2.8 Provisions
Provisions are recognised when the
Company has a present obligation (legal or
constructive) as a result of a past event, it is
probable that the Company will be required
to settle the obligation, and a reliable
estimate can be made of the amount of the
obligation.
The amount recognised as a provision is the
best estimate of the consideration required
to settle the present obligation at the end
of the reporting period, taking into account
the risks and uncertainties surrounding the
obligation. When a provision is measured
using the cash flows estimated to settle
the present obligation, its carrying amount
is the present value of those cash flows
(when the effect of the time value of money
is material, provisions are discounted using
a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability).
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a finance cost.
When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable
is recognised as an asset if it is virtually
certain that reimbursement will be received,
and the amount of the receivable can be
measured reliably. The expense relating to
a provision is presented in the statement of
profit and loss net of any reimbursement.
2.9 Assets held for Sale
Assets acquired by the Company under
Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest
Act, 2002 has been classified as assets held
for sale, as their carrying amounts will be
recovered principally through a sale of asset.
This assets are recognised on obtaining
physical possession of the assets which
are in the nature of residential properties. In
accordance with Ind AS 105, the assets held
for sale are measured at the lower of their
carrying amount and the fair value less costs
to sell.
2.10 Cash flow statement
Cash flows are reported using the indirect
method, whereby profit / (loss) before tax
is adjusted for the effects of transactions
of non-cash nature and any deferrals or
accruals of past or future cash receipts or
payments.
2.10.1 Cash and cash equivalents
Cash comprises cash on hand and demand
deposits with banks. Cash equivalents
are short-term balances (with an original
maturity of three months or less from the
date of acquisition), highly liquid investments
that are readily convertible into known
amounts of cash and which are subject to
insignificant risk of changes in value.
2.11 Earnings per share ("EPS")
Basic earnings per share is computed
by dividing the profit / (loss) after tax by
the weighted average number of equity
shares outstanding during the year. Diluted
earnings per share is computed by dividing
the profit / (loss) after tax as adjusted for
dividend, interest and other charges to
expense or income (net of any attributable
taxes) relating to the dilutive potential equity
shares, by the weighted average number
of equity shares considered for deriving
basic earnings per share and the weighted
average number of equity shares which
could have been issued on the conversion of
all dilutive potential equity shares. Potential
equity shares are deemed to be dilutive only
if their conversion to equity shares would
decrease the net profit per share from
continuing ordinary operations. Potential
dilutive equity shares are deemed to be
converted as at the beginning of the period,
unless they have been issued at a later
date. The dilutive potential equity shares
are adjusted for the proceeds receivable
had the shares been actually issued at fair
value. Dilutive potential equity shares are
determined independently for each period
presented. The number of equity shares
and potentially dilutive equity shares are
adjusted for share splits / reverse share splits
and bonus shares, as appropriate. Partly
paid equity shares are treated as a fraction
of an equity share to the extent that they are
entitled to participate in dividends relative to
a fully paid equity share during the reporting
period.
2.12 Segment Reporting
Ind AS 108 establishes standards for the
way that public business enterprises report
information about operating segments
and related disclosures about products
and services, geographic areas, and major
customers. Based on the 'management
approach' as defined in Ind AS 108, the
Chief Operating Decision Maker ("CODM")
evaluates the Company's performance
based on an analysis of various performance
indicators by business segments and
geographic segments.
As per the requirements of Ind AS 108
'Operating Segments', based on evaluation
of financial information for allocation of
resources and assessing performance, the
Company has identified a single segment,
viz. "providing long term housing finance,
loans against property and refinance
loans". Accordingly, there are no separate
reportable segments as per Ind AS 108.
2.13 Determination of Fair value
Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurement date. The
fair value measurement is based on the
presumption that the transaction to sell
the asset or transfer the liability takes place
either:
? In the principal market for the asset or
liability, or
? In the absence of a principal market, in
the most advantageous market for the
asset or liability
The principal or the most advantageous
market must be accessible by the Company.
The fair value of an asset or a liability is
measured using the assumptions that
market participants would use when pricing
the asset or liability, assuming that market
participants act in their economic best
interest.
A fair value measurement of a non¬
financial asset takes into account a market
participant's ability to generate economic
benefits by using the asset in its highest and
best use or by selling it to another market
participant that would use the asset in its
highest and best use.
The Company uses valuation techniques
that are appropriate in the circumstances
and for which sufficient data are available
to measure fair value, maximising the use of
relevant observable inputs and minimising
the use of unobservable inputs.
In order to show how fair values have been
derived, financial instruments are classified
based on a hierarchy of valuation techniques,
as summarised below:
? Level 1 financial instruments -Those
where the inputs used in the valuation are
unadjusted quoted prices from active
markets for identical assets or liabilities
that the Company has access to at
the measurement date. The Company
considers markets as active only if there
are sufficient trading activities with
regards to the volume and liquidity of the
identical assets or liabilities and when
there are binding and exercisable price
quotes available on the balance sheet
date.
? Level 2 financial instruments-Those
where the inputs that are used for
valuation and are significant, are derived
from directly or indirectly observable
market data available over the entire
period of the instrument's life. Such inputs
include quoted prices for similar assets
or liabilities in active markets, quoted
prices for identical instruments in inactive
markets and observable inputs other
than quoted prices such as interest rates
and yield curves, implied volatilities, and
credit spreads. In addition, adjustments
may be required for the condition or
location of the asset or the extent to which
it relates to items that are comparable to
the valued instrument. However, if such
adjustments are based on unobservable
inputs which are significant to the entire
measurement, the Company will classify
the instruments as Level 3.
