4.1 There are no loans measured at FVOCI or FVTPL or designated at FVTPL.
4.2 Loans granted by IHLL are secured by one or combination of following securities:
a) Equitable/Registered mortgage of property and / or
b) Hypothecation of assets and / or
c) Company guarantee or personal guarantee and/or
d) Undertaking to create a security
4.3 In its normal course of business, the company does not physically repossess properties or other assets except properties repossessed under SARFAESI. Property acquisition is a last recourse which company exercise in case recovery become very diffcult. Any surplus funds after settlement of outstanding loans are returned to the customers. As a result of this practice, the residential properties under legal repossession processes are not treated as non-current assets held for sale.
4.4 In accordance with the RBI Resolution Framework 2.0 - Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs), the Company granted moratorium of nine months on payments of all instalments and/or interest falling due on or after July 1, 2021 till March 31,2022 to eligible borrowers who have requested for moratorium.
In previous year “In accordance with the RBI guidelines relating to COVID - 19 Regulatory Package dated March 27, 2020 and April 17, 2020, the Company granted moratorium of three months on payments of all instalments and/or interest falling due on or after March 1, 2020 till May 31, 2020 (further extended as per RBI guidelines for another 3 months falling due on or after June 1,2020 till August 31,2020) to eligible borrowers who have requested for moratorium”.
4.5 On June 4,2021 the RBI has announced resolution framework -2.0: Resolution of Covid-19 related stress of MSMEs. The extent to which COVID - 19 pandemic will impact the company's provision on financial assets will depend on future developments, which are highly uncertain. The impact of COVID - 19 pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions.
4.6 The Company has used the principles of prudence in applying judgments, estimates and possible forward looking scenarios to assess and provide for the impact of the COVID-19 pandemic on the Financial Statements specifically while assessing the expected credit loss on financial assets by applying the customer profiling within salaried and self-employed portfolio and management overlays. The Company has performed an estimation of portfolio stress through analysing its portfolio in respect of various risk classification, using the available historical and current data and based on current indicators of future economic conditions.
4.7 There was non of the transaction on Derecognition of Financial Instruments under Amortised Cost Category held during this year.
4.8 Impairment loss allowance also includes special provisioning for RBI regulatory package of ' 3776.92 thousands (Previous Year ' 4242.99)
4.9 Loans given to staff ' 356.38 thousands (Previous year ' 476.81 thousands) has not considered as loans and are included in Other Financial Assets.
4.10 Provision of Non-performing assets is required to be maintained as per effective credit loss model developed by the company is to the extent of ' 4614.94 thousands (Previous year ' 6130.28 thousands) against which the company, by way of prudence and abundant caution has maintained cumulative provision of ' 4614.94 thousands (Previous year ' 6130.28 thousands). The Management has decided to maintain NIL additional provision (Previous Year NIL Thousand). General provision required to be maintained in respect of accounts in default but standard and asset classification benefit extended, as per RBI circular on COVID 19 regulatory package the company holds a provision of ' 3776.92 thousands (Previous year ' 4242.99 thousands).
4.11 On May 22, 2020, the RBI has announced extension of the moratorium period by further three months. The extent to which COVID - 19 pandemic will impact the company's provision on financial assets will depend on future developments, which are highly uncertain. The impact of COVID - 19 pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions.
4.12 During the year ended March 31,2025 loans against which we have taken possession of properties of ' 50952.43 thousands has been transferred to assets held for sale. This assets has been recorded at carring value or fair value which ever is lower.
10.(A).4: LIQUIDITY RISK
The Company does not face a significant liquidity risk with regard to its lease liabilities as the assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
10.(B): THIS NOTE PROVIDES INFORMATION FOR LEASES WHERE THE COMPANY IS A LESSOR.
Company has not entered any lease agreement as lessor.
Trade payables include ' 402.51 thousands (Previous Year ' 791.49 thousands) payable to “Suppliers” registered under The Micro, Small & Medium Enterprises Development Act 2006. No interest has been paid by the company during the year to the “suppliers” covered under The Micro, Small & Medium Enterprises Development Act, 2006. The above information takes into account only those suppliers who have responded to enquiries made by the company for this purpose. The amount of principal and interest outstanding during the year is given below.
