CONTENTS
MESSAGE FROM THE CHAIRPERSON
MANAGING
DIRECTOR'S MESSAGE
MANAGEMENT
DISCUSSION & ANALYSISBRANCH DETAILS
BOARD REPORT SECRETARIAL AUDIT REPORT
INDEPENDENT AUDITORS’
REPORT & CONSOLIDATED
FINANCIAL STATEMENT
03 04
15 25
26 55
58 120INDEPENDENT AUDITORS’
REPORT & STANDALONE
FINANCIAL STATEMENT
Leveraging Vastu’s strong fundamentals around people,
technology, customer analytics, product and risk management,
your Company has successfully initiated its NBFC operations.
While the medium-to-long term plan is to launch multiple products
within the NBFC, the business has kicked off with the Commercial
Vehicle Financing product. In addition to the rich experience of the
founder team and senior management team, a separate team (with
years of experience in managing the product) has been identified to
support the new business line. A detailed plan has been put in
place to scale the NBFC operations in a measured way.
The year gone by has seen your Company excel at all its metrices,
despite an industry slowdown. Vastu’s AUM at the year-end stands
at close to INR 1,800 cr, representing a 32% growth over the
previous year. Post the year gone by, your Company has
cumulatively disbursed loans of around INR 2,340 cr in its lifetime.
This healthy growth is accompanied by strong asset quality and
return metrics – gross NPA of 0.33% as of March 31, 2020 and
return on assets of 4.5% for FY20. Your Company has been able to
navigate this difficult environment on the back of its diversified
geographical presence, prudent underwriting practices, strong
focus on collections, low leverage and a balanced asset-liability
position. Vastu’s credit rating stands re-affirmed at A/Stable from
CRISIL and ICRA, which is further testimony to your Company’s
performance and track record.
It gives me great pleasure to announce Vastu’s excellent results
during the year, despite a challenging economic backdrop of tepid
GDP growth, slow employment generation and low market liquidity.
In the current environment, your Company has actively focused on
sustaining its asset quality, ensuring Balance Sheet liquidity, and
maintaining its low operating cost base with continuous use of
technology. This approach has been made possible because of
your Company’s conscious investment behind technology, people,
and credit underwriting / monitoring processes.
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Sincerely,
Renuka Ramnath
Overall, your Company has demonstrated its resilience in a difficult
period, as it continues its journey with an ambition to become a
dominant financial services institution in the future. I would like to
conclude by extending my heartfelt thanks to the entire team of
Vastu, our customers, regulators, lenders, board members, and
other stakeholders, without whose support all these initiatives and
achievements would not have been possible.
The end of the financial year saw the world experience an
unfortunate pandemic, which India has not been insulated from.
Nation-wide lockdown to prevent the spread of COVID-19 resulted
in disruption of not only your Company’s regular operations but also
the businesses of your Company’s customers. In such
unprecedented times, Vastu’s robust risk management &
governance practices, resilient Balance Sheet and quick response
have enabled it to tide the wave. In times of this disruption, your
Company has calibrated fresh disbursals in the short-term and re-
oriented its processes to focus on collections and customer
service. Leveraging technology, your Company has actively
engaged with all its customers to explain the implications of opting
for the RBI-mandated moratorium, in addition, to focus on recovery
/ support of high-risk customers. Vastu’s diversified geographical
presence, low LTV, highly granular book, diversified end-user
industry, low leverage, and comfortable liquidity position give it the
firepower to emerge stronger out of the pandemic.
Message from
The Chairperson
I am pleased to present this report, which details your Company’s
performance for the year ended March 31, 2020. During the year,
Vastu Housing Finance Corporation (“Vastu HFC” or “Company”)
continued to post robust results, even under difficult
macroeconomic and industry conditions.
Dear Shareholders,
Managing Director’s
MESSAGE
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
The PAT has increased 145% in FY 20 to 92.3 Crs from 38 crores
in FY 19
The total income has gone up 66% in FY 20 to 292.30 Crs from
176.16 Crs in FY 19
Our cumulative loan disbursements reached over 2350 crores as
of March 2020
The Assets Under Management has increased 32% in FY 20 to
1769 crores from 1335 crores in FY 19
The quality of the assets has been best in class and stands GNPA
of 0.33% (46 Accounts and PAR X of 1.51% (205 accounts)
Return on Assets (ROA) and Return on Equity in FY 20 is at 4.5%
and 11.2%
Over the last year, the Indian economy experienced a marked
slowdown, with GDP growing at a seven-year low of 5%. The year
was challenging for all sectors, more so for non-bank lenders, as
liquidity continued to remain a challenge post the crisis that started
in September 2018.
During the year despite a challenging external environment, we
took a calibrated approach and continued to grow new business.
We consciously slowed origination in a few markets where
economic challenges, market dislocation and customer distress
was eminent. We added 19 new locations in the year, taking our
branch count to 63 locations PAN India, we chose to tighten lending
norms in all existing markets basis our learnings, market trends.
Despite these measures, we were able to grow our AUM 32% year-
on-year to INR 1,769 Crore. Our ability to assess on-ground,
location-specific risk ahead of time and alter credit measures
accordingly has resulted in best-in-class asset quality. We closed
the year with Gross Non-Performing Assets (GNPA) at 0.33% and
Net Non-Performing Assets (NNPA) at 0.28%.
With each market downturn including that of demonetisation, GST
implementation and more recently an economic slowdown, the
Company has learnt, innovated, evolved and emerged victorious in
the aftermath. As I look back, I realise that robust business
fundamentals, operational agility and disciplined execution, strong
Risk Management and governance practices underscored by an
uncompromising value system puts the Company in a strong
position to achieve success and ensure sustenance. Since
inception, we have exercised prudence in our lending decisions,
functioning with a clear view on risk. We consciously stayed away
from builder originated loans, large ticket loans, opting to grow
sustainably with predictable manageable risk. It is these
fundamentals that have enabled us to build a highly granular,
entirely retail portfolio, backed mostly by complete owner-occupied
residential properties with low LTVs. This strong base, along with
strategic agility, will enable us to deliver predictable calibrated
growth with profitability and controls over operational, credit and
market risks.
Recognising the larger potential in retail lending in India, we
continued to invest in our key pillars of strength viz. people,
technology and franchise. Over the years, we have successfully
built a highly passionate team with in-depth domain knowledge,
credibility from experience, a predilection for innovation and most
importantly, integrity. We continued to nurture, grow and retain
talent through focussed training and development opportunities
and a culture that fosters openness, mutual respect, meritocracy
and trust. We also launched our Graduate Leadership Development
Program, the first of its kind in the housing finance space. The
program entailed a forty-day residential program getting incoming
young graduates ready to forge a career in housing finance. We
closed the year with a family of over 900 highly motivated
individuals, each of whom adds high value to the business.
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
It gives me immense pleasure when I see Vastu at the forefront of
technology-led innovation. We were among the first few lenders in
India to have established an end-to-end paperless loan process.
This year, we launched a variety of machine-learning and AI-
powered tools to assess the Risk reward and probability of default
on new loans. The launch has both bolstered and simplified our
underwriting process, reducing underwriter bias. With features
such as digital onboarding, audio and video underwriting, UPI
linked digital payments, automated scorecards, extensive real-time
dashboards and customer self-service capabilities; our platform
Pulse is a comprehensive platform on which cover every aspect of
Vastu’s business.
I am also pleased to share that we initiated operations in our Non-
Banking Finance Company (NBFC), Vastu Finserve, a wholly-
owned subsidiary of Vastu Housing Finance. In the year, we
launched the platform in 11 locations and onboarded the requisite
talent to scale across products such as SME loans, vehicle loans
and other consumer loans. We are certain that Vastu Finserve will
effectively complement our existing housing finance franchise, with
tremendous opportunities to be leveraged across secured and
unsecured retail credit products. The Company was possibly
amongst the earliest to get ratings reaffirmed from leading rating
agencies which is a testimony to the Company’s overall
performance and governance standards.
As I write this, the economic activity has been materially affected by
COVID 19 and the unavoidable lockdown implemented by the
government to limit the spread of Covid-19. Lockdown restrictions
have dampened demand, disrupted labour and supply chain.
Keeping the current external landscape in mind, during the year, we
held excess cash and liquid investments to secure the franchise
against any potential risks. As on March 31, 2020, we had INR 532
Crores of cash and cash equivalents, which enables us to meet all
medium-term obligations comfortably. Our strong reputation, robust
fundamentals and established relationship capital enabled us to
raise liabilities comfortably in the year. As on March 31, 2020, the
Company had outstanding liabilities of INR 1,292 Crore, with
participation from private sector banks, public sector banks, mutual
funds and National Housing Bank (NHB). Even as reasonably
priced liquidity posed a huge challenge to non-bank lenders, Vastu
reduced the cost of borrowings to 9.79%, against 10.08% in the
previous year. We continue to leverage our technology stack to
monitor cash flows daily, manage dues and conduct stress tests in
line with our stated risk policy. We have no exposure to short-term
debt instruments and maintained an ALM surplus across all buckets
on an actuarial basis.
On the whole, Vastu’s focus on operational excellence, high
productivity, technology-led execution, strong risk management
and governance systems, robust cost controls, and ROE discipline
have resulted in strong profitability metrics. In the year, we
achieved a Profit After Tax (PAT) of INR 92.25 Crore, representing
year-on-year growth of 145% and translating into a Return on
Assets (ROA) of 4.5%.
We continue to derive significant comfort from Vastu’s portfolio
fundamentals, by way of being highly diversified across
geographies, industries and customers. A large majority of our
exposures have been to essential service sectors or those that are
bound to see an early rebound. Furthermore, a low LTV provides
adequate room for recovery even in case of a significant decline in
property prices. I would also like to reiterate the Company’s strong
funding position, having over INR 500 Crores in liquid balances.
I believe the COVID challenge and resultant disruption will be a
largely metropolitan city phenomenon. Vastu’s business is beyond
the large urban agglomerations of India in semi-urban and rural
areas which may recover sooner than metropolitan / large cities.
We have built our franchise on a philosophy of exercising discipline
not only in bad times but also during the good times, and I am
certain that our efforts until this point secures the franchise to a
large extent.
We understand and acknowledge the enhanced credit risk that the
crisis has brought upon on in the market. Accordingly, we have
taken the necessary steps to tighten our credit policies and loan
appraisal processes. We proactively updated our entire data stack
and revised rule engines for our scorecards to account for the
stress.We are confident in our ability to grow the franchise
profitably while continuing to lend responsibly without diluting our
risk standards even under the current credit environment.
I take great pride in the agility that our platform was able to
demonstrate even as our offices became inaccessible under the
lockdown in March 2020. We continued to keep up our core value of
being highly customer-centric, ensuring round the clock customer
support, leveraging our technology-driven remote working
capabilities. Within, the first few days, we were able to seamlessly
reach out to our entire customer base to extend support and assess
signs of stress early on. We recognise that this is a difficult time for
one and all, including our employees. We ensured safety to our
employees, bringing in social distancing, work from home,
staggered shifts, increased sanitation and a ban on travel well
before any official mandate. True to our spirit, we continued to
uphold transparency by regularly engaging with employees to quell
any anxiety surrounding the impact of the crisis and communicating
key developments within the Company across the Board.
We are leveraging this opportunity to rethink legacy processes,
launch innovative new products, enhance our technology and
analytics stack further, and evaluate accretive capital buyouts.
I genuinely believe that our efforts to date will ensure the Company
comes out stronger while continuing to be fit for growth. While near
term challenges exist, the retail lending opportunity in India is
compelling, and I strongly believe that we are well poised to
harness the same. I would like to conclude by extending my sincere
appreciation to the entire team of Vastu, our customers, regulators,
lenders, the Board, and other stakeholders.
Sincerely,
Sandeep Menon
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Highest Credit Rating
13500Up to FY-19
19862Up to FY-20
NPAAUM
44
63
Branches
Cumulative Disbursement
Net Profit
Capital Adequacy Ratio
528
858
Employees
7.49%
7.83%
NIM
FY Disbursement
A/Stable
Key Performance HIGHLIGHTS
1,600 Cr.
2,345 Cr.
37.65 Cr.
92.25 Cr.
1,336+ Cr.
1,769+ Cr.
0.09%
0.33%FY-20
FY-19
FY-20
83.28%
65.10%FY-20
FY-19
FY-19
FY-20
FY-19
FY-20
FY-19
FY-20
FY-19
FY-20
FY-19
Up to FY-20
Up to FY-19 761 Cr.FY-19
737 Cr. FY-20
16222
11977
FY-20
FY-19
Amount Number
Amount Number
Lakshmi and Ravikumar did not think that getting a home loan
could be much of a struggle. But they saw it all -right from instant
rejection to exorbitant pricing and extensive documentation.
Their experience made them think that the aspiration to build
their own home would always remain a distance dream
Lakshmi and her husband, Ravi Kumar moved to Bangalore
nearly 20 years back to forge a better future for themselves.
Lakshmi set up her beauty parlour business while her husband
set up a tailoring business. After some initial struggle, they saw
their clientele grow and business thrive. The only missing piece
was a home they could call their own.
Today, they have moved into their own home. It is close to their workplace and their children's school. Lakshmi says, there is a unique
satisfaction in living in your own home. This is missing when you're living on rent. This would not have been possible without Vastu's help.
Some months later, Ravikumar's friend recommended Vastu. Without much to lose, they made a visit to the branch and were extremely happy
with the staff's cooperation and the convenience in making the application. In no time, Lakshmi and Ravikumar got the requisite funding to
construct their own home.
I always wanted to build a house for my family. I went to several
banks for a home loan but they were asking for too many
documents.. Then a friend recommended Vastu. Vastu's process
was very convenient -I was serviced at my residence, the staff was
friendly, the documentation was easy. Infact, I did not have to
arrange for any photocopies. They took all details on their tab and
before I realised, I had my loan approved.
Devaraj K, the owner of Granite Business shop in bangalore had just
one dream of completing the construction of his dream house.
Today, he is all smiling as he sits proudly inside his completed
house. Devaraj story is tat of hope and persistence. He is pleased
with Vastu's service and intends to apply for a new loan too.
Aspirations we've fulfilled
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
GRADUATE LEADERSHIP DEVELOPMENT PROGRAM
FOCUS FY20
Emerging Leaders Conclave - FY20
Held a PAN India strategy meet for all the leaders at the branch
level to discuss the way forward for the business, current branch-
level issues, new initiatives, and process improvements. Over
200 leaders form all Vastu branches attended this meet and
deliberated on topics related to branch performance, business
expansion, alternate channels, credit process improvements,
incorporation of data science in decisioning, etc.
Vastu has always cultivated an open and transparent culture. In
line with our values, we ensure that our employees are aware of
our progress and participate in larger strategic decisions.
FOCUS, a PAN India connect aims to do just that! Spanning
discussions on business, team building and motivational
sessions, FOCUS beings together employees across all
markets to discuss our progress and future roadmap.
Vastu hosted its a Graduate Leadership Development program
in partnership with Pioneer Housing Finance Academy, a first in
the HFC space. This was a comprehensive forty-day residential
training program for young, talented graduates to kickstart a
career in BFSI. The program covered all facets of financial
services, with a focus on mortgages. The program was also
carefully designed to nurture soft skills, including stress
management, time management, communication, negotiation
and team building.
Events we've hosted
we hosted financial literacy camps in Surat, Jaipur and
Ahmedabad in support of Angikaar, a Ministry of Housing and
Urban Authority initiative. The camp aims at helping
beneficiaries under Pradhan Mantri Awas Yojna (PMAY) to
navigate changes that arise from moving into a pucca house,
across areas such as resource conservation, waste
management, sanitation etc. Through this initiative, we were
able to impact over 100 families.
FINANCIAL LITERACY CAMPS
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Execution & Excellence Build seamless execution capabilities that
are nimble, innovative and responsive.
Reward and recognize excellence
Engaging & Inclusive Encourage ownership, promote enterprise,
drive energy and excitement. Build a culture
of boundaryless inclusive team work.
Ethical & Transparent
Be ethical and transparent in our interactions
with customers, employees and all stakeholders.
Externally Focused
& Customer Centric Focus on the ever changing market place.
Define success from the customer's stand point.
Values Drive Us
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Renuka brings on board her deep experience of raising, investing and returning third
party capital across several economic cycles. She looks to build Multiples as a platform
to channelize long-term capital, to create valuable enterprises and successful
entrepreneurs. She draws motivation from the fact that supporting entrepreneurs to
build sustainable businesses has the potential to generate employment, to create ripple
effects in the Indian economy and to facilitate the greater process of nation building.
She has spent over three decades in the Indian financial services sector across private
equity, investment banking and structured finance. As one of the early private equity
investors in India, she played a pivotal role in shaping the market both in terms of
leading pioneering investments such as buy-outs as well as opening new pockets of
capital for investment in Indian private equity. In her last role as the MD & CEO of ICICI
Venture for close to a decade, she has contributed in many ways to the evolution of that
firm to one of the largest private equity funds in India.
Renuka holds a Bachelor’s degree in Engineering from VJTI, University of Mumbai and
an MBA from the University of Mumbai. She has also completed the AMP from the
Harvard Business School.
Ms. Renuka Ramnath joined the Company in July 2017 as a Director and became the
Chairperson & Nominee Director of the Company. She is also the Founder, Managing
Director & CEO of Multiples Alternate Asset Management Private Limited (“Multiples”).
BOARD OF DIRECTORS
Mr. Sudhir N. Variyar is a Nominee Director at Vastu, he joined Multiples Alternate Asset
Management in 2009 at inception. Sudhir has been in the private equity industry since
2005 and has a strong investment management track record.
At Multiples, Sudhir is one of the Investment Committee member. Sudhir is also on the
Board of Vikram Hospitals (Bengaluru) Private Limited.