? Level 3 financial instruments -Those that
include one or more unobservable input
that is significant to the measurement as
whole.
For assets and liabilities that are recognised
in the financial statements on a recurring
basis, the Company determines whether
transfers have occurred between levels in
the hierarchy by re-assessing categorisation
(based on the lowest level input that is
significant to the fair value measurement as
a whole) at the end of each reporting period.
The Company evaluates the levelling at
each reporting period on an instrument-by¬
instrument basis and reclassifies instruments
when necessary based on the facts at the
end of the reporting period.
3. Significant accounting judgements,
estimates and assumptions
The preparation of the Company's financial
statements requires management to make
judgements, estimates and assumptions
that affect the reported amount of revenues,
expenses, assets and liabilities, and the
accompanying disclosures, as well as
the disclosure of contingent liabilities.
Uncertainty about these assumptions and
estimates could result in outcomes that
require a material adjustment to the carrying
amount of assets or liabilities affected in
future period
In the process of applying the Company's
accounting policies, management has made
the following judgements/estimates, which
have a significant risk of causing a material
adjustment to the carrying amounts of
assets and liabilities within the next financial
year.
3.1. De-recognition of Financial instruments
The Company enters into securitisation
transactions where financial assets are
transferred to a structured entity for
a consideration. The financial assets
transferred qualify for derecognition only
when substantial risk and rewards are
transferred.
This assessment includes judgements
reflecting all relevant evidence including
the past performance of the assets
transferred and credit risk that the
Company has been exposed to. Based on
this assessment, the Company believes
that the credit enhancement provided
pursuant to the transfer of financial assets
under securitisation are higher than the
loss incurred on the similar portfolios of the
Company hence it has been concluded that
securitisation transactions entered by the
Company does not qualify for de-recognition
since substantial risk and rewards of the
ownership has not been transferred. The
transactions are treated as financing
arrangements and the sale consideration
received is treated as borrowings.
3.2. Fair value of financial instruments
The fair value of financial instruments is
the price that would be received to sell
an asset or paid to transfer a liability in an
orderly transaction in the principal (or most
advantageous) 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 another valuation technique. When the
fair values of financial assets and financial
liabilities recorded in the balance sheet
cannot be derived from active markets,
they are determined using a variety of
valuation techniques that include the use
of valuation models. The inputs to these
models are taken from observable markets
where possible, but where this is not feasible,
estimation is required in establishing fair
values. Judgements and estimates include
considerations of liquidity and model inputs
related to items such as credit risk (both
own and counterparty), funding value
adjustments, correlation and volatility.
For further details about determination
of fair value please see Fair value note in
Accounting policy
3.3. Impairment of financial asset
The measurement of impairment losses
across all categories of financial assets
requires judgement, in particular, the
estimation of the amount and timing of
future cash flows and collateral values when
determining impairment losses and the
assessment of a significant increase in credit
risk. These estimates are driven by a number
of factors, changes in which can result in
different levels of allowances.
The Company's ECL calculations are
outputs of complex models with a number
of underlying assumptions regarding
the choice of variable inputs and their
interdependencies. Elements of the ECL
models that are considered accounting
estimates include:
? The Company's criteria for assessing if
there has been a significant increase in
credit risk and so allowances for financial
assets should be measured on a LTECL
basis and the qualitative assessment
? The segmentation of financial assets
when their ECL is assessed on a collective
basis
? Development of ECL models, including
the various formulas and the choice of
inputs
? Determination of temporary adjustments
as qualitative adjustment or overlays
based on broad range of forward looking
information as economic inputs
It has been the Company's policy to regularly
review its models in the context of actual loss
experience and adjust when necessary.
3.4. Provisions and other contingent liabilities
When the Company can reliably measure
the outflow of economic benefits in relation
to a specific case and considers such
outflows to be probable, the Company
records a provision against the case. Where
the probability of outflow is considered to be
remote, or probable, but a reliable estimate
cannot be made, a contingent liability is
disclosed.
Given the subjectivity and uncertainty of
determining the probability and amount of
losses, the Company takes into account a
number of factors including legal advice, the
stage of the matter and historical evidence
from similar incidents. Significant judgement
is required to conclude on these estimates.
Recent pronouncements
The Ministry of Corporate Affairs ("MCA"),
through notifications, introduces new
standards or notifies amendments to the
existing standards under the Companies
(Indian Accounting Standards) Rules, 2015,
from time to time. For accounting periods
beginning on or after 01 April 2026, when an
entity breaches any covenant of a long¬
term loan arrangement on or before the end
of the reporting period with the effect that
the liability becomes payable on demand, it
classifies the liability as current, even if the
lender agreed, after the reporting period
and before the approval of the financial
statements for issue, not to demand payment
as a consequence of the breach. An entity
classifies the liability as current because, at
the end of the reporting period, it does not
have the right to defer its settlement for at
least 12 months after that date. However, an
entity classifies the liability as non-current if
the lender agreed by the end of the reporting
period to provide a period of grace ending
at least 12 months after the reporting period,
within which the entity can rectify the breach
and during which the lender cannot demand
immediate repayment. This amendment
is to be applied retrospectively for annual
reporting periods beginning on or after
01 April 2026, in accordance with Ind AS 8,
Accounting Policies, Accounting Estimates
and Errors. The Company has assessed the
impact of the amendment, as stated above,
and concluded that it has no impact on the
financial statements of the Company for
the year ended 31 March 2026 and 31 March
2025.
