
FINANCIAL

Outstanding Payable to SCL - 5.78 - - - - - - - 5.78

STATEMENTS
FINANCIAL

163
STATEMENTS
 Notes to Standalone Financial Statements for the year ended March 31, 2021 (Contd.)
M

164
44. RELATED PARTY DISCLOSURES (Contd.)

ANNUAL
` in lacs
*SHRIRA

Particulars Enterprises having Subsidiary Company Associates Key Management Total

REPORT
ANNUAL REPORT
significant influence Personnel
over the Company

2020-2'
As at As at As at As at As at As at As at As at As at As at

2020-21
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Investment in Shares (including deemed - - 16,727.91 16,727.91 - - - - 16,727.91 16,727.91
investment) of SHFL
Security deposits with SHFL - - - 275.32 - - - - - 275.32
Expenses Payable to SHFL - - 46.69 47.32 - - - - 46.69 47.32
Receivable from SHFL - - 21.20 24.74 - - - - 21.20 24.74
Royalty Payable to SVSL - - - - 1,641.31 1,554.29 - - 1,641.31 1,554.29
Expenses payable to SCL - 456.34 - - - - - - - 456.34
Expenses Payable to SFPSPL - - - - 269.39 80.48 - - 269.39 80.48

coco
Expenses Payable to SFSL - - - - 306.60 211.83 - - 306.60 211.83

U)
Expenses Payable to SISBL - - - - 8.13 4.39 - - 8.13 4.39

so
Expenses Payable to SVSL - - - - 21.83 1.15 - - 21.83 1.15

Z)
Expenses Payable to NTSPL - - - - 191.28 11.78 - - 191.28 11.78

IF
Expenses Payable to SLICL - - - - 4.36 0.03 - - 4.36 0.03

cnco
Expenses Payable to SWAL - - - - 1.59 - - - 1.59 -
Outstanding Payable to SAMCL - - - - 1,052.63 153.47 - - 1,052.63 153.47
Outstanding Payable to SFPSPL - - - - 1,044.40 1,034.77 - - 1,044.40 1,034.77
Outstanding Payable to SLICL - - - - 6,537.11 6,444.54 - - 6,537.11 6,444.54
Receivable from SFSL - - - - 0.16 - - - 0.16 -
Receivable from SGICL - - - - 33.26 86.90 - - 33.26 86.90

EIE
Receivable from SISBL - - - - - 1.00 - - - 1.00
Receivable from SLICL - - - - 102.25 0.68 - - 102.25 0.68
Receivable from NTSPL - - - - 0.40 0.32 - - 0.40 0.32

E
Receivable from SFPSPL - - - - 31.78 32.36 - - 31.78 32.36
Receivable from SVSL - - - - 23.91 30.56 - - 23.91 30.56
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

45. CAPITAL
CAPITAL

The Company
The maintains an
C.ompanymaintains an actively
actively managed capital base
managed capitel to cover
base to cover risks
risks inherent
inherent in
in the
the business
business which
which includes
includes issued
issued equity
4;uity
capital, share premium and all other equity reserves attributable to equity holders of the Company.
capital, share premium and ell other equity reserves Ettributsble to equity holders of the Company.

As an
As an NBFC, the RBI requires
NBFC,the requires us to maintain
us to maintain aa minimum
minimum capital to risk
capital to risk weighted
weighted assets
assets ratio
ratio (“CRAR”) consisting of
("CRART)consisting of Tier
Tier I and
and
Tier IIII capitel
Tier capital of
of 15% of
of our
our aggregate
egg—ate risk weighted assets.
risk weight± sssetö Further, the total
Further,the total of
of our Tier IIl' capital
cur Tier capita' cannot
cannot exceed
exceed 100%
1CC; of
of our
our Tier II
capital at
capital at any
any point
pint of time. The
oftime The capital
capital management
management process of the
prcæss of the company
company ensures
ensures to
to maintain
maintain aa healthy
healthy CRAR
CRARetat all
all the
the times.
times.

Capital
Capital Management
Management
The primary
The primary objectives
objectives of
of the
the Company’s
Company's capital
capitel management
management policy
policy are to ensure
ere to ensure that
thet the
the Company
Compeny complies
complies with
with externally
externally
imposed
imposed capital
capital requirements
requirements and
and maintains
maintains strong
strong credit
credit ratings
ratings and
and healthy
healthy capital
capital ratios
ratios in
in order
order to
to support
supprt its
its business
business and
and
to maximise
to maximise shareholder
shareholder value.
value

The Company
The Company manages
manages its its capital
capital structure
structure and
end makes
makes adjustments
adjustments toto it
it according
according to
to changes
changes in economic conditions
in economic conditions and
and
the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust the amount
the risk characteristics of its activities 'n order to maintain cr adjust the cepital structure, the Company may sdjust the amount
of dividend
of dividend payment
payment to to shareholders,
shareholders, returnreturn capital to shareholders
capital to shsrehclders or
or issue
issue capital
capitel securities.
securities No
No changes
chsnges have
hsve been
been made
mede
to the
to the objectives,
objectives, policies
plicies and
and processes from the
prccesses from the previous years. However,
previous years However, they
they are
-re under
under constant
constant review
review by the Board.
by the Board.
The Company
The company has has complied
complied with
with the
the notification
notification RBI/2019-20/170 DOR DOR (NBFC).CC.PD.No.109/22.10.106/2019-20
(NBFC)CCPDNc1DY221J106/2019-20
“Implementation
"Implementation of
of Indian
Indian Accounting
Accounting Standards”
Standards"

` in
in lacs
lacs

Regulatory capital
capital As at As at
March
March 31,
31, 2021*
2021. March
March 31,
31, 2020*
2020.
Tier 1 Capital
Tier Capital 7,30,641.50 6,78,676.35
678,676.35
Tier 2 Capital
Tier 2 Capital - -
Total capital
Total capital funds
funds 7,30,641.50 6,78,676.35
Risk
Risk weighted
weighted assets
assets 25,51,149.04 24,50,549.66
Tier 11 capital
Tier capital ratio
retic 28.64%
2364% 27.69%
27

Tier 22 capital
Tier capital ratio
retic 0.00% 0.00%
Total capital
Total capital ratio
ratio 28.64%
28.64% 27.69%
2789%

*calculated
•calculated asas per
per RBI notification
notification RBI/2019-20/170
831/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20
(NBFC)CC PD No 1og/2210 106/2019-20 “Implementation
"Implementation of
of Indian
Indian
Accounting Standards”
Accounting Standards" issued
issued by
by RBI on
on March
Merch 13,
13, 2020.
2020
“Tier
"Tier II capital”,
capital', “Tier
"Ter IIII capital”,
capital", “Owned fund” are
"Ow,nedfund" are calculated
calculated as
as defined
defined in
in Master
Master Direction
Direction -- Non-Banking
Non-aanking Financial
Financial Company
Company
- Systemically
Systemically Important
'mgzrtant Non-Deposit taking Company
Non-üeposit taking Company and -nd Deposit
Ceposit taking
taking Company
Comp-ny (Reserve
(Reserve Bank)
3,snk) Directions,
Directions, 2016
2016 and
and
notification RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 “Implementation of Indian Accounting Standards”
notification RBI/2019-20/170 OOR "Implementation of Indian Accounting standards"
issued
issued byby RBI onon March
Merch 13,13, 2020.
2020.
The Company
The Compeny is
is meeting the capitel
meeting the capital adequacy
adequacy requirements
requirements of
of Reserve
Resewe Bank of India
aankof Indie (RBI)
(Rao of
of India.
India.

46. FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

46.1 Valuation
46.1 Valuation Principle
Principle

Fair
Fair value
value is the price
is the price that
that would
enuld be
be received
received to
to sell
sell an asset or
en asset or paid
paid to transfer aa liability
to transfer liability in
in an
an orderly
orderly transaction
transection inin the
the principal
principal
(or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of
(or most advantageous) market et the me-surement dete under current market conditions (Le, an exit price), regardless of
whether that price is directly observable or estimated using a valuation technique. In order to show how fair values have been
whether that price is directly observable estimated using a valuation technique In order to show how fair values have been
derived,
derived, financial
financial instruments
instruments are classified based
are classified based onon a
e hierarchy of valuation
hierarchy of valuation techniques,
techniques, as as explained
explained in
in Note
Note 46.3.
463

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 165
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

46. FAIR
FAIR VALUE
VALUE MEASUREMENT (Contd.)
MEASUREMENT(Contd_)

46.2
46_2 Fair
Fair Value
Value Hierarchy
Hierarchy of
of assets and liabilities
assets and liabilities
The following
The table shows
following table shows an
an analysis
analysis of financial instruments
of financial instruments recorded
recorded at
at fair
fair value
value by
by level
level of
of the
the fair value hierarchy:
fair value hierarchy.

As at
As at March
March 31,
31, 2021
2021

` in
in lacs
lacs

Assets measured
Assets measured at
at fair
fair value
value on a
on a recurring basis
basis Level-1
Level- 1 Level-2
Level-2 Level-3
Level-3 Total
Total

Financial assets held

Finenciaiassets for trading
heldfor
Mutual funds
Mutual funds - 434.03
43403
- 434.03
434.03

Equity
Equity instruments
instruments 9,686.10
9,686.10 - - 9,686.10
9,686.10
Total financial assets
Total financial assets held for trading
held for trading 9,686.10
9,686.10 434.03
434_03
- 10,120.13
10,120.13
Total assets measured at fair value
Total assets measured at fair value on a recurring
on a recurri basis
basis 9,686.10
9,686.10 434.03
434_03 - 10,120.13
10,120.13

As at
As at March
March 31,
31, 2020
2020

` in
in lacs
lacs

Assets measured at fair value on a recurring basis

Assets measured at fair value on a basis
Level-1
Level- 1
Level-2
Level-2
Level-3
Level-
Total
Total

Financial assets held

Financialassets for tredmg
heldfor trading
Mutual funds
Mutual funds - 302.08
30208 - 302.08
30208

Equity
Equity instruments
instruments 8,917.14
8,917.14 - - 8,917.14
8,917.14
Total financial
Total financial assets
assets held for trading
held for trading 8,917.14
8,917.14 302.08
302.08 - 9,219.22
9,219.22
Total assets
Total assets measured
measured atat fair
fair value
value on a recurring
on a basis
recurring basis 8,917.14
8,917.14 302.08
302.08 - 9,219.22
9,219.22

46.3 Valuation techniques

46_3 Valuation

Equity
Equity Instruments
Instruments

Quoted
Quoted equity
equity instruments
instruments on
on recognised
recognised stock
stock exchanges
exchanges are valued at
are valued at Level
Level 1
1 hierarchy
hierarchy being
being the
the unadjusted
unadjusted quoted
quoted price
price as
es
at the reporting date.
at the reporting date
Unquoted equity instruments
unquoted equity instruments are valued at
are valued et Level
Level 33 hierarchy
hierarchy being
being unobservable
unobservable inputs that are
inputs thet are significant
significant to the measurement
to the measurement
as a whole. Accordingly, the valuation technique involves the net worth of the investee company.
as e whole. Accordingly, the valuation technique involves the net worth of the investee companyt

Mutual
Mutual Funds
Funds

Units
units held
held in funds are
in funds are measured
measured based
based on their published
on their published net
net asset
asset value
value (NAV), taking into
(NAV),taking into account
account redemption
redemption and/or
and/or other
other
restrictions. Such instruments are generally Level 2.
restrictions. Such instruments are generally Level 2

Foreign
Foreign exchange contracts
contracts

Foreign
Foreign exchange
exchange contracts
contracts include
include foreign
foreign exchange forward and
exchange forward end swap
swep contracts,
contracts, interest
interest rate
rate swaps
swaps and
and over-
over- the-counter
the-counter
foreign
foreign exchange options. These
exchange options. These instruments
instruments are valued by
are velued by either
either observable
observable foreign
foreign exchange
exchenge rates,
rates, observable
observable oror calculated
calculated
forward points and option valuation models. With the exception of contracts where a directly observable rate is available which
forward points and option velustion models With the exception of contracts w,vherea directs observeble rate is available which are
ere
disclosed as Level 1, the Company classifies foreign exchange contracts as Level 2 financial instruments when no unobservable
disclosed as Level 1, the Company clsssifles fore.gn exchange contracts as Level 2 financial instruments w,vhen no unobservable
inputs are used
inputs ere for their
used for valuation or
their valuation or the
the unobservable
unobservable inputs
inputs used
used are
are not
not significant
significant to the measurement
to the measurement (as(as aa whole).
whole)
During the year
During the there were
year there were no transfers
transfers between
between level
level 1
1 and
and level
level 2.
2. Similarly, there were
Similarly, there were no
no transfers
transfers from
from or
or transfer
transfer to
to level
level 3.
3.

Movements
Movements in
in Level 3 financial
Level 3 financial instruments
instruments measured
measured at fair value
at fair value
The following
The following tables
tables show
show aa reconciliation
reconciliation of
of the
the opening
opening and
end closing
closing amounts
amounts of
of Level 3 financial
Level3 financial assets
assets and
and liabilities
liabilities which
which are
ere
recorded
recorded at fair value.
at fair value Transfers
Transfers from
from Level
Leve' 38 to
to Level
Level 22 occur
occur when
when the
the market
market for
for some
some securities
securities became
beceme more
more liquid, which
liquid, which
eliminates the need
eliminates the need for the previously
for the previously required
required significant
signific,snt unobservable valuation inputs.
unobservable velustion inputs. Since
Since the
the transfer, these instruments
transfer, these instruments
have
have been
been valued
valued using
using valuation
valuation models
models incorporating
incorporating observable
observable market
market inputs.
inputs Transfers
Trensfers into
into Level
Level33 reflect
reflect changes
changes in
in market
market
conditions as a result of which instruments become less liquid. Therefore, the Company requires significant unobservable inputs
conditions as a result of which instruments become less liquid Therefore, the Company requires significant unobservable inputs
to calculate their fair value.
t calculate their fair value.

166 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

46. FAIR VALUE MEASUREMENT

FAIRVALUE (Contd.)
MEASUREMENT(Contd_)

The following
The following tables
tables show
show the
the reconciliation
reconciliation of the opening
of the opening and
and closing
closing amounts of Level
amounts of Level 33 financial
financial assets
assets and
end liabilities
liabilities
measured at fair value:
measured et fair value:

` in
in Lacs
Lacs

Particulars
Particulars Equity
u - instruments
instruments

As
As at
at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Opening Balance
Opening Balance - 80.04
80.04

Purchases
Purchases - -
Sales
Sales - (01252±4)
(1,252.24)
Issuances
Issuances - -
Settlements
Settlements
- -
Transfers into
Transfers into Level
Level 3
3 - -
Transfers from
Transfers from Level
Level 3
3 - -
Net
Net interest income, net trading income
interestincome,net income and other income
andother income - 1,172.20
1,172.20
Other comprehensive income
Other comprehensive income - -
Closing
Closing Balance
Balance - -
Unrealised
Unrealised gains and losses
ains and losses related to balances
related to balances held
held at
at the
the end
end of
of the
the year - -
46.4 Impact
46.4 Impact on fair value
on fair value of
of level 3 financial
level 3 financial instruments
instruments measured
measured at fair value
at fair value of
of changes to key
changes to key assumptions
assumptions
The table
The table summarises the valuation
summarises the valuation techniques
techniques together
together with
with the
the significant
significant unobservable
unobservable inputs
inputs used
used to
to calculate
calculate the
the fair
fair value
value
of the Company’s Level 3 assets and liabilities. The range of values indicates the highest and lowest level input used in the
of the Company's Level 3 assets -nd liabilities. The range of values indicstes the highest and lowest level input used in the
valuation technique
veluation technique and, as such,
End,as such, only
only reflects the characteristics
reflects the characteristics of the instruments
ofthe instruments as
as opposed
opposed to the level
to the level of
of uncertainty
uncertainty to
to their
their
valuation. Relationships
veluation Relationships between
between unobservable
unobservable inputs
inputs have
have not
not been
been incorporated
incorporated in
in this
this summary.
summary

` in lacs
in lacs

Particulars
Particulars Fair value
Fair value Valuation
Valuation Significant
Significant
Level
Level 3
3 Assets
Assets Level 3 Liabilities
Level 3 Liabilities
technique
technique unobservable
servable inputs
inputs
As at As at
March
March 31, 2021
31,2021 March
March 31,
31, 2021
2021
Equity
ui Instruments
Instruments - - NA NA
` in
in lacs
lacs

Particulars
Particulars
Fair value
Fair value
Valuation
Valuation
Significant
Significant
Level 3 Assets
Level 3 Assets
Level 3 Liabilities
Level 3 Liabilities
technique
technique unobservable
servable inputs
inputs
As at As at
March 31, 2020
March 31, 2020 March 31, 2020
March 31, 2020
Equity Instruments
ul Instruments
- - NA NA
46.5 Sensitivity
46.5 Sensitivity of fair value
of fair value measurements to chang-esin
measurements to changes in unobservable
unobservable market
market datadata
The table
The table below
below describes the effect
describes the effect of
of changing
changing the
the significant
significant unobservable
unotsenrable inputs
inputs tto reasonable
reasonable possible
possible alternatives.
alternatives All
All
changes would
changes would bebe reflected
reflected in
in the
the Statement
Statement ofDf profit
profit and
and loss.
loss Sensitivity
Sensitivity data
data are
ere calculated
calculated using
using aa number
number ofof techniques,
techniques,
instruments classified es
instruments classified as FVTPL would be
Pv'TPLwould be reflected
reflected in the Statement
in the Statement of of profit
profit and
and loss.
'cs. Sensitivity
Sensitivity data
data are
are calculated
calculated using
using
a number of techniques, including analysing price dispersion of different price sources, adjusting model inputs to reasonable
a number of techniques, including analysing price dispersion of different price sources, adjusting model inputs to reasonable
changes within
changes within the
the fair
fair value
value methodology.
methodology

The ranges
The ranges are
are not comparable or
not comparable or symmetrical
symmetrical as the model
es the model inputs
inputs are
are usually
usually not
not in
in the
the middle of the
middle of favourable/unfavourable
the favourable/unfavourable
range.
range

The table
The table below shows data
below shows data inin relation to Level
relation to Level 33 inputs
inputs that
that are
are already
already aggregated
aggregated on the underlying
on the underlying product
product levels
levels without
without
assuming
assuming anyany potential
potentisl diversification effect, but
diversification effect, but including
including potential
pctentia' off-sets
off-sets from
from economic
economic oror accounting
sccounting hedge
hedge relationships
relationships
in
in place. The Company
place. The Company is is of the opinion
of the that, whilst
opinion thet there may
whilst there mey be
be some
some diversification
diversification benefits,
benefits, incorporating
incorporating these
these would
would not
not be
be
significant
significant to the analysis.
to the analysis

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 167
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

46. FAIR
FAIR VALUE
VALUE MEASUREMENT (Contd.)
MEASUREMENT(Contd_)

Particulars
Particulars As
As at
at March
March 31,
31, 2021
2021 As at
As at March
March 31,
31, 2020
2020
Favourable
Favourable Unfavourable
Unfavourable Favourable
Favourable Unfavourable
Unfavourable

changes
chan s changes
ch es changes
cha changes
chan es

Equity
Equity instrument
instrument - - - -

46.6
46_6 Fair
Fair value
value of
of financial
financial instruments
instruments not
not measured
measured at fair
at fair value
value

Set
Set out
out below
below is is aa comparison,
comparison, by by class, of the
class, of carrying amounts
the carrying amounts and
and fair
fair values
values of
of the
the Company’s
Compeny's financial
financial instruments that are
instruments thet ere
not carried at fair value in the financial statements. This table does not include the fair values of non–financial assets and non
not carried et fair velue in the financial statements This table does not include the fair values of non—financial assets and ron

financial liabilities.
financial liabilities

` in
in lacs
lacs

As at
As at March
March 31,
31, 2021
2021 Carrying
Carrying Fair Value
Fair Value Total
Total

Amount
Amount
Level-1
Level-I Level-2
Level-2 Level-3
Level-3

Financial
Financial assets:
assets:

Cash
Cash and cash equivalents
and cash 3,81,528.17
3,81 ,52317 3,81,528.17
3,81 ,52317 - - 3,81,528.17
Bank balance
Benk balance otherother than cash and
then cash cash
and cash 1,39,908.12 1,39,908.12 - - 1,39,908.12
139,908.12
equivalents
Trade Receivables
Trade Receivables 229.99
22ggg - - 229.99
229.gg 229.99
22g.gg

Loans
Loans
27,42,011.64 - - 27,34,662.77 27,34,662.77
27,3466277
Investments
Investments 91,612.11 75,386.89
75,38689 43,687.54
43,68754 154.53
154.53 1,19,228.96
Other financial assets
Otter financial assets 4,253.43
425343 - - 4,253.43
4,258 43 4,253.43
4253.43
Total financial
Total financial assetsassets 33,59,543.46 5,96,823.18 43,687.54
43,687.54 27,39,300.72 3a7g,811.44
33,79,811.44
Financial
Financial
liabilities:
liabilities:

Other
Otter Payables
Payables 6,747.95 - - 6,747.95
6,747.95 6,747.95
6,747.95
Debt
Debt securities
securities 4,26,363.00 - 4,50,674.44 - 4,50,674.44
Borrowings (other than debt
Borrowings(ptherthan debt securities)
securities 15,77,279.14 - 16,11,444.38 - 16,11,444.38
16,1 1
Deposits
Deposits 5,52,888.78 - - 5,61,390.07 5,61,390.07
5,611390.07
Subordinated
Suhrdinsted
liabilities
liabilities
- - - - -
Other financial liabilities
Otter financial liabilities
40,962.53
40,E6253 - - 40,962.53
40,962.53 40,962.53
40.96253
Total financial liabilities
Total financial liabilities 26,04,241.40 - 20,62,118.82 6,09,100.55 26,71,219.37
` in
in lacs
lacs

As at
As at March
March 31,
31, 2020
2020 Carrying
Carrying Fair Value
Fair Value Total
Total

Amount Level-1
Level-I
Level-2
Level-2
Level-3
Level-3

Financial
Financial assets:
assets:

Cash and cash equivalents

Cashandcash equivalents 2,09,182.78 2,09,182.78
20918278 - - 2,09,182.78
20918278
Bank
Benk balance
balance otherother than cash and
then cash cash
and cash 97,053.53
97,05353 97,053.53
97,05353 - - 97,053.53
en 053.53
equivalents
Trade Receivables
Trade Receivables
89.76
076
- - 89.76
0.76
89.76
u. 76

Loans
Loans 26,61,252.96
26,61 - - 26,98,555.01 26,98,555.01
Investments
Investments
64,194.75 48,166.31
48,16631 38,739.91
38,739M - 86,906.22
86,906.22
Other financial assets
Otter financial assets 7,343.68
7,34368 - - 7,343.68
7,343.68 7,343.68
7,343.68
Total financial assets
Total financial assets 30,39,117.46 3,54,402.62 38,739.91 27,05,988.45 30,99,130.98
Financial liabilities:
Financial liabilities:

Other
Otter Payables
Payables 6,077.83
6,07783 - - 6,077.83
6,077.83 6,077.83
6,077.83
Debt securities
Debt securities
4,46,827.65 - 4,17,301.02
417,301 u - 4,17,301.02
7,301.02
Borrowings (other than debt
Borrowings(otherthan debt securities)
securities) 14,44,625.56 - 14,54,280.78
145428078 - 14,54,280.78
1454280.78
Deposits
Deposits 4,01,206.80
4,01 ,20680 - - 3,91,532.19
3,g1 ,532.1g 3,91,532.19
Subordinated
Subordinated liabilities
liabilities 23,923.91 - - 23,923.91
23,923.91 23,923.91
23,923.91
Other financial liabilities
Otter financial 'iEbilities 47,848.62
47.84362 - - 47,848.62
47,848.62 47,848.62
47, 84362
Total financial liabilities
Total financial liabilities
23,70,510.37 - 18,71,581.80 4,69,382.55 23,40,964.36

168 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

46. FAIR VALUE MEASUREMENT

FAIRVALUE (Contd.)
MEASUREMENT(Contd_)

Note:
The management
The management assessed
assessed that
that cash and cash
cash end equivalents, trade
cash equivalents, trede receivables,
receivables, trade
trade payables,
payables, other
other current
current assets,
assets, bank
bank
overdrafts and
overdrafts and other
other current
current liabilities
liabilities approximate their carrying
approximate their carrying amounts
amounts largely
largely due
due to
to the
the short-term
short-term maturities
maturities of these
of these
instruments.
instruments

46.7 Valuation
46.7 Valuation methodologies
methodologies of
of financial
financial instruments
instruments not
not measured
measured at
at fair
fair value
value
Below
Below are
are the
the methodologies
methdologies and
and assumptions
assumptions used
used to
to determine fair values
determine fair values for
for the
the above
above financial
financial instruments
instruments which
which are
are not
not
recorded
recorded and
end measured
measured at
Et fair
fair value
value in the Company’s
in the Company's financial
financial statements.
statements These
These fair
fair values
values were
were calculated
calculated for
for disclosure
disclosure
purposes
purposes only.
only The
The below
below methodologies
methodologies and and assumptions
assumptions relate
relate only
only to the instruments
to the instruments inin the
the above tables and,
above tables and, as
as such,
such, may
may
differ from the techniques and assumptions.
differ from the tahniques end assumptions.