Prior to Multiples, Sudhir was a Senior Director at ICICI Venture. In this capacity, Sudhir
led investments in the financial services and energy sectors and was part of the
Investment Committee at ICICI Venture.
Mr. Sudhir N. VariyarNon-Executive Nominee Director
Ms. Renuka RamnathChairperson & Nominee Director
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
For most part of his association and by virtue of his position he was involved with
promoters and founders in shaping the broader and long-term vision of the various
organizations.
He recently retired from the services of SR Batliboi LLP and works with certain
companies as a financial consultant. He was also associated with iconic companies
such as Infosys, Wipro and Dr. Reddy's Lab as Engagement Partner and by virtue of
which, he possesses deep insight into and understanding about the working of
Boards, Audit Committees, their roles, responsibilities in evolving and implementing
strategy, culture, branding and in setting the tone at the top through the
communication on policies and procedures of the organization. He has an expert
knowledge of the organization's business structure, policies and processes, risk
management and governance structures.
Mr. Natrajh Ramakrishna, Independent Director at Vastu, is a qualified chartered
accountant and a fellow member of the Institute of Chartered Accountants of India
with over 42 years of association across various professional services firms. Over his
extensive tenure, to name a few Mr. Natrajh held key positions such as the Country
Head of Audit at KPMG and RSM in addition to partner positions at EY and PwC.
Mr. Natrajh was a part of the Accounting Standards Board of the ICAI. He has been
speaking at public forums on matters of importance to the profession, lecturing on
Management Accounting and Taxation at some of the leading institutions offering
post graduate courses in Management Studies (and all affiliated to the Mumbai
University).
BOARD OF DIRECTORS
Mr. Natrajh RamakrishnaIndependent Director
Mr. Vijay Kumar is on the Board of the Company as an Independent Director since
January 2018.
Mr. Vijay Kumar has over 30 years of experience in the Banking and Information
Technology sectors. He worked with the NIIT Group from the year 2000 until August
2012. During this period, he was responsible for M&A and corporate finance activities of
NIIT and NIIT Technologies and was involved in several large transactions involving
acquisition and divestiture of companies, joint ventures, strategic alliances and
corporate restructuring.
Prior to the year 2000, he worked with the ICICI Group for over 15 years. He was
involved in various roles with project finance and investment banking. He advised
several companies across industries in equity and debt raising, M&A and corporate
structuring. His last position with the group was with ICICI Securities, as Head of
Investment Banking. Since August 2012, he was also associated as Advisor/Director,
with companies in the BPO, Media, and Private Equity areas, besides his role as a
consultant with NIIT Technologies. He is currently serving as an independent director
on several boards. He holds a B. Tech degree from IIT Delhi and an M.B.A from FMS,
University of Delhi.
Mr. Vijay KumarIndependent Director
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Mr. Sandeep Menon is the Founder Managing Director and CEO at Vastu (post change
of ownership and control). He is a senior banker with over 23+ years of diverse
experience in General Management, Business Strategy and Risk Management with
various country level business leadership roles across Consumer Lending, SME
Lending, Home Loans, Personal Loans and Commercial Finance across leading
Foreign Banks and Financial Institutions such as GE Capital, Standard Chartered Bank
and Barclays Bank PLC.
He has built large lending business across secured and unsecured lending. Sandeep
was part of the founding team at Barclays Bank PLC in India as the Director and Head of
Retail Assets and Banking Strategy.
BOARD OF DIRECTORS
Mr. Sandeep MenonManaging Director & CEO
He has researched extensively on the emerging issue of convergence into Global
Accounting Standards called IFRS including transition, reporting and audit.
He is instrumental in rendering professional advice on International Tax issues
including DTAA application and Transfer Pricing. He is also an Independent director in
some Public and Private Limited companies in his professional capacity
Mr. Girija Shankar Nayak joined the Board of the Company as an Independent Director
on March 2, 2015. He is a Sr. Chartered Accountant and the Managing Partner at G S
Nayak & Co, Mumbai. He leads the Audit, Taxation and Bank Audit team.
Mr. Girija Shankar Nayak (effective till 29th April, 2020)
Independent Director
Mr. Rajasekhara Reddy, Non-Executive Independent Director at Vastu, has over 35
years of experience in the Banking sector. He is the former Chairman and Managing
Director of Andhra Bank, an Executive Director of Union Bank of India and a Chief
Executive at Bank of India, New York.
He worked on several committees of RBI and Indian Banks Association. He has varied
exposure in Rural and small & medium enterprises lending, NRI business, foreign
exchange, and cross-country products. He is a Strong man-manager, and team builder
with a firm belief that the leader should be a role model, and his actions should always
be transparent, consistent, and predictable. He is presently on the board of several
companies and also advises many companies on finance and management.
Mr. Rajasekhara Reddy is a Certified Associate of the Indian Institute of Bankers and
holds a Master degree in science from the University of Agricultural Sciences.Mr. Rajasekhara Reddy(with effect from 29th April, 2020)
Independent Director
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Ms. Renuka Ramnath- Chairperson & Non-Executive Nominee Director
Mr. Sudhir Variyar -Non-Executive Nominee Director
Mr. Vijay Kumar-Independent Director
Mr. Sandeep Menon- Managing Director & CEO
Mr. Natrajh Ramakrishna - Independent Director
Mr. Rajasekhara Reddy - Independent Director (with effect from 29th April, 2020)
Corporate Information
Mr. Natrajh Ramakrishna- Chairman
Mr. Vijay Kumar- Member
Mr. Rajasekhara Reddy- Member
A
BAudit Committee
Mr. Sudhir Variyar- Chairman
Mr. Vijay Kumar- Member
Mr. Natrajh Ramakrishna- Member
Nomination & Remuneration Committee
Mr. Sandeep Menon- Member
Mr. Sudhir Variyar - Member
Mr. Vijay Kumar- Member
Risk Management Committee
Mr. Natrajh Ramakrishna- Member
Mr. Sujay Patil- Member
Mr. Sitaraman Swaminathan - Member
Mr. Rohith Balakrishnan - Member
Mr. Bharat Mehta - Member
Mr. Om Agarwal - Member
Corporate Social Responsibility Committee
Mr. Sandeep Menon - Chairman
Mr. Sudhir Variyar - Member
Mr. Vijay Kumar – Member
Asset Liability Committee
Mr. Sandeep Menon - Chairman
Mr. Sujay Patil - Member
Mr. Rohith Balakrishnan - Member
Mr. Srivatsan Bhaskaran - Member
Chief Financial Officer
Mr. Sujay Patil Unit 203 & 204, 2nd Floor, A Wing, Navbharat Estate,
Zakaria Bunder Road, Sewri (West), Mumbai - 400015
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C
Details of Committees
Board of Directors
Registered and Corporate Office
D
E
FStatutory Auditors
GInternal Auditors
Banks
HSecretarial Auditors
IDebenture Trustee
Mr. Girija Shankar Nayak - Independent Director (effective till 29th April, 2020)
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Indian Economy – Overview and Outlook
The Indian economy between 2015-2019, was a growth champion
while successfully taming inflation and controlling its current account
deficit on the back of strong structural and policy reforms. The fiscal
year 2020, however, saw GDP growth fall to sub 5% levels, breaching
the 6% mark for the first time in seven years. The phenomenon that had
a significant bearing on the economy was the liquidity crisis among
non-Bank lenders, cascading down its impact to several sections of the
economy, including major manufacturers, ancillary industries and
MSMEs. In addition to the liquidity crunch, sluggish rural demand and
stress on the financial and real estate sectors also contributed to the
sluggish growth. At the same time, inflation measured by the
Consumer Price Index (CPI) rose to 7.4% in December 2019 from 3.3%
in the first half of 2019-20 on account of rising food prices.
On the external front, the economy was treading on a positive trajectory
with a reduction in the current account deficit at 1.5% of GDP. The
economy also saw strong inflows from Foreign Direct Investments
(FDI) and a rebound in Foreign Portfolio Investments (FPI) in the
second half of the year FY 20.
Against this backdrop, the Government and the Reserve Bank of India
(RBI) were seen taking proactive steps to revamp the financial sector,
address liquidity concerns among Non-Banking Financial Companies
(NBFC), reduce stress in the real estate sector and speed up resolution
under the Insolvency and Bankruptcy Code (IBC).
Even as a recovery in the Indian economy was gaining momentum, in
February 2020, an unexpected and sudden shock in the form of the
COVID-19 outbreak posed immense fresh challenges. Normal
business activity significantly slowed down in March 2020 as the
movement of people got affected. The Government rightfully had to
take urgent steps to mitigate the spread of the virus and announced
PAN India lockdown in March 2020 bringing all economic activity,
barring essential services to a virtual standstill.
A three-month moratorium on all instalments of outstanding balances
on term loans and working capital facilities for the period March 1,
2020, to May 31, 2020. RBI subsequently extended this moratorium by
three more months, till August 31, 2020.
An increase in the Marginal Standing Facility (MSF) to 3% of the
Statutory Liquidity Ratio (SLR) from 2% earlier
A 100 basis points cut in Cash Reserve Ratio (CRR) to 3% for one year
Auctions of Targeted Long-Term Repo Operations (TLTRO) of INR 1
Lakh Crore
A 75 basis points cut in repo rates from 5.15% to 4.40%
To deal with the economic dislocation, the Government announced a
slew of measures including cash transfers and food security measures
targeted at those in the bottom of the economic ladder. The Reserve
Bank of India (RBI) also announced liquidity and regulatory measures
across two relief packages, including:
Mortgage Finance Sector Overview
Auctions of TLTRO 2.0 for INR 50,000 Crore fund flow to Non
Banking Financial Companies (NBFCs), Microfinance Institutions
(MFIs) and Housing Finance Companies
The Finance Ministry also announced relaxations on dates with
respect to compliance return filings.
An INR 50,000 Crore refinance facility for institutions such as
National Bank for Agriculture and Rural Development (NABARD),
Small Industries Development Bank of India (SIDBI) and National
Housing Bank (NHB) for on-lending to Micro Small and Medium
Enterprises (MSMEs), NBFCs and MFIs
The Government announced a financial support package for MSME
sector to the tune of INR 3,00,000 Crore, under which the MSMEs
would be eligible for collateral-free financial facilities from lenders,
which would have the backing of the guarantee from the
Government.
The combined impact of the above measures is expected to partially
mitigate the adverse effect on the economy caused due to the onset
of the COVID 19 pandemic.
The mortgage loan penetration in India is currently at 10.30% of GDP
up from 7.8% in FY 14, is still one of the lowest in the world. As per
CRISIL, the same is expected to touch 13% by FY 2023, thereby
presenting a massive opportunity for growth. The mortgage industry,
pegged at INR 6.30 trillion in FY 12, has grown to INR 21 trillion by
Dec 2019, translating into a growth of around 16-17% per annum.
The overall mortgage market size was pegged at INR 21 Lakh Crore
as on December 31, 2019, growing 10% year on year. The slowdown
in mortgage credit growth is attributable to muted growth of 4%
among HFCs and NBFCs as liquidity constraints in the sector
continued to exert a drag on disbursal. On the other hand, banks
continued to grow at 19% versus 16% in the previous year, partly
supported by portfolio buyouts.
According to a recent study by ICRA, while the loan book growth of
the HFCs in affordable housing segment is likely to be in the range of
16-20 per cent in FY20 as the COVID-19-related lockdown impacted
business only during the last two weeks of March, however, the
growth numbers for FY21 could see a more pronounced impact.
That measure of this impact would depend on how the lenders
82.0%69.0% 63.0%
50.0% 45.0%36.0% 34.0% 31.0%
20.0% 18.0% 13.0% 10.3% 13.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Mortgage to GDP Ratio (%)
MANAGEMENT DISCUSSION AND ANALYSIS
the time when the effect of the COVID 19 pandemic would be directly
felt on various sectors of the economy. In this period, the focus of the
lenders would be to reach out and engage with their existing borrowers
and re-assess the impact of COVID 19 on their business. Many
businesses did get impacted, and the operations had to slow down or
stop. In view of the above, the growth rate is expected to be slower in
H1FY21 and pick up gradually in H2FY21, when the economic
activities are again expected to rebound back.
In order to ease the economic burden from the pandemic, the RBI
announced two COVID-19 Regulatory Packages in March 2020 and
April 2020. The regulatory intervention which entails a three-month
moratorium initially and further extended by another three months, on
all dues on term loans between March 1, 2020, and May 31, 2020
(extended till August 31, 2020) is expected to provide good relief to
borrowers whose cash flows got impacted due to the business slowing
down. Furthermore, regulatory support in the form of an exclusion of
the moratorium period from the 90-day NPA classification and freezing
of delinquency buckets for delinquent customers as on February 29,
2020, will likely provide HFCs and NBFCs the required time to ensure
adequate recovery and avoid significant slippages.
Overall, the profitability of the HFCs in the affordable housing segment
would remain largely stable in FY20. However, given the pandemic
situation, the profitability indicators of HFCs could get impacted in
FY21.
In addition to this, the RBI also took various liquidity measures,
including the Targeted Long-Term Repo Operations (TLTRO) worth
INR 1 Lakh Crore for banks to on-lend to companies. These measures
would ease the liquidity situation in the market.
To ensure liquidity transmission to critical sectors such as MSMEs,
small and mid-sized NBFCs and HFCs and Microfinance Institutions
(MFIs), the RBI announced a second regulatory package. This entailed
the launch of TLTRO 2.0, where the RBI mandated deployment of
funds towards MSMEs, NBFCs, HFCs and MFIs. The RBI also
announced an INR 50,000 Crore refinance facility for on-lending to
HFCs, NBFCs, MFIs and MSMEs through National Bank for
Agriculture and Rural Development (NABARD), Small Industries
Development Bank of India (SIDBI) and National Housing Bank (NHB)
which will enable transmission of liquidity to these priority sectors.
Key Regulatory Changes for HFC:
Amendments to Capital Adequacy Requirements (CAR):
The National Housing Bank (NHB) vide its circular dated June 17,
2019, proposed for HFC to maintain a minimum capital ratio consisting
of Tier-I and Tier-II capital which shall not be less than-
(I) 13% on or before March 31, 2020
(ii) 14% on or before March 31, 2021; and
(iii) 15% on or before March 31, 2022, and thereafter
of its aggregate risk-weighted assets and risk-adjusted value of off-
balance sheet items. Further, the Tier-I capital, at any point of time,
shall not be less than 10%.
As on March 31, 2020, your Company's total CAR, calculated in line
with NHB regulations, stood at 65.10% well above the regulatory
minimum of 13.00 percent. Of this, Tier I CAR was 64.21%
a.
Disbursement of housing loan to individuals linked to the
stages of construction:
The NHB vide its circular dated July 19, 2019, advised HFC to desist
from offering loan products involving servicing of the loan dues by
builders, developers etc. on behalf of the borrowers and HFCs to
have in place a well-defined mechanism for effective monitoring of
the progress of construction of housing projects and obtaining the
consent of the borrower(s) before the release of payments to the
builder/developer.
Transfer of Regulation of Housing Finance Companies (HFCs)
to Reserve Bank of India:
The Reserve Bank of India (RBI) vide its circular dated August 13,
2019, directed that it will review the current regulatory framework
applicable to Housing Finance Companies (HFCs) following which it
will come out with revised regulations and HFCs will henceforth be
treated as one of the categories of non-banking financial companies
(NBFC) for regulatory purposes. In the meantime, HFCs shall
continue to comply with directions and instructions issued by the
National Housing Bank (NHB) till the RBI issues revised framework.
The Reserve Bank of India (RBI) issued COVID 19 – Regulatory
Package dated March 27, 2020, for all lending institutions to grant a
moratorium of three months on payment of all instalments falling due
between March 1, 2020, and May 31, 2020, which got further
extended by three months till August 31, 2020.
COVID19 Regulatory Package - Asset Classification and
Provisioning
The Reserve Bank of India vide notification dated November 19,
2019, rescinded its notification dated June 18, 1997, granting
exemption to housing finance companies from the provisions of
Chapter IIIB of the Reserve Bank of India Act, 1934 except its
application to section 45-IA of the said Act. Consequently, all the
provisions of Chapter IIIB of the RBI Act shall also apply to the
housing finance companies except Section 45-IA relating to the
requirement of registration and net owned fund of HFCs.
Withdrawal of exemptions granted to Housing Finance
Institutions:
Pursuant to the said circular and the extension thereof, the Company
has approved and adopted Policy on Moratorium ("COVID -19
Policy") effective from 30th March 2020.
In terms of on COVID 19 Regulatory Package, dated March 27,
2020, the Reserve Bank of India (RBI) on April 17, 2020, issued
guidelines on Asset Classification and Provisioning for all accounts
to be classified at the same level as per the position on February 29,
2020. The moratorium period, wherever granted, is allowed to be
excluded by the lending institutions from the computation of a
number of days past-due for asset classification in compliance with
the Indian Accounting Standards (IndAS).
RBI COVID-19 – Regulatory Package:
b.
c.
d.
e.
f.
Extension of due date for submission of various returns to the
Department of Supervision (DoS)
(I) All monthly returns, which will become due for submission up to
June 30, 2020, for a further period of 15 days from the prescribed
due date of submission of the returns respectively; and
(ii) All quarterly, half-yearly and annual returns, which will become due
for submission up to June 30, 2020, for a further period of 30 days
from the prescribed due to date of submission of the returns
respectively.