Notes:
(i) All term loans are originated in India
(ii) Term Loans include an amount of ? 12,000.00 lakhs (March 31,2025 - ? 34,000.00 lakhs) given to wholly owned
Subsidiary (refer note 34.2). The loan is secured by book debts of wholly owned Subsidiary.
(iii) Term Loans (other than (ii) above) are secured by deposit of original title deeds of immovable properties
with the Company and/or equitable mortgage of title deeds.
(iv) There are no outstanding loan to Public Institution.
(i) Term loans from scheduled banks and other financial institutions are secured by way of specific charge on
assets under hypothecation.
(ii) The Company has not defaulted in the repayment of borrowings and interest during any of the years
presented.
(iii) Working Capital loans have been availed at Interest rate of 8.00%-8.50% p.a and are secured by hypothecation
of specified term loans amounting to ? Nil as at March 31,2026 (March 31,2025 - 53,000.00 Lakhs).
(iv) The Company has utilised the funds raised from banks and financial institutions for the specific purpose for
which they were borrowed.
(v) The Company has borrowed funds from banks and financial institutions on the basis of security of current
assets. It has filed quarterly returns or statements of current assets with bank and financial institutions and
the said returns/statements are in agreement with books of accounts.
(vi) Bank guarantee of 5 1,125 Lakhs for term loans from NHB is provided by Yes Bank Limited (31 March 2025:51,125
Lakhs) on behalf of the Company to NHB. Total outstanding balance as at 31 March 2026 for such term loans
is 5 1,208.95 Lakhs (31 March 2025: 52,956.95 Lakhs).
(b) During the current year, the company allotted 9,28,598 equity shares to eligible employees under the
Employee Stock Option Scheme 2021.
Out of the total allotment:
5,47,189 shares were allotted at an exercise price of f 140 per equity share,
3,46,378 shares were allotted at an exercise price of 5 247 per equity share, and
35,031 shares were allotted at an exercise price of E 326 per equity share.
(c) Terms/rights attached to Equity Shares:
The Company has only one class of equity shares having a par value of ?2 each. Each holder is
entitled to one vote per equity share. Dividends proposed by the Board of Directors, if any is subject to
the approval of the shareholders at the Annual General Meeting except in case of interim dividend.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining
assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.
20.2 Nature and purpose of reserves:20.2.1 Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for
limited purposes in accordance with the provisions of the Companies Act, 2013. During the year ended
March 31,2026, Securities premium was utilised to the extent of if Nil (March 31, 2025 -Nil on account of
expenses incurred for the issue of Equity shares, in line with Section 52 of the Companies Act 2013).
20.2.2 Employee Stock Options Reserve
The amount represents reserve created to the extent of granted options based on the Employees Stock
Option Schemes. Under Ind AS 102, fair value of the options granted is to be expensed out over the life
of the vesting period as employee compensation costs reflecting period of receipt of service. Also refer
note 41.
20.2.3 Statutory Reserve under Section 29C of National Housing Bank (NHB) Act, 1987
As per Section 29C(1) of the National Housing Bank Act, 1987, the Company is required to transfer at least
20% of its net profit after tax every year to a reserve before any dividend is declared. For this purpose,
any Special Reserve created by the Company under Section 36(1)(viii) of the Income-tax Act, 1961, is
considered to be an eligible transfer. During the year ended March 31, 2026, the company has transferred
if 11,486.13 lakhs (March 31,2025 - if 9,970.63 lakhs) in terms of section 36(l)(viii) to the Special Reserve.
The Company has transferred an amount of if 2,370.64 lakhs during the year ended March 31, 2026
(March 31, 2025 - if 1,537.78 lakhs) to Statutory Reserve u/s 29C of the National Flousing Bank Act, 1987.
Total amount clearly earmarked for the purposes of Statutory Reserve u/s 29C is if 64,750.69 lakhs (March
31,2025 - if 50,893.92 lakhs) out of which If11,676.20 lakhs (March 31,2025 - if 9,305.56 lakhs) is distinctly
identifiable above and the balance of if 53,074.49 lakhs (March 31,2025 - if 41,588.36 lakhs) is included in
the Special Reserve created u/s 36(1)(viii) of the Income-tax Act, 1961.
The Company has resolved not to make withdrawals from the Special reserve created under Section
36(1)(viii) of the Income-tax Act, 1961.
20.2.4 Impairment Reserve
In terms of the requirement as per RBI notification no. RBl/DOR/2025-26/359 DOR.ACC.REC.
No.278/21.04.018/2025-26 dated 28 November 2025, Housing Finance Companies (HFCs) are required to
create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and Income
Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets).
The overall impairment provision made under Ind AS is higher than the prudential floor prescribed by RBI.
20.2.5 Retained earnings
Retained earnings are the profits that the Company has earned till date less any transfer to statutory
reserves, general reserves and dividend distributed to shareholders.
The Board of Directors had declared two interim dividend of 5 2.5 & if 2 each per share respectively for
equity share of face value of W 2 at their meetings held on 06th May 2025, 31st October 2025 and paid
subsequently on 22nd May 2025, 14th November 2025 respectively.