Short-term financial
Short-term financial assets and
assets and liabilities
liabilities

For financial essets

For financial assets and
end financial
finencial liabilities
liabilities that
that have
have aa short-term
short-term maturity
maturity (less
(less than twelve months),
than twelve months), the
the carrying
carrying amounts,
amounts,
which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: Cash and
which are net of impairment, are reasonable approximetion cf their fair value Such instruments include: Cash and cash
cash
equivalents, Trade receivables, other receivables, balances other than cash and cash equivalents and trade payables without
equivalents, Trade receivables, other receivables, balances other than cash and cash æquivalents and trade psyables without
aa specific
specific maturity.
maturity. Such
Such amounts
-mounts have
have been
teen classified
classified as
es Level
Level 11 // Level
Level 3
3 on
on the
the basis that no
basis that no adjustments
adjustments have
have been
ten made
mede
to the
to the balances
belances in the balance
in the balance sheet.
sheet

Loans and advances

Loans and advances to
to customers
customers
The fair
The values of
fair velues of loans
loans and
and receivables
receivables are
are estimated
estimated by
by discounted
discounted cash
cash flow
flow models
models based
based on
on contractual
contractual cash
cash flows
flows using
using
actual
actual or estimated yields.
or estimated yields

Pass through certificates

Pass through certificates

These instruments
These instruments include
include asset
asset backed
becked securities.
securities. The
The market
market for
for these
these securities
securities is
is not
not active.
active Therefore,
Therefore, the
the Company
Compeny uses
uses
aa variety
variety of valuation techniques
of valuation techniques to
to measure
measure their
their fair
fair values.
values Expected
Expected cash
cesi flow
flow levels
'eve's are
are estimated
estimated byby using
using quantitative
guentitative and
and
qualitative
qualitative measures
measures regarding
regarding the
the characteristics
chsracteristics of the underlying
of the underwing assets
assets including
including prepayment
prepayment rates,
rates, default
default rates
rstes and
-nd other
other
economic drivers
economic drivers such
such as
as loan-to-value
loan-to-value ratios,
ratios, emergence
emergence period
*riod estimation,
estimeticn, indebtedness
indebtedness and
and rental
rent-I income
income levels.
levels Securities
Securities
with no
with no significant
significant unobservable
unobserveble valuation
valuation inputs
inputs are
are classified
classified as
as Level
Level 2,
2, while
while instruments with no
instruments with no comparable
comparable instruments
instruments or
or
valuation inputs
veluation inputs are
ere classified
classified as
es Level
Level 3.
3.

Financial
Financial assets at
assets amortised cost
at amortised cost

The fair
The fair values
values of
of financial
financial assets
assets held-to-maturity
held-t-maturity investments
investments are
are estimated
estimated using
using a
e discounted
discounted cash
cash flow
flow model
mc.del based
based onon
contractual cash flows using actual or estimated yields and discounting by yields incorporating the counterparties’ credit risk.
contractual cash flows using actual or estimated yields and discounting by yields incorporating the counterparties' credit risk.

Issued debt
debt

The fair
The fair value
value of
of issued
issued debt
debt is estimated by
is estimated by a discounted cash
a discounted cash flow
flow model
m±el incorporating
incorporating the
the Company’s own credit
Company's own credit risk. The
risk. The
Company estimates and builds its own credit spread from market-observable data such as secondary prices for its traded debt
Compeny estimates and builds its own credit spreed from market-observable deta such as secondary prices for its traded debt
and
and the
the credit
credit spread on credit
spread on credit default
default swaps
swaps and traded debt
and traded debt of
of itself.
itself.

Borrowings
Borrowings

The fair
The fair value
value of
of issued
issued debt
debt is estimated by
is estimated by a discounted cash
a discounted cash flow
flow model
m±el incorporating
incorporating the
the Company’s own credit
Company's own credit risk. The
risk. The
Company estimates and builds its own credit spread from market-observable data.
Compeny estimates end builds its own credit spread from market-observable det.

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

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 169
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT
MANAGEMENT

Whilst risk
Whilst risk is
is inherent
inherent in the Company’s activities,
in the activities, it
it is
is managed through an
managed through an integrated
integrated risk
risk management
management framework
framework including
including
ongoing identification, measurement and monitoring, subject to risk limits and other controls. This process of risk management
ongoing identification, measurement and monitoring, subject to risk limits -nd other controls This prccess of risk msnegement
is critical to
is critical the Company’s
to the Company's continuing
continuing profitability
profitability and
and each
each individual within the
individua' within the Company
Company is is accountable for the
accountab'e for the risk
risk exposures
exposures
relating
relating toto his
his or
or her
her responsibilities. The Company
responsibilities. The Company is is exposed to credit
exposed to credit risk,
risk, liquidity
liquidity risk
risk and
and market
market risk.
risk. It
It is
is also
also subject
subject to
to
various operating
various operating andend business
business risks.
risks

47.1
47 _1 Introduction
Introduction and
and Risk
Risk Profile
Profile

47.1.1
47_1_1 Risk
Risk management structure
management structure
The Board
The Board of
of Directors
Directors are
ere responsible for the
responsible for the overall
overall risk
risk management
management approach
approach and
end for
for approving
approving the
the risk
risk management
management
strategies
strategies and
and principles.
principles
The Board
The Board has constituted the
hes constituted the Audit
Audit and
end Risk
Risk Management
Management Committee which is
Committee which is responsible for monitoring
responsible for monitoring the
the overall
overall risk
risk
process within the
prccess within the Company.
O)mpany.
The Audititend
The and Risk
Risk Management
Menagement Committee
Committee has the overall
hasthe overall responsibility for the
responsibilityfor development of
thedevelopment the risk strategy and implementing
ofthe implementing
principles,
principles, frameworks,
frameworks, policies
policies and
and limits. The Audit
limits The Audit and
end Risk
Risk Management
Menagement Committee
Committee is
is responsible
responsible for
for managing
managing risk
risk decisions
decisions
and monitoring risk levels.
and monitoring risk levels

The Chief
The Chief Risk
Risk officer
officer is
is responsible
responsible for
for implementing
implementing and
and maintaining
maintaining risk
risk related
related procedures
prccedures to
to ensure
ensure an
an independent
independent control
control
process is maintained. The Risk Owners within each department will report to the Risk Committee.
prccess is maintained The Risk Owners within each department will report to the Risk Committee.
The
The Risk
Risk Owners
ü»vners are
are responsible for monitoring
responsible for monitoring compliance
complisnce with
with risk
risk principles,
principles, policies
$icies and
-nd limits
limits across the Company.
across the Company. Each
Each
department has its Risk owner who is responsible for the control of risks, including monitoring the actual risk of exposures
depertment hes its Risk owner who is responsible for the control of risks, including monitoring the actual risk of exposures
against
against authorised
authorised limits
limits and
and the
the assessment
assessment ofof risks.
risks
The Company’s
The Treasury is
Company"sTreasury is responsible for managing
responsible for managing its
its assets
assets and
and liabilities
liabilities and
and the
the overall financial structure.
overall financial structure. ItIt is
is also
also primarily
primarily
responsible for the funding and liquidity risks of the Company.
responsible for the funding and liquidity risks of the C.ompany.
The Company’s
The Compeny's policy
policy is that risk
is thet risk management
management processes
prccesses throughout
throughout the
the Company
Company are are audited
audited annually
annually by the Internal
by the Audit
Internal Audit
function, which examines both the adequacy of the procedures and the Company’s compliance with the procedures. Internal
function, which examines toth the adepuscy of the prccedures and the Company's complisnce with the procedures Internal
Audit discusses
Audit discusses the
the results
results of
of all
ell assessments with management,
assessments with management, and
and reports
reports its findings and
its findings end recommendations
recommendations to to Audit
Audit and
and
Risk
Risk Management
Management Committee.
Committee.

47.1.2
47_1.2 Risk
Risk mitigation
mitigation and
and risk
risk culture
culture

As part
As part of
of its
its overall
overall risk
risk management,
management, thethe Company
Company can
can use
use derivatives
derivatives and
and other
other instruments to manage
instruments to manage exposures
exposures resulting
resulting
from changes in interest rates and foreign currencies associated with foreign currency transactions.
from changes in interest rates and foreign currencies asscciated with foreign currency transactions

47.1.3
47_1.3 Risk
Risk measurement
measurement and
and reporting systems
systems

The Company’s
The Company"s risks
risks are
are measured
measured using
using a
e method
method that
that reflects
reflects both the expected
&zth the expect4i loss
bss likely
likely to
to arise
arise in
in normal
normal circumstances
circumstances
and
and unexpected
unexpected losses, which are
losses, which are an
an estimate
estimate of
Df the
the ultimate
ultimete actual
actual loss.
loss The
The models
models make
make useuse of
of probabilities
probabilities derived
derived from
from
historical experience, adjusted to reflect the economic environment, as necessary.
historical experience, sdjust± to reflect the economic environment as necessary
The Company’s
The Company"s policy
policy is
is to
to measure
measure and
end monitor
monitor the
the overall
overall risk-bearing
risk-bearing capacity
capacity in
in relation
relation to
to the
the aggregate
aggregate risk
risk exposure
exposure
across all risk types and activities.
across all risk types end activities.
Information
Information compiled from all
compiled from all the
the departments
departments is
is examined
examined andand processed
prccessed in order to
in order to analyse,
enatyse, control
control and
and identify
identify risks
risks on
on aa
timely basis. This information is presented and explained to the Audit and Risk Management Committee and the head of each
timely basis This information is presented and explain± to the Audit -nd Risk Man-gement Committee end the head of each
department.
depertment The The Audit
Audit and
and Risk
Risk Management
Management Committee
Committee receives
receives a comprehensive
comprehensive riskrisk report
report once
once aa quarter which is
quarter which is designed
designed
tto provide
provide all the necessary information to assess and conclude on the risks of the Company.
all the necessary information to assess and conclude on the risks of the Company

It
It is the Company’s
is the Company's policy to to ensure
ensure that
that e a robust
robust risk
risk awareness
awareness is is embedded
embedded inin its
its organisational
organisational risk
risk culture.
culture Employees
Employees are
ere
expected
expected toto take
take ownership
ownership andand be accountable
account-ble for the risks
forthe risks the
the Company
Company isis exposed
expos± to that
that they
they decide
decidetoto take
take on. The Company’s
on. The Compeny's
continuous
continuous training
training and
and development
deve'opment emphasises
emphasises thstthat employees
employees areare made
made aware
aware of of the
the Company’s
Company's riskrisk appetite
appetite and they are
and they ere
supported in their roles and responsibilities to monitor and keep their exposure to risk within the Company’s risk appetite limits.
supported in their des and respnsibilities to monitor and keep their exposure to risk within the Companfs risk appetite limits
Compliance
Compliance breaches
breaches and
and internal
internal audit
audit findings are important
findings ere important elements
elements of
of employees’
employees' annual
annual ratings
ratings and
end remuneration
remuneration reviews.
reviews

170 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT
MANAGEMENT(Contd,)
(Contd,)

47.1.4 Excessive
47.1.4 Excessive risk
risk concentration
concentration

Concentrations
Concentrations arise when a
arise when a number
numtrer of
of counterparties
counterparties areere engaged
engaged in
in similar
similar business
business activities,
activities, or
or activities
activities in the same
in the same
geographical region, or have similar economic features that would cause their ability to meet contractual obligations to
gagraphical region, or have similar Economic features that would cause their ability to meet contractual obligations to be
be
similarly
similarly affected
affected by
by changes
changes in
in economic,
economic, political
*itical oror other
other conditions.
conditions
In
In order to avoid
order to a«old excessive
excessive concentrations
concentrations ofof risk,
risk, the
the Company’s
Company's policies and
end procedures
procedures include
include specific
specific guidelines
guidelines to
to focus
focus
on spreading
on spreading its
its lending
lending portfolio
portfolio across
across all the states
all the states with
with a
e cap
cap on
on maximum
maximum limit
limit of
of exposure
exposure for
for aa state
state and
and also
also for
for an
an
individual/Group.
Individuel/Group

47.2 Credit
472 credit Risk
Risk

Credit
Credit risk
risk is
is the
the risk that the
risk that the Company
Company will
will incur
incur aa loss because its
bossbecause its customers
customers oror counterparties
counterparties fail to discharge
fail to discharge their
their contractual
contractual
obligations. The
obligations The Company
Company manages
manages and
and controls
controls credit
credit risk
risk by
by setting
setting limits
'imits on the amount
on the amount of of risk
risk it
it is
is willing
willing to
to accept
accept for
for
individual counterparties and for geographical concentrations, and by monitoring exposures in relation to such limits.
Individual counterparties and for geographical concentrations, and by monitoring exposures in relation to such limits

Credit
Credit risk
risk is
is monitored
monitored by by the
the credit
credit department
department of of the
the Company.
Company It It is
is their
their responsibility to review
responsibility to review and
and manage
manage credit
credit risk,
risk,
including environmental and social risk for all types of counterparties. Credit risk consists of line credit managers who are
including environmental end social risk for all types of counterparties Credit risk consists of line credit managers who are
responsible
responsible for
for their
their business
business lines
Ines and
end manage
menage specific
specific portfolios
portfolios and
end experts
experts who
who support
supprt both thethe line
line credit
credit manager,
manager, as
as well
well
as
as the
the business
business with
with tools
tools like credit risk
like credit risk systems,
systems, policies,
plicies, models
models andand reporting.

The Company
The Company has
has established a credit
established e credit quality
quality review
review process
prccess to
to provide
provide early
early identification
identification of
of possible
possible changes
changes in
in the
the
creditworthiness of counterparties.
creditworthiness of counterparties

The credit
The quality review
credit quality review process
prccess aims
aims tto allow
allow the
the Company
Compeny to
to assess
assess the
the potential
potential loss as a
bossas a result
result of the risks
of the to which
risks to which itit is
is
exposed and take corrective actions.
exposed and take corrective actions

The Company’s
The Compeny's internal
internal credit
credit rating
rating grades
grades on
cr. days
days past
past due
due (dpd) basis:
basis:

Internal
Internal rating
ratin grade
ade Internal
Internal rating description
ratinq description
High
High grade
grade 0Ddpd
dpd
Standard grade
Standardgrade 11 to
to 30
30 dpd

Sub-standard
Sub-standard grade
grade 31
31 to
to 60
so dpd
dpd
Past due but not impaired
Pastdue impaired 61
61 to 89 dpd
dpd
Non-performing
Non-performing 90+ dpd
47.2.1
47 _2_1 Derivative
Derivative financial instruments
financial instruments

Credit
Credit risk arising from
risk arising from derivative
derivative financial
financial instruments
instruments is,
is, at
at any time, limited
any time, limited to
to those
those with
with positive
positive fair values, as
fair values, es recorded
ræorded on
on
the balance
the balance sheet.
sheet

With gross–settled
With gross—settled derivatives,
derivatives, the
the Company
Compeny is is also
also exposed to aa settlement
exposed to settlement risk,
risk, being the risk
being the risk that
that the
the Company
Company honours
'-onours its
its
obligation, but the counterparty fails to deliver the counter value.
obligation, but the counterparty fails to deliver the counter value

47.2.2 Impairment
4722 Impairment assessment
assessment

47.2.2.1 Definition
47221 Definition of
of default
default

The Company
The Company considers
considers aa financial
financial instrument
instrument defaulted
defaulted and therefore Stage
and therefore Stage 3
3 (credit-impaired)
(credit-impaired) for
for ECL calculations in
ECLcalculations in all
all cases
cases
when the
when the borrower
borrower becomes
becomes 90 go days
days past
past due on its
due on its contractual
contractual payments.
payments
As aa part
As part of
of a qualitative assessment
e qualitative assessment of
of whether
whether a
e customer
customer is
is in
in default,
default, the
the Company
Compeny also
also considers
considers a
a variety
variety of
of instances
instances that
that
may
msy indicate
indicate unlikeliness
unlikeliness to
to pay. When such
pay When such events
events occur,
cccur, the
the Company
Company carefully
carefully considers
considers whether
whether the
the event
event should
should result
result in
in
treating the customer as defaulted and therefore assessed as Stage 3 for ECL calculations or whether Stage 2 is appropriate.
treating the customer es defaulted and therefore assessed es Stage 3 for ECL calculations whether Stege 2 is appropriate.
Such
Such events
events include:
include:

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 171
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT (Contd.)
MANAGEMENT(Contd_)

-- The
The borrower
borrower requesting
requesting emergency
emergency funding from the
funding from the Company
Company
--AA material
material decrease
decrease in
in the
the underlying
underlying collateral
collateral value
value where the recovery
where the recovery of the loan
of the loan is
is expected from
from the
the sale
sale of
of the
the
collateral
collateral

-- A covenant breach
A covenant breach not
rot waived
waived by
by the
the Company
C.ompany

-- The
The debtor
debtor (or
(or any
any legal entity within
legal entity within the
the debtor’s
debtors Company)
Compeny) filing
filing for
for bankruptcy
bankruptcy application/protection
application/protection
-- All
All the facilities of
the facilities of a
a borrower
±rrower are
are treated
treated as
as Stage
Stage 3
3 when one of
when one of his
his facility
facility becomes
becomes 90
go days
days past
past due
due i.e.
Le credit
credit impaired.

47.2.2.2 PD
PD estimation
estimation process
It
It is
is an estimate of
an estimate the likelihood
ofthe likelihood of
of default
default over
over aa given time horizon.
giventime horizon PD estimation process
PDestimation prcess is is done
done based
based onon historical
historical internal
internal data
data
available with the Company. While arriving at the PD, the Company also ensures that the factors that affects the macro economic
available with the Camp-ny While arriving at the the Comp-ny Elsa ensures that the factors that affects the macro economic
trends are
trends ere considered
considered to to a
a reasonable
reasonable extent, wherever necessary.
extent, wherever necesser•y Company
Company calculates
calculstes the
the 12
12 month
month PD PD by taking into
by taking into account
account
the past
the past historical trends of
historical trends of the
the portfolio
;crtfclic and
and its credit performance.
Its credit performance. InIn case of assets
case of assets where
where there
there is
is a
a significant
significant increase
increase inin credit
credit
risk,
risk, lifetime
lifetime PD
PD has
hes been
been applied which is
applied which computed based
is computed based on
cr. survival
survival analysis.
analysis. For
For credit
credit impaired
impeiræl assets,
assets, aa PD
PD of
of 100%
1133% has
has been
been
applied.
applied

47.2.2.3
47 Exposure at Default
Exposure at Default (EAD)
(EAD)
The exposure
The exposure atat default
default (EAD)
(EAD) represents the gross
represents the gross carrying
carrying amount
emount of the financial
of the financial instruments
instruments subject
subjat to to the
the impairment
impairment
calculation, addressing both
calculation, addressing the ability
tatt the ablity to
to increase
increase its exposure while
its exposure while approaching
spproaching default
default and potential
potential early
early repayments
repayments too.
tn.

To calculate
To the EAD
calculate the for a
EADfor a Stage
Stage 11 loan, the Company
loan, the Company assesses the possible
assesses the possible default
default events
events within
within 12
12 months
months for
for the
the calculation
calculation
of the 12 months ECL.
of the 12 months ECL

For
For Stage
Stage 2
2 and
and Stage
Stage 3 financial assets,
3 financial assets, the exposure at
the exposure at default
default is
is considered
considered for
for events
events over
over the
the lifetime
lifetime of the instruments.
of the instruments.

In
In case of undrawn
case of undrawn loan
loan commitments,
commitments, a credit conversion
a credit conversion factor
factor of
of 100%
1 is
is applied
applied for
for expected
expected drawdown.
drawdown

47.2.2.4 Loss
Loss Given
Given Default
Default (LGD)
(LGD)
LGD
LGD is
is an
an estimate
estimate of the loss
of the loss arising
arising in
in case
case where
where a
a default
default occurs.
ncurs. ItIt is
is based
based on
on the
the difference
difference between
between the
the contractual cash
contractual cash
flows
flows due
due and those thet
and those that the
the Company
Company would
enuld expect to receive,
expect to receive, including
including from
from the
the realisation
realisation of
of any
any security.
security.

47.2.2.5
47 Significant
Significant increase
increase in credit risk
in credit risk
The Company
The continuously monitors
Company continuously monitors all
ell assets
assets subject
subject to
to ECLs
ECLSinin order to determine
order to determine whether
whether an an instrument
instrument or
or a
a portfolio
portfolio of
of
instruments
instruments isis subject
subject to
to 12
12 month
month ECL
ECL oror lifetime
lifetime ECL.
ECL The
The Company
Company assesses
assesses whether
w,vhetherthere
there has
has been
ten anan event
event which
which could
could
cause
cause aa significantly
significantly increase
increase in the credit
in the credit risk
risk of
of the
the underlying
underlying asset
asset or
or the
the customers
customers ability to pay
ability to pay and
and accordingly
accordingly change
change the
the
12
12 month
month ECL
ECL to
to a
a lifetime
lifetime ECL.
ECC

In certain cases,
In certain cases, the
the Company
Company maymay also
also consider that events
consider thet explained in
events explained in Note
Note 47.2.2.1
472.21 are
are aa significant
significant increase
increase in
in credit
credit risk
risk as
es
opposed to a default. Regardless of the above, if contractual payments are more than 30 days past due, the credit risk is deemed
opposed to a default Regardless cf the Eta,'e, if contractual payments are more then 30 days past due, the credit risk is deemed
tto have
have increased
increased significantly since initial
significantly since initial recognition.
recognition.

When estimating
When estimating ECLs
ECLSonon e
a collective
collective basis
basis for
for a
a Company
Company ofof similar
similar assets
assets (as
(as set out in
set out in Note
Note 47.2.2.6),
47226), the the Company
Company applies
applies
the same
the same principles for assessing
principles for assessing whether there has
whether there hes been
been a
e significant
significant increase
increase in
in credit
credit risk
risk since
since initial
initial recognition.
recognition.

47.2.2.6
47 Grouping financial assets
Grouping financial assets measured
measured on a collective basis
on a basis
As explained
As explained in
in Note
Note dependant
dependant on
on the factors below,
the factors the Company
below, the Company calculates
calculates ECLs only on
ECLSonly on a
e collective
collective basis
basis

The Company
The Company segments
segments the
the exposure
exposure into
into smaller
smaller homogeneous
'-omogeneous portfolios,
portfolios, based
based on
on aa combination
combination of
of internal
internal and
and external
external
characteristics of the loans as described below.
characteristics of the dans es described below.