BUSINESS OVERVIEW
Vastu Housing Finance Corporation ("Vastu HFC" or 'The Company")
is a retail focussed, housing finance company serving financially
underserved middle-income segments in urban, semi-urban and rural
India since its change of management and control in July 2015. An
overwhelming proportion of Indians do not have access to formal credit
due to lack of adequate documentation, challenges faced in income
assessment or lack of long-standing credit history. The Company
works to bridge this gap using its comprehensive and innovative credit
evaluation mechanism that focuses on business cash flows and which
is suitably supported by an advanced technology and analytics
platform and has managed to bring affordable and reliable credit to the
doors to several Indian businesses. The methods of reaching out to the
customers, collecting documents and information for loans and
processing the loan application, are all the way backed by superior
technological support tools, that the Company has trained each
employee.
To redress the hardship faced by the Housing Finance Companies
(HFCs) due to the COVID19 pandemic, the National Housing Bank
vide it's circular dated April 02, 2020, extended the due date of:
The profit before tax of the Company for the year ended March 31,
2020, was INR 119.40 Crore in comparison to INR 56.25 Crore in the
previous year, representing a growth of 112%. The reported profit after
tax of the Company for the year ended March 31, 2020, was INR 92.25
Crore in comparison to INR 37.65 Crore in the previous year,
representing a growth of 145%.
The Company primarily offers two key products – housing loans and
mortgages. The Company's housing loan product is available for a
myriad of uses including the purchase of new residential properties,
construction of new residential properties and the renovation,
extension and repair of existing residential properties. In addition to
this, the Company also offers mortgages or loan against property on
existing housing and commercial units to finance the personal and
business needs of customers.
The Company reported robust income and profitability metrics in the
year under review.
The COVID 19 pandemic has posed several challenges to the
economy. Vastu is managing this challenge, by engaging its
employees to reach out to its existing customers to proactively assess
and understand their liquidity position in light of the pandemic, working
with customers and supporting them to get back to normalcy at the
earliest.
Financial Overview
PERFORMANCE REVIEW
Key elements of the statement of profit and loss for the year
ended March 31, 2020, are:
Operating expenses grew 3% year-on-year to INR 58.09 Crore. The
Operating expenses include exceptional items of expenses on
employee stock option scheme and corporate social responsibility
Net Income of the Company for the year ended March 31, 2020, was
INR 181.79 Crore in comparison to INR 117.59 Crore in the previous
year, representing a growth of 54.6%.
Net Interest Margin for the year stood at 7.8%, as against 7.5% in the
previous year. The Net Interest margin does not include the net gain
on derecognition of assigned loans.
Operating expense to income ratio stood at 32%, as against 47.9%
in the previous year.
Return on average net worth stood at 11.2%, as against 9.7% in the
previous year.
Return on average assets stood at 4.5%, as against 2.7% in the
previous year.
g.
Mar-20
INR Bn
22.67
18.71 4.09 13.36
8.87 17.70 16.84
21% 117% 32% 26%
Mar-19
Balance Sheet Net Worth AUM Loan Book
FY20 4.5% 11.2% 1.5x 32.0%
INR Bn
FY19 2.7% 9.7% 2.4x 47.9%
ROA ROE Leverage Cost toIncome
FY20 1,818 581 1195 923
INR Mn 54% 3% 128% 145%
OperatingIncome
1,176 563 563 377
OperatingExpenses
PBT PAT
FY19
FY20Audited
FY19Audited
INR Mn FY18Audited
FY17Audited
Net Worth
Borrowings
AUM
Cash & Liquid
investments
Operating Income
Operating Expenses
Provisions
PBT
PAT
ROA
ROE
D/E
Cost to Income
1,224
1,331
1,976
509
209
187
17
5
5
0.30%
0.50%
0.7
89.30%
3,670
4,753
7,258
2,052
744
431
38
275
196
3.20%
8.00%
1.3
57.90%
4,087
9,902
13,065
4,332
1176
563
50
563
377
2.70%
9.70%
2.4
47.90%
8,869
12,918
17,697
4,829
1818
581
43
1,194
922
4.47%
11.22%
1.5
31.96%
INR Mn
13.36
Share Capital
Liquidity, Investments and Cash Flow Management
The Company has focused on having strong cash and cash
equivalent reserves on its balance sheet. The investment philosophy
of the Company has been to focus on instruments and institutions
with high liquidity & safety. The investments of the Company has
predominantly been in Fixed Deposits issued by Banks and
Certificate of Deposits issued by leading deposit-taking HFCs and
NBFCs and liquid and overnight schemes of Mutual Funds.
The Company's borrowing mix as on March 31, 2020, is detailed
below:
During the year, the paid-up equity share capital increased as a
result of the Rights issue, whereby the Board allotted 1,64,13,347
equity shares on a rights basis on 26th April 2019 at an exercise price
of INR 230/- each. The paid-up equity share capital further increased
as a result of the allotment of 50,000 equity shares at face value of
INR 100/- each on 24th December 2019 upon exercise of stock
options under Core Management ESOP 2018 – Scheme 1. As at
March 31, 2020, the equity share capital stood at INR
5,18,45,52,700 divided into 5,18,45,527 equity shares of INR 100/-
each. The Company's net worth, including accumulated reserves
and surplus, stood at INR 886.92 Crores as on March 31, 2020.
Borrowings
The Company has a diversified lender mix, with participation from
banks, financial institutions, mutual funds and NHB. As on March 31,
2020, the Company had INR 1,292 Crores of debt on its balance
sheet, up 30% from the previous year. Despite tight liquidity
conditions, the Company managed to successfully raise INR 498
Crores in the financial year, from leading private banks, public sector
banks, financial institutions and NHB. The Company's cost of funds
also declined from 10.08% in FY19 to 9.79% in FY20.
The Company's capital adequacy ratio as of March 31, 2020, stood
at 65%, comfortably higher than the minimum requirement as stated
by NHB.
Funding
The Company has always focussed on maintaining adequate
liquidity, minimizing risk and ensuring capital is deployed
responsibly. Over the review period, the Company planned the
treasury activities well to ensure adequate liquidity required to
support its fast-growing business. Accordingly, the Company held
INR 532 Crores in cash, bank balances and liquid investments as on
March 31, 2020. Due to this planned approach to liquidity
management, the Company is well-poised not only to support its
growing business fully but also to emerge stronger (as compared
with its competitors in the affordable housing finance space), in the
post-pandemic period.
Mutual Funds28%
National u Ho singBank18%
Banks & Financial Institutions
54%
Borrowing Mix
Almost all housing units are residential and occupied by the borrower.
Majority property units are independent houses and are complete,
minimizing risk from exposure to underconstruction projects.
The Company's operations are geographically well-diversified across
operating locations, with none of the states contributing more than 20%
to the AUM.
Spread on Loans
Non-Performing Assets
The average yield on loan assets during the year was 15.30% per
annum. The average cost of borrowing was 9.79% per annum as
compared to 10.08% in the previous year. Accordingly, the Company
maintained a healthy spread of 5.51% on its loan assets.
Our cumulative loan disbursements reached over 2350 crores as of
March 2020
In its core business, the Company follows geography by geography
contiguous lending model. After extensive research, the Company has
identified geographies that offer a substantial opportunity to make an
impact, in line with its stated risk appetite. Over four years, the
Company has established a PAN India presence covering a sizable
proportion of the mortgage opportunity in India.
As on March 31, 2020, the Company operates out of 63 branches and
12 states namely Karnataka, Rajasthan, Delhi, Haryana, Gujarat,
Madhya Pradesh, Andhra Pradesh, Telangana, Tamil Nadu,
Maharashtra, Uttar Pradesh and Uttarakhand. The Company's
registered office is located in Mumbai, Maharashtra.
Operating Overview
Disbursements
In the year ended March 31, 2020, the Company disbursed a total of
INR 736.73 Crores in loans to 6,365 customers, as against INR 760.96
Crore to 6,315 customers in the previous year. The average sanction
size on loans disbursed in the year stood at INR 12.20 Lakhs. The
Company had taken a conscious decision to moderate volume growth
in FY 20 taking into account liquidity crisis triggered by a few large
lenders, availability of liquidity at a reasonable cost to HFCs and
NBFCs and slowdown in economic growth in FY20 making certain
groups across certain markets more vulnerable from a credit risk
perspective.
Assets Under Management
As of March 31, 2020, Assets Under Management (AUM) stood at INR
1,769 Crore (including an assignment of INR 78 Crore) as against INR
1,336 Crore the previous year representing a growth of 32%. The
Company's loan assets showed robust risk fundamentals, whereby:
100% of the loan book comprises of granular retail loans, having an
average ticket size of INR 12 Lakhs. The Company has no exposure to
any wholesale corporate or builder loans.
Branch Network
The Company's strong approach to risk, portfolio management and
collections have contributed to best-in-class asset quality metrics. The
Company posted a gross NPA 0.33% of loan assets as on March 31,
2020. Net NPA in the year stood at 0.28%.
Capital Adequacy Ratio
By way of a notification dated March 4, 2019, the National Housing
Bank (NHB) proposed an increase in capital adequacy norms for HFCs
from a minimum of 12% to 15% by March 2022. Accordingly, HFCs are
required to maintain a minimum capital adequacy ratio of 13% by
March 2020, 14% by March 2021 and 15% by March 2022.
effective date of such transition is April 1, 2018.
During the year, the Company sold individual loans amounting to Rs.
8,738.44 lakhs (Previous Year: Nil). As of March 31, 2020, individual
loans outstanding in respect of all loans assigned/securitized stood at
Rs. 7625.18 lakhs. Vastu continues to service these loans.
Transition to Indian Accounting Standards
The Ministry of Corporate Affairs vide its press release dated January
18, 2016, had issued directions for implementation of Indian
Accounting Standards (Ind AS) for the accounting period beginning
April 1, 2019, along with comparatives for the period beginning April 1,
2018. The National Housing Bank vide its circulars dated April 16,
2018, and June 14, 2018, had directed Housing Finance Companies
(HFCs) to comply with Ind AS as stated above.
Vastu HFC has historically maintained a prudent approach to liquidity
and cash management. The treasury team undertakes daily tracking of
the Company's liquidity and cash flow position, which is further
complemented by regular stress tests and scenario analysis
accounting for idiosyncratic or market-wide stress. The Company
regularly makes adjustments and undertakes remedial measures to
ensure its liquidity and solvency position is not compromised under any
situation.
The Company has prepared standalone and consolidated financial
statements for the year ended March 31, 2020, in accordance with Ind
AS for the first time. The Company has adopted Ind AS notified under
Section 133 of the Companies Act 2013 read with the Companies
(Indian Accounting Standards) Rules, 2015 from April 1, 2019, and the
Assignment /Sale of Loans
For the periods up to and including the year ended March 31, 2020,
the Company had prepared its financial statements in accordance
with the accounting standards notified under Section 133 of the
Companies Act, 2013, read together with paragraph 7 of the
Companies (Accounts) Rules, 2014, now referred as 'Previous
GAAP’
The Corporation has prepared its financial statements to comply with
Ind AS for the year ended March 31, 2020, together with comparative
information for the year ended March 31, 2019.
In preparing these financial statements, the Corporation's opening
balance sheet was made as of April 1, 2018, i.e. the transition date to
Ind AS for the Corporation. Accordingly, the impact of transition has
been recorded in the opening reserves as of April 1, 2018. The
corresponding figures presented in these results have been
prepared based on the previously published results under previous
GAAP for the relevant periods, duly re-stated to Ind AS. This Ind AS
adjustments has been audited by the statutory auditors.
The preparation of financial statements in accordance with Ind AS
requires the management to make estimates, judgements, and
assumptions. The application of accounting policies that require
critical accounting estimates involving complex and subjective
judgments and the use of assumptions in the financial statements
are also disclosed in the Notes to Accounts.
Detailed explanations capturing areas of differences and
reconciliations from previous GAAP to Ind AS have been provided in
the Notes to Accounts which form a part of the financial statements.
Reconciliation of total equity as at April 01, 2018, and March 31, 2019, and profit or loss for the year ended March 31, 2019:
Particulars
Equity Reconciliation Net profitReconciliation
Net profit / equity as per previous GAAP 3,765.33 39,853.17 1,317.25
IndAS Adjustments:
Provision for Expected Credit Loss e 142.83 253.66 110.83
Effective interest rate for financial assets and liabilities at amortised cost g -178.12 -505.28 -327.16
Reclassification of actuarial gains and losses on employee benefit
plans to other comprehensive income
j 9.95 8.86 -1.10
Fair value of financial assets c & f 8.20 8.20 -
Fair value of employee stock option i -667.41
-
-
Rent equalization and interest free deposit c & f -2.09
-4.81
-2.71
Reversal of deferred tax liability on special reserve h 337.44
510.37
172.93
Deferred tax impact on above 193.21
253.35
60.14
Total (155.99)
524.36
12.93
Net profit / equity for the year as per Ind AS 3,609.34 40,377.53
1,330.18
Other comprehensive income (net of tax) (9.95) -8.86
1.10
Total comprehensive income / equity as per Ind AS
3,599.39 40,368.67 1,331.28
(Rs. Lakhs)
Note No.As at
April 01, 2018As at
March 31, 2019Year ended
March 31, 2019
Impairment on Financial Instruments - Expected Credit Loss
Under Ind AS, asset classification and provisioning move from the 'rule-based', incurred loss model to the Expected Credit Loss (ECL) model ofproviding for expected future credit losses. Thus, loan loss provisions were made based on the Corporation's historical loss experience, and futureexpected credit loss, after factoring in various other parameters.
Under Ind AS, assets are classified into three stages:
Asset ClassificationAsset Classification DescriptionDescription
Stage 1Stage 1
Stage 3Stage 3
0-30 days past due loans – performing assets0-30 days past due loans – performing assets
>90 days past due loans – non-performing assets>90 days past due loans – non-performing assets
Stage 2Stage 2 31-90 days past due loans or assets with a significant increase in
credit risk – underperforming assets
31-90 days past due loans or assets with a significant increase in
credit risk – underperforming assets
Classification of Assets
Exposure at Default (EAD) As at March 31, 2019
Stage 1 98.45% 99.33%
(%)
As at March 31, 2020
Stage 2 1.21% 0.58%
Stage 3 0.34% 0.09% Total 100% 100%
Expected Credit Loss Based on Exposure at Default (EAD)
Particulars As at March 31, 2019
Gross Stage 3 574.40 118.67
(Rs. Lakhs)
As at March 31, 2020
ECL Stage 3 126.37 26.11
Net Stage 3 448.03 92.56
ECL as a % to EAD 0.60% 0.50%
Coverage Ratio % Stage 3 22% 22%
Gross Stage 1&2 1,67,858.86 1,33,483.89
ECL Stage 1& 2
ECL % Stage 1& 2
884.23 641.91
Net Stage 1& 2 1,66,974.63 1,32,841.98
*EAD includes financial guarantees
0.53% 0.48%
The total balance in the Impairment on Financial Instruments – Expected Credit Loss (provisions carried) as at March 31, 2020, amounted to
Rs. 1,010.60 lakhs. This is equivalent to 0.60% of the EAD. The balance in the Impairment on Financial Instruments – Expected Credit Loss
more than adequately covers loans where the installments were in arrears for over 90 days.
Credit Rating
The Company's robust technology and analytics-driven process, best-in-class asset quality, strong capitalization levels, prudent liquidity
management and execution capability of the leadership team have consistently garnered its credit upgrades over the last four years. The
table below summarizes the Credit Ratings assigned to the Company as on March 31, 2020:
Nature of Borrowing ICRABrickwork RatingsIndia Ratings & Research
Rating/Outlook
CRISIL Ratings
Bank Loan FacilityBank Loan Facility --BWR A/PositiveBWR A/PositiveIND A/StableIND A/StableCRISIL A/StableCRISIL A/Stable
Non-Convertible Debentures -BWR A/Positive-CRISIL A/Stable
Long Term Bank Lines [ICRA] A/Stable---
Technology and Analytics
Since its inception, Vastu HFC has proactively invested in building a state-of-the-art technology and analytics stack inhouse. The Company's
proprietory customizable modular platform, known as Pulse, has digitized the entire customer journey from sourcing till disbursement of loans,
leading to superior business outcomes and minimal disruptions. Vastu HFC is among the first mortgage players to have achieved an entirely
paperless process from sourcing till disbursement of the loans. Furthermore, all backend functions such as treasury, finance, compliance and
human resource management are also technology-driven providing speed, simplicity and robustness to process, besides ensuring data accuracy
and integrity.
In the year under review, the Company undertook a number of initiatives to hone technology and analytics capabilities. The same has been
detailed below:
Leveraged machine-learning to build out a scorecard capable of deriving default probability on new loans.
Strengthened verification capabilities through an integrated Karza for real-time online verification of customer documentation such as KYC,
Bills, ITR, Mobile etc
Launched a customer connect the app with a completely digital interface for customers to track loan metrics, make payments, understand
dues (if any) and raise service issues.
Enhanced digital payment capabilities through integration with payment wallets.
Launched a modular app to track real-time status on recovery and provide on-demand customer information to field agents to improve
customer efficiency
Launched a module for tracking under construction properties to provide real-time feedback on the progress of properties.
Launched a module to track the daily activities of field agents
As on March 31, 2020, the Company's headcount stood at 858.
Vastu HFC's success thus far is primarily attributable to its people. The Company's on-ground team comes with strong local and domain
knowledge, which, when backed by a highly talented and agile central team, creates a winning combination for success.
Since inception, the Company has fostered a unique culture of trust, ownership and empowerment, with accountability. The Company's
ethos promotes diversity, inclusiveness and focuses on driving a meritocratic culture where age or experience holds no bar to achievement
and reward. A vast majority of leaders in the Company are young, who aside from bringing zeal and enthusiasm to work, constantly
question the status quo in their strive for operational excellence.