The income tax rate used for the above reconciliations are the corporate tax rate payable by the Company in
India on taxable profits under the Income-tax Act, 1961.
The Company had elected to exercise the option of a lower tax rate provided under Section 115BAA of the
Income tax Act, 1961, as introduced by the Taxation Laws (Amendment) Ordinance, 2019 dated September 20,
2019. Accordingly, the Company has recognised provision for income tax for the year ended March 31, 2026 and
March 31, 2025 basis the rate provided in the said section.
28.1 Contingent liabilities as per Ind AS 37 and commitments
i) Matters wherein management has concluded the Company's liability to be probable have
accordingly been provided for in the books. Also refer note 17.
ii) Matters wherein management has concluded the Company's liability to be possible have accordingly
been disclosed under Note 28.2 Contingent liabilities below.
iii) Matters wherein management is confident of succeeding in these litigations and have concluded
the Company's liability to be remote. This is based on the relevant facts of judicial precedents and
as advised by legal counsel which involves various legal proceedings and claims, in different stages
of process.
30 Sharing of Costs
The Company and its wholly owned subsidiary share certain costs / service charges. These costs have
been recovered by the Company from its wholly owned subsidiary on a basis mutually agreed by both
the entities, which has been relied upon by the Auditors.
31 Employee benefit plans31.1 Defined contribution plans
The Company makes Provident Fund contributions for qualifying employees to the Regional Provident
Fund Commissioner. Under the Scheme, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognized ft 896.19 lakhs (March 31,2025 - ft 760.21
lakhs) for provident fund contributions in the Statement of Profit and Loss. The contributions payable to
the scheme by the Company are at rates specified in the rules of the scheme.
31.2 Defined benefit plans
The Company provides for gratuity, a defined benefit plan (the "gratuity plan") covering eligible
employees in accordance with the Payment of Gratuity Act, 1972. The gratuity plan provides a lump sum
payment to vested employees at retirement or termination of employment based on the respective
employee's last drawn salary and years of employment with the Company. The Company does not have
a funded gratuity scheme for its employees.
The Company is exposed to various risks in providing the above gratuity benefit such as: interest rate risk,
longevity risk and salary risk.
Interest risk: A decrease in the bond interest rate will increase the plan liability.
I ongevity risk: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the
life expectancy of the plan participants will increase the plan's liability.
Salary escalation risk: The present value of the defined benefit plan liability is calculated by reference
to the future salaries of plan participants. As such, an increase in the salary of the plan participants will
increase the plan's liability.
Gratuity provision has been made based on the actuarial valuation done as at the year end using the
Projected Unit Credit method. The details of actuarial valuation as provided by the Independent Actuary
is as follows:
1. The estimate of the future salary increase takes into account inflation, seniority, promotion and other relevant
factors.
2. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet
date for the estimated term of the obligation.
3. Experience adjustments
Sensitivity analysis
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected
salary increase. The sensitivity analysis below 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 following table summarizes the impact on defined benefit obligation arising due to increase / decrease in
key actuarial assumptions by 50 basis points:
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 as
that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
31.4 On 21 November 2025, the Government of India has consolidated 29 existing labour laws into four Labour
Codes - the Codes on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020,
the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the 'New
Labour Codes'). As per the requirements under Ind AS 19, changes to employee benefit plans arising from
the New Labour Codes constitute plan amendments and are required to be treated as past service costs.
Accordingly, the company has estimated an increase in provision for employee benefits, on account of New
Labour Codes, by 5384.23 lakhs and the same has been recognised under the head 'Employee benefits
expense' in the statement of profit and loss for the year ended 31 March 2026. The Company continues to
monitor the finalisation of Central and State Rules and clarifications on the New Labour Codes and would
provide appropriate accounting treatment on the basis of such developments, if needed.
32 Segment Reporting:
The Executive Chairman of the Company takes decision in respect of allocation of resources and assesses
the performance basis the report/ information provided by functional heads and are thus considered to
be Chief Operating Decision Maker (""CODM"").
The Company operates under the principal business segment viz. ""providing long term housing finance,
loans against property and refinance loans"". CODM views and monitors the operating results of its single
business segment for the purpose of making decisions about resource allocation and performance
assessment. Accordingly, there are no separate reportable segments in accordance with the requirements
of Ind AS 108 'Operating segment' and hence, there are no additional disclosures to be provided other
than those already provided in the consolidated financial statements. The Company's operations are
predominantly confined in India.
33 Earnings and Expenditure in foreign currency - 3 Nil (March 31,2025:3 Nil)
* As the future liabilities of gratuity and leave encashment are provided on actuarial basis for the Company as
a whole, the amounts pertaining to key managerial personnel is not separately ascertainable and therefore not
included above.
# Includes Investment in wholly owned subsidiary arising out of financial guarantee obligations.
35 Financial Instruments35.1 Capital management
The Company actively manages its capital to meet regulatory norms and current and future business
needs, considering the risks in its businesses, expectations of rating agencies, shareholders and investors,
and the available options of raising capital. Its capital management framework is administered by the
risk committee of Company. During the current year, there has been no change in objectives, policies or
processes for managing capital.