1. Gold Loans
Gold I-Dens

2.
2.
Auto Loans
Auto Loans

3. MSME
MSME
Loans
Loans

172 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT
MANAGEMENT(Contd.)
(Contd_)

4.
4 Two wheeler
Two wheeler Loans
Inens

5. Personal
Personal Loans
Loans

6. Pre-Owned
Pre-owned Two wheeler
Two wheeler Loans
Loans

7. Loan
Loan against
against Property
Pro*rty•

47.2.3
47 Analysis of
_2_3Analysis of risk concentration
risk concentration
The maximum
The maximum credit
credit exposure to any
exposure to any individual
individual client or counterparty
client or counterparty as
es of
of March
Merch 31,
31, 2021
2021 was
wes ` 3,172.52
3,17252 lacs
lacs (March
(March 31,
31, 2020
2020
` 3,597.57
3,59757 lacs)
lacs)

Credit risk
risk exposure
exposure analysis
analysis

` in
in lacs
lacs

Particulars
Particulars
As
As at
at March
March 31,
31, 2021
2021
Stage
Stage 1 1 Stage
Stage 2 2 Stage
stage 3 3 POCI Total
Total

Collective
Collective
Collective
Collective
Collective
Collective

Normal
Normal 25,25,387.95
2525,387.95 2,33,532.22 1,86,673.00 - 29,45,593.17
2445±3.17
Repossessed - - 925.74 - 925.74
925.74

Total
Total 25,25,387.95 2,33,532.22 1,87,598.75 - 29,46,518.91
` in
in lacs
lacs

Particulars
Particulars As
As at
at March
March 31,
31, 2020
2020
Stage
Stage 1
1 Stage
Stage 2
2 Stage
stage 3
3 POCI Total
Total

Collective
Collective Collective
Collective Collective
Collective

Normal
Normal 24,71,361.98 1,67,996.84 2,24,452.51 - 28,63,811.33
1.33

Repossessed - - 1,841.22 - 1,841.22

1,841.22
Total
Total 24,71,361.98 1,67,996.84 2,26,293.73 - 28,65,652.55
47.3 Liquidity
47.3 Liquidity risk
risk and funding management
and funding management

In
In assessing the company’s
assessing the company's liquidity
liquidity position,
position, consideration
consideration shall
shall be
be given
given to:
to: (1)
(1) present
present and
and anticipated
anticipated asset
asset quality
quality (2)
(2) present
present
and future earnings capacity (3) historical funding requirements (4) current liquidity position (5) anticipated future funding needs,
and future earnings capacity (S) historical funding r.;uirements (4) current liquidity position (5) antici#ted future funding needs,
and
and (6)
(6) sources
sources ofof funds.
funds The
The Company
Company maintains
maintEins a portfolio
portfolio of
of marketable
msrketable assets that are
assets that are assumed
assumed to to be
be easily
easity liquidated
liquidated and
and
undrawn
undrawn cash
cash credit
credit limits
limits which
which can can be
be used
used in the event
in the event of
of an
an unforeseen
unforeseen interruption
interruption inin cash
cash flow. The Company
flow The Company alsoalso enters
enters
into
into securitisation
securitisation deals
deals (direct
(direct assignment
Essignment as as well
well as
es pass
pass through
through certificates)
certificates) ofof their
their loan
Ben portfolio,
portfolio, the
the funding
funding from
from which
which
can be accessed
can accessed to to meet
meet liquidity
liquidity needs.
needs In In accordance
accordance with the Company’s
with the Company's policy,
policy, the
the liquidity
liquidity position
position isis assessed
assessed under
under
aa variety
variety of
of scenarios,
scenarios, giving
giving duedue consideration
consider-tian to to stress factors relating
stress factors re'ating toto both
both the
the market
market in in general
generel and
and specifically
specifically to
to the
the
Company.
Compeny Net Net liquid
liquid assets
assets consist
consist ofcf cash,
cash, short–term
short—term bank bank deposits
deposits and
and investments
investments in in mutual
mutual fund
fund available
available for
for immediate
immediate
sale,
sale, less
less issued
issued securities
securities and
and borrowings
borrowings due due to
to mature
mature within
within the
the next
next month.
month
Borrowings
Borrowings from
from banks
banks and
and financial
financial institutions
institutions ,, issue of debentures
issue of debentures and
and bonds
tznds and
end acceptance
acceptance ofof public
public deposits
deposits are
are
considered as important sources of funds to finance lending to customers. They are monitored using the advances to borrowings
considered as important sources Df funds to finence lending to customers They ere monitored using the advances to borrowings
ratio, which compares
ratio, which compares loans
loans and
end advances
advances toto customers
customers ases a
a percentage
percentage of
of secured
secured and
and unsecured
unsecured borrowings.
borrowings.

47.3.1.
47 Analysis of
_3_1_Analysis of financial assets and
financial assets and liabilities
liabilities by
by remaining contractual maturities
remaining contractual maturities

The table
The table below
below summarises
summarises thethe maturity
maturity profile
profile of
of the
the undiscounted
undiscounted cash
cash flows
flows of the Company’s financial
of the financial assets
assets and
and liabilities
liabilities
as
as at
at March
March 31.
31 All
All derivatives
derivstives used
used for
for hedging
hedging and
and natural
natural hedges
h±ges are shown by
areshown by maturity,
meturity, based
bssedcnon their
their contractual
contractual undiscounted
undiscounted
payment
vyment obligations.
obligstions Repayments which are
Repayments which are subject
subject to
to notice
notice are
are treated
treated as
as ifif notice
notice were
were toto be given
given immediately.
immediEteIy However,
However,the the
Company expects that many customers will not request repayment on the earliest date it could be required to pay and the table
Comp-ny expects that many customers will not request repayment Dnthe earliest date it could be required to pay and the table
does
does not
not reflect
reflect the
the expected cash
cash flows
flows indicated
indicated by
by its
its deposit
deposit retention
retention history.
history

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 173
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT (Contd.)
MANAGEMENT(Contd_)

Maturity
Maturity pattern
pattern of
of assets
assets and
and liabilities
liabilities as
as on
on March
March 31,
31, 2021:
2021 :

` in
in lacs
lacs

Particulars
Particulars Less
Less than
than 3
3 Over 3 Over
Over 6
6 Over
Over 1
1 year
year &
& Over
Over 3
3 years
years Over
Over 5
5 Total
Total

months
months months
months months
months &
& upto
upto 3 years
3 years &
& upto
upto 5
5 years
&
& upto
upto 66 upto
upto 1 year
1 year years
months
months

Financial
Flnanclal assets
assets

Cash
Cash and arid cash
C&Sh equivalents
eguivalents 4,05,001.51
405,001.51 43,018.16
43,018 16 59,383.92 8,437.88
8,48788 - 11,496.79
11 ,4gs.7g 5,27,338.27
527,838.27
and
ant Other
Other Bank Balances Balances

Trade Receivables
Trade Receivables
229.99
22g.gg
- - - - - 229.99
22?.gg

Loans
Loans 5,76,885.05 5,16,803.01 9,06,981.76 11,51,823.98 2,94,938.49 2,07,401.26 36,54,833.54
Financial
Financial investments
investments at 298.62
298.82 81.18
8118 68,379.79
88ß7g.7g 9,537.99
g,587gg 12.26
1228 115.33
115.83 78,425.15
78,425.15
amortised cost
amortised cost
Financial
Financial investments
investments at 434.03 - - - - - 434.03
434.08

FVTPL
Financial
Financial
investments
investments
at - - - - - 9,686.10 9,686.10
FVTOCI
Financial
Financial
investments
investments
at 45.07
45.07
40.46 56.53
58.53
25.96
2sgs
- 16,727.91
18,727.g1 16,895.93
1 s,ggs.gs
Cost
Cost

Other Financial Assets

Other Financial
Assets 340.71
840.71
199.71
1 gg71
366.81 1,595.63
l,sgsss 1,933.32
1,gss.82 486.29
488.2g
4,922.47
4,g22.47
Total undiscounted
Total undlscounted 9,83,234.97 5,60,142.51 10,35,168.81
1035.168M 11,71,421.43 2,96,884.07 2,45,913.68 42,92,765.47
financial assets
flnanclal
assets
Financial
Flnanclal liabilities
Ilabllltles

Other
Other Payables
Payables 6,747.95
8,747.P5 - - - - - 6,747.95
8,747.P5
Deposits
Deposits 31,881.41
31 42,230.72
42,233 72 96,637.94 3,30,862.56 1,51,442.33
1,51 - 6,53,054.97
Debt securities
securities 48,467.18
48,487.18 7,489.20
7.4020 84,368.20
84±8.20 3,09,489.80 30,158.64
30,158.84 23,709.02
23.70402 5,03,682.05
503,882.05
Borrowings (other
Borrowings (other than debt
than debt 4,09,739.67 3,02,999.91 3,52,090.07 5,62,057.46 1,16,405.59 1,709.23
1,70g.23 17,45,001.93
securities)
securities)
Subordinated LiabilitiesLiabilities - - - - - - -
Other Financial Liabilities
Other Financial Liabilities 19,959.70
lg,gsg.70 - 4,245.59
45245.5g - - 16,757.24
18,757.24 40,962.53
Total undiscounted
Total undlscounted 5,16,795.91 3,52,719.83 5,37,341.81
537,341M 12,02,409.83 2,98,006.57 42,175.48 29,49,449.43
42,175.48
financial liabilities
flnanclal Ilabllltles

Net
Net undiscounted
undlscounted 4,66,439.06 2,07,422.69 4,97,827.00 (30,988.39)
(30,988.39) (1,122.50)
(1,122.50) 2,03,738.19 13,43,316.05
financial assets/
flnanclal assets/
(liabilities)
(liabilities)

174 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT
MANAGEMENT(Contd.)
(Contd_)

Maturity
Maturity pattern
pattem of
of assets and liabilities
assets and as on
liabilities as on March
March 31, 2020:
31, 2020:

`tinin lacs
lacs

Particulars
Particulars Less
Less than
than 3
3 Over
over 3
3 Over
Over 6
6Over
Over 1
1 year
year &
& Over
Over 3 years
3 years Over
Over 5
5 Total
Total

months
months months
months months
months &
& upto
upto 3 years
3 years &
& upto
upto 5 5 years
years
& upto
& upto 6
6 upto
upto 1 year
1 year years
years
months
months

Financial
Financial assets
assets

Cash
Cest andand cash equivalents
equivalents 2,13,548.88 18,699.40
18,6gguo 78,479.42
78,47942 - - - 3,10,727.69
and
and Other
Other BankBank Balances
Balances

Trade Receivables
Trede Receivables
89.76
0.76
- - - - - 89.76
0.76

Loans
Loans 4,94,033.84 5,28,052.99 8,28,557.77 11,75,523.91 3,75,962.40 1,72,582.72 35,74,713.63
11

Financial
Financial investments
investments at
at 12,794.82
12,7E4.82 81.18
81Ä8 27,879.79
27,87979 1,519.16
1.51916 8,784.54
8,78454 124.52
12452 51,184.00
amortised cost
amortised cost

Financial
Financial investments
investments at
at 302.08 - - - - - 302.08
FVTPL
Financial
Financial
investments
investments
at
at
- - - - - 8,917.14 8,917.14
8,917.14
FVTOCI
Financial
Financial
investments
investments
at
at
- - - - - 16,727.91
16,727Æ1 16,727.91
16,727.91
Cost
Cost

Other Financial Assets

Other Financial Assets
382.49 351.92
351
2,869.34 1,660.14
1,66014 2,107.73
2,10773 679.13
67Y13
8,050.74
8,050.74
Total undiscounted
Total undiscounted 7,21,151.86 5,47,185.48 9,37,786.31 11,78,703.21 3,86,854.66 1,99,031.42 39,70,712.95
financial assets
financial assets

Financial liabilities
Financial liabilities

Other
Other Payables
Payables 6,077.83
6,077.83 - - - - - 6,077.83
6,077.83
Deposits
üepcsits 31,783.76
31,783.76 33,963.96
33,963E6 60,674.91
60,674'1 2,62,758.11 82,504.67
82,50467 - 4,71,685.42
471,685.42
Debt
Debt securities
securities 78,272.58
78,272.58 11,867.35
11,86735 88,225.16
88,22516 3,08,519.19 29,099.26 - 5,15,983.54
Borrowings (other than
Borrowings (other then 3,00,593.32 2,33,027.39 3,86,677.48 6,17,955.12
3.00±3.32 6.17,955.12 66,346.76
66,34676 379.27
379 27 16,04,979.35
16104979.35
debt
debt securities)
securities)
Subordinated
Subordinated Liabilities
Liabilities 13,943.15
13,943.15 10,640.32
10,64032 1.07
107 - - - 24,584.54
24,584.54
Other Financial Liabilities
Other Financis' Liabilities 26,722.84
26,722.84 51.01
51 m 4,980.25
4,g8D25 - - 16,094.52 47,848.62
47,848.62
Total undiscounted
Total undiscounted 4,51,315.66 2,89,550.02 5,40,558.88 11,89,232.42 1,77,950.69 16,473.79 26,65,081.47 16,473.79
financial liabilities
financial liabilities

Net
Net undiscounted
undiscounted 2,69,836.20 2,57,635.46 3,97,227.43 (10,529.21) 2,08,903.97 1,82,557.63 13,05,631.47
financial assets/
financial assets/
(liabilities)
The table
The table below
below showsshows the the contractual
contractual expiry
expiry by
by maturity
maturity of the Company’s
of the Compeny's contingent
contingent liabilities
liabilities and
and commitments:
commitments: EachEach
undrawn
undrawn loan commitment is
loan commitment is included
included in
in the time band
the time band containing the earliest
containing the earliest date
dete itit can
cen be
be drawn
drawn down.
dowm
For
For issued
issued financial
financial guarantee
guarantee contracts, the maximum
contracts, the maximum amount
amount of of the
the guarantee
guarantee isis allocated
allcceted to the earliest
to the earliest period
*riod in
in which
which the
the
guarantee
guarantee could could be called.
be called

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 175
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT (Contd.)
MANAGEMENT(Contd_)

` in
in lacs
lacs

Particulars
Particulars Less
Less than
than Over 3 Over
Over 6
6 Over
Over 1
1 year
year &
& Over
Over 3 years
3 years Over 5 Total
Total

3
3 months
months months
months months
months &
& upto
upto 3
3 years
years && upto
upto 5
5 years
&
& upto
upto 66 upto
upto 11 year
year years
months
months

As at
As at March
March 31,
31, 2021
2021
In
In respect
respect of
of Income
Income - - - - - 116.45
11645 116.45
116.45

tax
tax demands
demands where the
where the
Company has filed
Company hes filed appeal
appeal
before various authorities
before various authorities

VAT demand where the

VAT demand where the - - - - - 259.95 259.95
25995

Company
Company has hes filed
filed appeal
appeal
before various Appellate
before various Appellate
Service tax demand
Service tax demand - - - - - 8,019.29
8,01929 8,019.29
8,cng.2g
Guarantees
Guarantees and
and counter
counter - - - - - - -
guarantees
guarantees
Estimated
Estimated amount
smount of
of 302.41
30241 - - - - - 302.41
30241

contracts remaining to
contracts remaining to
be
be executed
executed on on capital
capital
account,
sccount net net of
Df advances
advances
Commitments
Commitments related
re'ated 5,378.39
5,378.3g - - - - - 5,378.39
5,378.3g
to
to loans
loans sanctioned
sanctioned but
but

undrawn
undrewn

Total commitments
Total commitments 5,680.80
5,680.80 - - - - 8,395.69 14,076.49
14,076.49

` in
in lacs
lacs

Particulars
Particulars Less
Less than
than Over 3 Over
Over 6
6 Over
Over 1
1 year
year &
& Over
Over 3 years
3 years Over
Over 5
5 Total
Total

3
3 months
months months
months months
months &
& upto
upto 3 years
3 years & upto
& upto 5
5 years
& upto
& upto 66 upto
upto 11 year
year years
months
months

As at
As at March
March 31,
31, 2020
2020
In
In respect
respect of
of Income
Income - - - - - 116.45
11645 116.45
116.45

tax demands where

tax demands
where the the
Company has filed
Company hes filed appeal
appeal
before various authorities
before various authorities

VAT demand where the

VAT demand where the - - - - - 259.95 259.95
25995

Company
Company has hes filed
filed appeal
appeal
before various Appellate
beforevarious Appellate
Service tax demand
Service tax demand - - - - - 8,019.29 8,019.29
8,cng.2g
Guarantees
Guarantees and
and counter
counter - - - - - 2,500.00
2,50003 2,500.00
2,5COCMJ
guarantees
guarantees
Estimated
Estimated amount
amount of
of 295.37
295.37 - - - - - 295.37
295.37

contracts remaining to
contracts remaining to
be
be executed
executed onon capital
capital
account,
sccount netnet of
Df advances
advances
Commitments
Commitments
related
re'ated
691.57
01.57
- - - - - 691.57
691.57

to
to loans
loans sanctioned
sanctioned but
but

undrawn
undrewn

Total commitments
Total commitments 986.94
986.94 - - - - 10,895.69
10,895.69 11,882.63
11,882.63

176 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

47. RISK
RISK MANAGEMENT
MANAGEMENT(Contd.)
(Contd_)

47.4 Market
47.4 Market Risk
Risk

Market
Market risk that the
risk thet the fair value or
fair value or future
future cash
cash flows
flows ofof financial
financial instruments
instruments will
will fluctuate
fluctuate due
due to
to changes
changes in
in market
market variables
variables such
such
as interest rates, foreign exchange rates and equity prices. The Company classifies exposures to market risk into either trading or
as interest rates, foreign exchange retes and a;uity prices The Comp-ny classifies exposures to market risk into either trading or
non–trading portfolios and
nan—tradingprtfolios and manages
manages each of those
each of those portfolios
portfolios separately.
separately

Interest
Interest
rate risk
rate risk

The Company’s
The Company"s exposure
exposure to to changes
changes in in interest
interest rates
rates relates
relates to
to the
the Company’s
Companfs outstanding floating rate
outstanding floating rate liabilities.
liabilities Most
Most of
of the
the
Company’s
Compeny's outstanding
outstanding liability
lisbility is
is on
on fixed
fixed rate
rate basis
bass and
and hence
hence not
not subject
subject to
to interest
interest rate
rate risk.
risk Some
Some ofcf the
the borrowings
borrowings of of the
the
Company
Comp-ny are are linked
linked to
to rate
rate benchmarks
benchmarks suchsuch as
as Bank
Benk MCLR
MCLA andand Mumbai
Mumbai Inter-Bank
Inter-ænk Offer
Offer Rate
Rete (MIBOR)
(MISOR) and
and hence
hence subject
subjEt to
to
interest
interest rate
rate risk. The sensitivity
risk The sensitivity ofof the
the Company’s
Company's floating
floating rate
rate borrowings
±rrowings toto change
change inin interest
interest rate
rete (assuming
(assuming allall other variables
other variables
constant) is
constant) is given
given below:
below:

As at
As at March
March 31,
31, 2021
2021

` in
in lacs
lacs

Particulars
Particulars Carrying amount Favourable
Carrying amount Favourable change
change Unfavourable
Unfavourable

1%
1% decrease
decrease change
cha 1%
1 % increase
increase

Term Loans
Term Loans -- Bank
Bark 7,62,526.16 96,649.79 (77,037.37)
(77,037B?)
Term Loans
Term LDEns -- Financial
Financial Institution
Institution 2,63,930.95 38,545.38
38.54588 (29,625.24)
(29,62524)
Total floati
Total floating rate
rate borrowings
borrowi 10,26,457.11 1,35,195.17 (1,06,662.61)

As at
As at March
March 31,
31, 2020
2020

` in
in lacs
lacs

Particulars
Particulars Carrying amount
Carrying amount Favourable change
Favourable change Unfavourable
Unfavourable

1% decrease change
1 % decrease change 1%
1% increase
increase
Term Loans
Term Loans -- Bank
Bank 7,89,133.69
ug,13369 90,522.69
90.52269 (73,574.44)
(73,574"
Term Loans
Term LDEns -- Financial
Financial Institution
Institution 64,040.47 7,092.15
7,09215 (5,787.33)
Total floating
Total floating rate
rate borrowings
borrowings 8,53,174.16 97,614.84
97,614.84 (79,361.76)
Fair
Fair value
value sensitivity
sensitivity analysis
analysis for
for fixed rate instruments
fixed rate instruments
The Company’s
The Company's fixed
fixed rate
rate instruments
instruments are
are carried
carried at
at amortised
amortised cost
cost and
end are
are not
not measured
measured for
for interest
interest rate
rate risk, as neither
risesas neither the
the
carrying emount
carrying amount nor the future
nor the cash flows
future cash flows will fluctuate because
will fluctuate because of
of changes
changes in
in market
market interest
interest rates.
rates.

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 177
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

48. Based on the intimation received by the Company, some of the suppliers have confirmed to be registered under “The Micro,
Basedon the intimation received by the O)mpany, some of the suppliers have confirmed to be registered under "The Micro,
Small and
Small end Medium
Medium Enterprises
Enterprises Development
Development (‘MSMED’) Act, 2006”.
('MSMEÜ') Act 2006" Accordingly, the disclosures
Accordingly, the disclosures relating
relating to
to amounts
amounts unpaid
unpaid
as at the year ended together with interest paid /payable are furnished below:
as at the year ended together with interest paid /payable are furnished below.