Human Resources
The Company attaches significant importance to training and development, both classroom and digital, to build future leaders that can
protect and grow the franchise. Apart from regular internal training, the Company launched a Graduate Leadership Development program
in partnership with Pioneer Housing Finance Academy in FY2020, the first of its kind in the housing finance space. During a forty-day
residential program, identified young and talented individuals were mentored and trained on various aspects of financial services (with a
focus on mortgages) and softskill development before being inducted into the Company. Vastu HFC strongly believes in moulding leaders
of tomorrow and leaves no stone unturned in investing behind its vision for its people.
Risk Management
Risk is an integral part of the Company's business, and sound risk management is critical to the success of the organization. The Company
is exposed to various risks that are, particular to its operations, the environment it operates in and the economy at large. The Company has
identified and implemented comprehensive risk management policies and procedures to assess, monitor and manage risks throughout the
life cycle of the loan portfolio and across different functional verticals in the Company. The risk management process is continuously
reviewed on an ongoing basis, improved and adapted to the changing risk scenarios. The process of continuous evaluation of risks includes
bringing in a futuristic perspective that takes into consideration the evolution and build-out of business risks due to emerging economic
scenarios. Further, the risk management function also evaluates risks on an event-driven basis and issues suitable advisories to the
business for implementation on the ground.
The Risk Management oversight structure includes Committees of the Board and Senior Management Committees. The Company’s Board
of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board of Directors has
constituted several committees, including the Audit Committee, the Asset Liability Management Committee, Risk Management Committee
and defined their role for monitoring the risk management policies of the Company.
An overview of key risks and mitigants are as follows:
Risk Type Mitigant
The Company's credit risk is governed by a board-approved credit policy that details the approval
process and guidelines for monitoring and mitigating risk.
The possibility that borrowers will fail
to meet their payment obligations on
time
The inability to decipher accurate
collateral value or titles to the property
The inability to cope with dislocations
in the market
Loss from inadequate internal
processes, people, systems or
external events
Loss from inadequate internal
processes, people, systems or
external events
Risk of a breach of confidential and
proprietary data
Credit Risk
Collateral Risk
Market Risk
Operational Risk
Liquidity Risk
Cyber Risk
The credit appraisal is a structured and standardized process which encompasses a detailed
assessment of the borrower's current and emergent cash flows and financial commitments, nature of
industry and behaviour on past loans availed.
The Company, in partnership with an external agency, has developed a machine-learning driven
scorecard using traditional and alternate data points to derive default probability at the inception of the
loan.
Over a period of time, it is intended to use this machine-learning data to aid and facilitate a faster
decision-making process in credit underwriting in Vastu.
The Company has strong data science and analytics capabilities that allow for continuous and rigorous
monitoring of over-due accounts and for identifying early warning signs on the portfolio.
Detail review of Risk MIS, Portfolio quality reports, collection MIS, Data analytics report and various
other analytics and risk matrix are the cornerstones of Vastu's Risk Management which has been
certified as best in class and indicated by performance.
The Company also has a dedicated in-house collections team that actively engages with customers
to ensure mutual resolution of stressed accounts.
A sound network of professional vendors across the country to support the Company in its process
of collateral evaluation to mitigate property risk. This network consists of lawyers and valuation
agencies which operate under the close supervision of the local and Head Office teams of the
Company.
The Company's market risk management is guided by a host of comprehensive board-approved
policies that are benchmarked to the best industry practices.
The Company has a high level of consistency in its processes and controls.
The Company manages liquidity risk by maintaining sufficient cash and marketable securities and
by having access to funding through an adequate amount of committed credit lines for a sustainable
future even in the absence of inflows.
The Company has a robust governance structure in place to ensure effective security management.
The Company periodically tests all its IT infrastructure to identify and remedy security issues, if any.
The Company's treasury operations are entirely system-driven, lending standardization to the
process. The Company's cash flow and liquidity position are monitored daily to ensure robustness
in liquidity management.
All critical operational processes have been made amenable to technological platforms and are
hence standardized.
Internal audit overview subjects these operations to review on an ongoing basis. This approach has
enabled predictability of transactions, as a risk mitigant.
The Company conducts regular stress tests to monitor the business vulnerability to external
headwinds and takes appropriate corrective and preventive actions to ensure business resilience.
The Company has a board-approved business continuity plan in place in case of any market-related
halt to business operations
Every security that comes to Vastu as a part of its loan is evaluated thoroughly by the lawyers for a
clear title and inspected by a valuer for determination of the market value. These processes ensure
that there is adequate security cover available to Vastu during the process of lending.
Internal Control Systems and their Adequacy
Fixed Assets and Investment Properties
Compliance
Subsidiaries
Company Outlook
Vastu has put in place adequate internal control systems commensurate with the nature of its business and the size of its operations. These
systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes,
safeguarding of assets of the Company, prevention and detection of frauds, accuracy and completeness of accounting records and ensuring
compliance with Company policies. Internal audit is carried out by independent firms of chartered accountants and cover all the offices and key
areas of business. All significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee
comprises three independent directors.
Net fixed assets as at March 31, 2020, amounted to Rs. 812.78 lakhs. Additions to fixed assets during the year was Rs. 102.43 lakhs.
At Vastu HFC, we follow a policy of absolute compliance, regulatory or legal requirements, in both letter and spirit. The Company places
overarching importance to ensure compliance with all extant regulations and laws. The dedicated Compliance department strives to be at the
forefront of all regulatory changes, and it works in close quarters with the Company's business and operations teams to ensure absolute
compliance with all requirements.
Vastu Finserve, a wholly-owned subsidiary of Vastu HFC is a Non-Banking Financial Company (NBFC). The Company received its NBFC
license on April 22, 2019, and commenced its business in September 2019 and currently operates in the states of Maharashtra, Rajasthan
and Madhya Pradesh with an employee base of over 50 employees.
The dramatic spread of COVID-19 and associated lockdowns that started in March 2020 has disrupted lives, livelihood, communities and
business across India. Following the guidance given by international agencies and health care experts, the Company believes that
COVID-19 and its associated impact is here to stay over the next year.
Vastu Finserve currently provides backed collateral credit primarily to MSMEs. In FY2021, the Company has plans to add a host of
secured retail products primarily catering to the emerging low and middle-income segments in India that will effectively complement the
existing franchise with diversification, cross-sell opportunities and access to a larger opportunity pool with a strong focus on TATs and
employee productivity through technology and analytics.
Key highlights of Vastu Finserve for the year ended March 31, 2020, are as follows:
Asset Under Management INR 3.49 Crores
Profit Before Tax INR (1.98) Crores
Profit After Tax INR (1.95) Crores
Share Capital INR 52.50 Crores
Net worth INR 50.55 Crores
Credit Rating A/Stable
Vastu's commitment, disciplined execution, technology and analytics backed infrastructure and robust risk fundamentals hold the
Company in a strong position to tide over the present crisis. The Company's business model has shown high resilience against several
dislocations in the past, including demonetization, GST rollout, economic slowdown and the NBFC liquidity crisis. Key aspects that lend
comfort to tackle the present crisis on hand are as follows:
The Company's portfolio is 100% retail and highly granular, with an average ticket size of INR 12 Lakhs.
The Company focuses on the emergent low and middle-income groups (having an annual household income of INR 3 to 18 Lakhs). This
segment shows significantly higher resilience to income shocks in comparison to economically weaker sections (having annual
household income under INR 3 Lakhs).
The Company's exposure to under-construction builder-led projects is minimal, with over 90% of the book being backed by complete
self-occupied residential properties.
The Company has a high reliance on technology and paperless workflows which allows it to deliver services remotely with minimal need
for in-person interactions, which is the need of the hour.
The Company has adequate cash and bank balances, which even in the absence of any incremental borrowing or capital inflows is
sufficient to meet all-expense obligations for the next 12-18 months.
The Company's maintains low loan-to-value rations at an average of 37%, ensuring adequate margin for recovery in case of any changes
to the valuation of the collateral in the future.
The team is young, dynamic and agile with a high degree of comfort with technology, allowing for rapid adaption to a new normal, which
will mandate a higher degree of businesses having to be undertaken remotely.
The Company's management team has a strong execution track record in retail lending and have seen companies to success even
across stressed economic cycles.
The Company's shareholders come with superior expertise in their respective domains and are committed to guiding and supporting the
Company every step of the way.
As an organization, Vastu HFC will continue to maintain high service quality levels, ensure consistency and undertake recoverability.
While near term challenges exist, the Company firmly believes that retail housing finance in India is a multi-decade opportunity and
institutions that sustain the current downturn have a great opportunity to grow over the next 5 to 10 years. Vastu HFC, with its committed
team engrained in an efficient performance-oriented culture, strong liquidity position, sound technological platform and robust process
are well-poised to take on the challenges, emerge strong and grow in the years to come.
Cautionary Statement
Cautionary Statements made in the Management Discussion & Analysis describing the Company’s objectives, projections,estimates,
expectations may be “forward-looking statements” within the meaning of applicable laws & regulations. Actual results could differ from those
expressed or implied. Important factors that could make a difference to the Company’s operations include economic conditions affecting
demand supply and price conditions in the domestic & overseas markets in which the Company operates, changes in the government
regulations, tax laws & other statutes and other incidental factors.
Geographical FOOTPRINT
Madhya Pradesh
Maharashtra
Karnataka
Uttarakhand
Andhra Pradesh
Uttar Pradesh
Telangana
Gujarat
Rajasthan
Tamil Nadu
Delhi
Haryana
TOTAL BRANCHES
63
GUJARAT08
10
TAMILNADU
TELANGANA
UTTAR PRADESH
UTTARAKHAND03
02 DELHI
RAJASTHAN
08 MADHYA PRADESH
09 MAHARASHTRA
04 KARNATAKA
05
02
ANDHRA PRADESH07
04
BRANCHES
HARYANA01
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Dear Members,
1. STATE OF COMPANY’S AFFAIRS
FINANCIAL PERFORMANCE:
(Amount in INR in lakh)
Particulars
2019-20 2019-202018-19 2018-19
Your Directors are pleased to present the Sixteenth Annual Report on the business and operational performance of the Company together with
the Audited Financial Statements (Standalone and Consolidated), and the Reports of the Auditors for the financial year ended March 31, 2020.
The financial performance of your Company for the year ended March 31, 2020 is as summarized below:
Consolidated Standalone
Revenue from Operations 25,047.40 15,502.06 25,071.98 15,502.07
Other Income 4,182.44 2,114.34 4,320.60 2,119.75
Total Revenue
29,229.84
17,616.40 29,392.58
17,621.83
Profit before Finance Costs, Depreciation and Taxation
23,122,89
11,914.27 22,966.91
11,915.24
Less: Finance Costs 11,050.55
6,928.05 11,061.87
6,928.06
Less: Depreciation and amortization expenses 132.70
44.07 163.38
44.73
Profit Before Tax
11,939.66 4,942.15 11,741.66 4942.45
Less: Tax expense
2,714.85 1,332.82 2,712.09 1,332.97
Profit After Tax
9,224.81 3,609.34 9,029.56 3,609.48
2. OPERATIONAL HIGHLIGHTS:
3. BUSINESS OVERVIEW:
a. Income
b. Profit Before Tax
c. Profit after Tax
Particulars
2019-20 2019-202018-19 2018-19
Consolidated Standalone
Number of branches
63
44 74
44
Number of borrowers
6,365
6,315 6,398
6,315
Amount Sanctioned (INR in Lakh) 77,254.95
78,187.62 77,628.45
78,187.62
Amount disbursed (INR in Lakh)
Amount outstanding (INR in Lakh)
Your Company’s Standalone revenue from operations for the current year was INR 25,047.40 Lakh as compared to INR 15,502.06 Lakh in the
previous year.
Your Company’s Standalone Profit before tax for the current year was INR 11,939.66 Lakh as against INR 4,942.15 Lakh in the previous year.
Your Company’s Standalone Profit after tax for the current year was INR 9,224.81 Lakh as against INR 3,609.34 Lakh in the previous year.
As of March 31, 2020, Assets Under Management (AUM) stood at INR 1,769 Crore (including an assignment of INR 78 Crore) as against INR
1,336 Crores the previous year representing a growth of 32%. The Company's loan assets showed robust risk fundamentals, whereby:
73,673.86 76,096.13 74,026.36 76,096.13
1,76,943.72 1,33,601.30 1,77,293.2 1,33,601.30
Please refer to the Management Discussion and Analysis Report for more information on the Company’s Business Overview.
4. INDIAN ACCOUNTING STANDARDS (IND AS)
The Company has adopted Indian Accounting Standards (‘Ind AS’) notified under Section 133 of the Companies Act 2013 read with the
Companies (Indian Accounting Standards) Rules, 2015 from April 01, 2019 and the effective date of such transition is April 01, 2018. Such
transition has been carried out from the erstwhile Accounting Standards notified under the Companies Act, 2013, read with relevant rules issued
thereunder and guidelines issued by the National Housing Bank (‘NHB’) (collectively referred to as ‘the Previous GAAP’).
5. LOAN ASSETS
Assets Under Management
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Spread on Loans
6. ASSET QUALITY
7. BORROWINGS
100% of the loan book comprises of granular retail loans, having an average ticket size of INR 12 Lakhs. The Company has no exposure to any
wholesale corporate or builder loans.
Almost all housing units are residential and occupied by the borrower.
Majority property units are independent houses and are complete, minimizing risk from exposure to projects.under-construction
The Company's operations are geographically well-diversified across operating locations, with none of the states contributing more than 20%
to the AUM.
The average yield on loan assets during the year was 15.30% per annum. The average cost of borrowing was 9.79% per annum as compared to
10.08% in the previous year. Accordingly, the Company maintained a healthy spread of 5.51% on its loan assets.
The Company's strong approach to risk, portfolio management and collections have contributed to best-in-class asset quality metrics. The
Company posted a gross NPA 0.33% of loan assets as on March 31, 2020. Net NPA in the year stood at 0.28%.
8. RESOURCE MOBILISATION
Non-Convertible Debentures (NCDs) issued on a private placement basis
As on March 31, 2020, the Company’s outstanding Term Loans stood at INR 93,052.01 Lakh vis-à-vis INR 56,951.73 Lakh as on March 31, 2019.
The Company’s Bank Borrowings enjoy a rating of “A” Stable.
During the year under review, your Company has made early redemption of 500 Series B rated, secured, senior, redeemable, taxable,
transferable, listed, Non-Convertible Debentures of INR 10 Lakh each aggregating up to INR 5,000 Lakh allotted on October 26, 2018, bearing
ISIN INE459T07074.
During the period between March 31, 2020 and the date of this report, your Company has also made early redemption of 500 Series A rated,
secured, senior, redeemable, taxable, transferable, listed, Non-Convertible Debentures of INR 10 Lakh each aggregating up to INR 5,000 Lakh
allotted on August 27, 2018, bearing ISIN INE459T07066.
The Company has a diversified lender mix, with participation from banks, financial institutions, mutual funds and NHB. As on March 31, 2020, the
Company had INR 1,292 Crores of debt on its balance sheet, up 30% from the previous year. Despite tight liquidity conditions, the Company
managed to successfully raise INR 498 Crores in the financial year, from leading private banks, public sector banks, financial institutions and
NHB. The Company's cost of funds also declined from 10.08% in FY19 to 9.79% in FY20.
The Company's borrowing mix as on March 31, 2020, is detailed below:
Mutual Funds28%
National Housing Bank18%
Banks & Financial Institutions
54%
Borrowing Mix
Term Loans
As on March 31, 2020, the Company’s outstanding NCDs stood at INR 36,153.85, as compared to INR 41,923.08 as on March 31, 2019. During
the financial year under review, your Company has not issued any Non-Convertible Debentures.
During the financial year under review, the interest on Non-Convertible Debentures issued on a private placement basis was paid by the
Company on their respective due dates, and there were no instances of the interest amount which were claimed by the Investors or not paid by
the Company. Also, there was no amount in respect of the debentures remaining unclaimed or unpaid beyond the due date for redemption.
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Debenture Trustees
Refinance from National Housing Bank (NHB)
Credit Rating
Key Rating Commentaries from Rating Agencies:
CRISIL:
ICRA:
INDIA RATINGS & RESEARCH:
BRICKWORK:
9. AWARD AND RECOGNITION:
10. COVID-19:
rdMilestone Trusteeship Services Private Limited having its registered office at Co Works Worli, PS 56, 3 Floor, Birla Centurion, Pandurang
Budhkar Marg, Worli, Mumbai - 400 030 (Tel: 022-62886119) are acting as Debenture Trustee for NCDs issued by the Company on private
placement basis.
During the financial year under review, your Company has been granted a LIFt and refinance sanction amounting to INR 10,000 Lakh each,
by National Housing Bank (“NHB’) under the NHB’s refinancing schemes for Housing Finance Companies. The Outstanding borrowings
from NHB as at March 31, 2020 was INR 22,594.65 Lakh.
During the financial year under review, Credit Ratings assigned to the Company are as under:
The rating on the debt instruments and bank loan facilities of Vastu Housing continue to factor in healthy capitalization, with demonstrated
ability to raise capital, strong risk management systems and processes, and the extensive experience of the management in the retail
finance space. These strengths are partially offset by the small scale of operations. While the AUM remains small in the mortgage finance
industry, it remains a sizeable player in the overall pure-play affordable housing industry.
The Company benefits from the long-standing experience of the shareholders in the retail finance business across various retail asset
classes. Moreover, Vastu has a strong and experienced senior management team. With the oversight of the Board and the management,
ICRA expects the Company to grow its portfolio prudently.
The Company has been establishing the basic blocks for its business growth and will derive the benefits of operating leverage with an
increase in scale. The Company has strong systems and processes in comparison to its peers of the same size.
The positive outlook takes into account improvement in the Company’s operating and financial performance, equity infusion of INR
37,751 Lakh in FY 2019-20, and expectation of steady growth in the portfolio while maintaining the asset quality.