During the financial year ended March 31, 2021, the Company has, on June 26, 2020, issued 200 Rated, Listed, 11% Secured Non-convertible Debentures having face value of ' 10,00,000 each aggregating to ' 200000 thousands (Rupees Twenty Crore only) and the same have been allotted on June 30, 2020 for a tenor of 36 months. Redeemable non-convertible debentures are secured by book debts to the extent of 1.05 times of outstanding amount. The proceeds of the NCDs were used for the objects that were stated in the offer document(s).
On 30th March, 2019 the company had issued 16,00,000 Convertible share warrants to promoters and non-promoters at a price of ' 76.75 per share warrant with an option to convert each warrant with one equity share of face value of ' 10 per equity shares on or before 29th September, 2020. The Company had already received 25% of the issue price from the Allottees upto 29th March, 2019. Allottees needed to pay balance 75% of issue price on or before 29th September, 2020. The Company, on request of all warrant holders, has made an application to SEBI for extension of due date of warrants on 4th September, 2020. The SEBI has given extension till 13th November, 2020. However allottees were unable to pay balance 75% of issue price till extended time allowed by SEBI and hence company has forfeited the paid 25% amount of issue price (' 3,07,00 thousands) and transferred the same to Capital Reserve.
Note: As per RBI Notification DOR (NBFC).CC.PD.No.109/22.10.106/2019-20, when the impairment allowance as per IND AS 109 is lower than provisioning requirements of IRACP (including standard assets provisioning), the differential amount has to be transferred to a separate “Impairment Reserve”. During the year, the company has transferred NIL (previous year Nil) to such Impairment reserve.
NOTE 3232.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
Contingent liabilities
(a) Claims against the Company not acknowledged as debt -NIL Commitments
a) Sanctions done but not Disbursed ' 450.00 thousands (Previous Year ' 15679.00 thousands)
32.2 PENALTY IMPOSED BY THE REGULATORY AUTHORITIES
NIL
32.3 DISCLOSURES REQUIRED UNDER SECTION 22 OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year is ' 221.53 thousands.
(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year
(iii) The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day
(iv) The amount of interest due and payable for the year
(v) The amount of interest accrued and remaining unpaid at the end of the accounting year
(vi) The amount of further interest due and payable even in the succeeding year, until such date when the interest dues
as above are actually paid
The above dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.
32.4 LOANS GRANTED BY IHLL ARE SECURED BY ONE OR COMBINATION OF FOLLOWING SECURITIES:
(a) Equitable / Registered mortgage of property and / or
(b) Hypothecation of assets and / or
c) Company guarantee or personal guarantee and/or
d) Undertaking to create a security
32.5 COVID - 19 REGULATORY PACKAGE 32.5.1 COVID - 19 RESOLUTION FRAMEWORK 2.0
The Company invoked resolution plans to relieve COVID-19 pandemic related stress to eligible borrowers. The resolution plans are based on the parameters laid down in the guidelines issued by the RBI May 5, 2021. The staging of accounts and provisioning for the eligible accounts where the resolution plans are invoked and implemented is in accordance with the Board Approved Policy in this regard.
Disclosure on Resolution Framework 2.0 implemented in terms of RBI notification no. RBl/2021-22/31/DOR.STR.REC.11 /21.04.048/2021-22 dated May 05, 2021.
