Note 24.2 : Terms/ Rights attached to equity shares
The company has only one class of Equity shares having par value of ^ 10 each. Each holder of equity shares is entitled to one vote per share.
The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.
In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.
However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
Note 24.4 : The Company has forfeited 53,800 Equity Shares on which amount originally paid up is ^ 2,69,000
Note 24.5 : During the period of five years immediately preceding the Balance Sheet date, the Company has not issued any equity shares without payment being received in cash or by way of bonus shares or shares bought back.
The Company’s objective, when managing Capital, is to safeguard the ability of the Company to continue as a going concern, maintain strong credit ratings and healthy capital ratios in order to support its business and to maximise shareholder’s value.
The capital of the Company comprises of Equity Share Capital, Share Premium, other equity reserves, a mix of debt securities and borrowings (other than debt securities). No changes have been made to the objectives, policies and processes from the previous year. However, they are under constant review by the Board.
The Management of the Company monitors the Regulatory capital by overviewing Debt Equity Ratio and makes use of the same for framing the business strategies.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.
The Company evaluates the significance of financial instruments and material accuracy of the valuations incorporated in the financial statements as they involve a high degree of judgment and estimation uncertainty in determining the carrying values of financial assets and liabilities at the balance sheet date. Fair value of financial instruments is determined using valuation techniques and estimates which, to the extent possible, use market observable inputs, but in some cases use non-market observable inputs. Changes in the observability of significant valuation inputs can materially affect the fair values of financial instruments. In determining the valuation of financial instruments, the Company makes judgments on the amounts reserved to cater for model and valuation risks, which cover both Level 2 and Level 3 instruments, and the significant valuation judgments in respect of Level 3 instruments.
Fair Value Hierarchy
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below.
Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to the observability of the significant inputs used to determine the fair values. Changes in the observability of significant valuation inputs during the reporting period may result in a transfer of assets and liabilities within the fair value hierarchy. The Company recognises transfers between levels of the fair value hierarchy when there is a significant change in either its principal market or the level of observability of the inputs to the valuation techniques as at the end of the reporting period.
Level 1 : inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 : inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 : inputs are unobservable inputs for the asset or liability.
The Company reviews the fair value hierarchy classification of financial assets and liabilities at each reporting date and, at a minimum, on an annual basis. Such assessment considers the nature, availability and significance of observable and unobservable inputs used in the valuation techniques. Based on this assessment, instruments are classified within the appropriate level of the fair value hierarchy in accordance with Ind AS 113. Any transfers between hierarchy levels are recognised and disclosed in the period in which the change in circumstances or observability of inputs occurs.
During FY 2025-26, investments aggregating to ^ 3,761 Lakhs were transferred from Level 3 to Level 2 of the fair value hierarchy. The transfer occurred because market-observable pricing inputs became available through Valuation report shared on account of preferential allotment by LIC AMC and these inputs became significant to the overall valuation of the investments. Accordingly, the investments no longer required significant unobservable inputs for fair value determination. The valuation continues to be performed using [DCF/market comparable/quoted broker quotations] techniques on annual basis; however, the significant inputs are now based on observable market data.
Equity instruments
Equity instruments in non-listed entities are initially recognised at transaction price and re-measured (to the extent information is available) and valued on a case-by-case basis.
Valuation adjustments and other inputs and considerations
A one percentage point change in the unobservable inputs used in fair valuation of Level 3 financial assets does not have a significant impact in its value.
No valuation adjustments have been made to the prices/yields provided for valuation.
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company’s financial statements. These fair values were calculated for disclosure purposes only.
Government Securities
Government debt securities are financial instruments issued by sovereign governments and include long term bonds with fixed rate interest payments. These instruments are generally highly liquid and traded in active markets resulting in a Level 1 classification. When active market prices are not available, the Company uses discounted cash flow models with observable market inputs of similar instruments and bond prices to estimate future index levels and extrapolating yields outside the range of active market trading, in which instances the Company classifies those securities as Level 2. The Company does not have Level 3 government securities where valuation inputs would be unobservable.
Investment in Subsidiary
In the opinion of the Company, in case of subsidiary, the carrying value approximates the fair value.
Other Financial Assets and Liabilities
With respect to Bank Balances and Cash and Cash Equivalents, Loans, Other Financial Assets, Trade Payables and Other Financial Liabilities, the carrying value approximates the fair value.