The Company is subject to the capital adequacy requirements of the National Housing Bank ('NHB') /
Reserve Bank of India ('RBI'). As per the Master Direction - Non-Banking Financial Company - Reserve
Bank of India (Housing Finance Company) Directions, 2025 dated November 28, 2025, the Company
is required to maintain a minimum ratio of total capital to risk adjusted assets as determined by a
specified formula, at least half of which must be Tier 1 capital, which is generally shareholders' equity.
The Company has complied with all regulatory requirements related to regulatory capital and capital
adequacy ratios as prescribed by NHB / RBI.
The company sets the amount of capital in proportion to its overall financing structure, i.e. equity and
financial liabilities.
Below is the Capital Risk Adequacy Ratio maintained and calculated as per NHB/RBI guidelines in the
respective year by the Company and as per regulatory return filed with NHB in the respective years.
35.1.1 The Company's capital management strategy is to effectively determine, raise and deploy capital to
cover risk inherent in business and meeting the capital adequacy requirements of the Reserve Bank of
India (RBI). The same is done through a combination of equity and/ or short term/ long term debt as may
be appropriate. The Company determines the amount of capital required on the basis of operations
and capital expenditure. The adequacy of the Company's capital is monitored using, among other
measures, the regulations issued by the RBI.
The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt
portfolio. The Company's policy is in line with Master Direction - Non-Banking Financial Company -
Reserve Bank of India (Housing Finance Company) Directions, 2025 dated November 28, 2025 which
currently permits HFCs to borrow up to 12 times of their net owned funds ("NOF")
35.3 Fair Value Measurements
Fair Value hierarchy
This section explains the judgements and estimates made 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 value disclosure are required in the financial statements. To provide an indication
about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the accounting standard.
(b) Fair value of financial instruments not measured at fair value
Valuation methodologies of financial instruments not measured at fair value
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. The below methodologies
and assumptions relate only to the instruments in the above tables and, as such, may differ from
the techniques and assumptions.
Short-term financial assets and liabilities
For financial assets and financial liabilities that have a short-term maturity (less than twelve
months), the carrying amounts, which are net of impairment, are a reasonable approximation of
their fair value. Such instruments include: cash and cash equivalents, bank balances other than
cash and cash equivalents, other financial assets, trade payables and other financial liabilities
without a specific maturity. Such amounts have been classified as Level 3 except for cash and cash
equivalents and bank balances other than cash and cash equivalents which have been classified
as Level 1.
Loans
The fair values of loans and receivables are estimated by discounted cash flow models that
incorporate assumptions for credit risks, probability of default and loss given default estimates.
Where such information is not available, the Company uses historical experience and other
information used in its collective impairment models.
Fair values of lending portfolios are calculated using a portfolio-based approach. The Company
then calculates and extrapolates the fair value to the entire portfolio, using discounted cash flow
models that incorporate interest rate estimates considering all significant characteristics of the
loans. The credit risk is applied as a top-side adjustment based on the collective impairment model
incorporating probability of defaults and loss given defaults.
Debt securities & Borrowings (other than debt securities)
The fair values of Debt Securities and Borrowings (other than Debt securities) are estimated by
discounted cash flow models that incorporate interest cost estimates considering all significant
characteristics of the borrowing. They are classified as Level 3 fair values in the fair value hierarchy
due to the use of unobservable inputs.
Set out below is a comparison, by class, of the carrying amounts and fair values of the Company's
financial instruments that are not carried at fair value in the financial statements. This table does
not include the fair values of non-financial assets and non-financial liabilities.
35.4 Market risk management
Market Risk is the risk of loss in on-balance sheet and off-balance sheet positions arising from movements
in market place, in particular, changes in interest rates, exchange rates and equity. In line with the
regulatory requirements, the Company has in place a Board approved Market Risk Management and
Asset Liability Management ("ALM") policy in place. The Policy provides the framework for assessing
market risk, in particular, tracking of events happening in market place, changes in policies / guidelines
of government and regulators, exchange rate movement, equity market movements, money market
movements etc.
35.5 Interest rate risk management
Interest rate risk is managed through ALM policy framed by the Company. The ALM policy is administered
through the ALCO (Asset Liability Management Committee) which monitors the following on a monthly
basis:
- Borrowing cost of the Company as on a particular date
- Interest rate scenario existing in the market
- Gap in cash flows at the prevalent interest rates
- Effect of Interest rate changes on the Gap in the cash flows
- Fixing appropriate interest rate to be charged to the customer based on the above factors
Interest rate sensitivity analysis
The sensitivity analysis has been determined for borrowings where interest rates are variable, assuming
the amount outstanding at the end of the reporting year was outstanding for the whole year. A 50
basis points increase or decrease in interest rates is used when reporting interest rate risk internally to
key management personnel and represents management's assessment of the reasonably possible
change in interest rates.
35.6 Credit risk
Credit risk in the Company arises due to
default by customers on their contractual
obligations which results to financial
losses. Credit Risk is a major risk in the
Company and the Company's asset base
comprises loans for affordable housing and
loans against property. Credit Risk in the
Company stems from outright default due
to inability or unwillingness of a customer to
meet commitments in relation to lending,
settlement and other financial transactions.
The essence of credit risk assessment in the
Company pivots around the early assessment
of stress, either in a portfolio or an account,
and taking appropriate measures.