Your Company has won the "Best Workplace Culture Award 2019" in the event held by "Indian HR Summit & Awards, 2019" in Hyatt
Regency, Mumbai, in July 2019. This was awarded to the Company considering the core values of the organisation, passion and
self-motivation of all employees, rewards and recognition, freedom of expression, team bonding and unity, the work culture, the
openness, the trust and the team work. This award recognises the character and personality of your Company.
An unexpected and sudden shock in the form of the COVID-19 outbreak posed immense fresh challenges post Feb 2020. Normal
business activity significantly slowed down in March 2020 as the movement of people got affected. The Government rightfully had
to take urgent steps to mitigate the spread of the virus and announced PAN India lockdown in March 2020 bringing all economic
activity, barring essential services to a virtual standstill.
The rating continues to factor the strong and experienced management, healthy capitalization and comfortable asset quality.
Rating/Outlook
Bank Loan Facility
Non-Convertible Debentures
Long Term Bank Lines
CRISIL A/Stable
CRISIL A/Stable
-
IND A/Stable
-
-
BWR A/Positive
BWR A/Positive
-
-
-
[ICRA] A/Stable
Nature of Borrowing CRISIL Ratings India Ratings & Research Brickwork Ratings ICRA
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
TRANSFER TO RESERVES:
The COVID challenge and resultant disruption will be a largely
metropolitan city phenomenon. Your Company's business is beyond
the large urban agglomerations of India in semi-urban and rural
areas, which may recover sooner than metropolitan / large cities. The
Company has built its franchise on a philosophy of exercising
discipline not only in bad times but also during the good times, and
that your efforts until this point secures the franchise to a large extent.
Vastu HFC, with its committed team engrained in an efficient
performance-oriented culture, strong liquidity position, sound
technological platform, and robust process is well-poised to take on
the challenges, emerge stronger and grow in the years to come.
DIVIDEND:
To deal with the economic dislocation, the Government announced a
slew of measures including cash transfers and food security
measures targeted at those in the bottom of the economic ladder. The
Reserve Bank of India (RBI) also announced liquidity and regulatory
measures across two relief packages.
To conserve resources, your Directors do not recommend any
dividend for the year under review.
During the financial year under review, your Company has
transferred INR 1,951.63 Lakh to the Statutory Reserve under
Section 29C of National Housing Bank (NHB) Act, 1987, out of the
amount available for appropriation.
REVISION OF FINANCIAL STATEMENTS:
There was no revision of Financial Statements during the year under
review.
DEMATERIALISATION OF SHARES & NON-CONVERTIBLE
DEBENTURES
The equity shares of the Company have been admitted for
dematerialisation by National Securities Depository Limited (NSDL)
with ISIN No. INE459T01010.
The Non-Convertible Debentures of the Company have been
admitted for dematerialisation by National Securities Depository
Limited (NSDL) with ISIN Nos. INE459T07025, INE459T07033,
INE459T07041, INE459T07058, INE459T07066, INE459T07074,
INE459T07082, INE459T07090.
CHANGE IN NATURE OF BUSINESS:
There was no change in the nature of the business of the Company.
MATERIAL CHANGES AND COMMITMENTS, AFFECTING THE
FINANCIAL POSITION OF THE COMPANY WHICH HAS
OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR &
THE DATE OF REPORT:
There are no material changes and commitments affecting the
financial position of your Company, which has occurred between the
end of the financial year of the Company, i.e., March 31, 2020, and
the date of this Board's Report, i.e., April 29, 2020.
SHARE CAPITAL:
During the year under review, the paid-up equity share capital increased as a result of the Rights issue, whereby your Company allotted 1,64,13,347 equity shares on rights basis on April 26, 2019, at an exercise price of INR 230/- each. The paid-up equity share capital further increased as a result of the allotment of 50,000 equity shares at face value of INR 100/- each on December 24, 2019, upon exercise of stock options under Core Management ESOP 2018 – Scheme 1. As at March 31, 2020, the equity share capital stood at INR 5,18,45,52,700 divided into 5,18,45,527 equity shares of INR 100/- each.
Share Capital structure of the Company as on March 31, 2020, is as follows:
11.
12.
13.
14.
15.
16.
17.
Authorised Capital:(Amount in INR Lakh)
10,00,00,000 Equity Shares of INR 100/- each 1,00,000.00
Issued, subscribed and paid-up Share Capital:
51,845.525,18,45,527 Equity Shares of INR 100/- each
The Company has neither issued sweat equity shares nor equity shares with differential rights as on March 31, 2020.
None of the Directors of the Company hold convertible instruments of the Company.
Capital Adequacy Ratio (CAR):
As on March 31, 2020, your Company's total CAR, calculated in line with NHB regulations, stood at 65.10% well above the regulatory minimum of 13.00 percent. Of this, Tier I CAR was 64.21%.
DETAILS OF HOLDING, SUBSIDIARY, ASSOCIATE, AND JOINT VENTURE COMPANIES:
Pursuant to Section 2(46) of the Companies Act, 2013, Plenty Private
Equity Fund I Limited is the Holding Company of the Company as it
holds 68.04% stake in the Company.
Pursuant to Section 2(87) of the Companies Act, 2013, Vastu Finserve
India Private Limited (“Finserve”) is a Wholly Owned Subsidiary of the
Company registered with Reserve Bank of India to carry out business
as a financial institution without accepting public deposits. Finserve
has received its NBFC license on April 22, 2019, and commenced its
business in September 2019 and currently operates in the states of
Maharashtra, Rajasthan, and Madhya Pradesh and has an employee
base of over 50 employees. Reporting on the highlights of
performance of Subsidiary, its contribution to the overall performance
of the Company during the period under report is provided in Form
AOC-1 (Statement containing the salient features of the financial
statements of subsidiaries/associate companies / joint ventures)
annexed herewith as “Annexure I.”
The Company did not have any Joint Venture or Associate Company,
and there were no companies which became or ceased to be the
Company’s Subsidiary, Joint Venture or Associate Company;
accordingly, reporting on the highlights of performance of Associates
and Joint Venture companies and their contribution to the overall
performance of the Company during the period under report, is not
required to be made.
18.
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Cessation
Mr. Ravikumar Hayagreeva Puranam (DIN: 00280010), Nominee
Director, and Mr. Samir Bhatia (DIN: 01769655), Non-Executive
Director of the Company, resigned from the Board w.e.f. December 31,
2019, and February 18, 2020, respectively, consequent to the
divestment of their shareholding in the Company.
As on the date of this Report, Mr. Rajasekhara Reddy (DIN: 02339668)
has been appointed as an Additional Director in the Independent
Capacity on the Board of the Company subject to members’ approval
at the ensuing Annual General Meeting (‘AGM’).
Based on the declarations and confirmations received in terms of the
provisions of Section 164 of the Companies Act 2013 and the NHB/RBI
Directions, none of the Directors on the Board of your Company are
disqualified from being appointed/continuing as Directors.
During the year under review, the following changes took place in the
Board of Directors of your Company:
The Company attaches significant importance to training and
development, both classroom and digital, to build future leaders that
can protect and grow the franchise. Apart from regular internal training,
the Company launched a Graduate Leadership Development program
in partnership with Pioneer Housing Finance Academy in FY2020, the
first of its kind in the housing finance space. During a forty-day
residential program, identified young and talented individuals were
mentored and trained on various aspects of financial services (with a
focus on mortgages) and soft-skill development before being inducted
into the Company. Vastu HFC strongly believes in moulding leaders of
tomorrow and leaves no stone unturned in investing behind its vision
for its people. The Company has offered Employees Stock Option
Schemes (ESOPs) to its key employees and for other high performing
mid-level employees.
As at March 31, 2020 your Company has Six (6) Directors consisting of
three (3) Independent Directors, two (2) Non-Executive Directors
including a Woman Director and one (1) Executive Director.
Since inception, the Company has fostered a unique culture of trust,
ownership and empowerment, with accountability. The Company's
ethos promotes diversity, inclusiveness and focuses on driving a
meritocratic culture where age or experience holds no bar to
achievement and reward. A vast majority of leaders in the Company
are young, who aside from bringing zeal and enthusiasm to work,
constantly question the status quo in their strive for operational
excellence.
As on March 31, 2020, the Company's headcount stood at 858.
Board of Directors
19. HUMAN RESOURCES
20. DIRECTORS AND KEY MANAGERIAL PERSONNEL:
As on the date of this report, Mr. Girija Shankar Nayak (DIN:
00138401), Independent Director, resigned from the Board.
Your Directors place on record their appreciation for valuable
contributions made by Mr. Ravikumar Hayagreeva Puranam, Mr.
Samir Bhatia, and Mr. Girija Shankar Nayak during their term as
Directors of the Company.
Director retiring by Rotation
In terms of Section 152(6) of the Act read with the Articles of
Association of the Company, Ms. Renuka Ramnath (DIN:
00147182), Nominee Director being longest in office, shall retire by
rotation and being eligible has offered herself for reappointment at
the ensuing Annual General Meeting of the Company. A brief profile
of Ms. Renuka Ramnath has been included in the notice convening
the ensuing Annual General Meeting of the Company.
Key Managerial Personnel (“KMP”)
Pursuant to the provisions of Section 203 of Companies Act, 2013,
Mr. Sandeep Menon (DIN: 02032154), Managing Director, Mr. Sujay
Patil, Chief Financial Officer, and Ms. Pallavi Bhambere, Company
Secretary are the Key Managerial Personnel of the Company as on
the date of this report.
As required under Section 149(7) of the Companies Act, 2013,
declarations were received from Mr. Vijay Kumar, Mr. Girija Shankar
Nayak and Mr. Natrajh Ramakrishna Independent Directors of the
Company confirming that they meet the criteria of independence as
specified in Section 149(6) of the Companies Act, 2013 for FY 2019-
20.
There was no change in the composition of the Key Managerial
Personnel during the year.
Policy on Nomination and Remuneration of Directors/ KMP/ Senior
Management has been formulated by the Nomination and
Remuneration Committee (NRC or the Committee). It has been
approved by the Board of Directors of the Company. The said policy
is for determining qualifications, positive attributes, and
independence of a Director, KMP, and Senior Management. Salient
features of the said policy are as follows:
21. STATEMENT ON DECLARATION GIVEN BY THE INDEPENDENT DIRECTORS:
22. POLICY ON NOMINATION AND REMUNERATION OF
DIRECTORS/KMP/SENIOR MANAGEMENT
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
During the financial year under review, the National Housing Bank
("NHB") has issued various Notifications, Circulars, and Guidelines to
Housing Finance Companies.
The Policy on Nomination and Remuneration Of Directors/ KMP/
Senior Management is available on the website
As per the Reserve Bank of India (“RBI”) Press Release: 2019-
2020/419 dated August 13, 2019, Housing Finance Companies will
be treated as one of the categories of Non-Banking Financial
Companies (NBFCs) for regulatory purposes.
applicable statutory requirements.
Circulars and Notifications issued by NHB and RBI were also placed
before the Board of Directors at regular intervals to update the Board
members on compliance of the same. Your Company has adhered to
all the Circulars, Notifications, and Guidelines issued by NHB and
RBI from time to time.
Your Company is also in compliance with the provisions of the
Companies Act, 2013 including Secretarial Standards, SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015,
Foreign Exchange Management (Transfer or Issue of Security by a
Person Resident Outside India) Regulations, 2017 and other
During the year, the Company has reviewed and revised statutory
policies as required in terms of provisions of Companies Act, 2013,
and guidelines issued by NHB from time to time and placed the
revised policies on its website at
https://www.vastuhfc.com/view/policies.
of the Company at https://www.vastuhfc.com/view/policies.
During the financial year under review, your Company adhered to all
Internal Guidelines on Corporate Governance in accordance with the
Housing Finance Companies-Corporate Governance (NHB)
Directions, 2016, which lay down the Corporate Governance
practices of the Policy. The said policy is available on the website of
the Company at https://www.vastuhfc.com/view/policies.
Appointment and Removal of Directors, KMP, and Senior
Management:
Evaluation/ Assessment of Directors/ KMP/ Senior Management
Remuneration to Non-Executive Directors and Executive Directors
Remuneration to the Key Managerial Personnel and Senior
Management
Stock Options
a.
b.
c.
d.
e.
As required under Section 134(3)(m) of the Companies Act, 2013
read with Rule 8(3) of the Companies (Accounts) Rules, 2014; the
Company lays great emphasis on saving the cost of energy
consumption. Therefore, effective measures have been taken to
check the loss of energy, as far as possible.
Your Company is registered as a non-deposit taking Housing
Finance Company with National Housing Bank and hence does not
accept any deposits. The Company has not accepted any deposits
under Section 73 of the Companies Act, 2013, and the Companies
(Acceptance of Deposits) Rules, 2014, during the year ended March
31, 2020.
During the financial year under review, the foreign exchange
earnings and out-go were as under:
(i) Foreign Exchange earnings– Nil
(ii) Foreign Exchange spent – Nil
Technology Absorption is not applicable to the Company as the
Company is carrying on the business of providing long term housing
finance and term loans for non-housing purposes.
23. REGULATORY AND STATUTORY COMPLIANCES:
24. POLICIES AND CODES
25. INTERNAL GUIDELINES ON CORPORATE GOVERNANCE
26. DEPOSITS:
27 . CONSERVATION OF ENER GY, R ESEAR CH AND
DEVELOPMENT, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS & OUTGOING:
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Requirements Disclosure
The ratio of the remuneration of each director to the median remuneration
of the employees for the financial year 2019-20.
The percentage increase in remuneration of each Director, Chief Financial
Officer, Chief Executive Officer and Company Secretary in the financial year
2019-20
The percentage increase in the median remuneration of employees in the
financial year 2019-20.
Average percentile increase already made in the salaries of employees
other than the managerial personnel in the last financial year and its
comparison with the percentile increase in the managerial remuneration and
justification thereof and point out if there are any exceptional circumstances
for increase in the managerial remuneration.
The number of permanent employees on the rolls of the Company.
Affirmation that the remuneration is as per the Nomination and Remuneration
Policy of the Company
858 (as on March 31, 2020)
It is hereby affirmed that the remuneration is as per the Nomination
and Remuneration Policy of the Company.
Executive Director
Executive Director
Mr. Sandeep Menon – Managing Director - 36.58X
Mr. Sandeep Menon – Managing Director – 7%
13.08%
The median percentage increase made in the salaries of employees
other than the Key Managerial Personnel was 13.7% while the
median increase in the salaries of the Key Managerial Personnel
was 8.03%. The increase in the remuneration is in line with the
Company’s Performance appraisal policy.
Key Managerial Personnel other than Directors
Mr. Sujay Patil – Chief Financial Officer – 10%
Ms. Pallavi Bhambere – Company Secretary – 10%
Non-Executive Directors
Ms. Renuka Ramnath – Nil
Mr. Sudhir Variyar – Nil
Mr. Samir Bhatia (till February 18, 2020) – Nil
Mr. Puranam Hayagreeva Ravikumar (till December 31, 2019)- Nil
Mr. Girija Shankar Nayak - Nil
Mr. Vijay Kumar – Nil
Mr. Natrajh Ramakrishna - Nil
Non-Executive Directors
Ms. Renuka Ramnath – Nil
Mr. Sudhir Variyar – Nil
Mr. Samir Bhatia (till February 18, 2020) – Nil
Mr. Puranam Hayagreeva Ravikumar (till December 31, 2019)- Nil
Mr. Girija Shankar Nayak - Nil
Mr. Vijay Kumar – Nil
Mr. Natrajh Ramakrishna - Nil
The statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, forms part of this report. However, as per the second proviso
to Section 136(1) of the Companies Act, 2013 and second proviso of Rule 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Report and Financial Statements are being sent to the Members of the Company excluding the said statement. Any
Member interested in obtaining a copy of the said statement may write to the Company Secretary at the Registered Office of the Company.
The ratio of the remuneration of each director to the median remuneration of employees and other details in terms of Section 197(12) of the
Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is as follows:
DISCLOSURE AS TO REMUNERATION:28.
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
29. DISCLOSURE OF EMPLOYEE STOCK OPTIONS
Name and Designation Options ExercisedOptions Granted Options Vested Exercise DateGrant Date
Mr. Sandeep Menon, Managing Director
Mr. Sujay Patil, Chief Financial Officer
Mr. Ravikumar Hayagreeva Puranam,
Non-Executive Nominee Director (till
December 31, 2019)
19.04.2018
19.04.2018
01.11.2018
01.11.2018
19.04.2018
7,50,000
2,50,000
1,00,000
2,50,000
50,000
6,00,000
2,00,000
40,000
1,00,000
50,000
-
-
-
-
19.12.2019
-
-
-
-
50,000
The Options granted under the CMESOP 2019 shall vest not earlier than the minimum period of 1 (one) year and in the following manner, and
depending upon an Exit Event, IRR Hurdle, and Pro-rata Percentage as per the terms and conditions stated in CMESOP 2019:
(a) Tranche A (time vested), 5,00,000 Options shall vest over a 4 (four) year period from the Rights Issue Subscription Date; and
During the year under review, the new ESOP Scheme “Core Management Employee Stock Option Plan 2019” (“CMESOP 2019”) has been
approved by the ESOP Committee of the Board of the Company subject to members’ approval at the ensuing Annual General Meeting (‘AGM’). As
per the CMESOP 2019, 10,00,000 ESOPs shall be granted to Mr. Sandeep Menon, Managing Director of the Company.
i. 50,000 ESOPs were allotted to Mr. Ravikumar Hayagreeva Puranam on December 24, 2019, and the same was transferred to Plenty Private
Equity Fund I Limited on December 26, 2019. Further, Mr. Ravikumar Hayagreeva Puranam has resigned from the Board effective from
December 31, 2019.
ii. Apart from the abovementioned Directors/ Key Managerial Personnel, remaining Directors/ Key Managerial Personnel have not been granted
any ESOP during the year under review.