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March
31, 2021
2021
March
March 31,
31, 2020
2020
The principal
The principal amount
amount remaining
remaining unpaid
unpaid toto supplier
supplier as
-s at
at the
the end
end of the year
of the yesr 18.90
1 ago -
The interest due thereon remaining unpaid to supplier as at
The interestduethereon remainingunpaidto supplieras st the end of
endof the year
year - -
The amount of interest paid in terms of Section 16, along with the amount of payment
The amount of interest paid in terms of Section 16,Elong with the smountcf payment - -
made
medeto to the supplier
sypplier beyond the appointed
appointedday day during the year
duringthe yeer
The
The amount
-mount of of interest
interest due
due and
and payable
payable forfor the
the year
yesr of
of delay
delay in
in making
making payment
payment - -
(which
(which have
have been
been paid
paid but
but beyond
±yond the the appointed
appointed daydey during
during the
the year)
year) but
but without
without
adding the interest
adding the interest specified under
under this Act
this Act
The amount
The amount of of interest
interest accrued
accrued during
during the
the year
year and
and remaining
remaining unpaid
unpaid at et the
the end
end of
of - -
the year
The amount
The amount of of further
further interest
interest remaining
remaining due due and
and payable
payable even
even in
in the
the succeeding
succeding - -
years, until such date when the interest dues as above are actually paid to the
years, until such dste when the interest dues -s above -re actually psid to the small
smal
enterprise
enterprise for
for the
the purpose
purpose of
of disallowance
disallowance as as aa deductible
deductible expenditure
expenditure under
under section
section
23
23 of the Micro,
of the Micro, Small
Smsll and
and Medium
Medium Enterprise
Enter rise Development
Develo ment Act Act, 2006
2006

49. LIQUIDITY
LIQUIDITY COVERAGE
COVERAGE RATIO
RATIO DISCLOSURE
DISCLOSURE

Disclosure as per the

Disclosure asper the circular
circular no
no RBI/2019-20/88
RBI/2019-20/88 DOR.NBFC
DOR.NBFC(PD) (PD) CC.
CC No.102/03.10.001/2019-20 dated
dated November 4, 2019
November 4, 2019
issued by Reserve Bank of India on “Liquidity Coverage ratio (LCR)”
issued by Reserve Bank of India on "Liquidity Coverage ratio (LCR)•

` in
in lacs
lacs

Sr.
Sr. Particulars
Particulars As at
As at March
March 31,
31 , 2021
2021 As at
As at December
December 31,
31, 2020
2020
No Total
Total
Total
Total
Total
Total
Total
Total

Unweighted
Unweighted weighted
weighted Unweighted
Unweighted weighted
Value
Value Value
Value Value
Value Value
Value

(average)* (average)# (average)* (average)#

High
High Quality
Quality Liquid Assets
Liquid Assets
1 Total
Total High Quality Liquid
Highggali9/ Assets (HQLA)
LiquidAssets(I-IOLA) 4,19,389.93 4,00,965.68 2,97,375.17 2,81,569.73
281156973
Cash Outflows
Cash Outflows

2 Deposits
*posits (for(tor deposit taking companies)
deposittaking companies) 10,803.11
1 D,80311 12,423.58
12,42358 10,348.44
10,348.44 11,900.70
3 Unsecured wholesale funding
Unsecured wholes-le funding - - -
4
4 Secured wholesale funding
Securedwholesalefunding 1,11,367.46
1.1136746 1,28,072.58
1.28,D72S8 79,234.25
79,234.25 91,119.39
5 Additional
Additional requirements,
requirements, of of which
which - - - -
(i) 
(i) Outflows
Outflows related
related to to derivative
derivative exposures
exposures and
and other
other - - - -
collateral requirements
collateral requirements
Qi) Outflows
(ii) Outflows related
related ttoo loss
lossoffunding ondebt
of funding on debt p roducts
products - - - -
(iii) Credit and liquidity facilities
(Iii) Credit and liquidity facilities - - - -
6 Other
ather contractual funding obligations
contractual funding obligations 26,221.41
26,221 41 30,154.63
30,15463 26,875.59
26,875.5g 30,906.93
30,906.93
7 Other
ather contingent funding obligations
contingentfunding obligations 3,664.00
3,66400 4,213.60
421860 2,015.35
2,01 2,317.66
2,317.66
8 TOTAL
TOTAL CASH
CASH OUTFLOWS
OUTFLOWS 1,52,055.98 1,74,864.38 1,18,473.63 1,36,244.67
Cash
Cash Inflows
Inflows

9 Secured
Secured lending
lending - - - -
10 Inflows from
10 Inflowsfrom fully performing exposures
expsures 1,86,668.34 1,40,001.25
140,001 25 1,79,528.97 1,34,646.73
134,646.73
11 Other cash inflows
ather cash inflows
300.13
3-1018
225.10
225 no
304.17
304.17
228.13
228.13

12 TOTAL CASH INFLOWS

12 TOTAL CASH INFLOWS 1,86,968.47 1,40,226.35 1,79,833.14 1,34,874.86

178 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

49. LIQUIDITY
LIQUIDITY COVERAGE
COVERAGERATIO
RATIO DISCLOSURE (Contd.)
DISCLOSURE(Contd_)

` in
in lacs
lacs

Sr.
Sr. Particulars
Particulars Total
Total Adjusted
Adjusted value
value Total
Total Adjusted
Adjusted value
value
No As at As at
March
March 31,
31, 2021
2021 December
December 31,
31, 2020
2020
13
13 TOTAL HQLA
TOTAL HOLA 4,00,965.68 2,81,569.73
2,81 ,5073
14
14 TOTAL
TOTAL NET
NET CASH
CASH OUTFLOWS
OUTFLOWS 43,716.10
43,71610 34,061.17
15 LIQUIDITY COVERAGE RATIO
LIQUIDITY COVERAGE RATIO (%) 917.20%
917207,
826.66%
32668%

* Unweighted
unweighted values
values calculated
calculated as
es outstanding
outstanding balances
balances maturing
maturing or
or callable within 30
callable within 30 days
days (for
(for inflows
inflows and
and outflows).
outflows).
#
Weighted values
Weighted values calculated
calculated after the application
after the application of
of respective
res*ive haircuts
haircuts (for
(for HQLA) and stress
HOLA)end stress factors
factors on
on inflows
inflows and
and outflows.
outflows

Qualitative disclosure
Qualitative disclosure around
around Liquidity
Liquidity Coverage
Coverage Ratio
Ratio (LCR)
(LCR)
The Reserve
The Reserve Bank
Benk ofof India
Indie has
has prescribed
prescri±d Guidelines
Guidelines on
on Maintenance
Maintenance of of Liquidity
Liquidity Coverage Ratio (LCR).
C.overegeRatio All non-deposit
(LCR) All non-depsit taking
taking
NBFCs with asset sise of ` 10,000 crore and above, and all deposit taking NBFCs irrespective of their asset sise, is required to
N3FCs with asset svseof e 10,011 crore and and ell deposit teking EFCs irrespective cf their asset sise, is required to
maintain a liquidity buffer in terms of LCR which will promote resilience of NBFCs to potential liquidity disruptions by ensuring that
msintain 'iquidity buffer in terms cf LCRwhich will promote reslience of NFCs to potential liquidity disruptions by ensuring that
they have
they have sufficient
sufficient High
High Quality
Quality Liquid
Liquid Asset
Asset (HQLA)
(HOLA) to
to survive
survive any
any acute
acute liquidity
liquidity stress
stress scenario
scenario lasting
I-sting for
for 30 days. The
SDdays The stock
stak
of HQLA
of to be
HOLAto be maintained
maintained by
by the
the NBFCs
NFCs shall
shall be
be minimum
minimum ofof 100%
100%ofof total
total net
net cash
cash outflows
outflows over the next
over the next 30
30 calendar
calendar days.
days

The LCR
The LCR requirement
requirement was
was applicable
applicable from
from December
December 1,
1, 2020 with the
2020 with the minimum
minimum HQLAs
HQLAs toto be
te held
held being 50% of
of the
the LCR,
LCR,
progressively reaching a level upto 60%. 70%, 85% and 100% by December 1, 2021, December 1, 2022, December 1, 2023,
progressively reeching s level upto 60%. 70%, and IOD% by December 1, 2CZ1, December 1, 2022, December 1, 2023,
December
December 1,1, 2024
2024 respectively.
respectively.
Liquidity
Liquidity Coverage
Coverage Ratio
Ratio (LCR)
(LCR) ratio comprises of
ratio comprises of high
high quality
quality liquid
liquid assets
assets (HQLAs) as numerator
(I-IQLAs)as numerator and
end net
net cash outflows in
cash outflows in 30
30
days
days as
as denominator.
denominetr

The average
The average LCR
LCR is computed at
is computed at as
as simple
simple averages of monthly
averages of observations over
monthly observations the previous
over the previous quarter
quarter (ie.
(ie average
average of
of three
three
months
months ie.
ie January
January 2021,
2021, February
February 2021
2021 and
and March
March 2021
2021 for the quarter
for the quarter ended
ended March
March 31,
31 2021
2021 and
and average
average of
of three
three months
months ie.
ie.
October 2020, November 2020 and December 2020 for the quarter ended December 31, 2020)
October 2020, November 2020 and December 2CZ0for the quarter ended December 31, 2020)

The Company,
The Company, asas at
at March
March 31,
31, 2021,
2021 had
had maintained average HQLA
maintained everage HOLA (after
(after haircut)
haircut) of ` 4,00,965.68
of e 68 lacs
lacs against ` 2,81,569.73
against e 2,81,5073 lacs
lacs
for the quarter ended December 31, 2020. HQLA primarily includes cash on hand, bank balances in current account and demand
for the quarter ended December 31, 2020. HOLA prim-rill' includes cash on hand, bank balsnces in current eccount and demand
deposits
deposits with
with Schedule
Schedule Commercial
Commercial Banks, Treasury Bills
Barks, Treasury Bills and
and Government
Government securities
securities (such
(such unencumbered
unencumbered approved
approved securities
securities
held
held as
as per
per the
the provisions
provisions of
of section 45 IB
section 45 of RBI
18of RBI Act,
Act, is
is reckoned
reckoned as
as HQLA
HOLA only
only to the extent
to the extent of
of 80% of the required
of the required holding).
holding).

The Company
The O)mpany has
has implemented
implemented the
the LCR framework and
LCRframernrk and has
has maintained
maintained LCR well above
LCRwell abcp.rethe
the regulatory threshold. The
regulatory threshold The average
average
LCR for the
LCRfor the quarter
quarter ended
ended March
Msrch 31,
81, 2021
2021 was
was 917.20%
g172D% which
which is
is above
above the
the regulatory
regulatory requirement
requirement of
of 50%. For
For the
the quarter
quarter ended
ended
December
December 31,
31, 2020
2020 average
average LCR was stood
LCRwas std atat 826.66%.
826.6B

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 179
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

50. The
The Company
Company is is primarily engaged in
primarily engaged the business
in the business of
of financing
financing and there are
and there are no
no separate
separate reportable
reportable segments
segments identified
identified
as per the Ind AS 108 - Segment Reporting.
as the Ind AS 1D8- Segment Reporting.

51. Expenditure
Expenditure in foreign currency
in foreign currency :: ` 623.25
62325 lacs
lacs (March
(March 31,
31, 2020:
2020: Nil).
Nil)

52. The
The Company had no
C.ompanyhed no discontinuing
discontinuing operations
operations during
during the
the year
year ended
ended March
March 31,
31, 2021.
2021

53. EVENTS
EVENTS
AFTER REPORTING
AFTER REPORTING
DATE
DATE

There have
There have been
been no
no events
events after the reporting
after the reporting date
date that
that require
—uire disclosure
disclosure in these financial
in these financial statements.
statements

54. In
n accordance
accordance with the Master
with the Master Direction
Direction -- Non-Banking
Non-aanking Financial
Financial Companies Acceptance of
Companies Acceptance of Public Deposits
Depsits (Reserve
(Reserve
Bank) Directions, 2016 dated August 25, 2016, the Company has created a floating charge on the statutory liquid assets
Bank) Directions, 2016 dated August 25, 6, the Company has created s floating charge on the statutory liquid assets
comprising of investment in government securities, treasury bills & deposit (face value) to the extent of ` 8,200 lacs,
comprising of investment in government securities, tressury bils deposit (face value) to the extent of 8,200 lacs,
` 65,695.83
65.05 83 lacs
lacs and
and ` 21,000
21 lacs
lacs respectively
respectively (March
(March 31,
31, 2020
2020 ` 20,200
20,200 lacs,
lacs, ` 26,205.11
26,20511 lacs
lacs and
and ` 19,988.99 lacs
lacs
respectively)
respectively) in favour of
in favour of trustees
trustees representing
representing the
the public
public deposit
deposit holders
holders of
of the
the Company.
Compeny

55. DISCLOSURE
DISCLOSURE ONON LOAN AGAINST GOLD
LOAN AGAINST GOLD AS
AS ON
ON MARCH
MARCH 31,
31, 2021
2021 VIDE
VIDE RBI
RBI NOTIFICATION
NOTIFICATION DNBS.CC.PD.

NO.265/03.10.01/2011-12 DATED MARCH 21, 2012

NO_265/03_ 10.01/2011-12 DATED MARCH 21, 2012

` in lacs
in lacs

Particulars
Particulars As at As at
March
March 31, 2021
31,2021 March
March 31,
31, 2020
2020
Total Asset
Total Asset under Management
underManagement 29,46,518.91 28,65,652.55
Total Loan against Gold
Total L'En -gainst Gold 3,78,882.88 3,11,888.26
3.11,888.26
Percentage of Gold Loan
Percenta e of Gold on Total
Loan on Total Assets
Assets (On
On Book)
BU 12.86%
1286% 10.88%
10.88%

56. TRANSFERRED
TRANSFERRED FINANCIAL
FINANCIAL ASSETS THAT
ASSETS ARE NOT
THAT ARE NOT DERECOGNISED
DERECOGNISED IN THEIR ENTIRETY
IN THEIR ENTIRETY

The following
The table provides
following table provides ea summary
summery of of financial
financial assets that have
assets thet have been
ten transferred
transferred inin such
such aa way
way that
that part
pert or
or all
all of
of the
the
transferred financial assets do not qualify for derecognition, together with the associated liabilities
transferred financial assets do not qualify for derecognition, tcgether with the associated liabilities

` in
in lacs
lacs

Particulars
Particulars
As at As at
March
March 31, 2021
31,2021 March
March 31,
31, 2020
2020
Securitisations
Securitisations

Carrying
Carrying amount
-mount of transferred assets
of transferred assets measured
measured at
et amortised
amortised cost
cost (Held
(Held asas 3,44,849.01
01 3,60,074.75
collateral)
collateral)
g
Cerryin
Carrying amountof
amount associatedliabilities
of associated liabilities(Borrowings
(aorrowings (otherthandebtsecurities)
(other than debt securities) 3,38,459.12 3,77,760.19
377,760.1g
-- measured
measured at at amortised
amortised cost)
cost)
Fair
Fair value
value ofof assets
assets 3,58,964.40 3,75,611.72
375,611.72
Fair value of associated liabilities
Fair value of associated liabilities
3,72,624.36 3,87,415.42
"7,415.42
Net position at Fair Value
Net osition et Fair Vslue (13,659.96)
13,659Æ6 (11,803.70)
1 1,803.70

180 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

57. DISCLOSURE
DISCLOSURE RELATING
RELATING TO
TO SECURITISATION
SECURITISATION

57.1 
57.1 T he information
The information onon securitisation
securitisation of
of the
the Company
Company as
as an
an originator
originator in
in respect
respect of
of securitisation
securitisation transaction
transaction done
done during
during
the
the year
year is
is given
given below
below

` in
in lacs
lacs

Particulars
Particulars Year
Year ended
ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Total
Total number
numberof of transactions
transactions under par structure
underper structure 9 15
Total
Total book
book value
value ofof assets
essets 2,11,842.97
2,11E42G7 3,99,923.33
Sale consideration received
Sele consideration received 2,11,842.97
2,11E42G7 3,99,923.33

57.2 
572 T he information
The information on
on securitisation
securitisation of the Company
of the Company as
as an originator in
an originator in respect
respect of
of outstanding
outstanding amount
amount of
of securitised
securitised assets
assets
is given below:
is given below.

` in
in lacs
lacs

S. Particulars
Particulars As at As at
No. March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020

1 No
No ofof SPVs
SPÉ sponsored
sponsored by by the
the Company for securitisation
Company for transactions (in
sejritisation transactions (in 23 18
No.)
NOJ
2 Total
Tote' amount
amount of of securitised assets as
securitised assets as per
per books
bnks of the SPVs
of the SPVs sponsored
sponsored 3,44,849.01
3,44,849 Z I 3,60,074.75
360,07475
by the Company
bythe Company
3 Total
Tots' amount
smount ofof exposures
exposures retained
retained by
by the
the Company
Compeny tto comply
comply with
with MRR
MRR
as
es on
on the
the date
dete of
Df balance
balsnce sheet
sheet

a)
e) Off-balance
Off-belence sheet
sheet exposures
exposures
First
First loss
loss - -
Others
Others - -
b)
P) On-balance sheet exposures
On-balancesheetexposures
First loss
First loss
97,554.28
97,55428 70,520.71
70,52071
Others
Others 160.82
16082 -
4
4 Amount of
Amount exposures to
of exposures securitisation transactions
to securitisation transactions other than MRR
other then MRR
a) Off-balance sheet exposures
Off-belence sheet exposures
i) Exposure
*posure to own securitisations
securitisations
First
First loss
loss - -
Others
Others - -
ii) Exposure
ii) Exposure to
to thirdparty securitisations
third party securitisations
First
First loss
loss - -
Others
Others
- -
b) On-balance sheet
On-belence sheet exposures
exposures
i) Exposure to own securitisations
Exposure to own securitisations
First loss
First loss - -
Others
Others - -
ii) Exposure
Exposure to third party
to third party securitisations
securitisations
First
First loss
loss - -
Others
Others
- -

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 181
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

58.1 DISCLOSURE
DISCLOSURE RELATING
RELATING ASSIGNMENT
ASSIGNMENT

(i)
(l) The
The information on Direct
information on Direct Assignment
Assignment of the Company
of the Company as an originator
as an originator in
in respect
respect of
of outstanding
outstanding amount
amount of
of assets
assets
assigned
assigned under
under par
par structure
structure is given below
is given below

` in
in lacs
lacs

S. Particulars
Particulars As at As at
No. March
March 31, 2021
2021 March
March 31,
31, 2020
2020
1 No of transactions
Noof Assigned by the Company
transectionsAssignedbythe Compaqy 5 7
2
2 Total amount
Total amount of of Outstanding
Zutstanding 10,419.30 47,619.99
47,619.gg
3 Total amount
Total amount of of exposures
exposures retained
retained by the Company
by the Company toto comply with MRR
comply with MRR
as
as on
on the
the date
date of of Balance
Balance Sheet
Sheet

a) Off-Balance
E?) Sheet exposures
Off-BalenceSheetexposures
First
First loss
loss - -
Others
Others - -
b)" On-Balance
b) On-Balence Sheetexposures
Sheet expsures
First loss
First loss - -
Others
Others 1,009.52
1,cæsz 4,752.87
4,752.87
4
4 Amount of
Amount of exposures
exposures to Assigned transaction
to Assigned transection other
other than
than MRR
MRR
a) Off-Balance Sheet exposures
Off-Balence Sheet expcrsures
i)
i) Exposure
Exposure to to own
own securitisations
securitisations
First loss
First loss - -
Others
Others
- -
ii) Exposure
Exposureto to third party
party securitisations
securitisations
First loss
First loss
- -
Others
Others - -
b) On-Balance Sheet exposures
b) On-BalenceSheeteposures
i) Exposure
Exposure to to own
own securitisations
securitisations
First loss
First loss - -
Others
Others - -
ii) Exposure
Exposureto to third party
party securitisations
securitisations
First loss
First loss
- -
Others
Others - -

(ii) Direct Assignment of

Direct Assignment the Company
of the Company as
as an
an originator
originator in
in respect
respect of
of outstanding
outstanding amount
amount of
of assets
assets assigned
assigned under
under premium:
premium-
Nil (March 31, 2020: Nil)
Nil (March 31, 2020: Nil)

58.2 
58_2 N
Noo financial
financial assets
assets are
are sold to Securitisation/Reconstruction
sold to company for
Securitisation/Reconstruction company for asset
asset reconstruction
reconstruction as
as on
on March
March 31,
31, 2021
2021
and March 31, 2020.
and March 31, 2020_

182 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

58.1 DISCLOSURE RELATING ASSIGNMENT (Contd.)

DISCLOSURERELATINGASSIGNMENT(Contd_)

58.3
58.3 Details of Assignment
Details of Assignment transactions
transactions undertaken
undertaken by
by the
the Company
Company during the year
during the year

` in
in lacs
lacs

Particulars
Particulars
Year ended
Year ended
Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
No.of accounts
Noof accounts
- 1,44,261.00
Aggregate value (net of provision)
Aggregatevalue(net provision)ofof account
account sold
sold - 57,157.58
57,15758
Aggregate
Aggregate consideration
consideration - 57,157.58
57,15758
Additional
Additional consideration
consideration realised
realised in
in respect
respect of
of accounts
accounts transferred
transferred inin earlier
earlier - -
years
years

Aggregateate gain
ain // loss
loss over
over net
net book value
±okvalue - -
Pursuant to the directives dated March 13, 2020 from the Reserve Bank of India, the Board of Directors have approved the
Pursuant to the directives dated March 13, 2020 from the Resewe Bank of Indie, the Board of Directors have approved the
policy
plicy for sales out
for sales out of amortised cost
of emortised cost business
business model
mcZel portfolios. The Company
portfolios. The Camp-ny has has assigned
assigned loans
'osns (earlier
(earlier measured
measured atet
amortised cost) by
amortised cost) by way ofof direct
direct assignment.
assignment Since
Since substantial
substsntial risk
risk and
and rewards
rewards related
releted to these assets
to these assets were
were transferred
transferred to
to
the buyer, the assets have been de-recognised from The Company’s Balance Sheet.
the buyer,the assets have been de-recognised from The Compeny's Belence Sheet.

58.4 The Company

58.4 The Company has
has not
not purchased/sold
purchased/sold non-performing assets for the
assets for the year
year ended
ended March
March 31,
31, 2021
2021 and
and March
March 31,
31, 2020
2020

59. INVESTMENTS
INVESTMENTS

` in lacs
in lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020

(1) Value
Value of
of investments
investments

(i) Gross value of investments

Grossvalueof investments
(a)
(a) InIn India
Indie 92,052.61
9205261 64,496.83
644683
(b)
(b) Outside
Outside India,
India, 9,686.10
g,ö8610 8,917.14
8,91714
(ii) Provisions for depreciation
Provisionsfor depreciation
(a) In India
(a) In Indie 6.47
6 47
-
(b)
(b) Outside India,
OutsideIndia, - -
(iii)
(iii) Net
Net value of investments
investments
(a)
(a) In India
India 92,046.14
92,046.14 64,496.83
(b)
(b) Outside
Outside India,
India, 9,686.10
9,686.10 8,917.14
8,917.14
(2)
(2) Movement
Movement of of provisions
provisions held
held towards
towards depreciation on investments
depreciation on investments
(i) Opening balance
Openingbalance - -
(ii)
(ii) Add : Provisions made
Add Provisions mede during
during the year
the year 6.47
6 47
-
(iii) Less : Write-off/write-back excess
Less Write-off/write-beck of provisions during the year
excessprovisionsduringtheyear - -
(iv)
(iv) Closing
Closing balance
balance 6.47 -

60. DERIVATIVES
DERIVATIVES

60.1 Forward
Forward rate
rate agreement/Interest
agreement/lnterest rate
rate swap:
swap: Nil

60.2
02 Exchange
Exchange Traded
Traded interest
interest rate
rate (IR) derivatives:
derivatives: Nil

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 183
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

61. RATING
RATING ASSIGNED BY
ASSIGNED BY CREDIT
CREDIT RATING
RATING AGENCIES AND
AGENCIES AND MIGRATION
MIGRATION OF
OF RATINGS
RATINGS DURING
DURING THE
THE YEAR
YEAR

Rating
Rating Rating
Rating Instrument
Instrument As at As at
Agency
Agency March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
India
Indis Long-Term
Long-Term (NCDs)
(NCOs) IND AA/ Stable
AA' stable IND AA/ Stable
AAI stable
Ratings
Ratings
CARE Long-Term
Long-Term (NCDs-MLD)
(NCOs-MLD) IND PP-MLD
PR-MLO AAemr/
AAemr/ NA
Stable
Stable

Short-Term
Short-Term (CP) NA IND
IND A1+

Bank
Bank Loan
Loan Ratings
Ratings IND AA/
AA' Stable
stable IND AA/ Stable
stable

Fixed
Fixed deposit
deposit IND tAA/ Stable
stable IND tAA/ Stable
stable

CARE Long-Term (NCDs)

Long-Term (NCOs) CARE AA+ /Stable
CARE A.A+ 'Stable CARE AA+ 'Stable
CARE AA+ /Stable
Short-Term
Short-Term (CP) CARE A1+ CARE A1+
Subordinate Debt
Subordinate Debt
NA CARE
CARE AA+ /Stable
AA+ 'Stable

Fixed
Fixed deposit
deposit CARE AA(FD) ,/Stable
CAREA.A(FD) 'stable CARE
CAREAA+ (FD) /Stable
(FD)'Stable
ICRA
'CRA Long-Term (NCDs)
Long-Term(NCOs) ICRA
'CRA AA // Stable
stable ICRA AA // Stable
stable
Long-Te rm(NCOs-MLDj
Long-Term (NCDs-MLD) PP-MLD ICRA
'CRA AA/Stable
AA'StabIe NA
Short-Term (CP)
Short-Term (CP) ICRA A1+
ICRA A1 + ICRA A1+
'CRA A1 +

Fixed deposit
Fixed deposit MAA+
MAA+ // Stable
Stable MAA+ / Stable
MAA+ / Stable

CRISIL
CRISL Long-Term
Long-Term (NCDs) CRISIL AA // Stable
CRISL stable CRISIL
CRISL AA // Stable
stable

Short-Term
Short-Term (CP) CRISIL A1+
CRISL
CRISIL A1+
CRISL

Subordinate Debt
Subordinate Debt NA CRISIL
CRISL AA // Stable
stable

184 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 Notes to Standalone Financial Statements for the year ended March 31, 2021 (Contd.)