35.6.1 Credit risk management
Credit risk in the Company is managed
through a framework that sets out policies
and procedures covering the measurement
and management of credit risk. There is
a clear segregation of duties between
transaction originators in the business
function and approvers in the credit risk
function. Board approved credit policies
and procedures mitigate the Company's
prime risk which is the default risk. There is
a Credit Risk Management Committee in
the Company for the review of the policies,
process and products on an ongoing basis,
with approval secured from the Board as
and when required. There is a robust Credit
Risk Management set-up in the Company at
various levels.
1. There are Credit teams to ensure
implementation of various policies and
processes through random customer
visits and assessment, training of branch
staff on application errors, liaison with
other institutions to obtain necessary
information/loan closure documents,
as the case may be, and highlight
early warning signals and industry
developments enabling pro-active field
risk management.
2. The credit sanction is done through
a delegation matrix where credit
sanctioning powers are defined for
respective levels.
3. Portfolio analysis and reporting is used to
identify and manage credit quality and
concentration risks.
4. Credit risk monitoring for the Company is
broadly done at two levels: account level
and portfolio level. Account monitoring
aims to identify weak accounts at an
incipient stage to facilitate corrective
action. Portfolio monitoring aims towards
managing risk concentration in the
portfolio as well as identifying stress in
certain occupations, markets and states.
35.6.2 Significant increase in credit risk
The Company monitors all financial assets
that are subject to impairment requirements
to assess whether there has been a significant
increase in credit risk since initial recognition.
If there has been a significant increase
in credit risk, the Company measures the
loss allowance based on lifetime rather
than Stage 1 (12-month) Expected Credit
Loss (ECL). Pending the adoption of scoring
models to assess the change in credit status
at an account level and at portfolio level,
the Company has adopted SICR (Significant
Increase in Credit risk) criteria based on Days
Past Due (DPD). The following table lists the
staging criteria used in the Company: Staging
Criterion
Stage-1: 0 up to 30 days past due
Stage-2: 31 up to 90 days past due
Stage-3: 91 and above days past due
Stage 2 follows the rebuttable presumption
stated in Ind AS 109, that credit risk has
increased significantly since initial recognition
no later than when contractual payments are
more than 30 days past due.
The Company also considers other qualitative
factors and repayment history and considers
guidance issued by the Institute of Chartered
accountants of India (ICAI) for staging of
advances to which moratorium benefit has
been extended under the COVID regulatory
package issued by RBI and as approved by
the Board.
35.6.3 Measurement of ECL
The key inputs used for measuring ECL on
term loans issued by the Company are:
Probability of default (PD): The PD is an
estimate of the likelihood of default over a
given time horizon (12 Month). It is estimated
as at a point in time. To compute Expected
Credit Loss (ECL) the portfolio is segregated
into 3 stages viz. Stage 1, Stage 2 and Stage 3
on the basis of Days Past Dues. The Company
uses 12 month PD for the stage 1 borrowers
and lifetime PD for stage 2 and 3 to compute
the ECL.
Loss given default (LGD): LGD is an estimation
of the loss arising on default. It is based on
the difference between the contractual cash
flows due and those that the lender would
expect to receive, taking into account cash
flows from eligible collateral.
Exposure at default (EAD): EAD is an estimate
of the exposure at a future default date,
taking into account expected changes in the
exposure after the reporting date including
expected drawdowns on committed facilities.
Probability of Default
To arrive at Probability of Default, 'Vintage
Analysis' was done considering monthly
defaults of borrower since origination.
The analysis considered Monthly Default
Rates starting from inception until the end
of observation period i.e. December 2025
to calculate default rates for each vintage
month. Cumulative PD was calculated from
the marginal PDs for each vintage month.
Simple Average and Weighted Average
PD was computed for each Month on Book
(MOB) period starting from MOB 0 until MOB
"n" (end of observation period). The Company
has used Simple average to eliminate the
bias that can be possible due to weighted
average effect.
Loss Given Default
LGD was calculated using First time NPA (FTN)
date and recovery data for each of these FTN
dates. FTN date was taken from inception until
the latest period. For each pool, recovery data
was mapped to the subsequent months until
current period from the respective default
month i.e. recovery data was retrieved and
plotted against the flow of month i.e. Months
on Book MOB 0, MOB 1, MOB 2, MOB 3 till MOB
(n) against each default month. Considering
time value of money, recoveries in each
month was discounted to arrive at the
value as of FTN date. Average Interest Rates
charged for each disbursement year was
used as the Effective Interest Rates (EIR) for
the loans.
Marginal Recovery rates was computed for
each month as Discounted Recovery amount
for a given month divided by the total
outstanding amount for the given FTN date.
Cumulative recovery rates were computed
for each FTN date and LGD for corresponding
FTN date was computed by using the formula
(1- Recovery Rate). Weighted average LGD
was computed for the entire observation
period, weights being the total outstanding
amount for each FTN date.
Exposure at Default :
EAD is the total outstanding balance at the reporting date including principal and accrued interests at
the reporting date. EAD calculation for all portfolios is as under:
Stage 1 Assets:
• [(The total outstanding balance drawn) (Undrawn Portion*CCF undrawn)].
Stage 2 Assets:
• [(The total outstanding balance drawn) (Undrawn Portion*CCF undrawn)].
Stage 3 Assets:
• [(The total outstanding balance drawn) (Undrawn Portion*CCF undrawn)].