32.5.2 COVID - 19 REGULATORY PACKAGE
In accordance with the RBI guidelines relating to COVID - 19 Regulatory Package dated March 27, 2020 and April 17, 2020, the Company granted moratorium of three months on payments of all instalments and/or interest falling due on or after March 1, 2020 till May 31, 2020 (further extended as per RBI guidelines for another 3 months falling due on or after June 1,2020 till August 31,2020) to eligible borrowers who have requested for moratorium. The Company has used the principles of prudence in applying judgments, estimates and possible forward looking scenarios to assess and provide for the impact of the COVID-19 pandemic on the Financial Statements specifically while assessing the expected credit loss on financial assets by applying the customer profiling within salaried and self-employed portfolio and management overlays. The Company has performed an estimation of portfolio stress through analysing its portfolio in respect of various risk classification, using the available historical and current data and based on current indicators of future economic conditions. On May 22, 2020, the RBI has announced extension of the moratorium period by further three months. The extent to which COVID - 19 pandemic will impact the company's provision on financial assets will depend on future developments, which are highly uncertain. The impact of COVID - 19 pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions. Post outbreak of COVID-19, virus continues to spread across the country, resulting in significant volatility in financial markets and a significant decrease in economic activities. On March11, 2020, this outbreak was declared a global pandemic by the World Health Organisation and consequent lockdowns were imposed across. The situation was improving upto Jan - Feb 2021 but due to the onset of the 'second wave', things have deteriorated since March 2021. Increase in COVID 19 cases necessitated imposition of restrictions which may once again impact economic activity and markets. In preparing the accompanying financial statements, the Company's management has assessed the impact of the pandemic on its operations and its assets as at March 31, 2021. The management does not, at this juncture, believe that the impact on the value of the Company's assets and underline security is likely to be material. The extent to which the second wave of COVID 19 pandemic will impact the Company's results will depend on ongoing as well as future developments, which at this juncture are highly uncertain.
32.6 The company has complied with the norms prescribed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non-Performing Assets (NPAs) in preparation of account. As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning made (AS per ECL) for NPA and standard assets and towards COVID till 31st March, 2025 is ' 27833.52 thousands (Previous Year ' 25919.97 thousands). Details of which is as follows:
32.9.6 Company has not entered into any transactions for below mentioned items
a. Derivatives
b. Securitisation
c. NPA purchases /Sold
d. Transactions / Exposures relating to capital market
32.9.7 There is no parent company and hence there is no financing of parent company products. Also there are no group companies and hence there are also no group structure .
32.9.8 Company has not exceeded the norms of NHB relating to single borrower limit /Group borrower limit.
32.9.9 As on the date of this report, the Company had received a letter on July 14, 2022 from Informatics Rating (“Credit Rating Agency”), in relation to the revision in the Credit Rating assigned to the Long term fund based bank facility -term loan from IVR D - to IVR D (Reaffirmed) and for Non-Convertible Debentures from IVR C - to IVR C (Reaffirmed).
32.9.10 There is no drawdown from reserves. The Company has not decleared any interim and / or final dividend during the year.
32.9.11 There are no overseas assets and no overseas subsidiaries and any joint ventures partners
32.9.12 There are no off-balance sheet SPVs sponsored.
32.9.19 Indian Accounting Standard 110- Consolidated Financial Statements are not applicable for the Company
32.9.20 Revenue Recognition: No revenue recognition has been postponed pending the resolution of significant uncertainties
32.9.21 During the year, no transaction was accounted which was related to prior period (Previous year : Nil)
32.9.22 There is no change in the accounting policies except as required by the applicable statute
32.9.23 Disclosure under paragraph 29 of the Housing Finance Companies (NHB) Directions, 2010.
The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2010 except for the netting off the provisions (Impairment Loss Allowance) made as per Para 28 against the value of assets as per the requirement of Indian Accounting Standards.
32.9.24 There are no group company so exposures to real estate business does not arises.
32.10 The company didn't enter into any import transactions during the year.
32.11 Expenditure in foreign currency - NIL
32.12 Earnings in foreign exchange - NIL
32.13 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.
32.14 The company has appropriated a sum of ' 545.51 (Previous Year ' 0.00 thousands) to reserve fund which is in compliance with the requirement of section 36(1)(viii) of the Income Tax Act, 1962.
32.15 There are no loans granted against collateral of Gold and Jewellery.
NOTE 32.16 Statement for Disclosure on Statutory / Special Reserves, as prescribed RBI ‘s Master Directions Relating to Non -Banking Financial Company -Housing Finance Company (Reserve Bank ) Directions,2021NOTE 35 FAIR VALUE MEASUREMENT
Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value.