62. DISCLOSURE OF RESTRUCTURED ACCOUNTS

` in lacs
Sr. Type of Restructuring Others
No Financial year Year ended March 31, 2021 Year ended March 31, 2020
Asset lassification Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total
standard standard
1 Restructured accounts as on No. of borrowers - - - - - - - -
April 1 Amount outstanding - - - - - - - -
Provision thereon - - - - - - - -

O
2 Fresh restructuring under COVID No. of borrowers 565 - - - 565 - - -
19 relief scheme during the year Amount outstanding 15,424.60 - - - - - -
15,424.60
Provision thereon 736.81 - - - 736.81 - - -
3 Upgradation No. of borrowers - - - - - - - -
Amount outstanding - - - - - - - -
Provision thereon - - - - - - - -
4 Restructured standard advances No. of borrowers - - - - - - - -
which cease to attract higher Amount outstanding - - - - - - - -
provisioning and/or additional Provision thereon - - - - - - - -
risk weight at the end of the year
and hence need not be shown
as restructured advances at the
beginning of the next year
5 Downgradation of restructured No. of borrowers (4.00) 4.00 - - - - - -
accounts during the year Amount outstanding (189.84) 189.84 - - - - - -
OVERVIEW
CORPORATE

Provision thereon (119.37) 119.37 - - - - - -

OVERVIEW
CORPORATE

6 Write-offs of restructured No. of borrowers - - - - - - - -

SHRIRAM
accounts during the year Amount outstanding - - - - - - - -

SHRIRAM
Provision thereon - - - - - - - -

CITY
7 Restructured accounts as on No. of borrowers 561 4 - - 565 - - -

UNION
March 31
REPORTS

Amount outstanding 15,234.76 189.84 - - 15,424.60 - - -

CITY UNION
STATUTORY

REPORTS

Provision thereon 617.44 119.37 - - 736.81 - - -

STATUTORY

FINANCE
Note:

FINANCE
-C

(i) The outstanding amount and number of borrowers as at March 31, 2021 and March 31, 2020 is after considering recoveries during the year.

LIMITED
(ii) Since the disclosure of restructured accounts pertains to section “Others”, the first two sections namely “Under CDR Mechanism” and “Under SME Debt Restructuring

LIMITED
FINANCIAL

Mechanism” as per the format prescribed in the Master Directions - Non -Banking Financial Company - Systematically Important Non-Deposit taking company and
STATEMENTS
FINANCIAL

185
STATEMENTS

Deposit Taking Company (Reserve Bank) Directions 2016 as amended are not included above.
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

63. EXPOSURE
EXPOSURE TO
TO REAL
REAL ESTATE
ESTATE SECTOR
SECTOR

` in
in lacs
lacs

S.
S. Particulars
Particulars As at As at
No. March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
i) Residential
Residential Mortgages
Mortgages -Lending
-Lending fully
fully secured
secured byby mortgages
mortgages on on residential
residential - 1,21,103.00
property
property thatthat is or will
is or will be
be occupied
cccupi&d byby the
the borrower
barrower or that is
orthEt is rented
rented
ii) Commercial
Commercial Real Estate -Lending secured
RealEstate-Lending secured by by mortgages
mortgages on on commercial
commercial realreal 25,392.74 66,799.12
56,7gg.12
estates
eststes (office
(office buildings,
buildings, retail
retail space,
space, multi-
multi- purpose
purpose commercial
commercis' premises,
prenmses,
multi-family
multi-family residential
residential buildings,
buildings, multi-tenanted
mufti-tenanted commercial
commercial premises,
prenmses,
industrial
industrial or warehouse space,
or warehouse space, hotels,
hate's, land
lend acquisition,
acquisition, development
development and and
construction,
construction, etc.).
etc.} Exposure
Exposure wouldwould also
s'so include
include non-fund
nan-fund based
based limits
limits
iii) Investments
Investments in in Mortgage
Mortgage Backed
Backed Securities(MBS) and and other
other securitised
securitised
exposures -
exposures -

Residential
Residential - -
Commercial Real
Commercial
Estate
Real Estate
- -
Total Exposure to
Total Exposure to Real
Real Estate
Estate Sector
Sector 25,392.74 1,87,902.12

64. EXPOSURE
EXPOSURE TO
TO CAPITAL
CAPITAL MARKET
MARKET

` in
in lacs
lacs

S.
S.
Particulars
Particulars
As at As at
No. March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
(i)
(l) Direct
Direct investment
investment in in equity
equity shares,
shares, convertible
convertible bonds,
bonds, convertible
convertible debentures
debentures 27,002.57
27u257 25,947.13
25,947.13
and
and units of equity-oriented
units of equity-oriented mutual
mutual funds
funds the
the corpus
corpus ofof which
which isis not
not exclusively
exclusively
invested
invested inin corporate
corporate debt;debt,
(ii) Advances
Advances against
against shares/bonds/debentures or or other
other securities
securities or
cr on
on clean
clean basis
basis - -
to
to individuals
indüSJEls for for investment
irvestment in in shares
sheres (including
(including IPOs/ESOPs),
193s/ESC?s),convertible
convertible bonds,
O:.nds,
convertible debentures, and
co-vertiblede&ntures, and units
unts of equity-oriented mutual funds;
Dfequity-orientedmutuelfunds;
(iii)
(iii) Advances for any other purposes where
Advencesfor any other purpcses shares or
wherestares cr convertible bonds or
convenib•etcrds cr convertible
convertible - -
debentures
deentures or or units
unitsofof equity
e;ultj' oriented mutual funds are
orientedmutualfunds taken as
ereteen as primary security;
scunty;
(iv) Advances
Advencesfor for any
sry other
other purposes
purgcæs to to the
the extent
extent secured
secured by by the
the collateral
cdLEtara'security
securityofof - -
shares
shares orcr convertible
comertible bonds Oondsor or convertible
ccrvertible debentures
debenturesor or units
unts ofof equity
equity oriented
mutual funds i.e.
mutua' funds i. where
*ere the the primary
primary security
security other than shares/convertible
other ten bonds/
sheres/conveltibletan's/
convertible
convertibledebentures/units of of equity oriented mutual funds
equityorientedmutual funds 'does
dces not
not fully cover the
fumy'coverthe
advances;
advances, *
(v) Secured
Securedandand unsecured advances to stockbrokers
unsecuredadvancesto stcc&rokers and and guarantees issued on behalf
guaranteesIssuedon of
behalfof - -
stockbrokers andand market
market makers;
makers,
(vii Loans
(vi) sanctioned to corporates
Loanssanctionedto ccr;crstes against
*inst the the security
securityofof shares/bonds/debentures or or - -
other
other securities or on clean
securitiesc,-on basis for meeting
cleenbasisfor mæting promoter's contribution to the equityof
promoter'scontributionto equity of
new
new companies in anticipation of
compeniesinentZi;Etion of raising resources;
raisingresources;
Wii)
(vii) Bridge loans to companies against expected
aridge Iæns to companies agsinst expected equity flows/issues;
equity flows/issues, - -
(viii) All exposures to Venture Capital Funds (both registered
(vii0 All exposures to Venture Capital Funds (both registered and
end unregistered)
unregistered) - -
Total
Total exposure
exposure to to capital
capital market
market 27,002.57 25,947.13
25,947.13

65. DETAILS
DETAILS
OF FINANCING OF
OF FINANCING
PARENT COMPANY
OF PARENT COMPANY
PRODUCTS
PRODUCTS

The Company
The does not
Company does rot have
have any
any Parent
Perent Company,
Company, hence
hence not
not applicable.
applicable

66. DETAILS OF SINGLE

DETAILSOF BORROWER LIMIT
SINGLEBORROWER LIMIT (SGL)
(SGL) / GROUP BORROWER LIMIT (GBL)
GROUPBORROWERLIMIT (GBL) EXCEEDED
EXCEEDEDBY THE NBFC
BY THE NBFC
The Company
The Company has
has not
not exceeded the prudential
exceeded the prudential exposure
exposure limits
limits for
for Single
Single Borrower
Borrower Limit
Limit (SGL)
(SGL)// Group
Group Borrower
Borrower Limit
Limit (GBL).
(GQ)

186 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

67. UNSECURED
UNSECURED ADVANCES
ADVANCES

The Company
The Compeny hashas not
not granted
granted unsecured
unsecured advances
advances against
against collateral
collateral of
of intangible
intangible securities
securities such
such as charge over
as charge over the
the rights,
rights,
licenses or authority.
licenses or authority

68. PROVISIONS
PROVISIONS AND CONTINGENCIES
AND cnNTlNGENClES

` in
in lacs
lacs

Break
Break up
up of
of ‘Provisions
'Provisions and
and contingencies’
contingencies' shown
shown under
under the
the head expenditure in
head expenditure in Year ended
Year ended
Year ended
Year ended

Profit and Loss

Profit and account
Loss account March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Provisions for depreciation
Provisions for depreciation on
on investments
investments 6.47
647
-
Provision
Provision towards
towards NPA
NPA=# (9,804.56)
(980456) (2,699.21)
(2,6gg.21)
Provision made towards income
Provision made towards income tax
tax 37,844.33
37,84433 35,448.10
35,44310
Provision for Standard Assets
Provision for Standard Assets—##
9,912.24
g,E1224 14,449.61
Provision towards impairment
Provision twerds impairment ofof financial
financial instruments
instruments other
other than
than provision
provision for
for stage
stage 171.58
171 E8 97.45
g,' 45

3 assets
3 assets

#
Expected
Expected Credit
Credit Loss
Isss Provision
PrNision for
for stage
stage 3
3 assets
assets
##
Provision
Pro'.risionfor
for standard
standard assets
assets is
is included
included in
in provision
pruision towards
towards impairment
impairment of
of financial
financial instruments
instruments other
other than
than provision
provision for
for stage
stage 3
3
assets
assets

69. DRAW
DRAW
DOWN FROM
FROM
RESERVES
RESERVES

The draw down

The drew
from reserves was Nil.
down from reserves was Nil.

70. CONCENTRATION
CONCENTRATION OF
OF DEPOSITS,
DEPOSITS, ADVANCES,
ADVANCES, EXPOSURES
EXPOSURES AND
AND NPAs
NPAs

70.1 Concentration
70.1 Concentration of
of deposits (for
(for deposit
deposit taking
taking NBFCs)
NBFCs)

` in lacs
in lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Total deposits of twenty largest
Totaldepositsof depositors
largestdepositors 13,448.28
13,44328 11,139.38
Percentage of deposits
Percentage of of twenty
deposits of twenty largest
largest depositors
depositors to
to total
total deposits
deposits of the
of the 2.43%
243%
2.78%
2.78%

NBFC
NFC

70.2 Concentration
702 Concentration of
of advances
advances

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Total
Total advances to twenty
advances to twenty largest
largest borrowers
±lrrowers 28,565.33
28,56533 36,697.71
36,6E771
Percentage of advances to twenty largest
Percentage of advances to twenty largest borrowers to total
borrowers to total advances
advances of the
of the 0.97% 1.28%
1.28%

NBFC
NFC

70.3 Concentration
70.3 Concentration of
of exposures
exposures

` in
in lacs
lacs

Particulars
Particulars As at As at
March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Total exposure to twenty largest
Totalexposureto borrowers/customers
largestborrowers/customers 22,622.75
2262275 30,081.83
30,08183
Percentage
Percentage ofof exposures
exposures toto twenty
twenty largest
Isrgest borrowers/customers
borrowers/customers to total
to total 0.77%
077% 1.05%
1.05",

exposure
exposure of the NBFC
of the NBFConon borrowers/customers
borrowers/customers

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 187
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

70. CONCENTRATION
CONCENTRATIONOF
OF DEPOSITS, ADVANCES, EXPOSURES AND
DEPOSITS,ADVANCES,EXPOSURES AND NPAs
NPAs (Contd.)
(Contd_)

70.4
70_4 Concentration
Concentration of NPAs
of NPAs #
#

` in
in lacs
lacs

Particulars
Particulars
As at As at
March
March 31, 2021
2021 March
March 31,
31, 2020
2020
Total
Tote' Exposure
Exposure to top four
to top four NPA accounts
NPAaccounts 4,016.98
4,D16Æ8 5,549.65
5,549.65

#
* NPA accounts refer
NPAaccounts to stage
refer to 3 assets.
stage 3 assets Stage
Stage 3
3 Assets
Assets includes
includes financial
financial assets
assets that
that have
have objective
objective evidence
evidence of
of impairment
impairment
at the reporting date as defined under IND-AS. 90 Days Past Due is considered as default for classifying a financial instrument
et the date es defined under IND-AS.go Days Past Due is considered as default for classifying a financial instrument
as
es credit
credit impaired.
impaired

70.5
70_5 Sector-wise
Sector-wise NPAs
NPAs #
#

S. Sector
Sector As at As at
no March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
Percentage of
Percentage of Percentage
Percentage of of
NPAs to Total
NPAs to Total NPAs to Total
NPAs to Total

Advances
Advances in
in that
that Advances
Advances in
in that
that

sector sector
1 Agriculture &
Agriculture & allied
allied activities
activities - -
2
2 MSME
MSME// Corporate borrowers
Corporateborrowers 7.26%
7.26% 8.33%
3 Services
Services
- -
4
4 Loan Against Property
LoanAgainstPro*rty - -
5 Unsecured personal loans
unsecuredpersonalloans 10.86%
10.867, 11.59%
66 Auto loans
Auto bens

i)i) AutoLoans
Auto Loans 8.56%
8.56% 5.42%
5.42%

ii)
ii) Two wheeler
Two wheeler 5.80%
5.80', 8.12%
8.12%

iii)
iil) Pre
Pre Owned Two Wheeler
OwnedTv.R3 Wheeler 2.21%
2.21% 0.00%
7
7
Other
Other personal
personal loans
dens
i)l)
Consumer Durable
ConsumerDurable - -
ii)
Pledged
ii) Jewel
Pledged dewel 2.86%
2.86',
4.37%
8
8 Others
Others 1.04%
1.D40/, 0.84%
0.84%

#
* NPA accounts refer
NPAaccounts to stage
refer to 3 assets.
stage 3 assets Stage
Stage 3
3 Assets
Assets includes
includes financial
financial assets
assets that
that have
have objective
objective evidence
evidence of
of impairment
impairment
at the reporting date as defined under IND-AS. 90 Days Past Due is considered as default for classifying a financial instrument
et the date es defined under IND-AS. Days Past Due is considered as default for classifying a financial instrument
as credit impaired.
es credit impaired

188 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

70. CONCENTRATION
CONCENTRATIONOF
OF DEPOSITS, ADVANCES, EXPOSURES AND
DEPOSITS,ADVANCES,EXPOSURES AND NPAs
NPAs (Contd.)
(Contd_)

70.6 Movement
70.6 Movement of
of NPAs
NPAs #
#

` in
in lacs
lacs

Particulars
Particulars
Year ended
Year ended
Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
(i) Net NPAs to Net Advances (%)
Net NRAs to Net Advances
3.08%
308%
4.23%
423",

(ii) Movement
Movementof of NPAs (Gross)
NPAs(Gross)
(a) Opening balance
OpeningOEIsnce 2,26,293.73 2,57,668.91
(b)
(b) Additions during the
Additions during year
the year 1,00,911.36 1,39,451.43
(c ) Reductions
(p) during the year
Reductionsduringtheyea,- (1,39,606.34) (1,70,826.61)
(d)
(d) Closing
Closing balance
balance 1,87,598.75 2,26,293.73
(iii) Movement
Movement of
of Net
Net NPAs
NRAs

(a) Opening balance

(e) Opening OEIsnce 1,16,618.58 1,45,294.23
1.45,E423
(b) Additions during the year
(P) Additionsduring the year 25,800.77
25,80D77 69,564.03
69,56403
(c ) Reductions during the year
(c) Reductions during the year (54,691.19)
(54,6g1Ä9) (98,239.67)
(d)
(g) Closing balance
Closingbalance 87,728.16
87,72316 1,16,618.58
(iv) Movement
Movement of of provisions
provisions for
for NPAs
NRAs(excluding
(excluding provisions
provisions on standard
standard
assets)
assets)
(a)
(e) Opening
O*ning balance
balance 1,09,675.14 1,12,374.68
(b)
t) Provisions made during
Provisionsmsde the year
duringthe year 75,110.59
75,1 69,887.40
69,88740
(c
(p)) Write-off // write-±ck
write-back of excess provisions
excessprovisions (84,915.15) (72,586.94)
(72,586.94)
(d)
(g) Closing balance
Closingbalance 99,870.58
gg,87D58 1,09,675.14
1109,67514

# NPA accounts refer

NPAaccounts refer to
to stage
Stege 3 assets. Stage
3 assets Stage 3
3 Assets
Assets includes financial assets
includes financial assets that
that have
have objective
objective evidence
evidence ofof impairment
impairment
at the reporting
atthe reporting date
datees as defined
defined under
under IND-AS.
IND-AS 90 Days
Days Past
Past Due is considered
Dueis considered as default for
asdefault for classifying
classifying aafinancial
financial instrument
instrumentes as
credit
credit impaired.
impair4i

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 189
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

70. CONCENTRATION
CONCENTRATIONOF
OF DEPOSITS, ADVANCES, EXPOSURES AND
DEPOSITS,ADVANCES,EXPOSURES AND NPAs
NPAs (Contd.)
(Contd_)

70.7 
Comparison between
70_7Comparison between provisions
provisions required under
under IRACP
IRACP and
and Impairment
Impairment Allowances
Allowances made
made under
under IND
IND AS
AS 109
109 as
as required
required
vide
vide Circular
Circular No.
No. RBI/
RBI/ 2019-20/ 170 dated
2019-20/170 dated March
March 13,
13, 2020
2020 issued
issued by
by Reserve
Reserve Bank
Bank of
of India
India

For the year

For the year ended
ended March 31, 2021
March 31, 2021

` in
in lacs
lacs

Asset Classification
Asset Classification Asset Gross Loss
Loss Net
Net Carrying
Carrying Provisions
Provisions Difference
Difference

as per RBI
as per RBI Norms
Norms classification
classification Carrying
Carrying Allowances
Allowances Amount
Amount required
required asas between
between

as per
as per Ind AS
Ind AS Amount as
Amount as
(Provisions) as
(Provisions) as per
per IRACP
IRACP Ind AS 109
Ind AS 109

109
109 per
per Ind
Ind AS
AS required under
under norms
norms provisions
provisions
Ind
Ind AS
AS 109
109 and
and IRACP
IRACP

norms
norms

(1) (2) (3) (4) (5)=(3)-(4) (6) (7) = (4)-(6)

Standard Stage
Stage 1
1 25,25,387.95 88,122.34
88,122.34 24,37,265.60 10,848.94
10,848'4 77,273.41
77,273.41
Stage 2
Stage 2 2,33,532.22 16,514.34
16,514.34 2,17,017.88
2.1701788 948.48
g 4348 15,565.86
1 5,565.86
Subtotal
Subtotal 27,58,920.16 1,04,636.68 26,54,283.48 11,797.42
11,797.42 92,839.27
92,839.27

Non-Performing Assets (NPA)

Non-pelforming Assets (NPA)
Substandard
Substandard
Stage
Stage 3
3 1,09,226.62 56,409.77
56.4D@77 52,816.85
52,81685 51,293.35
51,29335 5,116.42
5,116.42

Doubtful
Doubtful-- up to )1year
year Stage
Stage 3
3 63,300.22
63,30D22 35,339.22
35.33@22 27,961.00
27,96103 40,663.75
40,66375 (5,324.53)
("24 53)
1 to 3
1 to years
3 years Stage
Stage 3
3 15,071.91
15,071 8,121.60
8,121.60 6,950.31
6,95031 11,738.50
11,73350 (3,616.90)
More
More than
then 33 years
years Stage 3
Stage 3 - - - - -
Subtotal for doubtful
Subtotal for doubtful 78,372.13
78,372.13 43,460.82
43,460.82 34,911.31 52,402.25
52,402.25 (8,941.43)
(8,941.43)

Loss Stage
Stage 3
3 - - - - -
Subtotal
Subtotal for NPA
for NPA 1,87,598.75 99,870.58 87,728.16 1,03,695.60 (3,825.01)

Total
Total Stage
Stage 1 1 25,25,387.95 88,122.34
88,122.34 24,37,265.60 10,848.94
10,848'4 77,273.41
77,273.41
Stage
Stage 2 2 2,33,532.22 16,514.34
16,514.34 2,17,017.88
2.1701788 948.48
g 4348 15,565.86
1 5,565.86
Stage
stage 3 3 1,87,598.75 99,870.58
gg,870.58 87,728.16
87,72816 1,03,695.60 (3E250i)
(3,825.01)
Total
Total 29,46,518.91 2,04,507.27
2,04$07.27 27,42,011.64 1,15,493.01 89,014.25
89,014.25

190 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

70. CONCENTRATION
CONCENTRATIONOF
OF DEPOSITS, ADVANCES, EXPOSURES AND
DEPOSITS,ADVANCES,EXPOSURES AND NPAs
NPAs (Contd.)
(Contd_)

For
For the
the year
year ended
ended March
March 31,
31, 2020
2020

` in
in lacs
lacs

Asset Classification
Asset Classification
Asset Gross Loss
Loss
Net
Net Carrying
Carrying Provisions
Provisions
Difference
Difference

as per
as per RBI
RBI Norms
Norms classification
classification Carrying
Carrying Allowances
Allowances Amount
Amount required
required asas between
between

as
as per
per Ind AS Amount
Ind AS Amount as
as per
per (Provisions)
(Provisions) asas per
per IRACP
IRACP Ind
Ind AS
AS 109109

109 Ind AS required under

IndAS under norms
norms provisions
provisions
Ind
Ind AS
AS 109
109 and
and IRACP
IRACP

norms
norms

(1) (2) (3)

(3) (4)
(4) (5)=(3)-(4) (6)
(6) (7) = (4)-(6)
Standard
Standard Stage
Stage 1
1 24,71,361.98
24,71.61 83,680.54
83,680.54 23,87,681.44
44 25,592.61
25,59261 58,087.93
58,087.93
Stage
Stage 2
2 1,67,996.84 11,043.90 1,56,952.94 7,216.78
7,21678 3,827.12
3,827.12
Subtotal
Subtotal 26,39,358.82 94,724.44
94,724.44 25,44,634.38 32,809.39
32,809.39 61,915.05
61,915.05

Non-Performing
Non-performing Assets (NPA)
(NPA)
Substandard
Substandard Stage
Stage 3
3 1,65,755.67 79,864.32
79,864.32 85,891.35
85,89125 83,449.16 (3,584.84
(3,584.84)

Doubtful
Doubtful -- up to 11 year
upto year Stage
Stage 3
3 46,409.56
46.40956 23,351.06
23,351.06 23,058.50
23,05350 39,213.69
3921369 t 5.86263)
(15,862.63)
1 to 3 years
1 to 3 years Stage 3
Stage 3 14,128.49
1412349 6,459.77
6.45977 7,668.73
7,66873 13,025.51
13,02551 6565.74)
(6,565.74)
More than 3
More then S years
years Stage 3
Stage 3 - - - - -
Subtotal for doubtful
Subtotal for doubtful 60,538.05
60,538.05 29,810.82
29,810.82 30,727.23
30,727.23 52,239.20
52,239.20 (22,428.37)