Credit Conversion Factor (CCF) for undrawn portion has been taken at 100% based on historical
experience and other information available with the Company.
The Company measures ECL as the product of PD , LGD and EAD estimates for its Ind AS 109 specified
financial obligations.
Credit Risk Concentrations
In order to manage concentration risk, the Company, considering the regulatory limits, focuses on
maintaining a diversified portfolio across housing loans and loans against property. An analysis of the
Company's credit risk concentrations is provided in the following tables which represent gross carrying
amounts of each class.
35.6.6 Offsetting financial assets and financial liabilities
The Company has not recognised any financial asset or liability on a net basis.
35.6.7 Financial Guarantee
45,906.49 lakhs)
to Banks and external lenders on behalf of the subsidiary - Aptus Finance India Private Limited. Based
on the financial performance of the subsidiary, the Company does not expect the guarantee liability to
devolve on the Company.
35.7 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 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 its reputation.
Exposure to liquidity risk
The Company manages and measures liquidity risk as per its ALM policy and the ALCO (Asset Liability
Management Committee of the Company) is responsible for managing the liquidity risk. The Company
not only measures its current liquidity position on an ongoing basis but also forecasts how liquidity
position may emerge under different assumptions. The liquidity position is tracked through maturity or
cash flow mismatches across buckets spanning all maturities.
35.8 Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and system
or from external events. Operational risk is associated with human error, system failures and inadequate
procedures and controls. It is the risk of loss arising from the potential that inadequate information system;
technology failures, breaches in internal controls, fraud, unforeseen catastrophes, or other operational
problems may result in unexpected losses or reputation problems. Operational risk exists in all products
and business activities.
The Company recognizes that operational risk event types that have the potential to result in substantial
losses includes Internal fraud, External fraud, employment practices and workplace safety, clients, products
and business practices, business disruption and system failures, damage to physical assets, and finally
execution, delivery and process management.
The Company cannot expect to eliminate all operational risks, but it endeavours to manage these risks
through a control framework and by monitoring and responding to potential risks. Controls include effective
segregation of duties, access, authorisation and reconciliation procedures, staff education and assessment
processes, such as the use of internal audit.
35.9 Divergence in Asset Classification and Provisioning
There is no Divergence in Asset Classification and Provisioning during current and previous financial year.
36 Earnings per share
Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the Company by
the weighted average number of Equity shares outstanding during the year after considering the share
split.
Diluted EPS is calculated by dividing the profit attributable to equity holders of the Company (after adjusting
for interest on the convertible preference shares, if any) by the weighted average number of Equity shares
outstanding during the year plus the weighted average number of Equity shares that would be issued
on conversion of all the dilutive potential Equity shares into Equity shares after considering the share split
mentioned.
E. Details of financing of Parent Company products:
These details are not applicable since the Company is not a subsidiary of any company.
F. Details of Single Borrower Limit (SGL)/ Group Borrower Limit (GBL) exceeded by the HFC:
The company has not lent to any Single Borrower Limit (SGL) exceeding 15% of its owned funds for the year
ended March 31, 2026
The company has not lent to any Single group of Borrower Limit (GBL) exceeding 25% of its owned funds for
the year ended March 31, 2026
G. Unsecured Advances: Nil
H. Exposure to group companies engaged in real estate business: Nil
I. Unhedged foreign currency exposure- There were no unhedged foreign currency exposures as at 31 March
2026 and 31 March 2025
J. Group Structure
Aptus Value Housing Finance India Ltd (AVHFIL) is an Housing Finance Company registered with the National
Housing Bank.
It has 100% Wholly owned subsidiary Aptus Finance India Private Limited.
For the ease of understanding, given below is a graphical representation of the ownership structure of the
AVHFIL:
46.11 Related party transactions
Details of the related parties, nature of the relationship with whom Company has entered transactions,
remuneration of directors and balances in related party account at the year end, are given in Note
no. 34. There were no material transaction with related parties and all these transactions with related
parties were carried out in ordinary course of business at arm's length price.
46.14 Net Profit or Loss for the period, prior period items and changes in accounting policies
During the year,
(a) no prior period items occurred which has impact on Statement of Profit and loss,
(b) no change in Accounting policy,
(c) there is no withdrawal from reserve fund.
46.15 Revenue Recognition
There are no circumstances in which revenue recognition has been postponed by the Company
pending the resolution of significant uncertainties.
46.16 Consolidated Financial Statements (CFS)
The Company has a wholly owned Subsidiary and the Consolidated financial statements is prepared in
accordance with Ind AS 110.
(f) Institutional set-up for liquidity risk management
The Board of Directors of the Company have adopted a Risk Management Policy. The Board adopted policy
contains the framework and guidelines for Risk management. The changes brought in the Liquidity Risk
Management Framework vide its Circular No. RBI/2019-20/88 DOR.NBFC (pd) CC. No.102/03.10.001/2019-20
November 04, 2019 are also being covered as part of the Risk Management Policy which will be reviewed
by the Board periodically for compliance and implementation.
The Board shall have the overall responsibility for management of liquidity risk by reviewing the
implementation of the Risk Management Policy. The Company has also constituted Risk Management
Committee and Asset-Liability Management Committee (ALCO) to carry out the functions as listed out
in the said circular.
