1. Corporate information
CreditAccess Grameen Limited (CIN- L51216KA1991PLC053425)
is a company domiciled in India and incorporated under
the provisions of the Companies Act, 1956. The Company
is registered as a non-deposit accepting Non-Banking
Financial Company ('NBFC-ND') with the Reserve Bank of
India ('RBI') and is classified as a Non-Banking Financial
Company - Micro Finance Institution ('NBFC-MFO with
effect from September 5, 2013. The Company is listed on
BSE Limited ('BSE') and National Stock Exchange of India
Ltd ('NSE'). The Company being a Non-banking financial
Company (NBFC - MFI), is registered with the Reserve
Bank of India (Certificate of Registration Number: B-
02.00252). The Registered office of the Company is
located at New No. 49 (Old No. 725), 46th Cross, 8th
Block, Jayanagar, (Next to Rajalakshmi Kalyana Mantap)
Bengaluru 560071, Karnataka, India.
The Company is a non-deposit taking Non-Banking
Financial Company (NBFC) registered with the Reserve
Bank of India (RBI) and has been classified as NBFC-
ML (middle layer) by the RBI as part of its 'Scale
Based Regulation'.
The Company is engaged primarily in providing micro
finance loans to women and organized as Joint Liability
Groups ('JLG') or Self Help Groups ('SHG'). In addition
to the core business of providing micro-credit, the
Company uses its distribution channel to provide certain
other financial products and services to the borrowers.
The financial statements of the Company for the year
ended March 31, 2025 were approved for issue in
accordance with the resolution of the Board of Directors
on May 16, 2025.
2. Basis of preparation
The standalone financial statements of the Company
have been prepared in accordance with Indian
Accounting Standards (Ind AS) as per the Companies
(Indian Accounting Standards) Rules, 2015 (as amended
from time to time) and notified under Section 133 of
the Companies Act, 2013 ("the Act") along with other
relevant provisions of the Act, the updated Master
Direction - Reserve Bank of India (Non-Banking Financial
Company - Scale Based Regulation) Directions, 2023 as
amended from time to time and other applicable RBI
circulars/notifications.
The standalone financial statements have been prepared
on a historical cost basis, except for certain financial
instruments that are measured at fair values at the
end of each reporting period. The financial statements
are presented in Indian Rupees (H) and all values are
rounded to the nearest crore, except when otherwise
indicated. These standalone financial statements have
been prepared on a going concern basis.
2.1. Presentation of Standalone Financial Statements
The financial statements of the Company are presented
as per Schedule III (Division III) of the Companies Act,
2013 applicable to Non-banking Finance Companies
(NBFCs), as notified by the MCA. The Company generally
reports financial assets and financial liabilities on a gross
basis in the balance sheet. They are offset and reported
net only when Ind AS specifically permits the same or it
has an unconditional legally enforceable right to offset
the recognised amounts without being contingent on
a future event. Similarly, the Company offsets incomes
and expenses and reports the same on a net basis when
permitted by Ind AS specifically.
2.2. Critical accounting estimates and judgements
The preparation of the Company's standalone financial
statements requires Management to make use of
estimates and judgements. In view of the inherent
uncertainties and a level of subjectivity involved in
measurement of items, it is possible that the outcomes
in the subsequent financial years could differ from
those on which the Management's estimates are based.
Accounting estimates and judgements are used in various
line items in the standalone financial statements. Some
of the critical key items individually are given below;
• Business model assessment (Refer Note no. 3.13)
• Effective interest rate (EIR) (Refer Note no. 3.1.1 and 3.2)
• Impairment of financial assets (Refer Note no. 3.14)
• Provision for tax expenses (Refer note no. 3.10)
• Residual value and useful life of property, plant
and equipment (Refer Note no. 3.3)
• Hedge accounting (Refer Note no. 3.18)
3. Material accounting policy information
This note provides a list of the material accounting
policy information adopted in the preparation of these
standalone financial statements. These policies have
been consistently applied to all the years presented,
unless otherwise stated.
3.1 Revenue recognition
The Company's revenue primarily consists of interest
income on loans, distribution income on the sale of
other financial products and services to the borrowers.
3.1.1 Interest income
Interest income for all financial instruments which
are measured at amortised cost are recorded
using the effective interest rate (EIR). EIR is the rate
that exactly discounts the estimated future cash
payments or receipts over the expected life of the
financial instrument or a shorter period, where
appropriate, to the gross carrying amount of the
financial asset. The calculation takes into account
all contractual terms of the financial instrument
and includes any fees (such as processing fee) or
incremental costs that are directly attributable
and are an integral part of the EIR, but not
future credit losses.
The Company recognises interest income by
applying the EIR to the gross carrying amount of
financial assets other than credit-impaired assets.