(b) Tranche B 5,00,000 Options shall vest only upon the Exercise Conditions being met.
The Extract of Annual Return is also available on the website of the Company at https://www.vastuhfc.com/view/annual-report.
The Managing Director of the Company does not receive any remuneration or commission from the Holding and Subsidiary Company, and
accordingly, provisions of Section 197(14) of the Companies Act, 2013 are not applicable to the Company.
EXTRACT OF ANNUAL RETURN:
DISCLOSURE UNDER SECTION 197(14) OF THE COMPANIES ACT, 2013:
Pursuant to Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014, the details of the Employees Stock Option Scheme for the
financial year ended March 31, 2020, are provided under Note No. 40 forming part of the audited financial statements for the year ended March 31,
2020.
Pursuant to Section 92(3) of the Companies Act, 2013, the Extract of Annual Return in Form MGT-9 for the financial year ended March 31, 2020, is
annexed herewith as ''Annexure-II."
30.
31.
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
32. BOARD MEETINGS/GENERAL MEETINGS:
Annual General Meeting
held on August 09, 2019
Attendance
Board Meeting
Audit Committee Meetings held in
Member’s tenure
Board Meetings held
in Director’s tenureName of Director
Name of Member
1. Ms. Renuka Ramnath
1. Mr. Natrajh Ramakrishna
3. Mr. Sandeep Menon
3. Mr. Girija Shankar Nayak
4. Mr. G S Nayak
4. Mr. Vijay Kumar
4
3
4
4
4
4
4 (1 meeting attended through telecon)
4
4 (1 meeting attended through Video
Conference)
No
3 (1 meeting attended through telecon)
4 (1 meeting attended through Video Conference)
3 (1 meeting attended through telecon and 1 meeting
attended through Video Conference)
2. Mr. Puranam Hayagreeva
Ravikumar (till December 31, 2019)
2. Mr. Puranam Hayagreeva Ravikumar (till December 31, 2019)
3
3
2 Yes
2
5. Mr. Sudhir Variyar
6. Mr. Samir Bhatia
8. Mr. Natrajh Ramakrishna
As on March 31, 2020, the Audit Committee of the Company comprised the following members:
(a) Mr. Natrajh Ramakrishna - Independent Director
(b) Mr. Vijay Kumar –Independent Director
(c) Mr. Girija Shankar Nayak –Independent Director
The Audit Committee of the Company held 4 (Four) meetings during the financial year 2019-20 on April 26, 2019, July 31, 2019, October 22,
2019 and February 18, 2020 respectively. All the recommendations made by the Audit Committee to the Board during the year were accepted
by the Board of Directors. Mr. Natrajh Ramakrishna, Chairman of the Audit Committee, attended the Annual General Meeting held on August 09,
2019.
As on the date of this report, consequent to the resignation of Mr. Girija Shankar Nayak, Independent Director, the Audit Committee of the
Company was re-constituted comprised the following members:
(a) Mr. Natrajh Ramakrishna - Independent Director
(b) Mr. Vijay Kumar – Independent Director
(c) Mr. Rajasekhara Reddy – Additional Director in the Independent Capacity
Attendance of Committee members at Audit Committee Meetings:
4
4
4
4
3
4 (1 meeting attended through telecon)
7. Mr. Vijay Kumar 4 3(1 meeting attended through telecon and 1
meeting attended through Video Conference)
4 (Four) Board Meetings were held during the financial year 2019-20. The Company held a minimum of one board meeting in every quarter with
a gap of not exceeding 120 days (Maximum period permitted) between two consecutive board meetings. The details of which are given as under:
During the year, one general meeting took place in the form of Annual General Meeting on August 09, 2019.
Attendance of Directors at Board Meetings and General Meetings:
33. AUDIT COMMITTEE:
Number of days from previous Board MeetingQuarterBoard Meeting date
1. April 26, 2019
2. July 31, 2019
3. October 22, 2019
4. February 18, 2020
April - June
July - September
October - December
January - March
73
96
83
119
Yes
Yes
No
No
No
Yes
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
34. NOMINATION AND REMUNERATION COMMITTEE:
Attendance
Attendance
Nomination and Remuneration
Committee Meetings held in
Member’s tenure
Corporate Social ResponsibilityCommittee Meetings held in
Member’s tenure
Name of Member
Name of Member
1. Mr. Puranam Hayagreeva Ravikumar
(till December 31, 2019)
1. Mr. Sudhir Variyar
2. Mr. Girija Shankar Nayak
2. Mr. Vijay Kumar
3. Mr. Sudhir Variyar
3. Mr. Sandeep Menon
4. Mr. Vijay Kumar
3
4
4
4
4
4
4
2
4
4 (1 meeting attended through Video Conference)
3 (1 meeting attended through telecon and 1 meeting
attended through Video Conference)
4
4
4 (1 meeting attended through telecon and 1
meeting attended through Video Conference)
The Corporate Social Responsibility Committee of the Company held 4 (Four) meetings during the financial year 2019-20 on April 26, 2019, July
31, 2019, October 22, 2019 and February 18, 2020 respectively. All the recommendations made by the Committee to the Board during the year
were accepted by the Board of Directors.
As on March 31, 2020, the Corporate Social Responsibility Committee of the Company comprised the following members:
Attendance of Committee members at Corporate Social Responsibility Committee Meetings:
(a) Mr. Sudhir Variyar - Nominee Director
(b) Mr. Vijay Kumar –Independent Director
(c) Mr. Sandeep Menon –Managing Director
In accordance with the provisions of Section 188 of the Companies Act, 2013 and rules made thereunder, the transactions entered with related
parties during the year were in the ordinary course of business and on an arm’s length pricing basis, the details of which are included in the
notes forming part of the Financial Statements. Further, during the year under review, the Company had not entered into transactions with
related parties, which could be considered to be ‘material’ in accordance with the Related Party Transaction Policy of the Company.
The Policy on Related Party Transactions is available on the website of the Company at
https://www.vastuhfc.com/view/policies.
As on March 31, 2020, the Nomination and Remuneration Committee of the Company comprised the following members:
(a) Mr. Sudhir Variyar - Nominee Director
(b) Mr. Natrajh Ramakrishna –Independent Director
(c) Mr. Vijay Kumar –Independent Director
(d) Mr. Girija Shankar Nayak –Independent Director
Attendance of Committee members at Nomination and Remuneration Committee Meetings:
The Nomination and Remuneration Committee of the Company held 3 (Three) meetings during the financial year 2019-20 on April 26, 2019,
October 22, 2019 and February 18, 2020 respectively. All the recommendations made by the Committee to the Board during the year were
accepted by the Board of Directors.
Mr. Natrajh Ramakrishna was inducted in the Nomination and Remuneration Committee, w.e.f. February 18, 2020.
35. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:
36.RELATED PARTY TRANSACTIONS:
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Your Company engages with the services of M/s. Khimji Kunverji &
Co. LLP, Chartered Accountants, for checking the effectiveness of
internal financial controls as well as to carry out an internal audit. The
internal audit function independently scrutinizes audit areas based on
audit plans that are reviewed and approved by the Audit Committee.
These audit plans are formulated on the basis of a risk evaluation
exercise to determine the focus areas for review.
The Company’s CSR Policy is available on the website of the
Company at https://www.vastuhfc.com/view/policies.
The Company has also adopted an Internal Financial Control
framework in line with section 134(5)(e) of Companies Act, 2013 for
ensuring the orderly and efficient conduct of its business, including
adherence to Company’s policies, safeguarding of its assets,
prevention and detection of frauds and errors, accuracy and
completeness of the accounting records and timely preparation of
reliable financial information.
In terms of Section 135 of the Companies Act, 2013 read with the
Companies (Corporate Social Responsibility Policy) Rules, 2014,
your Company has undertaken various CSR projects in the areas of
Healthcare, Education, School Adoption, which are in accordance
with the Schedule VII of the Act and CSR Policy of the Company.
As the Company is a housing finance company, the disclosures
regarding particulars of the loans made, guarantee given, security
provided or any investment made is exempt under the provisions of
Section 186(11) of the Companies Act, 2013. Accordingly, the
particulars of loans, guarantee and investment have not been
provided in this report.
Remaining Non-Executive Directors do not receive any sitting fees
from the Company.
During the year under review, your Company has not given any
guarantee and inter-corporate loan to any other Company or Body
Corporate. As regards to investments made by the Company, the
details of the same are provided under Note No. 41 forming part of the
audited financial statements for the year ended March 31, 2020.
Details of the composition of the CSR Committee and the CSR Policy
have been provided in the Annual report on Corporate Social
Responsibility disclosed “Annexure IV,” which forms an integral part
of this Board’s Report.
During the year under review, sitting fees have been paid to Mr.
Puranam Hayagreeva Ravikumar and Mr. Girija Shankar Nayak for
the Board and Committee Meetings attended by them. Details of the
sitting fees have been provided in the Extract of annual return.
Your Company has proper and adequate systems, documented
policies, defined authority matrix, and internal controls to ensure the
efficiency of operations, compliance with internal systems/policies,
and applicable laws.
37. DETAILS OF TRANSACTIONS OF NON-EXECUTIVE
DIRECTORS WITH THE COMPANY:
38. PARTICULARS OF INVESTMENTS, LOANS AND
GUARANTEES UNDER SECTION 186:
39. CORPORATE SOCIAL RESPONSIBILITY:
40. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Significant Internal Audit findings are periodically reviewed by the
Audit Committee and the Board and corrective action plans
suggested by them are implemented to strengthen internal controls
continuously. The main function of the Internal Auditors is to provide
to the Audit Committee and the Board of Directors, objective
assurance of the adequacy and effectiveness of the organization’s
risk management control and governance process. The Risk
Management Committee and the Audit Committee periodically
review various risks associated with the business of the Company
and ensure that they have an integrated view of risks faced by the
Company.
The Internal Audit Charter is disclosed as “Annexure III,” which
forms an integral part of this Board’s Report.
The Internal Audit Charter is available on the website of the
Company at https://www.vastuhfc.com/view/policies.
At the Annual General Meeting held on June 15, 2016, M/s. T. R.
Chadha & Co LLP, Chartered Accountants, (Firm Registration No.
006711N/N500028), were appointed as the Statutory Auditors of the
Company to hold office for a period of 5 consecutive years, i.e., till
the conclusion of the Annual General Meeting for the year ending on
March 31, 2021.
There are no amounts due and outstanding to be credited to the
Investor Education and Protection Fund as of March 31, 2020.
As per the provisions of the NHB Notification No. NHB.HFC.CG-
DIR.1/MD&CEO/2016, partner of the audit firm is being rotated
every three years.
The Statutory Auditors have not made any adverse comments or
given any qualification, reservation, or adverse remarks or
disclaimer in their Standalone and Consolidated Audit Reports on
the financial statements for FY 2019-20.
Also, the Statutory Auditors have not reported any instances of fraud
in the Company committed by officers or employees of the Company
to the Audit Committee under Section 143(12) of the Companies Act,
2013.
In accordance with Section 204 of the Companies Act, 2013 and
Rule 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules 2014, M/s. Pradeep Purwar &
Associates, Practicing Company Secretaries, were appointed as
Secretarial Auditors to conduct the Secretarial Audit of the Company
for the FY 2019-20. Your Company has provided all assistance and
information to the Secretarial Auditors for conducting their audit. The
Report of Secretarial Auditors in the prescribed Form MR-3 does not
contain any audit observations, and accordingly, explanations or
comments by the Board are not required to be provided.
Auditors’ Reports
41. TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND
PROTECTION FUND:
42. STATUTORY AUDITORS:
43. SECRETARIAL AUDIT REPORT:
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
The Company’s Board of Directors has overall responsibility for the
establishment and oversight of the risk management framework. The
Board of Directors has constituted several committees, including the
Audit Committee, the Asset Liability Management Committee, Risk
Management Committee and defined their role for monitoring the risk
management policies of the Company.
In terms of Section 177(9) and Section 177(10) of the Companies Act,
2013 read with the rules made thereunder, the Company has adopted
a Whistle Blower Policy and has established the necessary vigil
mechanism for Directors, employees and external stakeholders to
approach the Chairman of the Audit Committee of the Company and to
report genuine concerns about unethical behavior, actual or suspected
fraud or violation of the Company’s code of conduct and provide
adequate safeguards against victimization of Whistle Blower who
avails of such mechanism. None of the Whistle-Blowers have been
denied access to the Audit Committee. Whistle Blower Policy is
uploaded on the website of the Company at URL
Risk Management systems have been evaluated in detail and are
discussed at every Board meeting by the Risk Committee outside of
Board meeting. Detail review of Risk MIS, Portfolio quality reports,
collection MIS, Data analytics report and various other analytics and
risk matrix are the cornerstones of Vastu's Risk Management which
has been certified as best in class and indicated by performance.
This exercise was carried out through a structured questionnaire
prepared separately for Board, Committees, and individual Directors.
The questionnaire for Board evaluation was prepared taking into
consideration various aspects of the Board’s functioning such as
adequacy of the composition and role of the Board, Board meeting and
reporting process, the effectiveness of strategies, risk management
systems, external relationships, ethics and governance framework.
Committee performance was evaluated on the basis of its composition,
effectiveness in carrying out its mandate, relevance of its
recommendations and allocation of adequate time to fulfil its mandate.
Risk Management is an integral part of the Company's business
strategy with a focus on building risk management culture across the
organization. The Risk Management oversight structure includes
Committees of the Board and Senior Management Committees. Risk
Management Framework which lays down guidelines for Risk
identification, assessment and monitoring as an on-going process that
is supported by a robust risk reporting framework. It entails the
establishment of robust systems and processes within the Risk
Management Framework to mitigate risks effectively. Risk
Management at the Company covers Credit Risk, Market Risk,
Operational Risk, Fraud Risk and other risks, such as compliance risk,
reputation risk and other risks.
https://www.vastuhfc.com/view/policies.
In terms of the provisions of the Companies Act, 2013, the Board at its
meeting held on April 29, 2020, carried out an annual evaluation on the
performance of the Board, that of its Committee(s) and individual
Directors including the Chairperson and expressed its satisfaction as
to their performance for the Financial Year 2019- 20.
44. RISK MANAGEMENT FRAMEWORK:
45. WHISTLEBLOWER POLICY (VIGIL MECHANISM)
46. EVALUATION OF PERFORMANCE OF BOARD, ITS
COMMITTEES, AND INDIVIDUAL DIRECTORS:
47. DIRECTORS’ RESPONSIBILITY STATEMENT PURSUANT TO
SECTION 134(5) OF THE COMPANIES ACT, 2013:
In terms of Section 134(5) of the Companies Act, 2013; the Directors
state to the best of their knowledge and belief and according to the
information and explanations obtained by them:
that in the preparation of the annual accounts the applicable
accounting standards have been followed and there were no material
departures;
that proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
that the annual accounts have been prepared on a ‘going concern’
basis;
that proper systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively; and
that appropriate accounting policies have been selected and applied
consistently, and Directors have made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company as at March 31, 2020 and of the profit of
the Company for that period;
that internal financial controls to be followed by the Company have
been laid down and that such internal financial controls are adequate
and operating effectively.
Details of a fixed component and performance-linked incentives
along with the performance criteria;
future.
Service contracts, notice period, severance fees: - N.A.
Stock option details, if any and whether the same has been issued
at a discount as well as the period over which accrued and over
which exercisable during FY 2019-20:
As per Schedule V of the Companies Act, 2013, details of the
remuneration of Mr. Sandeep Menon (DIN: 02032154), Managing
Director of the Company for FY 2019-20, are given hereunder:
One time Performance linked :INR 1,75,00,000/-
During the year under review, there have not been any significant and
material orders passed by the Regulators/Courts/Tribunals, which will
impact the going concern status and operations of the Company in the
Incentive for FY 2019-20
All elements of remuneration package such as salary, benefits,
bonuses, stock options, pension, etc., of all the directors;
INR1,87,25,000/-
Fixed Component :INR 1,87,25,000/-
48. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED
BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING
THE GOING CONCERN STATUS AND THE COMPANY’S
OPERATIONS IN FUTURE:
49. CORPORATE GOVERNANCE:
(a)
(b)
(d)
(e)
(f)
(a)
(b)
(d)
c
c
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
50. DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT,
2013 READ WITH RULES:
51. COST RECORDS:
52. LISTING WITH STOCK EXCHANGES
53. ACKNOWLEDGEMENTS:
Name and Designation Options ExercisedOptions Granted Options Vested Exercise DateGrant Date
Mr. Sandeep Menon, Managing Director 19.04.2018
01.11.2018
7,50,000
2,50,000
6,00,000
1,00,000
-
-
-
-
Pursuant to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company
has adopted a policy on prevention, prohibition and redressal of sexual harassment and a formal process for dealing with complaints of
harassment of and/or discrimination against women.
During the financial year under review, your Company has complied with provisions relating to the constitution of the Internal Complaints
Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Pursuant to the requirements of Section 22 of Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act 2013
read with Rules thereunder, the Internal Complaint Committee of the Company has not received any complaint of Sexual Harassment
during the financial year under review.
The following is a summary of Sexual Harassment complaints received and disposed off during the year 2019- 20:
No. of complaints received: Nil
No. of complaints disposed off: Nil
The Company is not required to make and maintain cost records pursuant to Section 148(1) of the Companies Act, 2013.
The Company is up-to-date in the payment of annual listing fees to Bombay Stock Exchange (BSE) on which its debentures are listed.