Note 38 : Financial Instruments
Note 38 A : Financial Risk Management
Introduction
Risk management is an integral part of how to plan and execute its business strategies. Company is exposed to various types of risks, the most important among them are liquidity risk, interest rate risk, credit risk, regulatory risk and operational risk. The measurement, monitoring and management of risks remain a key focus area for the Company.
Risk Management Framework
In order to mitigate/transfer the risks, the Company has adopted a Risk Management Policy which provides a framework for identification, assessment, mitigation and reporting of risks.
Board level Risk Management Committee of the Company identifies, reviews and controls key risk areas, across the entire organization. The role of the Risk Management Committee shall be:
1. review the risk management policies and system periodically and report to the Board.
2. ensure that the risk management system is established, implemented and maintained in accordance with this Policy.
3. assign the responsibilities to Chief Risk Officer of the Company in relation to risk identification and its management.
The Board shall be the ultimate Authority to approve the strategic plans and objectives for Risk Management and Risk Philosophy. The Company has exposure to following risks arising from the financial instruments:
Note 38.A.1 Credit Risk
Credit risk is the probability of a financial loss resulting from a borrower’s failure to repay a loan. Essentially, credit risk refers to the risk that a lender may not receive the owed principal and interest, which results in an interruption of cash flows and increased costs for collection. Despite best efforts, there can be no assurance that repayment default will not occur. As an HFC, GICHFL has always focused on quality of loans where the borrower is able and willing to repay the loan and the property constitutes sufficient security for the mortgage.
The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties. The Company ensures effective monitoring of credit facilities through a portfolio quality review framework.
The Company monitors and manages credit risk on loans at an individual borrower level. The credit risk for individual borrowers is being managed at portfolio level for Housing Loans. With an aim to control and mitigate credit risk, credit concentration and collateral risk., GICHFL has defined policies in place namely Credit Policy, Recovery and Collection Policy, ECL Policy etc. to mitigate the risk. The Risk Management Policy addresses the recognition, monitoring and reporting of the Credit risk.
Company’s customers for housing loans are primarily salaried and self-employed individuals. All retail loans are also subjected to risk based pricing wherein the individual cases are graded on a credit score linked to multiple parameters of appraisal.
The Company’s credit officers evaluate credit proposals, basis factors such as the borrower’s income & obligations, the loan-to-value ratio, Fixed obligation to income ratio and demographic parameters subject to regulatory guidelines.
Various process controls such as KYC Check, Perfios, CERSAI database scrubbing, Credit Bureau Report analysis are undertaken prior to approval of a loan. Additionally, external agencies such as field investigation agencies facilitates a comprehensive due diligence process including visits to offices and homes, Panel Advocates confirmes that the title to the property to be mortgaged with GICHF are clear and marketable and free from all encumbrances, charges etc and Panel valuers are entrusted with the job of ascertaining the genuineness of market value of property as it is an important factor in determining the loan amount.
The loans are fully secured and have full recourse against the borrower. The Company has a equitable mortgage over the borrowers property. Wherever the state laws provide, the memorandum of deposit of title deeds are also registered.
Note 38.A.1 (I) Concentrations of credit risk
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions.
70% (Previous year 70%) of the Company’s loan outstanding is from borrower’s residing across 5 various states of India. The Company has taken a special contingency insurance policy to insured Borrower’s collateral security.
Note 38.A.1 (II) Credit Risk Grading of loans and loss allowances
For effective risk Management, the company monitors its portfolio, based on product, underlying security and credit risk characteristics. The credit quality review process aims to allow the Company to assess the potential loss as a result of the risks to which it is exposed and take corrective actions.
The Company applies general approach to provide for credit losses prescribed by Ind AS 109, which provides to recognise 12-months expected credit losses where credit risk has not increased significantly since initial recognition and to recognise lifetime expected credit losses for financial instruments for which there has been significant increase in credit risk since initial recognition, considering all reasonable present and forward looking information, including that of forward looking.
Additionally, the Company evaluates risk based on staging as defined below:
The company categorises loan assets into stages based on the Days Past Due status:
- Stage 1: [0-30 days Past Due] It represents exposures where there has not been a significant increase in credit risk since initial recognition and that were not credit impaired upon origination.