Loss
Loss Stage
Stage33 - - - - -
Subtotal for
Subtotal for NPA
NPA 2,26,293.73 1,09,675.14 1,16,618.58 1,35,688.35 (26,013.21)

Total
Total Stage
Stage 1 1 24,71,361.98
24,71.61 83,680.54
83,680.54 23,87,681.44
44 25,592.61
25,59261 58,087.93
58,087.93
Stage
Stage 2 2 1,67,996.84 11,043.90 1,56,952.94 7,216.78
7,21678 3,827.12
3,827.12
Stage
stage 3 3 2,26,293.73 1,09,675.14 1,16,618.58 1,35,688.35 (26,013.21)
Total
Total
28,65,652.55 2,04,399.59 26,61,252.96 1,68,497.74 35,901.84
35,901.84

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 191
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

70. CONCENTRATION
CONCENTRATIONOF
OF DEPOSITS, ADVANCES, EXPOSURES AND
DEPOSITS,ADVANCES,EXPOSURES AND NPAs
NPAs (Contd.)
(Contd_)

70.8 
70.8 D isclosure as
Disclosure as per the circular
circular no
no DOR.No.BP.BC.63/21.04.048/2019-20 dated April
_04_048/2019-20 dated April 17,
17, 2020
2020 issued
issued by
by Reserve
Reserve Bank
Bank of
of
India
India on
on “COVID
"COVID 19
1g regulatory
regulatory package -- Asset
Asset Classification
Classification and
and provisioning”
provisioning"

i Arnunts
Amounts in in SMA/overdue
SMA/overdue categories
categories where
where moratorium/deferment
moratorium/deferment was
was extended
extended in
in terms
terms of
of paragraph
paragraph 2
2 and
end 3
3 of
of the
the
above
above circular
circular

` in
in lacs
lacs

SMA
SMA category As at As at
March
March 31, 2021
2021 March
March 31,
31, 2020
2020
SMA
SMA 0 D 1,00,756.64 1,23,292.19
SMA
SMA 1 1,96,544.54
1196,544 2,87,621.77
2E7,621.77
SMA 2
SMA 2 25,122.90 34,125.15
34,125.15
Total
Total 3,22,424.08 4,45,039.10 10

ii Respective
Respective amount
emount where
where asset
asset classification
classification benefit
benefit is
is extended
extended :: Nil
Nil (March
(March 31,
31, 2020
2020 :: ` 20,047.7
20,0477 lacs)
lacs)

iii 
Ill The provision
The as per
provision es the ECL
zer the ECL model
model as
es at
at March
March 31,
31, 2020
2020 was
was more when compared
more when compered withwith the
the provision
provision required
—uired asas per
per
IRAC norms after including additional 5% provision of ` 22,251.96 lacs and also after including additional 10% provision
'RACnorms after including addition-1 provision of t 22,251'6 'acs and also after including Edditicnal provision
as
as at
at June
dune 30,
30, 2020,
2020, September
September 30,30, 2020
2020 and
-nd December
December 31, 31 2020.
202D Further,
Further, the
the provision
provision as-s per
per the
the ECL
ECL model
mc.del as
as at
at
March
March 31,
31, 2021
2021 was
w,vssmore
more compared
compared tcto the
the provision
provision required
required as
es per
per IRAC norms after
IRACnums after excluding
excluding the
the additional
additional 10%
provision,
provision, in
in accordance
accordance withwith the
the para
para 66 of
of above
above circular.
circular

iv Provisions
Provisions adjusted
adjusted against the respective
against the respective accounting
accounting periods
periods for
for slippages
slippages and
and residual
residual provisions
provisions in
in terms
terms of
of
paragraph 5 of the above circular : Not applicable
paragraph 5 ofthe above circular : Not applicable

‘The
'The Company
Company had hed granted
granted moratorium
moratorium upto upto six
six months
months on on the
the payment
payment of of installments
installments falling
falling due
due between
between March
March
1, 2020 and August 31, 2020 to all eligible borrowers based on the Board approved moratorium policy read with the
1, 2020 and August 31, 2020 to all e'igible borrowers based on the Eoard approv± moratorium policy reed with the
Reserve
Resewe BankBank of
Df India
India (RBI)
(831) guidelines
guidelines dated
dated March
Merch 27,27, 2020
2020 and
and May
May 23,
23, 2020
2020 relating
relating to
to ‘COVID-19
'COVID-1g -- Regulatory
Regulatory
Package’
Package' and
and RBI guidelines
guidelines on on EMI
EMI moratorium
morstcrium dated April 17,
dsted April 17, 2020.
2020 Further, period for
Further,period for which
which moratorium
moratorium was was granted
granted
had not been considered for computing days past due (DPD) as on March 31, 2021. Extension of such moratorium
hed not teen considered for computing days past due (DPD) as on March 31, 2021 Extension of such moratorium
benefit to borrowers
benefit to borrowers asas per
per the
the COVID-19
COVID-1g Regulatory
Regulatory package
peckage ofof the
the RBI
RBI and
and DPD freeze
freeze for
for such
such period
peilDd byby itself
itself is
is
not
not considered
considered toto result
result in
in significant
significant increase
increase in
in credit
credit risk
risk as
as per
per Ind
Ind AS
AS 109
IDS for
for staging
staging ofof accounts.
accounts The The Company
Company
continued
continued toto recognise
recognise interest
interest income
income during the moratorium
during the mar-trium period
period and
and in the absence
in the absence of of other
other credit
credit risk
risk indicators,
indicators,
the granting
the granting of
of a
a moratorium
moratorium periodperiod does
does not
not result
result in
in accounts
accounts becoming
becoming past
past due
due and
and automatically
automatically triggering
triggering Stage
Stage
2 or Stage 3 classification criteria.
2 or Stage 3 classification criteria

‘The COVID -19

'The COVID -lg pandemic
pandemic hashes significantly
significantly affected various sectors
affected various sectors of of Indian
Indian economy.
economyt TheThe prolonged
prolonged lockdown
lockdown
imposed by the government due to Covid-19 pandemic has affected the Company’s business operations. the Company
imposed by the government due to Covid-lg *ndemic has affected the Company's business operations the Company
has
hes considered
considered anan additional
additional Expected
Expected Credit
Credit Loss
Loss (ECL) provision of
(ECL)provision of `t 28,273.05
28,273.05 lacs
'acs on
on account
account of
of COVID-19
COVID-1g during
during
year ended
year ended March
March 31,
81, 2021.
2021 As
As at
Et March
March 31,
81, 2021,
2021 additional
additional ECL provision on
ECLprovision Dn loan
loan assets
assets as
-s management
management overlay
overlay on
on
account of COVID-19 stood at ` 70,876.72 lacs. The additional ECL provision on account of COVID-19 is based on the
account of COVID-1gstood ate 70,87672 lacs. The additional ECLprovision Dnaccount cf COVID-I? is based on the
Company’s
Company's historical
historical experience,
experience, collection
collection efficiencies
efficiencies post
post completion
comp'eticn of of Moratorium
Mar-torium period, scheme
scheme by
by Government
Government
of
of India,
India, internal
internal assessment
assessment andand other
other emerging
emerging forward
forwsrd looking factors on
'caking factors on account
eccount of the pandemic.
of the pandemic However,
However, the
the
actual
actual impact
impact may
may vary
vary due
due to
to prevailing
prevaling uncertainty caused by
uncerta inty caused the pandemic.
by the pendemic. the the Company’s management
managementis continuously
iscontinuously
monitoring the situation
monitoring the situation and
and the
tne economic factors affecting
economic factors stfectng the
the operations
operations of
of the
the Company.
Company

192 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

71. OVERSEAS ASSETS (for those

OVERSEASASSETS(for those with joint ventures
with joint ventures and
and subsidiaries
subsidiaries abroad)
abroad)

The Company
The Compeny does not have
dc:esnot have any joint venture
any joint venture or subsidiary abroad,
or subsidiary abroad, hence
hence not
not applicable.
applicable

72.
72. OFF-BALANCE SHEET SPVS SPONSORED
OFF-BALANCESHEETSPVS (which are
SPONSORED(which are required to
to be
be consolidated
consolidated as
as per accounting norms)
per accounting norms)

The Company
The Compeny has
has not
not sponsored
sponsored any
any off-balance
off belence sheet
sheet SPV which are
SRVwhich are required to be
requir4i to be consolidated
consolidated as
es per accounting norms.
preraccounting norms

73. CUSTOMER
CUSTOMER COMPLAINTS
COMPLAINTS

Particulars
Particulars Year ended
Year ended Year ended
Year ended

March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
(a) Number of complaints
Numberof complaints pending
pendingatat the beginning
beginningofof the year
theyear 25 20
(b)
(b) Number
Number of
of complaints
complaints received
received during
during the
the year
year 2,900
2,goo 2,521
2,521
(c)
(p) Number of complaints
Numberof complaints redressed during the year
redressedduringthe year 2,923
2,923 2,516
2,516
(d) Number of complaints pending at the end of the
(d) Number of complaints pending at the end of year
the year 2 25

74. AUCTION
AUCTION DETAILS
DETAILS

The Company
The Auctioned 167
Company Auctioned 167 loan
Ben accounts
accounts (March
(March 31,
31, 2020:
2020: 1,799
1,7gg accounts)
accounts) during
during the
the financial
financial year
year and
and the
the outstanding
outstanding dues
dues
on these loan accounts were ` 36.25 lacs (March 31, 2020: ` 313.65 lacs) till the respective dates of auction. The company realised
on these loan sccounts were 3625 lacs (March 31, 2020: 31365 lacs) till the res*ctive dstes of auction. The company realised
` 37.44
37.44 lacs
lacs (March
(March 31,
31, 2020
2020 :: ` 306.51
306.51 lacs)
lacs) on
cr. auctioning
auctioning of
of gold jewellery taken
gold jewellery taken as
es security
security on
on these
these loans. The company
bens The company
confirms that
confirms that none
none of
of its
its sister
sister concerns
concerns participated
participated in
in the
the above
above auctions.
auctions

75. DISCLOSURE
DISCLOSURE
OF PENALTIES IMPOSED BY
OF PENALTIES
RBI AND OTHER REGULATORS
BY RBI AND OTHER REGULATORS

` in
in lacs
lacs

Sr.
Sr. Authority
Authority Details
Details of
of non-compliance
non-compliance Penalty
Penalty Penalty
Penalty Penalty
Penalty Penalty
Penalty Date
Date of
of Status
Status

No made by the Company

made by the for
Company for levied
levied paid
paid provided
provided Waived/
Waived/ payment
payment as
as onon

which penalty
which penalty has
has been
been Reduced/ March
March

levied
levied Stay 31,
Received
Received 2021
2021

1 Reserve
Reserve Bank
aankof of India
Indie Non-Compliance
Non-compliance with with 5.00 5.00 Nil Nil
Nil October
October Paid
paid

directions issued by
directions issued by RBI
RBI on
cr. 12,
12, 2020
2020

verification
verification of the ownership
of the ownership
of gold jewellery
goldjewellery
2 Insurance
Insurance Regulatory
Regulatory and and Nil
Nil
Nil Nil Nil Nil Nil
Nil
Nil
Development Authority of
Development Authority of
India
Indis

33 Enforcement
Enforcement
Directorate
Directorate
Nil
Nil
Nil Nil Nil Nil Nil
Nil
Nil
(ED)
(ED)// Adjudicating
Adjudicating
Authority/ Tribunal
Authority/ Tribunal oror any
any
authority under FEMA
authority under FEMA
4 Registrar
Registrar ofof Companies/
Companies/ Nil
Nil Nil Nil Nil Nil Nil
Nil Nil
NCLT/
NCLT/ CLB/
Cl_a/ Department
Department
of
of Corporate Affairs
Corporate Affa irs
or any Authority under
or any Authority under
Companies Act, 1956
Companies Act, 1
5 Securities
Securities and
and Exchange
Exchange Nil
Nil Nil Nil Nil Nil Nil
Nil Nil
Board of India
Board of India

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 193
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

75. DISCLOSURE OF PENALTIES

DISCLOSUREOF IMPOSED BY RBI
PENALTIESIMPOSEDBY RBI AND OTHER REGULATORS (Contd.)
AND OTHERREGULATORS (Contd_)

` in
in lacs
lacs

Sr.
Sr. Authority
Authority Details
Details of
of non-compliance
non-compliance Penalty
Penalty Penalty
Penalty Penalty
Penalty Penalty
Penalty Date
Date of
of Status
Status

No made by the Company

made by the for
Company for levied paid
paid provided
provided Waived/
Waived/ payment
payment as
as onon

which penalty has

which has been
been Reduced/ March
March

levied
levied Stay
Stay 31,
Received
Received 2021
6 Competition
Competition Commission
Commission Nil Nil Nil Nil
Nil Nil Nil
Nil Nil
Nil

of India
of India

7 Financial
Financial Intelligence
Intelligence Unit
Unit Failure of the
Failure of the Company
Compeny to
to 4.50
45D 4.50 Nil
Nil Nil
Nil January
January Paid
Paid
-- India
Indie file CTR,
fle to evolve an
CTR, to an internal
interne' 1,
1, 2021
2021

mechanism
mechanism for for detecting
detecting the
the
transactions, to put in place
transactions, to put in place
of an
of an effective
effective mechanism
mechanism tto

detect
detect and
end report
report suspicious
suspicious
transactions, tc
transactions, to undertake
undertake
risk
risk categorisation
categorisstion of
cf the
the
customers and
customers to conduct
and to conduct

periodical
*riodics' review
review of of risk
risk
categorisation, to
categorisation, to identify
identify and
and
verify the Beneficial Owner
veri the Beneficial Owner

No
No penalties
*nelties have
have been
been levied
levied by
by any
any regulator
regulator on
on the
the Company
Company for
for the year ended
the year ended March
March 31,
31, 2020.
2020.

76. The Company has not invoked any resolution plans for borrowers based on the parameters laid down in accordance with
The Company has not invoked any resolution plans for ±rrowers based on the parameters laid down in accordance with
the
the resolution
resolution policy
policy approved
approved by
by the
the Board of Directors
203rd of Directors of the Company
of the Company and
and in
in accordance
accordance with
with guidelines
guidelines issued
issued by
by the
the
RBI on August
RBI on August 6,
6, 2020.
2020

Disclosure
Disclosure as
as per the format prescribed
the format prescribed asas per the notification
per the notification no.
no. RBI/2020-21/17
RBI/2020-21/17 DOR.NO.BP.BC/4/21.04.048/2020-21
DORNO BPBC/4/21 _04_048/2020-21 on on
“Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances” having exposure less than or equal to
"Micro, Small and Medium Enterprises (MSME) sector —Restructuring of Advances" having exposure less than or equal to
` 25 crore for
25 crore for the year ended
the year ended March
March 31,
31, 2021
2021

` in
in lacs
lacs

No. of accounts
No. of accounts restructured
restructured Amount
Amount

565 15,424.60
15,424.60

77. Hon’ble Supreme Court, in a public interest litigation (Gajendra Sharma vs. Union of India & Anr). vide an interim order dated
Hon'ble Supreme Court, in a public interest litigation (Gajendra Sharma vs. union of Indie & Anrl vide an interim order dated
September 3,
Septem±r 3, 2020,
2020, has
hes directed
directed that
that accounts
sccounts which
which were
were not
not declared
declared NPA till August
NPAtill August 31,
31 2020
2020 shall
shall not
not be
be declared
declared as
es
NPA till further orders. However, such accounts had been classified as stage 3 and provision had been made accordingly.
NPAtill further orders However,such sccounts had ten classified as Stege 3 and provision had been mede accordinglb{
The
The interim
interim order
order stood
stood vacated
vaceted on
on March
Msrch 23,
23, 2021
2021 vide
vide the judgement of
the judgement the Hon’ble
cf the Hon'ble Supreme
Supreme Court
Court in
in the
the matter
mstter of
of Small
Smsll
Scale
Scale Industrial
Industrial manufacturers
menufacturers Association v/s UOI
Association v/s & Ors.
L]OI & Ors and
and other
other connected
connected matters.
matters InIn accordance
accordance with the instructions
with the instructions

in paragraph 5 of the RBI circular no. RBI/2021-22/17 DOR. STR. REC. 4/ 21.04.048/ 2021-22, dated April 07, 2021 issued
in paragraph 5 of circular no. 831/2021-22/17 STR REC 4/ 04048/ 2021-22, April 07, 2021 issued
in this connection, the Company was already classifying the NPA accounts as Stage 3 and provision was made accordingly,
in this connection, the Compeny was slready classifying the NPAaccounts es Stage 3 and provision was made accordingly,
without
without considering
considering the
the above
above mentioned
mentioned asset
asset classification
classification benefit
benefit for
for accounting
accounting purpose,
purpose, there
there is
is no
no change
change inin asset
asset
classification
classification on
cr. account
account of the interim
of the interim order
order dated
dated March
March 23,
23, 2021.
202V

194 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

78. The Company had credited an ex-gratia amount of ` 10,423.34 lacs for the payment of difference between the compound
The C.ompanyhed credited an ex-gretie amount of 10,42334 lacs for the peyment of difference between the compound
interest
Interest and
and simple
simple interest
interest toto the
the accounts
accounts ofof borrowers
borrowers inin specified
specified loan
Iæn accounts
accounts between
between March
Merch 1, 1, 2020
2020 and
and August
August
31, 2020 as per the eligibility criteria and other features as mentioned in the notification dated October 23, 2020 issued by
31, 2020 es per the eligibility criteria and other features -s mentioned in the notification dated üctober 23, 2020 issued by
Government
Government of of India,
India, Ministry
Ministry ofof Finance,
Finance, Department
Department ofDf Financial
Financial Services. The Company
Services The Compeny had hsd filed
filed aa claim
claim with
with the
the State
State
Bank
Bank of
of India for reimbursement
India for reimbursement of the said
of the said ex-gratia
ax-gratia amount
amount as as specified
s*cified in the notification
in the notification and
and same
same waswas received
received onon
March 31, 2020.
March 31, 2020

79. In
In accordance
accordance with the RBI
with the circular dated
RBI circular dated April
April 07,
07, 2021
2021 and the Indian
and the Indian Banks’
Banks' Association
Asscciation (‘IBA’)
('IBA') advisory
advisory letter
letter dated
dated
April 19, 2021 consequent to the judgement dated March 23, 2021 of Hon’ble Supreme Court, the Company has put in place
April 1g, 2021 consequent to the judgement dated March 23 2021 of Hon'ble Supreme Court, the Company has put in place
aa policy
policy approved
approved by the Board
by the ecerd of
of Directors to refund/
Directors to refund/ adjust the ‘interest
adjust the on interest’
'interest on interest' charged
charged to to borrowers
borrowers (other
(other than
than
specified
specified borrowers)
borrowers) during
during the
the moratorium
moratorium period
pericd .i.e. March
March 1,
1, 2020
2020 to to August
August 31,
31 2020.
2020 The
The Company
Company hashes estimated
estimated thethe
said amount and made a provision in the financial statements for the year ended March 31, 2021.
said amount and made e provision in the financial statements for the year ended March 31, 2021

80. DISCLOSURES
DISCLOSURES PERTAINING
PERTAINING TO
TO FUND
FUND RAISING
RAISING BY
BY ISSUANCE
ISSUANCE OF
OF DEBT
DEBT SECURITIES
SECURITIES BY
BY LARGE
LARGE CORPORATE
cnRPORATE

The Company,
The Company, asas per
per the
the SEBI circular SE131/HO/DDHS/CIR/P/2018/144,
SE31circular SEI 31/HC/ÜCl--IS/CAfP,i2018/144, and the definitions
and the definitions therein,
therein, is
is a
a Large
Large Corporate
Corporate and
and
hence is required to disclose the following information about its borrowings
hence is required to disclose the following information e±ut its borrowings

Sr.
Sr. Particulars
Particulars As at As at
No. March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
1 Name
Nemeof of the Company
Company Shriram
Shriram City
City Union
union Finance
Finence Limited
Limited
2 CIN
CIN L65191TN1986PLC012840
L651EITN1986PLC01284D

33 Outstanding
Outstanding borrowing of the Company
borrowing ofthe Compeny (` (e in
in lacs)
lacs) 18,73,383.03 16,82,627.21
16E2,627.21
4 Highest Credit Rating During the previous FY along
Highest Credit Rating During the previous along with
With name
name of
of the
the Credit
Credit CARE AA+ by CARE CARE AA+ by CARE
CAREAA+ by CARE CAREAA+by CARE
Rating Agency
Rating Agency Ratings Limited
Ratings Limited Ratings Limited
Ratings Limited
5 Name
Neme ofDf Stock
Stcck Exchange
Exchange in which the
in which the fine
fine shall
shall be
te paid,
paid, in
in case of shortfall
case of shortfall in
in National
National Stock
Stock National
National Stock
Stock

the required
the required borrowing
borrowing under
under the framework
the framework Exchange
Exchangeof of India
India Exchange
Exchange ofof India
India
Limited
Limited
Limited
Limited

Annual Disclosure
Annual to be
Disclosure to be made
mede by
by an
an entity
entity identified
identified as
es aa Large
Large Corporate
Corporate

` in
in Lacs
Lacs

Sr.
Sr. Particulars
Particulars Year ended
Year ended

No. March
March 31,
31, 2021
2021 March
March 31,
31, 2020
2020
1 Incremental
Incremental borrowing done done in
in FY (a)
(a) 9,26,495.51 6,19,498.73
2 Mandatory
Mandatory borrowing
±rrowing to to be
be done
done through
through issuance
issuance of
of debt
debt securities
securities (b)(b) = 2,31,623.88 1,54,874.68
(25% of a)
33 Actual borrowings done through debt
borrowingsdonethrough debt securities in FY (c)
securitiesin (p) 1,88,090.00 1,93,325.76
4 Shortfall
Shortfall in the mandatory
in the mandatory borrowing
borrowing through
through debt
debt securities,
securities, ifif any
any (d)
(d) = (b)
(b) 43,533.88
43,53388 Nil
Nil

--o(c)
5 Reasons
Reasons for
for short
short fall,
fall, if
if any,
any, in
in mandatory
mandatory borrowings through
through debt
debt securities
securities Borrowings
Borrowings from
from NA
capital
capital markets
markets
were
were lower
lower due
due toto

Covid 19 related
Covid 1 g related

impact
im act on
on business.
business.

Notes:
(i) 
(l) Figures
Figures pertain
pertain to
to long term borrowing
long term borrowing basis
basis original
origins' maturity
maturity of
of more
more than
than one
one year
year (excludes
(excludes funds
funds raised
raised by way of
byway of Direct
Direct
Assignment, Securitisation & Sale of receivables in form of Direct Assignment under Partial Credit Guarantee Scheme)
Assignment, Securitisation & Sale of receivables in form of Direct Assignment under Partial Credit Guarantee Scheme)

(ii) Figures
Figures are taken on
are taken the basis
on the basis of
of cash
cash flows/principal
flows/princi#l maturity
maturity value,
value, excluding
excluding accrued
accrued interest,
interest, ifif any.
any

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 195
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

81. The Code on Social Security, 2020 (the Code) has been enacted, which would impact contribution by the Company towards
The Code on Snial Securiw, 2020 (the Ccde) hes been enacted, which would impact contribution by the Compeny towards
applicable
applicable social
sccial security
security schemes.
schemes The The Ministry
Ministry of
cf Labour
Letour and
and Employment
Emp'oyment has
has also
also released
released draft
draft rules
rules thereunder
thereunder onon
November 13, 2020 and has invited suggestions from stakeholders which are under active consideration by the Ministry.
November 13, 2020 and has invited suggestions from stekehclders which -re under sctive consider-tian by the Ministry
The
The actual
actual impact
impact on
on account
account ofof this change will
this change will be
be evaluated
evaluated and
and accounted
accounted for
for when
when notification
notification becomes
becomes effective.
effective

82. LIQUIDITY
LIQUIDITY RISK
RISK

Public
Public Disclosure
Disclosure on
on Liquidity
Liquidity Risk
Risk for
for the
the period
period ended
ended March
March 31,
31, 2021
2021 pursuant to RBI
pursuant to RBI circular
circular dated
dated November
November 4,
4, 2019
201 g on
on
Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies.
Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies.