The management assessed that carrying values of financial assets i.e. trade receivable, cash and cash equivalents, loans, trade payables and other Financial assets and liabilities are reasonable approximations of their fair values.
(B) FAIR VALUE HEIRARCHY
Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arm's length transaction. The Company has made certain judgements and estimates in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified the financial instruments into three levels prescribed under the accounting standard. An explanation of each level is as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. This includes mutual funds and listed equity instruments that have quoted price. The mutual funds are valued using the closing NAV.
Level 2: Level 2 hierarchy includes financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3: If one or more of the significant inputs is not based on the observable market data, the instrument is included in Level 3 hierarchy.
(C) VALUATION TECHNIQUES
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices for mutual funds
- the use of quoted market prices for equity instruments
The carrying amounts of cash and cash equivalents, other bank balances, trade payables and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.
The fair values for loans and other financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
The fair values of borrowings other than debt securities are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
NOTE 36 FINANCIAL RISK MANAGEMENTA. CREDIT RISK
Credit risk is the risk of loss that may occur from the failure of any party to abide by the terms and conditions of any contract, principally the failure to make required payments of amounts due to company. In lending operations, the Company is principally exposed to credit risk.
The credit risk is governed by various Product Policies. The Product Policy outlines the type of products that can be offered, customer categories, the targeted customer profile and the credit approval process and limits.
The credit risk for retail borrowers is being managed at portfolio level for both Home loans and Non Home Loans. The Company has a structured and standardized credit approval process, which includes a well-established procedure of comprehensive credit appraisal. The Risk Management Policy addresses the recognition, measurement, monitoring and reporting of the Credit risk. The Company has additionally taken the following measures : -
- Borrower exposure limits as per applicable regulations.
- Establishment of a team to enhance focus on monitoring of process implementation at the branches and to facilitate proactive action wherever required.
- Enhanced monitoring of retail product portfolios through periodic review.
CREDIT APPROVAL AUTHORITIES
The Board of Directors has approved delegation of loan sanctioning powers to Managing Director and member of the management team on a graded level of the loan amount.
CREDIT RISK ASSESSMENT METHODOLOGYi) Retail Loans
Company's customers for retail loans are primarily low, middle and high-income, salaried and self-employed individuals.
The Company's credit officers evaluate credit proposals on the basis of active credit policies as on the date of approval. The criteria typically include 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. Any deviations need to be approved at the designated levels.
The various process controls such as KYC check, Credit Bureau Report analysis are undertaken. Company's staff performs comprehensive due diligence process including visits to customer's business and residence premises.
Company analyses the portfolio performance of each product segment regularly, and use these as inputs in revising the product programs, target market definitions and credit assessment criteria to meet the twin objectives of combining volume growth and maintenance of asset quality. The retail loans are fully secured and have full recourse against the borrower. The Company has a equitable mortgage over the collateral Immovable Properties. Wherever the state laws provide, the memorandum of deposit of title deeds are also registered.
ii) Other Loans
The Company has a framework for the appraisal and execution of project finance transactions and it believes that such framework enables optimal risk identification, allocation and mitigation and helps minimize risk in the transaction.
The project finance approval process undertakes detailed evaluation of credit, technical, commercial and financial besides capacity and capability of developer/promoter. A credit scan by obtaining CIBIL and legal litigation reports of key developer/promoter further strengthens credit evaluation. As part of the appraisal process, a risk matrix is prepared to assess project risks in terms of its viability and implementation of projects and other risks associated with the project.
Project finance loans are fully secured by equitable mortgage with registered MOD (Memorandum of deposit of titles) of the prime property being land on which project is to be executed besides lien on constructed units. The Company creates lien on the receivables arising from sale of constructed units. Cash flows are being escrowed in favour of the company besides setting up the escrowing of sale proceeds as per the RERA Act. The Company also obtains personal guarantees of the developer/key promoters. Besides, monthly reports on progress of work, sales booking and sales proceeds are being collected from borrowers which are being monitored until loans are fully repaid.
RISK MANAGEMENT AND PORTFOLIO REVIEW
The Company ensures effective monitoring of credit facilities through a risk-based asset review framework under which the frequency of asset review is determined depending on the risk associated with the product.