- Stage 2: [31-90 days Past Due] The Company collectively assesses ECL on exposures where there has been a significant increase in credit risk since initial recognition but are not credit impaired. For these exposures, the Company recognises as a collective provision, a lifetime ECL (i.e. reflecting the remaining lifetime of the financial asset)
Stage 3: [More than 90 days Past Due] The Company identifies, both collectively and individually, ECL on those exposures that are assessed as credit impaired based on whether one or more events, that have a detrimental impact on the estimated future cash flows of that asset have occurred.
For reconciliations from opening to closing balance of EAD and expected credit loss allowance for loans refer Note 6.2.
Financial Assets measured at Simplified Approach
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Cash and Cash Equivalents, Bank Balances, Trade Receivables, and Other Financial Assets. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
The Management of the Company expects no defaults in the above mentioned financial assets and insignificant history of defaults has been observed by the Management in the previous years on such Financial Assets.
The Company is in the business of extending secured loans backed by mortgage of property (residential or commercial). The Company assesses and monitors value of the collaterals periodically on the basis of the internal policy. In case required, the Company also requests for additional collateral(s).
The Company after exploring all the possible measures, initiates action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) against the mortgaged properties as a last resort to recover.
Housing Loans include loans amounting to ^ 39,026 Lakh (Previous Year ^ 25,833 Lakh) against which the company has taken possession (including symbolic possession) of the property under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.
Note 38.A.2 Liquidity Risk
Liquidity risk is the risk resulting from an GICHFL’s inability to meet its obligations as they become due, because of difficulty in liquidating assets (market liquidity risk) or in obtaining adequate funding. The assessment includes analysis of sources and uses of funds, and understanding of the funding markets in which the entity operates and an assessment of the efficacy of a contingency funding plan for events that could arise. Managing and measuring liquidity risk is important because it helps company and investors manage their investments, holdings, and operations to ensure that they’re always able to meet financial obligations.
The Company has also constituted Asset Liability Management Committee (ALCO) reporting to the Risk Management Committee which measures not only the liquidity positions of Company on on-going basis but also examines how liquidity requirements are likely to revive under different scenarios.
Maturities of Financial Liabilities
The Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for essential for an understanding of the timing of the cash flows.
Market risk is the possibility that an individual or other entity will experience losses due to factors that affect the overall performance of investments in the financial markets.
Currently GICHFL invests the surplus funds into various products such as Government securities (T-Bills and Bonds), Fixed deposits with banks and Mutual funds. However, the market risk is limited to the trading book of the GICHFL. Currently, GICHFL has investments in overnight Mutual Funds which falls under the ambit of market risk.
Note 38.A.3 (I) Interest Rate Risk
Interest rate risk is the risk where changes in market interest rates might adversely affect the entity’s financial condition. The immediate impact of changes in interest rate is on the Net Interest Income (NII) i.e. Net Spread, which would be based on rising interest rate of borrowings and falling interest rate of loans.
The Company is also exposed to interest rate risk as it is into funding of Home Loans which are based on floating interest rates. The Company has constituted Asset Liability Management Committee (ALCO) reporting to the Risk Management Committee which meets periodically to review the interest rate risk, asset profile and to identify short term liquidity gaps, if any and to take immediate corrective actions to bridge the same.
Competition Risk is the risk to the market share and profitability arising due to competition. It is present across all the businesses and across all the economic cycle with the intensity of competition risk varying due to several factors, like, barriers to entry, industry growth potential, degree of competition, etc.
The Company’s business environment is characterized by increased youth population, growing economy, increased urbanization, Government incentives, acceptability of credit in society and rise in nuclear families. Due to all these reasons, the Housing Finance industry has seen a higher growth rate than overall economy and several other industries since past several years. This has led to increase in competition and in turn increased pressure on the existing Companies to maintain/grow market share and profitability. In order to mitigate the risk arising due to competition, the Company has customer centric approach coupled with state of art infrastructure including IT interface.
Note 39 : Related Party Disclosures
As per the Indian Accounting Standard on ‘Related Party Disclosures’ (Ind AS 24), details of related parties, nature of the relationship, with whom company has entered transactions. All these transactions with related parties were carried out in ordinary course of business and on arm’s length basis.
Note 40 : Employee Benefits :-
In compliance with the Indian Accounting Standard on ‘Employee Benefits’ (Ind AS 19), following disclosures have been made : Defined Contribution Plan:
(i) Pension Scheme
The Company makes contribution to Employees’ Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees. The Company has recognized ^ 46 Lakh (Previous year ^ 31 Lakh) for Employees’ Pension Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.