Your director's place on record thanks to the regulator National Housing Bank, stock exchange, the Company’s bankers, the Govt. Authorities,
Clients of the Company, Staff Members of the Company for extending valuable support to the Company.
Your Directors also gratefully acknowledge all stakeholders of the Company viz. customers, dealers, vendors, and other business partners for the
excellent support received from them during the year. Your involvement as a shareholder is also greatly valued.
ChairpersonManaging Director
(DIN00147182)(DIN02032154 )
sd/- sd/-
For and on behalf of the Board of Directors of Vastu Housing Finance Corporation Limited
ANNEXURE I TO THE BOARD’S REPORT
FORM AOC-1
as on the financial year ended on March 31, 2020
A statement containing the salient features of the financial statements of
subsidiaries/associate companies / joint ventures
Part “A”: Subsidiaries
Pursuant to the first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014
a. Names of subsidiaries which are yet to commence operations: Nil
b. Names of subsidiaries which have been liquidated or sold during the year: Nil
Part “B”: - Associates and Joint Ventures:
Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures:
Since the Company does not have any Associate or Joint venture Company, the disclosure under this section is not applicable.
Particulars
1. Name of the Subsidiary
2. Date since when Subsidiary was acquired
3. The reporting period for the subsidiary concerned, if different from the holding Company’s reporting
period
4. Reporting Currency and Exchange rate as on the last date of the relevant Financial year in the case
of foreign subsidiaries.
5. Share capital (in INR)
6. Reserves & surplus (in INR)
7. Total assets (in INR)
12. Provision for taxation (in INR)
8. Total Liabilities (in INR)
13. Profit / (loss) after taxation (in INR)
9. Investments (in INR)
14. Proposed Dividend (in INR)
10. Turnover (in INR)
15. Extent of shareholding (in percentage)
11. Profit / (loss) before taxation (in INR)
16. contribution to the overall performance of the Company during the period under report
Vastu Finserve India Private Limited
September 28, 2018
-
-
52,50,00,000
(1,95,10,444)
52,68,66,258
(2,75,056)
52,68,66,258
(1,95,24,495)
46,40,17,538
1,60,66,719
100%
(1,97,99,551)
The Company has commenced its operations post receipt of NBFC license and has incurred losses on account of business setup manpowercost and incorporation expenses during the Financial Year 2019-20.
VASTU HOUSING FINANCE CORPORATION LIMITED
-
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
Date : April 29, 2020
Place : Mumbai
For and on behalf of the Board of Directors of Vastu Housing Finance Corporation Limited
sd/- sd/-
sd/- sd/-
ANNEXURE Il TO THE BOARD’S REPORT
EXTRACT OF ANNUAL RETURN
Form No. MGT-9
as on the financial year ended on March 31, 2020
1. REGISTRATION AND OTHER DETAILS:
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]
2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:
3. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:
All the business activities contributing 10 % or more of the total turnover of the Company shall be stated: -
CIN
Registration Date
Name of the Company
Category / Sub-Category of the Company
Address of the Registered Office and contact details
VASTU HOUSING FINANCE CORPORATION LIMITED
A company limited by shares/Indian Non-Government Company
Unit Nos. 203 & 204, 2nd Floor, A wing, Navbharat Estates, Zakaria Bunder Road,
Sewri (West) Mumbai, Maharashtra – 400 015
Phone: 022-2419 0911
Whether listed Company
Name, address and contact details of Registrar and
Transfer Agent, if any
U65922MH2005PLC272501
04/02/2005
Debt Listed Company
BigShare Services Private Limited
1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana
Road, Marol, Andheri East, Mumbai, Maharashtra - 400 059
Contact Person: Mr. Babu Rapheal
Tel No: 022- 6263 8200; Fax No: 022- 6263 8299
Email: [email protected]
Website: www.bigshareonline.com
% to the total turnover of the
Company
Applicable
Section% of shares
heldCIN / GLN
NIC Code of the Product/Service
Holding/ Subsidiary
/ Associate
Name and Description of the main Products / Services
Name and address of the Company
Financial intermediation except Insurance and Pension Funding
Plenty Private Equity Fund I Limited
Address: 1st Floor, 78 Saint Jean Road, Quatre-Bornes, Mauritius
Vastu Finserve India Private Limited
Address: Unit Nos. 203 & 204, 2nd Floor,A wing, Navbharat
Estates, ZakariaBunder Road, Sewri, Mumbai - 400 015
64990
Holding
Subsidiary
NA
U65990MH2018
PTC314935
100.00
2(46)
2(87)
68.04
100
VASTU HOUSING FINANCE CORPORATION LIMITED
4. SHAREHOLDING PATTERN (Equity Share Capital Breakup as a percentage of Total Equity)
I.Category-wise Share Holding
A. Promoters
(1) Indian
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
31,45,664 - 40,14,006 - 40,14,006 7.74 1.158.8931,45,664
2,72,90,421 3,20,000 4,49,37,437 3,20,000 4,52,57,437 87.29 -9.2678.032,76,10,421
2,61,283 - - - - - -0.742,61,283
33,01,510 - 19,24,552 - 19,24,552 3.71 4.898.6033,01,510
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
- - - - - - ---
a) Individual / HUF
b) Central Govt.
c) State Govt.(s)
d) Bodies Corporate
e) Banks / FI
f) Any Other….
Sub-Total (A) (1):
(2) Foreign
a) NRIs - Individuals
b) Other – Individuals
c) Bodies Corporate
d) Banks / FI
e) Any Other….
Sub-Total (A) (2):
Total Shareholding of
Promoters (A) =
(A)(1)+(A)(2)
B. Public Shareholdiang
(1) Institutions
a) Mutual Funds / UTI
b) Banks / FI
c) Central Govt.
d) State Govt.(s)
e) Venture Capital Funds
f) Insurance Companies
g) FIIs
h) Foreign Venture Capital
Funds
I) Others (specify)
a) Bodies Corporate
b) Individual
i) Indian
ii) Overseas
ii) Individual Shareholders
holding nominal share
capital in
i) Individual Shareholders
holding nominal share
capital upto Rs. 1 Lakh
Sub-Total (B)(1):
(2) Non-Institutions
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Category of
Shareholders
% of
Change
during
the year% of Total
Share
% of Total
ShareDemat DematPhysical PhysicalTotal Total
No. of Shares held at the end of the year
(31.03.2020)
No. of Shares held at the beginning of the year
(01.04.2019)
No. of Shares held at the end of the
year (31.03.2020)
No. of Shares held at the beginning
of the year (01.04.2019)Shareholders
Name
excess of Rs. 1Lakh
c) Other (Specify)
- - - - - - ---
-
-
-
At the beginning of the year (01.04.2019)
At the end of the year (31.03.2020)
-
Date wise Increase/Decrease in Promoters
Shareholding during the year specifying the
reasons for increase/decrease (e.g. allotment/
transfer/bonus/sweat equity etc.):
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- - - - - - ---
3,50,62,180
3,50,62,180
3,50,62,180
3,20,000
3,20,000
3,20,000
5,15,25,527
5,15,25,527
5,15,25,527
3,20,000
3,20,000
3,20,000
5,18,45,527
5,18,45,527
5,18,45,527
100
100
100
-
-
-
100
100
100
3,53,82,180
3,53,82,180
3,53,82,180
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,63,302 - 6,49,532 - 6,49,532 1.25 1.763.0110,63,302
- - - - - - ---
- - - - - - ---
I) Non-Resident (Non-Rep)
lI) Non-Resident (Rep)
iii) Trust
iv) OCB
v) Clearing Members
Sub-Total (B)(2):
Total Public Shareholding
(B)= (B)(1) +(B)(2)
C. Shares held by
Custodian for GDRs &
ADRs
Grand Total(A+B+C)
ii. Shareholding of Promoters – Not Applicable
iii. Change in Promoters’ Shareholding - Not Applicable
% of the
change in
shareholding
during the year
% of total shares
of the Company
% of total shares of
the CompanyNo. of
Shares
No. of
Shares
% of Shares Pledged
/ encumbered to total
shares
% of Shares Pledged
/ encumbered to total
shares
Cumulative Shareholding during the year Shareholding at the beginning of the year
No. of SharesNo. of Shares % of total shares of
the Company
% of total shares of
the Company
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Category of
Shareholders
% of
Change
during
the year% of Total
Share
% of Total
ShareDemat DematPhysical PhysicalTotal Total
No. of Shares held at the end of the year
(31.03.2020)
No. of Shares held at the beginning of the year
(01.04.2019)
- - - - - - ---
Cumulative shareholding during
the year 01.04.2019 to 31.03.2020Shareholding
Name
2,72,90,421
3,52,73,730
77.13
68.04
-Allotment Transfer from Ms. MalavikaTiwari, Mr.PramodBhasin and Mr.Samir Bhatia jointlywith Ms.Neela Bhatia
Transfer from Mr.
Puranam Hayagreeva
Ravi Kumar jointly with
Ms. Namagiri
Ravikumar, Ms.
Neeraja Puranam
jointly with Mr. Omnath
Killekar and Mr. PR
Kalyanaraman jointly
with Ms. K. Jayalakshmi
Transfer from Mr.
Puranam Srikanth
jointly with Ms.
Ananthi Srikanth
Transfer from Mr.
Puranam Hayagreeva
Ravikumar jointly Ms.
with Namagiri Ravikumar
-
2,72,90,421
3,37,92,341
3,51,25,204
3,51,95,249
3,52,23,730
3,52,73,730
3,52,73,730
77.13
65.24
67.82
67.95
67.94
68.04
68.04
-
65,01,920
13,32,863
70,045
28,481
50,000
-
01.04.2019
26.04.2019
19.12.2019
20.12.2019
24.12.2019
26.12.2019
31.03.2020
Plenty
Private
Equity Fund
I Limited
Increase/
Decrease in
shareholding
% of total
shares of
the Company
No. of Shares at
the beginning
(01.04.2019) end of
the year (31.03.2020)
ReasonDateNo. of shares % of total shares
of the Compa ny
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
1.
2.
Plenty CI
Fund I Limited
(w.e.f. April 26,
2019)
- - 01.04.2019 - -
26.04.2019 89,62,173 Allotment 89,62,173 17.30
19.12.2019 6,28,245 Transfer from
Mr. Vikram Gandhi and
Mr. Samir Bhatia jointly
with Ms. Neela Bhatia
95,90,418 18.52
24.12.2019 73,289 Transfer from
Mr. Puranam Srikanth
jointly with
Ms. Ananthi Srikanth
96,63,707 18.64
96,63,707 18.64 31.03.2020 96,63,707 18.64
3.
30,45,664 8.61 01.04.2019 30,45,664 8.61
26.04.2019 6,64,310 Allotment 37,09,974 7.16
Multiples
Private Equity
Fund II LLP
19.12.2019 1,32,466Transfer from
Mr. Samir Bhatia jointly
with Ms. Neela Bhatia
38,42,440 7.42
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Cumulative shareholding during the
year 01.04.2019 to 31.03.2020Shareholding
Name Increase/
Decrease in
shareholding
% of total
shares of
the Company
No. of Shares at
the beginning
(01.04.2019) end of
the year (31.03.2020)
ReasonDateNo. of shares % of total shares
of the Compa ny
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
38,64,853 7.4522,413 Transfer from Mr.
Puranam Hayagreeva
Ravi Kumar jointly
with Ms. Namagiri
Ravikumar, Mr.
Vaidyanathan
Viswanathan jointly
with Ms. Sudha
Viswanathan, Mr.
Ameya Anil
Deshpande jointly
with Ms. Priyanka
Deshpande and Ms.
Namagiri Ravikumar
jointly with Mr.
Puranam Hayagreeva
Ravi Kumar
20.12.2019
38,64,853 7.45 - 38,64,853 7.45-31.03.2020
16,03,065Mr. Pramod
Bhasin
4.
5.
6.
7.
8.
4.53
Transfer to Plenty
Private Equity Fund I
Limited
16,03,065
10,68,710
4.53
2.06
-
(5,34,355)
01.04.2019
19.12.2019
10,68,710 2.06 -
-
10,68,710 2.06-31.03.2020
9,61,532
6,49,532
Mr. Vikram
Gandhi
2.72
1.25
Transfer to Plenty
CI Fund I Limited
-
9,61,532
6,49,532
6,49,532
2.72
1.25
1.25
-
(3,12,000)
-
01.04.2019
19.12.2019
31.03.2020
1,01,770
-
Mr. Puranam
Srikanth
jointly with
Ms. Ananthi
Srikanth (till
December
24, 2019)
0.29
-
Transfer to Plenty
Private Equity Fund
I Limited and Plenty
CI Fund I Limited
-
1,01,770
-
-
0.29
-
-
-
(1,01,770)
-
01.04.2019
24.12.2019
31.03.2020
2,00,000
2,00,000
Mr. BD
Narang
0.57
0.39
--
2,00,000
-
2,00,000
0.57
0.39
01.04.2019
-
31.03.2020
2,00,000
1,00,000
Ms. Malavika
Tiwari
0.57
0.19
Transfer to Plenty
Private Equity Fund I
Limited
(1,00,000)
2,00,000
1,00,000
1,00,000
0.57
0.19
0.19
01.04.2019
19.12.2019
31.03.2020
Cumulative shareholding during the
year 01.04.2019 to 31.03.2020Shareholding
Name Increase/
Decrease in
shareholding
% of total
shares of
the Company
No. of Shares at
the beginning
(01.04.2019) end of
the year (31.03.2020)
ReasonDateNo. of shares % of total shares
of the Compa ny
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
3,20,000
3,20,000
Sea Shells
Limited
0.90
0.62
- - --
3,20,000
3,20,000
0.90
0.62
01.04.2019
-
31.03.2020
9.
10.
11.
1,49,153
1,00,000The Vacuum
Forming
Company Pvt
Ltd
0.29
0.28
-
Allotment
1,49,153
1,00,000
1,49,153
0.29
0.28
0.29
-
49,153
31.03.2020
01.04.2019
26.04.2019
-Mr. Shirish
Godbole
(w.e.f.
October 09,
2019)
30,000
-
Transfer f rom Mr.
Ravichandra Madapati
30,000
-
30,000
0.06
-
0.06
31.03.2020
30,000
0.06
01.04.2019
09.10.2019
31.03.2020- - - -
Mr.Natrajh
Ramakrishna-
Independent
Director
01.04.2019
26.04.2019
31.03.20200.0210,869
10,869 Allotment 10,869
-
10,869
0.02
0.02
Notes: -
54,731
89,283
1,11,023
-
Mr.Ravikumar
Hayagreeva
Puranam
Non Executive
Nominee
Director
(shares held
jointly with
Ms.Namagiri
Ravikumar)
Mr. Samir
Bhatia -
Non-Executive
Director
(shares held
jointly with
Ms. Neela
Bhatia)
Mr. Sujay Patil
Chief Financial
Officer (shares
held jointly
with Ms.
Meera Patil)
a. Mr. Ravikumar Hayagreeva Puranam and Mr. Samir Bhatia, resigned from the Board effective from December 31, 2019 and February 18, 2020,
respectively.
b. Apart from the abovementioned Directors/ Key Managerial Personnel, remaining Directors/ Key Managerial Personnel did not hold any shares
of the Company during the year under review.
0.15
Transfer to Multiples
Private Equity Fund II
LLP & Plenty Private
Equity Fund I Limited
54,731
-
0.15
-
-
(54,731)
01.04.2019
20.12.2019
v. Shareholding of Directors and Key Managerial Personnel
Cumulative shareholding during the
year 01.04.2019 to 31.03.2020Shareholding
Name Increase/
Decrease in
shareholding
% of total
shares of
the Company
No. of Shares at
the beginning
(01.04.2019) end of
the year (31.03.2020)
ReasonDateNo. of shares % of total shares
of the Company
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
-
24.12.2019 50,000 ESOP Allotment 50,000 0.10
26.12.2019 (50,000) Transfer to Plenty
Private Equity Fund
I Limited
- -
31.03.2020
11,47,219 3.24 01.04.2019
19.12.2019 (11,47,219) Transfer to
Multiples
Private Equity
Fund II LLP,
Plenty Private
Equity Fund I
Limited & Plenty
CI Fund I Limited
- -
B. Key Managerial Personnel
Mr. Sandeep
Menon -
Managing
Director
01.04.20191,51,226 0.43
26.04.2019
31.03.20200.381,94,705
43,479 Allotment 1,94,705
1,51,226
1,94,705
0.43
0.38
0.38
0.25 01.04.2019
26.04.2019
31.03.20200.21
21,740 Allotment 1,11,023
89,283
1,11,023
0.25
0.21
0.21
11,47,219 3.24
A. Directors
- - -
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
(Amount in INR in lakh)
(Amount in INR in lakh)
Total Indebtedness
Total Amount
Secured Loans
excluding deposits
Particulars of Remuneration
Unsecured Loans
Name of Managing Director
Deposits
Indebtedness at the beginning of the financial year
Gross Salary
Mr. Sandeep Menon
I. Principal Amount
ii. Interest due but not paid
iii. Interest accrued but not due
Total (i+ ii+ iii)
Change in Indebtedness during the financial year
Addition
Reduction
Net Change
Indebtedness at the end of the financial year
I. Principal Amount
ii. Interest due but not paid
iii. Interest accrued but not due
Total (i+ ii+ iii)
(a) Salary as per provisions contained in Section 17(1) of the Income Tax Act, 1961
(b) Value of perquisites under Section 17(2) Income Tax Act, 1961
(c) Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
Stock Options*
Sweat Equity
Commission
- as % of the profit
- others, specify….