When a financial asset becomes credit impaired and
is, therefore, regarded as 'Stage 3', the Company
recognises interest income by applying the effective
interest rate to the carrying value of the financial
asset. If the financial assets cures and is no longer
credit impaired, the Company reverts to recognising
interest income on a gross basis.
3.1.2 Fair value gain
The Company recognises gains on fair value change
of financial assets measured at fair value through
profit and loss (FVTPL) and realised gains on
derecognition of financial asset measured at fair
value through profit and loss (FVTPL) on net basis.
3.1.3 The Company also distributes insurance policies
during the course of lending business. Distribution
income is earned by selling such products of other
entities under distribution arrangements. The
income so earned is recognised on successful sales
on behalf of other entities subject to there being no
significant uncertainty of its recovery.
3.1.4 Income from assignment transactions
In case where transfer of a part of financial assets
qualifies for de-recognition, any difference between
the proceeds received on such sale and the carrying
value of the transferred asset is recognised as gain
or loss on derecognition of such financial asset. The
Company considers direct assignment or transfer of
loan assets as one of the alternative mode or source
of fund raising. Direct assignment policy restricts
the direct assignment transaction outstanding
i.e. sold balance outstanding, to be within 10% of
projected Asset Under Management ('AUM').
2 Finance cost
Borrowing cost on financial liabilities including towards
securitisation transactions not derecognised by the
Company are recognised by applying the EIR. EIR is
the rate that exactly discounts the estimated future
cash payments or receipts over the expected life of
the financial instrument or a shorter period, where
appropriate, to the gross carrying amount of the financial
liability. The calculation takes into account all contractual
terms of the financial instrument and includes any fees
(such as processing fee, stamp duty etc) and such other
incremental costs that are directly attributable and are
an integral part of the EIR.
3.3 Property, plant and equipment ('PPE')
Initial Recognition and measurement:
PPE are stated at cost (including incidental expenses
directly attributable to bringing the asset to its working
condition for its intended use) less accumulated
depreciation and impairment losses, if any. Cost
comprises the purchase price and any attributable cost
of bringing the asset to its working condition for its
intended use. Subsequent expenditure related to PPE is
capitalized only when it is probable that future economic
benefits associated with these will flow to the Company
and the cost of item can be measured reliably. Other
repairs and maintenance costs are expensed off as
and when incurred.
3.4 Intangible assets
Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses, if any.
3.5 Depreciation and amortization
3.5.1 Depreciation
Depreciation on property, plant and equipment
is measured using the straight line method as
per the useful lives of the assets estimated by the
management. The useful life estimated by the
management is as under:
The management has estimated the useful life of
servers and two-wheeler vehicles as 3 years and
8 years respectively, which are lower than those
prescribed under Schedule II to the Act.
Property, plant and equipment costing less
than H 5000 per unit are fully depreciated in the
year of purchase.
3.5.2 Amortisation of intangible assets
Intangible assets are amortised on a straight line
basis over the estimated useful economic life. The
management has determined its estimate of useful
economic life of computer software as five years.
Customer relationship is amortised over a period
of 10 years. The useful lives of intangible assets
are reviewed at each financial year and adjusted if
there are any such requirement.
3.5.3 Impairment of Goodwill
Goodwill is initially recognised as an asset at cost
and is subsequently measured at cost less any
accumulated impairment losses.
For the purpose of impairment testing, goodwill
is allocated to each of the Company's cash¬
generating units or groups of cash generating units
that are expected to benefit from the synergies
of the combination. Cash-generating units to
which goodwill has been allocated are tested for
impairment annually, or more frequently when
there is an indication that the unit's value may be
impaired. If the recoverable amount of the cash¬
generating unit is less than the carrying value of
the unit, the impairment loss is allocated first to
reduce the carrying value of any goodwill allocated
to the unit and then to the other assets of the
unit in proportion to the carrying value of each
asset in the unit.
An impairment loss recognised for goodwill is not
reversed in a subsequent period. On disposal of
a subsidiary, the attributable amount of goodwill
is included in the determination of profit or
loss on disposal.
In the case of Company, since both Company &
erstwhile subsidiary were in similar business, entire
business has been treated as one Cash Generating
Unit (CGU). As required under the standard, this is
the lowest level at which the goodwill is monitored
for internal management purposes. In view of this,
Company as a whole is valued as one CGU for the
purpose of assessing the impairment of goodwill.
3.6 Impairment of non-financial assets
The Company assesses at each reporting date whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates
the asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's net selling price and its
value in use. The recoverable amount is determined for
an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from
other assets or groups of assets. Where the carrying
amount of an asset exceeds its recoverable amount,
the asset is considered impaired and is written down
to its recoverable amount. In assessing value in use,
the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects
current market assessments of the time value of money
and the risks specific to the asset. In determining net
selling price, recent market transactions are taken into
account, if available. If no such transactions can be
identified, an appropriate valuation model is used.
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