46.32 The Company has adopted all the norms issued under 'Reserve Bank of India (Non-Banking Financial
Companies - Income Recognition, Asset Classification and Provisioning) Directions, 2025' issued by the
Reserve Bank of India (RBI) vide direction no.RBl/DOR/2025-26/356 DOR.STR.REC.No.275/21.04.048/2025-
26 dated November 28, 2025. Such alignment has resulted in the transition of sub 90 DPD assets as
additional non-performing assets as of March 31, 2026, and provided as per norms.
46.33 Divergence in Asset Classification and Provisioning
There has been no divergence in asset classification and provisioning requirements as assessed by
National Housing Bank.
46.34 Disclosure pursuant to RBI master direction RBI Notification-RBUDORI2025-261352 DOR.STR.
REC.271/21.04.048/2025-26 dated November 28, 2025, on "Transfer of Loan Exposures" are given below:
(a) Details of transfer through assignment in respect of loans not in default during the quarter and year
ended March 31, 2026.
46.36 Disclosure on Liquidity Coverage Ratio (LCR)
in accordance with the Reserve Bank of India
(Non Banking Financial Companies - Financial
Statements: Presentation and Disclosures)
Directions, 2025 and Reserve Bank of India
(Non-Banking Financial Companies - Asset
Liability Management) Directions, 2025:
The RBI has prescribed guidelines on
maintenance of Liquidity Coverage Ratio
(LCR) for HFCs vide Reserve Bank of India
(Non-Banking Financial Companies - Asset
Liability Management) Directions, 2025 dated
28 November 2025. The objective of the LCR
is to promote resilience in the liquidity risk
profile of HFCs. This is done by ensuring that
the Company has an adequate stock of
unencumbered high-quality liquid assets
(HQLA) that can be converted easily and
immediately into cash to meet its liquidity
needs for a 30 calendar day liquidity stress
scenario. Further, the guidelines required
all non-deposit taking HFCs with an asset
size of 5,000 crore and above to maintain
minimum LCR of 100% by December 2025. The
Company's Board approved Asset Liability
Management (ALM) Policy covers its Liquidity
Risk Management policies and processes,
stress testing, contingency funding plan,
maturity profiling, Currency Risk, Interest
Rate Risk and Liquidity Risk Monitoring Tools.
The Company regularly reviews the maturity
position of assets and liabilities and liquidity
buffers and ensures maintenance of sufficient
quantum of High Quality Liquid Assets, most of
which is in the form of government securities,
cash and bank balances as at 31 March 2026
and 31 March 2025.
The main drivers of LCR are: Outflows
comprises of: a) All the contractual debt
repayments and interest payments b)
Expected operating expense Inflows
comprises of: a) Expected receipt (scheduled
EMIs) from all loans b) Liquid investment in
the form of unencumbered fixed deposits
with banks and Mutual Funds which are not
forming part of High Quality Liquid Assets c)
Sanctioned and undrawn lines of credits.
Qualitative Information:
Main drivers to the LCR numbers :
All significant outflows and inflows determined
in accordance with RBI guidelines are
included in the prescribed LCR computation.
Composition of HQLA:
The HQLA maintained by the Company
comprises cash balance maintained in
current account and callable fixed deposits
with Scheduled Commercial Banks.
Concentration of funding sources:
The Company maintains diversified sources of
funding comprising term loans, Securitisation
loans and NCDs. The funding pattern is
reviewed regularly by the management.
Other inflows and outflows in the LCR
calculation that are not captured in the LCR
common template but which the institution
considers to be relevant for its liquidity profile
Nil
47 Registration obtained from other financial sector
regulators
The Company is registered with RBI and has all
its operations in India. The Company is acting
as a corporate agent and is registered with the
Insurance Regulatory and Development Authority
of India (IRDAI) vide registration number CA 1013
48 The Company has not advanced or loaned or
invested (either from borrowed funds or share
premium or any other sources or other kind
of funds) 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, 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;
The Company has not received any funds (which
are material either individually or in the aggregate)
from any person or entity, including foreign entity
("Funding Parties"), with the understanding,
whether recorded in writing or otherwise, that
the Company shall, directly or indirectly lend or
invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding
Parties ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
49 Breach of covenant of loan availed or debt
securities issued - Nil
50 The disclosure on the following matters required
under Schedule III as amended are not made, as
the same are not applicable or relevant for the
Company.
a) The Company has not traded or invested in
crypto currency or virtual currency during the
financial year.
b) No proceedings have been initiated or are
pending against the Company for holding
any benami property under the Benami
Transactions (Prohibition) Act 1988 (45 of 1988)
and rules made thereunder.
c) The Company has not been declared wilful
defaulter by any bank or financial institution
or Government or any other Government
authority.
d) The Company has not entered into any
scheme of arrangement.
e) No satisfaction of charges are pending to be
filed with the ROC.
f) There are no transactions which are not
recorded in the books of account which have
been surrendered or disclosed as income
during the year in the tax assessments under
the Income-tax Act, 1961.
g) The Company has no transactions with
Companies struck off under section 248 of
the Companies Act, 2013 or section 560 of the
Companies Act, 1956.
h) The Company does not possess any
immovable property (other than properties
where the Company is the lessee and the
lease agreements are duly executed in favour
of the lessee) whose title deeds are not held in
the name of the company during the financial
year ended March 31, 2026 and March 31, 2025.
i) 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.
51 Previous year's figures have been regrouped /
reclassified wherever necessary to correspond
with the current year classification / presentation.
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