(i)
(l) Funding
Funding Concentration
Concentration based on significant
based on significant counterparty
counterparty (both
(both deposits
deposits and
and borrowings)

Sr.
Sr. Number of Significant
Number of Significant Counterparties
Counterparties Amount
Amount % % of
of Total
Total deposits
depsits %
% of
of Total
Total liabilities
liabilities
No. (` in
in lacs)*
lacs).
1 18 16,46,173.87 297.74%
7.74% 63.09%
*Includes
•Includes securitisation
securitisation liabilities
liabilities exposure
exposure

(ii) Top
Top 20
20 large
large deposits
deposits (amount
(amount in
in ` in
in lacs and %
lacs and % of
of total
total deposits)

Particulars
Particulars As at
March
March 31,
31, 2021
2021
Total
Tote' amount of top
amount of top 20
20 large
large deposits
deposits 13,448.28
13,443.28
Percentage
Percent* ofof amount
amountofof top
top 20
20 large deposits to
laraede;csits to total deposits
*posits 2.43%

(iii)
Oil) Top
Top 10
10 borrowings
borrowings (amount
(amount in
in ` in
in lacs
lacs and
and % of total
%of total borrowings)
borrowings)

Particulars
Particulars As at
March
March 31,
31, 2021
2021
Total
Tote' amount of top
amount of top 10
1D borrowings
borrowings * 12,36,599.84
1236.59984
Percentage of amount of top 10
Percenta eofemountofto borrowings
10borrowin stoto total
total borrowings
borrowin s 48.37%
4337%

*Includes
•Includes securitisation
securitisation liabilities
liabilities exposure
exposure

(iv) Funding
Funding Concentration
Concentration based on significant
based on significant instrument/product
instrument/product

Sr.
Sr. Name
Name of
of the
the instrument/product
instrument/product Amount %
% of
of Total
Total

No. (` in
in lacs)
lacs liabilities
liabilities

1 Public
Public issue
Issue of cf Redeemable
Redeemab'e non-convertible
nan-convertible debentures
debentures 86,924.21 3.33%
2 Privately placed Redeemable non-convertible debentures
laced Redeemable non-convertible debentures 3,39,438.79 13.01%
1301%

3 Term Loan from banks

Term L'En from banks 7,62,526.16 29.23%
2Y23%

4
4
Term Loan
Term L'En from
from financial
financial institution/
institution/ NBFC
NFC 2,63,930.95 10.12%
5 Loans
Loans repayable
repayable on on demand
demand from from banks
banks (Cash
(Cash credit
credit from
from banks
banks & 2,12,362.91 8.14%
314%

Working Capital Loan)

Workin CE ital Loan

6 Other
Other loans
loans - - Securitisation
Securitisation liabilities
liabilities 3,38,459.12
"8,459.12 12.97%
1297%

7 Public deposits
Public deposits 5,52,888.78 21.19%
(v)
(v) Stock
Stock Ratios:
Ratios:

Particulars
Particulars as
as aa %
% of
of as
as a
a %
% of
of as
as aa%% of
of

Total public funds

Total public funds Total liabilities
Total liabilities
Total assets
Total assets

(a)
(9) Commercial
Commercialpaperspapers - - -
(b)
(b) Non-convertible debentures
Non-convertible debentures (original
(original maturity
maturity of
of less
less than
than - - -
one year)
one year)
(c)
c Other
Other short-term
short-term liabilities*
liabilities• 10.46%
10.46% 10.24%
10.24% 7.81%
7.81%

*includes
•includes cash credit, working
cash credit, working capital
capital demand
demand loans
bens and
and other
other short
short term
term loans
loans with
With original
original maturity
maturity of
of less
less than
than one
one year.
year

196 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

82. LIQUIDITY
LIQUIDITY RISK
RISK (Contd.)
(Contd_)

(vi)
(vi) Institutional set-up for
Institutional set-up for liquidity
liquidity risk
risk management
management

The
The Board
Board of
of Directors
Directors are
ere responsible for the
responsible for the overall
overall risk
risk management
management approach
approach and
and for
for approving
approving the
the risk
risk management
management
strategies
strategies and
end principles.
principles.

The
The Board
aoerd hashes constituted
constituted the Audit and
the Audit end Risk
Risk Management
Menagement Committee
Committee (ARMC)
(ARMC) which
which is
is responsible for monitoring
respnsible for monitoring the
the
overall
overall risk
risk process
prness within the Company.
within the Company
The
The (ARMC)
(ARMC) is is responsible
responsible for
for managing
managing risk
risk decisions
decisions and
and monitoring
monitoring risk
risk levels.
levels. The
The meetings
meetings of ARMC are
of ARMC are held
held at
at
quarterly
quarterly interval.
interval

The
The Risk
Risk owners
owners are
are responsible
responsible for
for monitoring
monitoring compliance
compliance withwith risk
risk principles,
principles, policies and
end limits
limits across
across the
the Company.
Company.
Each department has its Risk owner who is responsible for the control of risks, including monitoring the actual risk
Each department h's its Risk owner who is resz:lnsible for the control of risks, including monitoring the actual risk of
of
exposures against authorised limits and the assessment of risks.
exposures against authorised limits and the assessment of risks

The
The Company’s Treasury is
Compeny's Treasury is responsible
responsible for
for managing
managing itsits assets
assets and
and liabilities
liabilities and the overall
end the overall financial
financial structure.
structure ItIt is
is also
also
primarily
primarily responsible for the
responsible for the funding
funding and
and liquidity
liquidity risks
risks of the Company.
of the Companyt
The
The Board
Board of
of Directors
Directors also
also approves
approves constitution
constitution of of Asset
Asset Liability
Liability Committee
Committee (ALCO), reviews or
(ALCO),reviews or monitors
monitors Asset
Asset Liability
Liability
Management
Menagement (ALM) mismatch. ALCO
(AI_M)mismatcfm ALCO conducts
conducts periodic
*riodic reviews
reviews relating
tel-ting to
to the
the liquidity
'iquidity position
;csition and
and stress
stress test
test assuming
assuming
various
various what
what ifif scenarios.
scenarios The
The ALCO
ALCOis is responsible
responsible forfor ensuring
ensuring adherence
adherence to the limits/
to the limits/ targets
targets set
set by the Board
by the Board asas well
well as
es for
for
deciding the business strategy of the Company in line with the Company’s budget and decided risk management objectives.
deciding the business stretegy of the Company in line with the Company's budget and decided risk menagement objectives
The
The ALCO
ALCO does
dc,es balance
balsnce sheet
sheet planning
planning from
from risk-return
risk-return perspective
pers—tive including
including strategic
strategic management
management of of interest
interest rate
rate and
and
liquidity
liquidity risks.
risks TheThe ALCO
ALCO also
also evaluates the Borrowing
evaluates the Borrowing PlanPlan of
Df subsequent
subsequent quarters
quarters on on the
the basis
basis of
of previous
previous borrowings
borrowings
of the company.
of the company. The The meetings
meetings ofof ALCO
ALCO areare held
held etat quarterly
quarterly intervals.
intervals TheThe ALMALM Support
Support Groups
Groups consisting
consisting ofof operating
operating
staff are responsible for analysing, monitoring and reporting the risk profiles to the ALCO. ALCO support group meets every
staff are responsible for analysing, monitoring and reporting the risk profiles to the ALCO.ALCO support group meets every
fortnight.
fortnight

In
In assessing
assessing the the company's
company’s liquidity
liquidity position,
position, consideration
consideration is is given
given to:to: (1)
(1) present
present and
and anticipated
anticipated asset
asset quality
quality (2)(2) present
present
and
and future
future earnings
earnings capacity
cap-city (3) (3) historical
historic-I funding
funding requirements
requirements (4) (4) current
current liquidity
liquidity position
position (5)
(5) anticipated
enticipat&d future
future funding
funding
needs, and (6) sources of funds. The Company maintains a portfolio of marketable assets that are assumed to be easily
needs, and (6) sources of funds The Company maintains s z:lrtfolio cf marketab'e assets that are sssumed to be easily
liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash flow. The
liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash flow The
Company
Company also also enters
enters into
into securitisation
securitisation deals deals (direct
(direct assignment
assignment as as well
well asas pass
pass through
through certificates)
certificstes) of
of its
its loan
loan portfolio,
portfolio,
the
the funding
funding from
from which
which can
can be be accessed
eccessed to to meet
meet liquidity
liquidity needs.
needs In In accordance
accordance with with the
the Company’s
Company"s policy, the the liquidity
liquidity
position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market
psition is assessed under variety of scenarios, giving due consideration to stress factors relating to toth the market
in general and specifically to the Company. Net liquid assets consist of cash, short–term bank deposits and investments
in general and specifical'y to the Camp-ny Net liquid sssets consist of cash, short—term bank and investments
in
in mutual
mutual fund
fund available
avsilable for
for immediate
immediate sale, sale, less
less issued
issued securities
securities and-nd borrowings
±rrowings due due toto mature
mature within
within the
the next
next month.
month.
Borrowings
Borrowings from from banks and financial
banks end financial institutions,
institutions, issue
issue of Df debentures
debentures and and bonds
bonds and
and acceptance
acceptance of of public
public deposits
de;csits are
are
considered as important sources of funds to finance lending to customers. They are monitored using the advances to
considered as important sources of funds to finance lending to customers. They are monitored using the advances to
borrowings ratio, which compares loans and advances to customers as a percentage of secured and unsecured borrowings.
±rrowings ratio, which comperes loans and advances t customers as a percentage of secured and unsecured borrowings.

The
The liquidity
liquidity buffer
buffer and SLR investments
and SLR investments was
was ` 4,01,569.30
401 ,56g.30 lacs
lacs and
end ` 95,779.83
95,77983 lacs
lacs respectively.
respectively.

*Notes:
•Notes:

1) 
1) Significant
Significant counterparty
counterparty is
is defined
defined as
as aa single
single counterparty
counterparty or
or group
group ofof connected
connected oror affiliated
affiliated counterparties
counterparties accounting
accounting
in
in aggregate for more
aggregate for more than
than 1% ofof the
the NBFC-NDSI’s, NBFC-Ds total
NSFC-NÜSl's,NSFC-Ds tots' liabilities
liabilities as
as defined
defined inin RBI Circular RBI/2019-20/88
331Circulsr RBI/2019-20/88
DOR.NBFC (PD) CC.No.102/03.10.001/2019-20 dated November 4, 2019 on Liquidity Risk Management Framework for
Non-Banking
Non-aanking Financial
Financial Companies
Companies and
and Core
Core Investment
Investment Companies.
Companies

2) 
2) Significant
Significant instrument/product
instrument/pr±uct is is defined
defined as
as a
a single
single instrument/product
instrument/pr±uct of of group
group of
of similar
similar instruments/products
instruments/prc.ducts
which in aggregate amount to more than 1% of the NBFC-NDSI’s, NBFC-Ds total liabilities, as
which in aggregate amount t more than of the NSFC-NÜSI's, N8FC-Ds total liabilities, es defined
defined in
in RBI
RBI
Circular RBI/2019-20/88 DOR.NBFC (PD) CC.No.102/03.10.001/2019-20 dated November 4, 2019 on Liquidity Risk
Circular R31,'201g-20/88 (RD) dated November 4, 2019 on Liquidity Risk
Management
Management Framework
Framework for
for Non-Banking
Non-aanking Financial
Financial Companies
Companies and
and Core
Core Investment
Investment Companies.
Companies

3)
3) Total Liabilities
Total Liabilities has
has been
teen computed
comput4i as
as sum
sum of
of all
all liabilities
liabilities (Total
(Total of
of Balance
Balence Sheet
Sheet less Total Equity).
less Total Equity)

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 197
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

82. LIQUIDITY
LIQUIDITY RISK
RISK (Contd.)
(Contd_)

4)
4) Public funds includes
Public funds funds raised
includes funds raised either
either directly or indirectly
dirætly or indirectly through
through public
public deposits,
deposits, inter-corporate
inter-corporate deposits,
deposits, bank
bank
finance and
finance and all
Ell funds
funds received from outside
received from outside sources
sources such
such as
as funds
funds raised
reised by
by issue
issue of
of Commercial
CommerciEI Papers,
Papers, debentures
debentures
etc.
etc. but
but excludes
excludes funds
funds raised
raised by
by issue
issue ofof instruments
instruments compulsorily
compulsorily convertible
convertible into
into equity
equity shares within aa period
shares within peri-Z
not exceeding 5 years from the date of issue, as defined in Master Direction - Non-Banking Financial Company -
not exceeding 5 years from the date cf issue, as defined in Mester Direction - Non-Banking Financial Compeny
Systemically
Systemically Important
Important Non-Deposit taking Company
Non-üeposit taking Company andand Deposit taking Company
Dep3sit taking Company (Reserve
(Reserve Bank)
Bank) Direction,
Dirætion, 2016.
2016

83. DISCLOSURE
DISCLOSURE OFOF FRAUDS
FRAUDS REPORTED
REPORTED DURING THE YEAR
DURING THE YEAR ENDED
ENDED MARCH 31, 2021
MARCH 31, VIDE DNBS.
2021 VIDE DNBS_ PD.
PD. CC
CC NO.
NO
256/03.10.042/2011-12 DATED
DATED MARCH 2, 2012
MARCH 2, 2012
Instances
Instances of
of fraud for the
fraud for the year
year ended
ended March
March 31,
31, 2021:
2021:

` in
in lacs
lacs

Particulars
Particulars Less
Less than
than ` 11 lacs
lacs ` 11 lac
lactoto `25
t25 lacs
lacs Greater Total
Total

than
than ` 25
25 lacs
lacs

Number
Number Value
Value Number
Numtw Value
Value Number
Number Value
Value Number
Number Value
Value

A)
A) Person
Person involved
involved

Staff
Staff - - - - - - - -
Staff
Steff && Customer
Customer - - 2 5.00
500 - - 2 5.00
Customer
Customer - - - - - - - -
Customer
Customer
& Outsider
& Outsider
- - - - - - - -
Staff,
Staff, Customer
Customer & & Outsider
Outsider - - - - - - - -
Total
Total
- - 2 5.00 - - 2 5.00
B)
B) Type
Type ofof Fraud
Fraud
Misappropriation and
Misappropriation and Criminal
Criminal - - - - - - - -
breach
breach ofof trust
trust
Fraudulent
Fraudulent encashment/
encashment/ - - - - - - - -
manipulation
manipulation of of books
books of
of accounts
accounts
Unauthorised
unauthorised credit facility
credit facility - - - - - - - -
extended
extended

Cheating
Cheating and
and Forgery
Forgery - - 2 5.00
500
- - 2 5.00
Total
Total - - 2 5.00 - - 2 5.00
“- “represents
"represents Nil
Nil

198 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

84. ASSET
ASSET LIABILITY
LIABILITY MANAGEMENT
MANAGEMENT MATURITY
MATURITY PATTERN
PATTERN OF
OF CERTAIN
CERTAIN ITEMS
ITEMS OF ASSETS AND
OF ASSETS AND LIABILITIES
LIABILITIES

As at
As at March
March 31,
31, 2021
2021

` in
in lacs
lacs

Particulars
Partlculars
0 to 7 8 to 14 15 to Over 1 Over 2 Over Over Over Over Over Total
days
days days
days 30/31
0/31 Days
Days month
month upto
upto months
months 3
3 months
months 6 11 year
year 3 years
3 years 5 years
5 years
22 Months
Months upto
upto &
& up to 6
up to 6 Months
Months &
& up
up to
to 3
3 & up to 5
3
3 Months
Months Months
Months &
& up
up to
tol 1 years years
year
Deposits
Xosits 1,239.96 1,587.71
1,587.71 6,626.81 9,697.77 12,304.94 40,859.07 90,645.87
0645.87 2,80,783.32
280,783M 1,09,143.33
10914333 - 5,52,888.78
Advances* 1,09,021.60
1.D@D21 42,901.32 32,35083
32,350.33 1,23,632.26
114632.26 1,31,852.26
131185226 3,89,113.52 7,05,187.27 9,06,436.94 1,78,936.13 1,22,580.01
112215800127,42,011.64
Investments
IT.estrr,erts - 280.77 448.69 13.47
13@7 15.30
1580 45.29 66,142.79 8,271.40
8,27140 - 26,514.53
26151453 1,01,732.24
101,73224
Borrowings
Borrowings - 43,013.28
43013.28 98,430.49 99,920.54 1,10,533.71 2,20,065.31 5,81,307.46 7,10,464.18 1,22,414.22 17,492.95 20,03,642.14
Foreign
Forego - - - - - - - - - - -
Currency
Currency
assets
assets

Foreign
Forego - - - - - - - - - - -
Currency
Currency
liabilities
liabilities

As at
As at March
March 31,
31, 2020
2020

` in
in lacs
lacs

Particulars
Partlculars 0 to
Ot077 8 to 14
8t014 15
15toto Over
over 1
1 Over
over 22 Over Over Over Over Over Total
days
days days
days 30/31
0131 Days
Days month
month upto
upto months
months
3 months
3 months
6 11 year
year 3 years
3 years 5 years
5 years
22 Months
Months upto
upto &
& up to 6
up to 6 Months
Months &
& up
up to
to 3
3 & up to 5
3
3 Months
Months Months
Months &
& up
up to
tol 1 years years
year
Deposits
Xosits 1,738.66 1,865.92 6,177.22
6,177 22 10,148.78
10,148.78 11,456.95 32,897.45 57,201.65
5721.65 2,21,190.03 58,530.14 - 4,01,206.80
Advances*
Advances- 98,100.63
9410063 23,553.44 12,980.58 92,295.93 1,33,812.50
113381250 4,02,934.02 6,42,051.49 9,22,596.53 2,21,426.10
642051.4 2,21 1,11,501.74
1n 74 26,61,252.96
Investments
Investments
- 280.77 302.08
30208
-- 12,310.74
12131074 8.57 26,447.95 - 8,100.00 25,963.86 73,413.97
Borrowings
Borrowings 552.46
55246 13,157.09
13157.0' 54,221.04
54,221 04 81,656.53
81,656.53 96,664.08 1,72,021.24 5,77,766.07 8,34'3878
8,34,338.78 8441275
84,412.75 587.09
5870? 19,15,377.12
Foreign
Forego - - - - - - - - - - -
Currency
Currency
assets
assets

Foreign
Forego - - - - - - - - - - -
Currency
Currency
liabilities
liabilities

* net
net of
of Impairment
Impairment loss allowance.
loss allowance

85. PREVIOUS
PREVIOUS YEAR (I)MPARATIVES
YEAR COMPARATIVES
Previous
Previous year’s
years figures
figures have
have been
been regrouped/reclassified
—rouped/rælessified wherever
wherever necessary, to conform
necessary, to conform tto current year’s classification.
current year's classificatiom

As per
As per our
our report
report of
of even
even date
date For
For and
and on
on behalf
behalf of
of the
the Board
Board of
of Directors
Directors of
of
For
For G.
G. D.
D Apte & Co.
Apte&Co. Shriram
Shriram City
City Union
Union Finance
Finance Limited
Limited
Chartered
Chartered Accountants
Accountants
Firm
Firm Registration
Registration Number
Number :: 100515W
100515W
Anagha M.Nanivadekar
Anagha M _Nanivadekar Yalamati Srinivasa
Yalamati Srinivasa Chakravarti
Chakravarti Venkataraman Murali
Venkataraman Murali
Partner
Partner
Managing
Managing Director
Director and
and CEO
CEO Director
DirectDr

Membership
Membership No.121007
No.121CU DIN:
DIN: 00052308
011152308 DIN:
DIN: 00730218

Pune, April 30,

Rune,April 2021
SO,2021
Place: Chennai
Place: Chennai
C R Dash
C R Dash
R Chandrasekar
R Chandrasekar

Date
Date:: April
April 30,
30, 2021
2021 Company
Company Secretary
Secretary Chief
Chief Financial
Financial Officer
Officer

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 199
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

As required in
As in terms
terms of
of Master
Master Direction
Direction -- Non-Banking
Non-Banking Financial
Financial Company
Company -- Systemically
Systemically Important
Inwtant Non-Deposit taking
taking
Company and Deposit
Company and Deposit taking
taking Company
Company (Reserve
(Reserve Bank)
Bank) Directions,
Directions, 2016
2016

Schedule
Schedule to the
to the Balance Sheet
Balance Sheet

` in
in lacs
lacs

Particulars
Particulars As at
As at March
March 31,
31, 2021
2021
Liabilities
Liabilities side ::
side Amount Amount
Amount

outstanding
outstandin overdue
overdue

(1)
(1) Loans and advances
Loans and advances availed
availed by
by the
the NBFCs
NBFCs inclusive
inclusive of
of interest
interest accrued
thereon
thereon but
but not
not paid:
paid:
(a) Debenture
Debenture :: Secured
Secured 4,26,363.00 -
: Unsecured
unsecured - -
(other than
(otherthan falling within the meaning of public
meanirvof public deposits*)
deposits')
(bj
(b) Deferred Credits
Deferred Credits - -
(c) Term Loans
(c) Term L.sns 10,26,457.11 -
(d)
(d) Inter-corporate
Inter-corporate loansloans and
and borrowing
borrowing - -
(e) Commercial Paper
Commercial*per - -
(f)
(f) Public
Public Deposits
Deposits 5,52,888.78 -
(g)
(g) Other
Other Loans
Loans -- Subordinated
Subordinated debts
debts - -
-- Cash
cash Credit/WCDL
credit;wcu 2,12,362.91 -
-- Securitisation
Securitisation Loan
Loan 3,38,459.12
338,45Y12 -
*Please
•Please see
see note
note 1
1 below
below

` in lacs
in lacs

(2)
(2) Break-up
Break-up of of (1)(f) above (Outstanding
(l)(f) above (Outstanding public
public deposits
deposits inclusive
inclusive of
of interest
interest Amount Amount
Amount

accrued thereon but not paid):

accrued thereon but not i _ outstanding
outstandin overdue
overdue

(a)
(a) In In the
the form
form ofof Unsecured
unsecured debentures
debentures - -
(b) In the form of partly secured debentures
(b) In the form of vrtly secured debentures i.e
i e debentures
debentures where there is
where there is aa - -
shortfall in
in the value of security
the valueof security
(c)
c Other
Cther public
ublicdedeposits its 5,52,888.78 -
Assets side :
Assets side

` in
in lacs
lacs

(3)
(3) Break-up
Break-up ofof loans and advances
loans and advances including
including bills
bills receivables
receivables (other
(other than
than those
those Amount
Amount

included
included in
in (4)
(4) below
below ): outstanding
outstandiny
Secured
(a) Secured 23,96,344.85
(b) Unsecured
unsecured
3,45,666.79

200 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

` in lacs
in lacs

(4)
(4) Break
Break up
up of
of Leased
Leased Assets
Assets and
and stock on hire
stock on hire and
and other
other assets counting
assets counting Amount
towards asset
towards asset financing
financin activities
activities outstanding
(i)
(l) Lease
Lease assets
assets including
including lease
lease rentals
rentals under
under sundry
sundry debtors
debtors :
(a)
(a) Financial lease
Financial'ease -
(b)
(b) Operating
Operating lease
lease -
(ii)
Oi) Stock
Stock on hire including hire
hireincluding charges under sundry debtors
hirechargesundersundry debtors:
(a) Assets on
(a) Assets on hire
hire -
(b)
(b) Repossessed Assets
RepossessedAssets -
(iii) Other loans
(iO Other bens counting towards asset
counting towards asset financing
financing activities
activities :
(a) Loans where assets have been repossessed
(a) Loans where assets have been repossessed -
(b)
(b) Loans other than (a)
Loansother (a) above
above -
The Company
The Company has has not
not furnished the asset
furnished the financing activities
asset financing activities details
details under
under loans
dans and
and advances
advances as
es the
the RBI
RBI has
hes
merged asset finance companies, loan companies and investment companies vide
merged asset finence companies, læn companies and investment companies vide its
its circular
circular number
number DNBR
ONBR (PD)
(PD)
CC.No.097/03.10.001/2018-19 dated dated February
Februa 22,22, 2019.