For both Retail and other borrowers, the company staff verifies adherence to the terms of the credit approval prior to the commitment and disbursement of credit facilities.
The Company monitors compliance with the terms and conditions for credit facilities prior to disbursement. It also reviews the completeness of documentation, creation of security and compliance with regulatory guidelines.
The provision estimated as per ECL (Expected Credit Loss) model on an aggregate basis is lower than the overall provision required under IRAC (Income Recognition and Asset Classification ) norms of the RBI. The Management on a conservative approach has decided to create Impairment reserve.
As at balance sheet date, the Company does not have significant concentration of credit risk
B. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
To limit this risk, management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a daily basis. The Company has developed internal control processes for managing liquidity risk.
Housing Finance being core business, maintaining the liquidity for meeting the growth perspective in the business as also to honour our committed repayments is the fundamental objective of the Asset Liability Management (ALM) framework.
Maturities of financial liabilities
The table below provides details regarding the contractual maturities of significant financial liabilities as at March 31, 2025, March 31, 2024.
C. Market Risk
The Company's core business is borrowing and lending as permitted by the National Housing Bank. These activities expose the Company to interest rate risk.
Interest Rate Risk refers to the risk associated with the adverse movement in the interest rates. Adverse movement would imply rising interest rates on liabilities and falling interest yields on the assets. This is the biggest risk which the company faces. It arises because of maturity and re-pricing mismatches of assets and liabilities.
NOTE 37 CAPITAL MANAGEMENT
The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements of Reserve Bank of India .
The Company has complied with the applicable capital requirements over the reported period. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return on capital to shareholders, issue new shares or sell assets to reduce debt.
“The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
NOTE 40 - SEGMENT REPORTING
The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Ind AS 108 “Operating Segments” specified under section 133 of the Companies Act, 2013.
The tax rate used for the reconciliations above is the corporate tax rate of 25.17% for the year 2022-23 payable by the Company in India on taxable profit under tax law in Indian jurisdiction.
NOTE 42 OTHER DISCLOSURES
(i) There is no income which is required to be 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.
(ii) The Company has not been declared willful defaulter by any Banks/Financial Institutions.
(iii) The Company has not traded or invested in Crypto currency or Virtual currency during the year.
(iv) 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 (45 of 1988) and the rules made thereunder.
(v) There are no transaction with struck off companies during the current and previous year.
NOTE 43
Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosures.
NOTE 44
The following disclosures have been given in terms of Notification no. RBI/2019-20/170 DOR (NBFC).CC.PD. No.109/22. 10.106/2019-20 dated March 13, 2020 issued by the RBI on Implementation of Indian Accounting Standards.
Note: As per RBI Notification DOR (NBFC).CC.PD.No.109/22.10.106/2019-20, when the impairment allowance as per IND AS 109 is lower than provisioning requirements of IRACP (including standard assets provisioning), the differential amount has to be transferred to a separate “Impairment Reserve”, details of which is available in a separate column in the Statement of Changes in Equity for the year. During the year, the company has transferred NIL (previous year RS. NIL) to such Impairment reserve.
NOTE 46: DIRECT ASSIGNMENT OF LOANS:-
Disclosures pursuant to RBI Notification - RBI/DOR/2021-22/86 DOR.SRTREC.51/12 .04.048/2021-22 dated 24 September 2021.
(A) Details of loans not in default transferred through assignment during the year ended 31 March 2025.
(A) 1 Company has not entered with direct assignment .
(B) Company has not entered Through sale .
(C) The Company has not acquired any loan not in default through assignment during the year ended 31 March 2025.
(D) The Company has not transferred or acquired any stressed loan during the year ended 31 March 2025.
NOTES:
1. As defined in Paragraph 4.1.30 of these Directions.
2. Provisioning norms shall be applicable as prescribed in these Directions.
3. All notified Indian Accounting Standards are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and breakup / fair value / NAV in respect of unquoted investments shall be disclosed irrespective of whether they are classified as long term or current in (5) above.
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