(ii) Provident Fund
An amount of ^ 689 Lakh (Previous year ^ 685 Lakh) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.
Defined Benefit Plans:
(i) Gratuity Plan
Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.
On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating twenty nine existing labour laws. The Company has assessed and there is no material impact of these changes on the basis of opinion obtained and the best information available. The Company continues to monitor the implementation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code as needed.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Note 41
Commitments and Contingent Liabilities :
a) Commitments :
i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is ^ 954 lakh (Previous year ^ 1,067 lakh)
ii) As at the balance sheet date there were undrawn credit commitments of ^ 24,810 lakh & ^ 10,001 Lakh (Previous Year ^ 20,298 lakh & ^ 5,362) representing the loan amounts sanctioned but partly un-disbursed and sanctioned but completely un-disbursed respectively.
b) Contingent Liabilities :
i) Contingent Liabilities : With respect to pending Tax disputes of ^ 212 lakh (Previous Year ^ 245 lakh). The Company has preferred appeal/s against the same and has made payments under protest.
ii) Bank Guarantees:
- ^ 150 lakh given in favour of Kotak Mahindra Life Insurance Company Ltd. in lieu of premium deposit for “Kotak Term Group Plan” Policy contract to avail Term Group Plan cover for borrowers. (Previous Year -^ 150 lakh).
- ^ 50 lakh given in favour of Aditya Birla Sun Life Insurance Company Ltd. in lieu of premium deposit for “Aditya Birla Sun Life Insurance Group Asset Assure Plan” policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - ^ 50 lakh)
iii) Claim against the Company not acknowledged as debt:
Total 571 Cases (Previous Year 313 Cases) have been filed against the Company in various courts during earlier years, however, the amount is not ascertainable.
Note 43 Segment Reporting:
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM regularly monitors and reviews the operating result of the whole Company as one segment of “Financing”. Thus, as defined in Ind AS 108 “Operating Segments”, the Company’s entire business falls under this one operational segment.
Further, the Company operates in a single business segment ie. financing, which has similar risks and returns taking into account the organisational structure and the internal reporting systems. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the company’s total revenue in year ended March 31, 2026 or March 31, 2025. The Company operates in single geography i.e. India and therefore geographical information is not required to be disclosed separately.
(ii) Details of benami property held
There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
(iii) Borrowing secured against current assets
The company has borrowings (including debt securities) from banks on the basis of security of book debts.
(vi) Registration of charges or satisfaction with Registrar of Companies
In case of borrowings, there are no charges or satisfaction pending for registration with Registrar of Companies(ROC) beyond the statutory period.
(vii) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2026 and March 31, 2025.
(ix) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement
(x) Utilisation of borrowed funds and share premium
During the financial year ended March 31, 2026 and March 31, 2025, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.
(i) . No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) . No funds (which are material either individually or in the aggregate) have been received by the Company from any
person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(xi) Undisclosed Income
The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also, there are nil previously unrecorded income and related assets.
(xii) Details of crypto currency or virtual currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2026 and March 31, 2025.
IV Disclosures on Co-Lending Arrangements Pending:
The Company has not entered into any co-lending arrangements with partner banks or financial institutions in accordance with applicable regulatory requirements during the years ended March 31, 2026 and March 31, 2025
V Disclosures relating to securitisation:
The Company has not undertaken any securitisation transactions during the year. Accordingly, there are no securitised assets outstanding in the books of any SPEs, nor any exposures retained by the Company during the year ended March 31,2026 and March 31, 2025.
VI Disclosure of transfer of loan exposure:
There are no loans transferred / acquired during the quarter and year ended March 31, 2026 and March 31, 2025.
f Institutional set-up for Liquidity Risk Management
The Board of Directors of the Company has an overall responsibility and oversight for the management of all the risks, including liquidity risk, to which the Company is exposed to in the course of conducting its business. The Board constituted Risk Management Committee (RMC) oversee the effective supervision, evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company. Further, the Board constituted Asset Liability Committee (ALCO) acts as a strategic decision-making body for the asset-liability management of the Company from risk return perspective and within the risk appetite and guard-rails approved by the Board. The ALCO, which measures not only the liquidity positions of Company on on-going basis but also examines how liquidity requirements are likely to revive under different scenarios.