`{inin lacs
lacs

(5)
(5) Break-up of investments
Break-up of investments : Amount
outstanding
outstand

Current
Current investments
investments :
1. Quoted :
Zuoted

(i) Shares
Shares :. (a)(a) Equity
Equity -
(b)
(b) Preference
Preference -
(ii) Debenture
Debenture
and bonds
and bonds
-
(iii) Units
units ofcf mutual
mutual funds
funds 434.03
(iv) Government securities
Government securities -
(v)
(v) Others (Please specify)
Others(Pleasespecify) -
Treasury Bills
TreasuryBills 66,090.73
56,090.73
2. Unquoted
unquoted :
(i) Shares: (a)
O) Shares: (a) Equity
Equity -
(bj Preference
(b) Preference -
(ii) Debentures and bonds
Detentures and bonds -
(iii) Units of mutual funds
units cf mutual funds
-
(iv) Government
Government securities
securities -
(v)
W) Others (Please specify)
Others(Please specify)
(a)
(a) Debentures
Debentures -
(b) Mutual
Mutual Funds
Funds -

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 201
M
*SHRIRA

Notes to Standalone
Notes to Standalone Financial
Financial Statements
Statements for
for the year ended
the year ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

` in lacs
in lacs

(5)
(5) Break-up of investments
Break-up of investments : Amount
Amount

outstanding
outstandi

Long term investments

Longterm investments:
1. Quoted
Quot± :

(i) Shares : (a)

O) Shares (a) Equity
Equity 9,686.10
9,686.10
(b)
(b) Preference
Preference -
(ii) Debentures
Debentures and
and bonds
bonds -
(iii) Units of mutual funds
Oii) Units Df mutusl funds -
(iv) Government
Government securities
securities 8,638.94
8,638.94
(v) Others (Please specify)
Others(Pleasespecity) -
2. Unquoted
Lnqucted :
(i) Shares:
Shares: (a) (a) Equity
Equity 16,727.91
16,727.91
(b)
(b) Preference
Preference -
(ii) Debentures
Debentures and
and bonds
bonds -
(iii) Units of mutual funds
Units Df mutusl funds
-
(iv) Government
Government securities
securities -
(v) Others -Venture capital fund
Others-Ventureepital -
Investment
Investment in
in PTC
PTC -
Certificate
Certificateof of deposits
*posits -
Pass through certificates
Pass through certificates (unquoted)
(unquoted) 154.53
154.53

Investment in subordinated debts

Investment in subordinated debts -

` in
in lacs
lacs

(6) Borrower
Borrower group-wise
ro classification of
wiseclassification of assets, financed as
assets, financed as in
in (3) and
and (4)
4 above
above :: Please
Please see
sæ note
note 2
2below
Category Amount (( Net
Amount Net of
of provisions
provisions ))
Secured
Secured Unsecured
Unsecured

1. Related
Related Parties
Parties **

(a)
(a) Subsidiary
Subsidiary - -
(b)
(b) Companies
Companies inin the
the same
same group
group - -
(c) Other related parties
(c) Otherrelatedparties - -
2. Other
Other than
than related
related parties
parties 23,96,344.85
23,9$344 85 3,45,666.79

202 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Notes
Notes to
to Standalone
Standalone Financial
Financial Statements
Statements for
for the
the year
year ended
ended March
March 31,
31, 2021
2021 (Contd.)
(Contd.)

` in lacs
in lacs

(7)
(7) Investor
Investor group-wise
group-wise classification
classification of
of all
all investments
investments (current
(current and
and long
long term)
term)
in shares and securities (both quoted and unquoted): Please see note 3 below
in shares and securities (both quoted and unquoted): Please see note 3 below
Category
Category Market Value // Book
Market Value Value (Net
Book Value (Net of
of
Break
Break up
up or
or fair
fair Provisions)
Provisions)
value
value or
or NAV*
NAV*

1. Related
Related Parties
Parties *

(a)
(a) Subsidiary
Subsidiary 43,687.54
43,587 u 16,727.91
16,727.91
(b)
(b) Companies
Companies in the same
in the same group
group - -
(c)
(c) Other related parties
Otherrelatedparties - -
2. Other than
2 Other than related
related parties
perties 85,661.55
85,661 85,004.33
85,004.33
Total
Total 1,29,349.09 1,01,732.24
* As
As per
per Indian
Indian Accounting
Accounting Standard
Standard issued
issued by
by MCA
MCA (Please
(Please see
sæ note 3)
note 3)

` in
in lacs
lacs

(8) Other
Other information
information

Particulars
Particulars Amount
(i) Gross
Gross non-performing
non- erfDrmin assets
assets ** "

(a)
a Related
Related parties rties -
(b)
b Other
Other than
then related
related parties
arties 1,87,598.75
(ii) Net non-performing assets **
Net non- erformin assets "

(a) Related parties

(a) Related vrties -
(b)
b Other
Other than
then related
releted parties
arties 87,728.16
87,728.16
(iii) Assets acquired in satisfaction of
(iii) Assets acquired in satisfaction of debt
debt -
** NPA accounts refer
NPAaccounts to stage
refer to Stege 3
3 assets.
assets Stage
Stage 3 Assets includes
3 Assets financial assets
includes financial assets that
that have
have objective
obJætive evidence
evidence ofof impairment
impairment at
et
the reporting
the reporting date
dete as
es defined
defined under
under IND
IND AS.
AS. 90
gD Days
Days Past
Past Due
Due is
is considered
considered as
as default
default for
for classifying
classifying aa financial
financial instrument
instrument as
as
credit impaired.
credit impaired

Notes :
1. As
As defined
defined in
in point xxvii of
point xxvii of paragraph
paragraph 3
3 of
of Chapter
Chapter IIII of
of Master
Master Direction
Direction -- Non-Banking
Non-aanking Financial
änenciel Company
Company - Systemically
Systemically
Important
Important Non-Deposit taking Company
Norn-Deposittaking Compeny and
end Deposit
Deposit taking
taking Company
Company (Reserve
(Reserve Bank)
Bank) Directions,
Directions, 2016.
2016
2.
2 Provisioning
Provisioning norms
rorms shall
shall be
te applicable
applicable as
as prescribed
prescribed in
in Indian
Indian Accounting
Accounting Standards
Standards by
by MCA..
MCA_

3. 
3 All
All Indian Accounting Standards
Indian Accounting Standards issued
issued by
by MCA
MCA are
are applicable
applicable including
including for
for valuation
valuation of
of investments
investments and
end other
other assets
assets as
es
also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/
also assets acquired in setisfecticn of debt However,market vslue in ress:t Df quoted investments and break up/fair value/
NAV
NAV inin respect
respect of
of unquoted
unquoted investments
investments should
should be
be disclosed
disclosed irrespective
irrespective of whether they
of whether they are
are classified
classified as
as long
long term
term or
or
current
current in
In (5)
(5) above.
a&zve

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 203
M
*SHRIRA

Form
Form AOC-1
AOC-I

(Pursuant
(Pursuant to
to first
first proviso to sub-
proviso to sub- section
section (3)
(3) of
of Section
Section 129
129 read with Rule
read with Rule 5
5 of
of Companies
Companies (Accounts)
(Accounts) Rules,
Rules, 2014)
2014)

Statement
Statement containing
containing salient features of
salient features the financial
of the financial statement
statement of
of subsidiaries
subsidiaries

Part A: Subsidiaries
Part A: Subsidiaries

` in
in lacs
lacs

Sr.
Sr. Particulars
Particulars Shriram
Shriram Housing
Housing Finance
Finance Limited
Limited
No.
1 Reporting
Reporting period for the
*riod for the subsidiary
subsidiary concerned,
concerned, ifif different
different NA
from
from the
the holding
Holding company’s
company"s reporting
reporting period
pericd
2 Reporting currency and
Reporting currency end Exchange
Exchenge rate
rete as
as on the last
on the last date
date NA
of the relevant Financial year in
relevantFinancialyear the case
inthe case of foreign
foreign subsidiaries.
subsidiaries
3 Capital
Capita' 21,416.00
4
4 Reserves
Reserves 36,231.05
36,231.05
5 Total assets
Total assets 3,83,275.75
"3,275.75
6 Total liabilities
Total liabilities 3,25,628.70
7 Investment included
Investment included inin total
tote' assets
assets 7,402.57
7,402.57
8 Turnover
Turnover 42,190.48
42,ngo.48
9 Profit
Profit before taxation
before taxation 8,423.61
8,423.61
10
10
Provision for
Provision
taxation
for taxation
2,185.30
2,185.30
11 Profit
Profit after taxation
after taxation 6,238.30
6,238.30
12
12
Dividend
Dividend including
including dividend distribution tax
dividend distribution tax -
13
13 % of shareholding
of shareholdin 77.25%
77.25%

204 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Independent
Independent Auditor’s
Auditor's Report
Report

The Members
The Members of
of Shriram
Shriram City
City Union
Union Finance
Finance Limited
Limited audit of the consolidated financial
audit of the consolidated
financial statements
statements
under the
under the

provisions
provisions ofof the
the Act
Act and
end the
the Rules
Rules made
made thereunder,
thereunder,
REPORT
REPORT ON THE CONSOLIDATED
ON THE CONSOLIDATED FINANCIAL
FINANCIAL STATEMENTS
STATEMENTS
and
and wewe have
have fulfilled our other
fulfilled our other ethical
ethical responsibilities
responsibilities
1. Opinion
Opinion in
In accordance with these
accordsnce with these requirements
requirements andend the
the ICAI’s
ICAl's

We
We havehave audited
audited thethe accompanying consolidated
accompanying consolidated Code of Ethics.
Code of Ethics. We
We believe that the
believe thst the audit
eudit evidence
evidence we
we

financial
financial statements
statements of of Shriram
Shriram City
City Union
union Finance
Finance have obtained is sufficient and appropriate to provide a
have obtained is sufficient and appropriate to provide e
Limited
Limited (hereinafter
(hereinafter referred
referred toto esas the
the “Holding
"Holding basis
basis for
for our
our audit
audit opinion
opinion on the consolidated
on the consolidated financial
financial
Company”)
Company') and and its
its subsidiary
subsidiary (the
(the Holding
Holding Company
Company statements.
statements.

and
and its
its subsidiary
subsidiary together
tcgether referred to as
referred to as “the
•the Group”),
Group"),
3.
3. Emphasis
Emphasis of
of Matter
Matter
which
which comprise the Consolidated
comprise the Consolidated Balance
Balance Sheet
Sheet as
as at
at
Attention
Attention is
is invited
invited to the Note
to the Note No.
No. 66
66 included
included in
in the
the
March
Merch 31,31, 2021,
2021, the
the Consolidated
Consolidated Statement
Stetement of
of Profit
Profit
financial statements:
financial statements.
and Loss, the Consolidated Statement of Changes in
and Loss, the Consolidated Statement of Changes In
Equity
Equity and
and the
the Consolidated
ConsolidEted Statement
Statement ofof Cash
Cash Flows
Flows i. In
In accordance
accordance with the Board
with the Board approved
approved moratorium
moratorium

for
for the year ended
the year ended on
Dn that
that date
date and
and ea summary
summary ofof the
the policy
policy relating
relating toto COVID-19
COVID-1g -- Regulatory
RegulEtcry Package
Package

significant
significant accounting
accounting policies
policies and
and other
other explanatory
explanatory announced by Reserve Bank of India (RBI), the
ennounced by Reserve Bank of Indie (RBI), the
information
information (hereinafter
(hereinafter referred
referred to
to as
as “the
'the consolidated
consolidated Group
Group has
has granted
granted moratorium
moratorium up up toto six
six months
months

financial statements”).
financial statements") on the payment
cr. the payment of Df instalments
instalments falling
felling due
due between
between
March
March 1, 1, 2020
2020 and August 31,
end August 31, 2020
2020 to to all
all eligible
eligible
In
In our
our opinion
opinion andand to the best
to the best ofof our
our information
information and end
borrowers and has continued recognition of
borrowers and has continued recognition of
according
according to to the
the explanations
explanations givengiven to
to us
us and
and based
based on on
interest. In view of the management, this relaxation
interest. In View of the management, this relaxation
the
the consideration
consideration of of the
the report
reprt of Df the
the other
other auditor
auditor onon
does
does not
not trigger
trigger any
any significant
significant increase
increase in in credit
credit
separate financial statements and on the other financial
separate financial statements on the other financial
risk.
risk.
information
information of the subsidiary,
of the subsidiary, the the aforesaid
aforesaid consolidated
consolidated
financial
finsncisl statements
statements give the information
give the information required
required by by ii. The
The provision
provision in
in respect
respect of
of expected
ex*ed credit
credit losses
bsses

the
the Companies
Compames Act Act, 2013
2013 (“the
("the Act”)
Act') in the manner
in the manner so so on loans and advances consequent to COVID 19
cr. loans and advances consequent to COVID lg
required
required andand give
give a true and
e true fair view
and fair view in in conformity
conformity pandemic
pandemic has has been made on
beenmade the basis
Dnthe basis of
of estimation
estimation
with the accounting principles generally accepted in
with the accounting principles generaly accepted in of
of probable
probable defaults
defaults and future business
and future business estimates.
estimates

India
Indie including
including thethe Indian
Indian Accounting
Accounting Standards
Standards (“Ind("Ind These
These estimates
estimetes would
would be
be periodically
pericdically reviewed
reviewed
AS”)
AS') prescribed
prescribed under
under section
section 133133 ofof the Act, of
the Act, of the
the based
based on the future
on the future business
business scenario.
scenario. However,
However,

consolidated state of affairs of the Group as at March

consolidated state Df affairs of the Group as at March actual results are uncertain and could be different
ectuel results are uncertain and could be different

31,
31, 2021,
2021, itsits consolidated
consolidsted profit,
profit, consolidated
consolidated total total from such estimates.
from such estimates

comprehensive
comprehensive income,income, consolidated
consolidEted changes
changes in in equity
equity Our
Our opinion
opinion is
is not
not modified
modified in
in respect
respect of
of the
the above
a&zve
and
and its
its consolidated
consolidated cash cash flows
fc,vs for
for the
the year
year ended
ended on on matters.
matters.

that date.
that date
4.
4. Key Audit Matters
Key Audit Matters
2. Basis for Opinion
Basis for Opinion
Key
Key audit
audit matters
matters are those matters
ere those that, in
matters that, in our
our
We conducted our
We conducted
audit of the consolidated financial
our audit of the consolidated
financial professional judgment, were
professional judgment, were of
of most
most significance
significance in
in
statements in accordance with the Standards on
statements in accordance with the Stenderds on our
our audit
audit of
of the
the consolidated
consolidated financial statements
financial statements of
of

Auditing (SAs) specified under section 143 (10) of the

Auditing (SAs) specified under section 143 (10) of the the current year. These matters were addressed in
the current year These matters were addressed in
Act
Act (SAs).
(SASI Our
Our responsibilities
responsibilities under
under those
those Standards
Standards the context of our audit of the consolidated financial
the context of our audit of the consolidated financial

are
are further described in
further described the Auditor’s
in the Auditors Responsibilities
Responsibilities statements
statements as as a whole and
e whole and in
in forming
forming our
our opinion
opinion
for
for the
the Audit of the
Audit of the Consolidated
Conso'idated Financial
Financial Statements
Statements thereon, and we do not provide a separate opinion on
thereon, and we do not provide e separate opinion on
section of our report. We are independent of the Group
section of our report We are independent of the Group inin these matters.
these matters.

accordance with the

accordance with the Code ofDfEthics
Ethics issued
issued by the Institute
bythe Institute We
We have determined the
have determined
the matters
matters
described
described
below to be
below to be

of
of Chartered Accountants of
Chartered Accountsnts of India
Indie (ICAI)
(ICAI) together with
together with
the Key
the Audit Matters
KeyAudit Matters tto be
be communicated
communicated in in our
our report.
report.
the independence requirements that are relevant to our
the inde#ndence requirements that are relevant to our

SHRIRAM
SHRIRAM CITY
CITY UNION
UNION FINANCE
FINANCE LIMITED
LIMITED 205
M
*SHRIRA

Independent Auditor’s Report

Independent Auditor's Report (Contd.)
(Contd.)

Sr.
Sr. Key Audit Matter
Key Audit Matter Auditor’s Response
Auditor's Response
No.

1 Impairment
Impairment and
and Write-offs
Write-offs Our
Our key
key audit
audit procedures
præ4iures included:
included

The
The Recognition
Recognition and
and Measurement
Measurement We test checked
We test checked the computation of
the computation the Probable
of the Probable default
default (PD)
(PD) which
which denotes
denotes
of
of Impairment
Impairment and Write-off of
and Write-off of the
the statistical
statistical pattern
pattern of occurrence of
of occurrence of defaults
defaults in
in individual
individual accounts
accounts over
over aa
Loans
Inens and
and Advances
Advances involves
involves period
*ricd ofof past
past five years.
five years
estimates,
estimates, management judgements
management judgements
We
We also
also test
test checked the computation
checked the computation of the ratio
of the ratio of
of Loss
Loss Given
Given Default
Default (LGD)
(LCD)
and appropriate
appropriate processing
processing of of which denotes the non-recoveries (after considering the collections) till the
which denotes the nan-recoveries (after considering the collections) till the
information
information from the IT
from the IT systems
systems
date of Balance Sheet.
date of Balance Sheet
because
because of of which
which the same has
the same has been
been
We examined the
We examined the computation
computation ofof Impairment
Impairment Losses
Losses by
by application
application of
of PD
PD
identified as a key audit matter.
identified as a key audit matter
and LGD and ensured that the entire pool of Loans and advances has been
and LGC and ensured thst the entire of Loans and advances has been

considered
considered
for the same.
for the same

We
We reviewed
reviewed the
the changes
changes made
made by
by the
the management
management in in PD and
and LGD
LGC on
on the
the
background of COVID 19 outbreak and additional ECL provisions made on the
background of COVIDlg outbreak and additional ECL provisions made on the
basis of above revisions.
basis of above revisions.

We
We reviewed
reviewed the
the Internal
Internal financial controls
financial controls over
over data extraction and
data extraction and data
deta

validation
validation from the ERP
from the ERP system
system for for computation
computation of
of PD
PD and
end LGD with the
LGD with the
participation
participation of
of our
our internal
internal IT
IT expert.
expert.

We
We performed
performed analytical
analytical procedures
prccedures for
for ascertaining
ascertaining of
of reasonableness
reasonableness of
of
Impairment
Impairment provisions.
provisions

We
We carried
carried out
out aa combination
combination ofof procedures
præedures involving
involving enquiry
enquiry and
end observation,
observation,
re-performance on a test basis and inspection of evidence in respect
reperformance on e test basis -nd ins=ction of evidence in respect ofof
computation of provisions including considering the situations where additional
computation of provisions inc'uding considering the situstions where additional
impairment
npairment was wes required
required for
for individual
individusl accounts
accounts and
and review
review of
of procedures
procedures and
end
practices, justification notes
practices, justification notes and
and approvals
approvals in
in case
case of
of Bad
Bed Debts
Debts written
written off.
off.
Our
•LD Our audit
audit procedures
procedures did
did not
not reveal
reveal any
any significant
significant inconsistencies
inconsistencies with
with respect
respect
to provisions for impairment and write offs.
to provisions for impairment and write offs

5. 
Information
Information Other
Other than the
than the Standalone
Standalone Financial
Financial obtained
obtained in the audit
inthe audit or otherwise appears
orotherwise to be materially
eppeersto± materially
Statements and Auditor's
Statements and Auditor’s Report
Report Thereon
Thereon misstated.
misstates If,
If, based
based on
on the
the work
work we
we have
have performed,
performed, we
we

The
The Holding
Holding Company’s
Company's Board
Board of of Directors
Directors is is conclude
conclude that there is
that there is ae material
materiel misstatement
misstetement of this
of this

responsible
respnsible for
for the
the other
other information.
informatiom TheThe other
other other information, we are required to report that fact. We
other information, ere requir± to report thet fact. We

information comprises the information included in the

information comprises the inform-tian included in the have nothing to report in this regard.
have mthing to report in this regard

Management
Management Discussion
Discussion && Analysis,
Analysis, Director’s
Cirector's Report
Report
6. Responsibilities of Management
Responsibilities of Management and Those Charged
and Those Charged
and
end Corporate
Corporate Governance
Governance Report
Report but
but does
does not
not include
include
with Governance for the Consolidated Financial
with Govemance for the Consolidated Financial
the
the Consolidated
Consolidated Financial
änenciel Statements
Statements and
and our
our auditor’s
auditor's
Statements
Statements

report thereon.
report thereon.
The
The Holding
Holding Company’s
Company's Boardaoerd of of Directors
Directors is is
Our
Our opinion
opinion onon the
the consolidated financial statements
consolidated financial statements
responsible for the
responsible for the matters
matters stated
stated in
in section
section 134
134 (5)
(5) of
of
does not cover the other information and we
does not cover the other information and we do
do not
not
the
the Act
Act with
with respect
respect to
to preparation
preparetion of
of these
these consolidated
consolidated
express any form of assurance conclusion thereon.
express any form of assurance conclusion thereon
financial
finsncisl statements that give
statements that give a true and
a true and fair view of
fEir view of the
the
In connection with
In connection with
our
our
audit
audit
of the consolidated
of the consolidated
consolidated financial position, consolidated financial
consolidated financial position, consolidated financial
financial
financial statements,
statements, our
our responsibility
responsibility is
is to
to read the
read the performance,
performance, consolidated total comprehensive
consolidated total comprehensive income,
income,
other
other information
information and,
end, in
in doing
doing so, consider whether
so, consider whether consolidated
consolidated changes
changes inin equity
equity and
and consolidated
conso'idated cashcash
the other information
the other information is materially inconsistent
ISmaterially inconsistent with the
with the flows of the Group in accordance with the Ind AS and
flows of the Group in eccordance with the Ind AS and
Consolidated
Consolidated Financial
Financial Statements
Statements or
or our
our knowledge
knowledge other
other accounting
accounting principles
principles generally
generally accepted
eccept&d in
in India.
Indiö

206 ANNUAL REPORT

ANNUAL REPORT 2020-21
2020-2'
 CORPORATE
CORPORATE STATUTORY
STATUTORY FINANCIAL
FINANCIAL

OVERVIEW
OVERVIEW REPORTS
REPORTS STATEMENTS
STATEMENTS

Independent Auditor’s Report

Independent Auditor's Report (Contd.)
(Contd.)

The
The respective
respective Board
Board of of Directors
Directors of the companies
of the companies Identify
Identify and
and assess
assess thethe risks
risks of of material
material
included
included in the Group
in the Group areare responsible
responsible forfor maintenance
maintenance misstatement of the consolidated financial
misstatement of the consolidated financial

of
of the
the adequate
adequate accounting
accounting records
records in
in accordance
accordance withwith statements,
statements, whether
whether due
due to
to fraud
fraud or or error,
error, design
design
the
the provisions
provisions ofof the
the Act
Act for
for safeguarding
safeguarding the the assets
assets and
end perform
perform audit
audit procedures
procedures responsive
rev:nsive to to those
those
of
of the
the Holding
Holding company
comp-ny and the subsidiary
and the subsidiary and end for
for risks,
risks, and
and obtain
obtain audit
audit evidence