XIV Disclosures on Credit Default Swaps
We did not engage in any credit default swap transactions during the current financial year and the previous financial year.
Therefore, this disclosure is not applicable.
VI Exposure
a Details of financing of parent company products:
The Company does not have any exposure in financing of parent company products during the current as well as previous financial year. Hence, the disclosure under this clause is not applicable.
b Single Borrower Limit (SBL) / Group Borrower Limit (GBL)
The Company has not exceeded prudential exposure relating to Single Borrower Limit (SBL) / Group Borrower Limit (GBL) during the current as well as previous financial year.
c Unsecured advances
The Company has not given any unsecured advances against intangible securities such as rights, licenses, authority etc. as collateral security. Unsecured advances reflecting in Note 6 represent amounts where the property against which advances have been granted are subject to property fraud by the borrowers, which was detected post disbursement of such advances or diminution in value of property identified subsequently.
IX Breach of covenant
During the year there were no instances of breach of covenant of loan availed or debt securities issued.
X Divergence in Asset Classification and Provisioning
HFCs are required to disclose the divergences in asset classification and provisioning consequent to NHB’s (in case of HFCs) annual supervisory process in their notes to accounts to the financial statements, wherever either (a) the additional provisioning requirements assessed by NHB exceed 5% of the reported net profits before tax and impairment loss on financial instruments or (b) the additional gross NPAs identified by NHB exceed 5% of the published reported gross NPAs for the reference period, or both. Based on the conditions relating to applicable limits mentioned in RBI circular, no disclosure on divergence in asset classification and provisioning for NPAs is required with respect to NHB’s supervisory process for the year ended March 31, 2026.
XI Details of registration obtained from other financial sector regulators:
The Company was incorporated under the Companies Act, 1956 on December 12, 1989 and is governed by Companies Act, 2013. It is regulated by NHB/RBI and registered under section 29A of the NHB Act, 1987. Company obtained registration (Corporate Agency License) from Insurance Regulatory and Development Authority of India. Renewal of registration of the Company as LEI (Legal Entity Identifier) as required by RBI.
XII Information namely, area, country of operation and joint venture partners with regard to joint ventures and overseas subsidiaries :
The company have operations only in India and does not have any joint venture partners with regard to joint ventures and overseas subsidiaries.
XIV Remuneration of Directors:
Remuneration of directors details have been disclosed under Note 39.
XV Management
Refer the Management Discussion and Analysis section of Annual report.
XVI Net Profit or Loss for the period, prior period items and changes in accounting policies:
a Amount aggregating to ^ Nil (Previous year ^ Nil) has been debited to statement of profit and loss accounts which pertains to prior periods.
b There is no change in the accounting policies during the year ended March 31, 2026 and March 31, 2025.
XVII Revenue Recognition:
Revenue recognition is as per the Accounting Policy mentioned under Material Accounting Policies. Refer Note 2.2(i).
XVIII Provisions and Contingencies
Qualitative Disclosure
Liquidity Coverage Ratio (LCR) aims to ensure that NBFC’s maintains an adequate level of unencumbered High Quality Liquidity Asset (HQLAs) that can be converted into cash to meet liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario.
The Company has robust liquidity risk management framework in place that ensures sufficient liquidity including a cushion of unencumbered, high quality liquid assets, to withstand a range of stress events, including those involving the loss or impairment of both unsecured and secured funding sources. The Company has been able to manage LCR quite higher than the minimum requirement of 50%.
HQLA comprises of unencumbered Bank Balances and Fixed Deposit, Cash in Hand, Investment in Government Securities, Treasury Bills after appropriate haircut. The Company maintains sufficient balance of Cash and Bank Balance and liquid Investments which can be easily liquidated in times of stress.
Liquidity Coverage Ratio results drive by inflow of next 30 days receivable on loans and advances and corresponding outflow over the next 30 days towards borrowings and other liabilities.
Note :1) Unweighted values must be calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows).
2) Weighted values must be calculated after the application of respective haircuts (for HQLA) and stress factors on inflow and outflow.
XXVI Disclosures on Currency Options:
We did not enter into any currency option contracts during the current financial year and the previous financial year. Therefore,this disclosure is not applicable.
The previous year figures have been reclassified / regrouped / restated to conform to current year’s classification. Amounts of current/previous year have been rounded off to nearest Rupees in lakh, wherever required.