Others, please specify
Ceiling as per Act
99,020.99
-
204.46
99,225.45
49,800.00
21,435.96
28,364.04
1,27,385.03
-
475.52
1,27,860.55
99,020.99
-
204.46
99,225.45
49,800.00
21,435.96
28,364.04
1,27,385.03
-
475.52
1,27,860.55
-
-
-
-
-
-
-
-
-
-
-
362.00
-
-
-
-
-
-
-
362.00
5% of the Net Profit of the Company
vii. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
a. Remuneration to Managing Director, Whole-time Directors and/or Manager:
The Company has only one Managing Director viz. Mr. Sandeep Menon.
Note: No ESOPs have been granted to Mr. Sandeep Menon, Managing Director, during FY 2019-20. However, 10,00,000 ESOPs had been
granted to Mr. Sandeep Menon, Managing Director, during FY 2018-19, but the same has not been exercised yet.
-
-
-
-
-
-
-
-
-
-
-
vi. INDEBTEDNESS:
Indebtedness of the Company including interest outstanding/accrued but not due for payment:
362.00
-
-
-
-
-
-
-
362.00Total (A)
1
2
3
4
5
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
(Amount in INR in lakh)
(Amount in INR in lakh)
Total Amount
Key Managerial Personnel
Total AmountCFO – Mr.
Sujay Patil
Company Secretary –
Ms. Pallavi Bhambere
Particulars of Remuneration
Particulars of Remuneration
1. Independent Director
-Fee for attending Board/Committee Meetings
- Commission
- Others, please specify
Total (1)
Mr. Vijay Kumar
-
-
-
-
Mr. Puranam
Hayagreeva
Ravikumar
1.75
-
-
1.75
-
Mr. Natrajh
Ramakrishna
-
-
-
-
Mr. Sudhir
Variyar
-
-
-
-
-
-
-
-
-
-
-
Mr. Samir
Bhatia
-
-
-
-
-
-
1.75
-
-
1.75
3.40
-
1.65
-
-
1.65
B. Remuneration to other Directors:
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
2. Other Non-Executive Directors
-Fee for attending Board/Committee Meetings
- Commission
- Others, please specify
Total (2)
Total B= 1+2
Total Managerial Remuneration
Mr. Girija Shankar
Nayak
1.65
-
-
1.65
Ms. Renuka
Ramnath
-
-
-
-
-
Overall Ceiling as per Act
1. Gross Salary
(a) Salary as per provisions contained in Section 17(1) of the Income Tax Act, 1961
(b) Value of perquisites under Section 17(2) Income Tax Act, 1961
(c) Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
2. Stock Options*
3. Sweat Equity
4. Commission
- as % of the profit
- Others, specify….
5. Others, please specify
Total
1% of the Net Profit of the Company
7.71
-
-
-
-
-
-
-
7.71
176.21
-
-
-
-
-
-
-
176.21
168.50
-
-
-
-
-
-
-
168.50
Note: No ESOPs have been granted to CS and CFO of the Company during FY 2019-20. However, 3,50,000 ESOPs had been granted to
Mr. Sujay Patil, CFO, during FY 2018-19, but the same has not been exercised yet.
ANNEXURE Il TO THE BOARD’S REPORT
viii. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:
Appeal made, if
any (give details)
Authority [ RD/
NCLT/ COURT]
Details of Penalties/ Punishment/
Compounding Fees imposedType
None
None
BOARD’S REPORT
Brief DescriptionSection of the
Companies Act
None
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTORS
Penalty
Punishment
Compounding
C.OTHER OFFICER IN DEFAULT
Penalty
Punishment
Compounding
ChairpersonManaging Director
(DIN00147182)(DIN02032154 )
sd/- sd/-
For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
ANNEXURE III TO THE BOARD’S REPORT
INTERNAL AUDIT CHARTER1. OBJECTIVE:
2. SCOPE OF WORK:
3. INDEPENDENCE
4. RESPONSIBILITIES:
a. Internal Controls
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
This internal audit charter forms the foundation for the work of the internal audit. It provides an independent, objective assurance and consulting
services designed to add value and improve the organization’s operations. It helps the organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
Internal Audit will help Management achieve its business targets including cost reduction, maximization of turnover and profit and improving
efficiency and effectiveness of process / operations through:
The scope of work of the Internal Audit is to determine whether the organization’s network of risk management, control and governance
processes, as designed and represented by management, is adequate and functioning in a manner to ensure:
Operational Audit:
Process review:
Internal audit performs its work independent, non-committed and objectively. It is not bound by any instructions for its audit work,
particularly for defining audit objectives and scopes, audit type, timing and reporting of audit findings.
Internal Audit has access to all documents (including all systems) necessary to perform its work. Internal audit has the right to
interview employees and third parties regarding their tasks and to inquire written confirmations for their statements. All employees
are obliged to support internal audit in performing their work, to provide necessary resources immediately and to grant insight
into all operational and business processes of the Company organization.
a. Review of Loan Processing
a. Review of Financial Transactions
c. HR Operations and Payroll processing
f. Compliance with SARFAESI Act, 2002
b. Review of Customer service
e. Review of Capital Expenditure and Insurance
d. Compliance with Sec 138 of Negotiable Instrument Act, 1881
g. Review of Internal Financial Controls
i. Evaluate the adequacy and effectiveness of the internal control systems on a continuous basis through a systematic and disciplined
approach.
ii. The Internal Audit team will in consultation with management present an annual internal audit plan to the Audit Committee for approval.
The plan shall set out the recommended scope of their work in the period.
iii.Implement the annual audit plan, as approved, including, and as appropriate, any special tasks or projects requested by
management and the Audit Committee from time to time. Review information systems including information technology, information
security and application controls, network controls, hardware and software controls.
iv. Present to the Audit Committee significant findings relating to internal control / process weakness along with process owners action
plan.
vi. Issue periodic reports to the Audit Committee and management summarizing results of audit activities.
vii.Conduct investigations as directed by the Audit Committee / Management or suo- moto in case of matters of suspected fraud,
irregularity or failure of internal control system after keeping Management informed.
viii.Establish a system of Controls Self-Assessment (CSA) across the enterprise which will supplement internal audit efforts, improve
coverage and importantly help Process Owners take ownership of controls.
v. Keep track and follow up with the process owners for pending action plans and present the status to the Audit Committee.
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
b. Compliance with Regulatory requirements and Policies:
c. Subsidiary and JV Company oversight:
d. Risk Management:
5. ACCOUNTABILITY:
6. COOPERATION WITH THIRD PARTIES
i. Review effectiveness of the system for monitoring compliance with laws and regulations.
ii. Review compliance with Accounting Standards
iii.Review mechanism for adherence to the Code of Conduct.
iv.Review compliance on policies, plans, procedures, laws and regulations
v. Assist the Audit Committee in the review of the Company’s financial reporting process and the disclosures of its financial information to
ensure that the financial statement is correct, sufficient and credible.
Conduct internal audits in subsidiary companies to assist the Audit Committee in overseeing the systems of internal control, results of audits
and integrity of financial reporting of subsidiary companies.
To provide the policy framework for proactive identification and management of the Companies strategic, operational, financial & compliance
risks in order to achieve reasonable assurance on the achievement of its business objectives & compliance.
The risk management process will be integrated with the Long-Term Strategic Planning Process and other business processes of the
Company and will inter-alia ensure in deriving enterprise level risks from individual business exercises and ensuring ownership for mitigation
and action planning.
The primary purposes of internal audit reports are to provide management and Audit Committee with an opinion on the adequacy of the
internal control system, and to inform management and Audit Committee of significant audit findings, conclusions and recommendations.
The internal audit ensures a regular exchange of information with external third parties, like, for example, the statutory auditor of the
Company, as well as with internal areas and functions, like for example finance, compliance, legal, etc.
The internal audit team shall be accountable to Management and the Audit Committee to:
i. Provide an assessment periodically on the adequacy and effectiveness of the organization's processes for controlling its activities and
managing its risks in the areas set forth under the scope of work.
ii. Report critical and important issues related to the processes for controlling the activities of the organization and its affiliates, including
potential improvements to those processes, and provide information concerning such issues.
iii.Provide information on fraud findings, reporting as per AML guidelines.
iv.Provide information periodically on the status and results of the annual audit plan and the sufficiency of department resources.
v.Coordinate with and provide oversight of other control and monitoring functions (risk management, finance, compliance, legal, CSR,
ESG).
ANNEXURE IV TO THE BOARD’S REPORT
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY
INTRODUCTION:
COMPOSITION OF CSR COMMITTEE
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Vastu Housing Finance Corporation Limited is a growing Company and the Company considers social responsibility as an integral part of
its business activities and endeavors to utilize allocable CSR budget for the benefit of society.
Your Company would be undertaking the CSR activities as listed in Schedule VII and Section 135 of the Companies Act, 2013 and the
Rules framed thereunder. The Company will engage with stakeholders, including experts, NGOs, professional bodies/forums, and the
Government and would take up such CSR activities in line with the Government’s intent, which are important for the society at large. \
CSR Policy is provided at the below-mentioned web link:
Web-link: https://www.vastuhfc.com/view/policies
[Pursuant to clause (o) of sub-section (3) of section 134 of the Act and Rule 8 of the Companies (Corporate Social Responsibility Policy)
Rules, 2014]
The Board has duly constituted CSR committee pursuant to the provisions of Companies Act, 2013 comprising of following:
The Committee shall be required to carry out the following activities:
a. Formulate and recommend to the Board for its consideration and approval, a CSR Policy for the Company, which shall indicate
the activities to be undertaken by the Company in areas or subject specified in Schedule VII;
c. Monitor the Corporate Social Responsibility Policy of the Company from time to time;
d. Update the Board on the status of CSR programs/ projects undertaken by the Company during the financial year and amount of
expenditure incurred.; and
e. Recommend to the Board, the Company’s Annual Report on CSR Activities, for inclusion in the Report of the Board of Directors
of the Company.
b. Recommend for the approval of the Board, programs/ projects identified by the Committee to be undertaken during the financial
year which are in line with the activities specified in Schedule VII and amount of expenditure to be incurred for each of the
programs/ projects;
a. Mr. Sandeep Menon – Managing Director
b. Mr. Sudhir Variyar – Nominee Director
c. Mr. Vijay Kumar – Independent Director
PRESCRIBED CSR SPEND OF VASTU HOUSING FINANCE CORPORATION LIMITED:
a. Average net profit of the Company for the last three financial years
b. Prescribed CSR expenditure
c. Details of CSR spent during the Financial Year 2019-20
The average net profit of the Company of the last three financial years calculated to be INR 2,813.10 Lakh.
The recommended CSR expenditure as per Section 135 for the financial year 2019-20 was INR 56.26 Lakh.
I. Total amount spent – 41.50 Lakh
ii. Amount unspent, if any – INR 32.28 Lakh (cumulative)
iii.The manner in which the amount spent during the financial year is detailed below:
VASTU HOUSING FINANCE CORPORATION LIMITED
BOARD’S REPORT
Amount spent Direct or
through implementing
agency
Projects or programs
(1) Local area or other
(2) Specify the State
and district where the projects
or programs were undertaken
Amount spent
on the projects
(in INR Lakh)
CSR project
Early intervention Care unit for
mentally challenged children
Healthcare Mumbai, Local area Implementing Agency –
Rotary Club of Mumbai
North End
(Trust Registration No:
E-11419)
5.00
Mid Day Meal Healthcare Mumbai, Local area Implementing Agency –
Rotary Club of Mumbai
Western Elite Charitable
Trust
(Trust Registration No:
E-32919)
1.5
Adoption and renovation of School Education Mumbai, Local area Implementing Agency –
Yuva Unstoppable
(Trust Registration No:
E-17710)
10.00
a. Purchase of 20 Life Ventilators
b. COVID 19 testing Kits
c. Aprons for Doctors and Nurses
d. Medical camps to provide basic
health check-up
e. Medical equipment
Healthcare Baramati, Local area Implementing Agency –
Sharayu Foundation
(Trust Registration No:
e-30444)
25.00
The Sector in which
the Project is
covered
d. In case the Company has failed to spend the two percent of the average net profit of the last three financial years or any part thereof,
the Company shall provide the reasons for not spending the amount in its Board report.
During the year under review, the Company, while continuing to support its ongoing projects, has associated itself with few new projects and also
intends to expand its CSR initiatives in a systematic manner to create meaningful contributions in the development of the underprivileged and
weaker sections of society. Your Company endeavoured to meet the budgeted expenditure by contributing to various eligible CSR activities and
has committed to incur expenditure for CSR initiatives in the coming years through structured events or programs and projects.
e.Responsibility statement of the CSR Committee that the implementation and monitoring of the CSR Policy, is in compliance with
CSR objectives and Policy of the Company:
The CSR committee confirms that the monitoring of the CSR Policy is in compliance with the CSR objectives and Policy of the Company.
ChairpersonMD & Chairperson of CSR Committee
(DIN00147182)(DIN02032154 )
sd/- sd/-
For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
To,
(iv) Foreign Exchange Management Act, 1999 and the rules and
regulations made thereunder to the extent of Foreign Direct
Investment;
(iii) The Depositories Act, 1996 and the Regulations and Bye-
laws framed thereunder;
Vastu Housing Finance Corporation Limited
(i) The Companies Act, 2013 (‘the Act’) and the rules made
thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder;
(v) The following Regulations and Guidelines prescribed under
the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’):
The Members,
We have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company for the
financial year ended on 31st March, 2020 according to the
provisions of:
We have conducted the secretarial audit of the compliance of
applicable statutory provisions and the adherence to good
corporate practices by Vastu Housing Finance Corporation
Limited (hereinafter called ‘the Company’). Secretarial Audit was
conducted in a manner that provided us a reasonable basis for
evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon.
Based on our verification of the books, papers, minute books, forms
and returns filed and other records maintained by the Company and
also the information provided by the Company, its officers, agents
and authorized representatives during the conduct of secretarial
audit, we hereby report that in our opinion, the Company has,
during the audit period covering the financial year ended on 31st
March, 2020 complied with the statutory provisions listed
hereunder and also that the Company has proper Board-processes
and compliance-mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter:
(a) The Securities and Exchange Board of India (Registrars
to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act, 2013 and dealing
with client;
FORM NO. MR-3SECRETARIAL AUDIT REPORT
For the Financial Year ended 31st March, 2020
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
UDIN: F005769B000147108
(b) The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations,
2015.
Provisions of the following Acts, Regulations and Guidelines were
not applicable to the Company under the financial year under
report:
(a) Foreign Exchange Management Act, 1999 and the rules
and regulations made thereunder to the extent of
Overseas Direct Investment and External Commercial
Borrowings;
We have also examined compliance with the applicable clauses of
the following:
(b) The Listing Agreement entered into by the Company with
BSE Limited.
(c) The Securities and Exchange Board of India (Issue and
Listing of debt securities) Regulations, 2008;
(b) The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
2009;
(a) Secretarial Standards issued by The Institute of
Company Secretaries of India, and
(e) The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011;
(f) The Securities and Exchange Board of India (Delisting of
Equity Shares) Regulations, 2009;
(g) The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998; and
(vi)The National Housing Bank Act, 1987 and The Housing
Finance Companies (NHB) Directions, 2010, being special
act governing the Company, as the Company is a Housing
Finance Company.
(d) The Securities and Exchange Board of India (Share
Based Employee Benefits) Regulations, 2014;
(h) The Securities and Exchange Board of India (Prohibition
of Insider Trading) Regulations, 2015.
We further report that during the audit period:
(iii) The Board at its meeting held on 26th April, 2019 approved
allotment of 16,413,347 Equity Shares of INR 100/- each for
cash at INR 230/- each on rights basis to existing
shareholders who subscribed to the rights offer and offered
the 977,958 unsubscribed Equity Shares to such persons
who offered to subscribe to the same at a price not below
INR 230/- per share, which however remained unsubscribed
and the offer was closed.
During the period under review, the Company has complied with
the provisions of the Act, Rules, Regulations, Guidelines,
Standards etc. as mentioned above, to the extent applicable.
We further report that the Board of Directors of the Company is
duly constituted with proper balance of Executive Directors, Non-
Executive Directors and Independent Directors. The changes in the
composition of the Board of Directors that took place during the
period under review were carried out in compliance with the
provisions of the Act.
(I) The Audit Committee of the Company at its meeting held on
26th April, 2019 accorded its approval for grant of guarantee
by the Company from time to time in respect of amount not
exceeding INR 500 Crores, to be borrowed by Vastu
Finserve India Private Limited, wholly owned subsidiary
during the Financial Year 2019-20.
We further report that there are adequate systems and processes
in the company commensurate with the size and operations of the
company to monitor and ensure compliance with applicable laws,
rules, regulations and guidelines.
(iv) The Board at its meeting held on 26th April, 2019 accorded
its approval for investment of surplus funds of the Company
by way of investment or acquisition from time to time by way
of subscription, purchase, conversion or otherwise of Equity
Shares, Preference Shares, Debentures (whether
convertible or non-convertible) or any other financial
instruments of Vastu Finserve India Private Limited, wholly
Majority decision is carried through and there were no dissenting
members’ views which were required to be captured and recorded
as part of the minutes.
(ii) The Board at its meeting held on 26th April, 2019 accorded
its approval to give guarantee in respect of borrowings from
banks, financial institutions, Reserve Bank of India,
incorporated bodies or otherwise by Vastu Finserve India
Private Limited, wholly owned subsidiary during the
Financial Year 2019-20.
Adequate notice is given to all directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent at least
seven days in advance in most cases and consents for convening
the meetings at a shorter notice were obtained in a few instances
and a system exists for seeking and obtaining further information
and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting.
(xi)Authority to make investment(s) by way of subscription,
purchase or otherwise, securities of any body corporate;
from time to time in one or more tranches, upto an
aggregate amount not exceeding INR 500 Crores
outstanding at any time notwithstanding that the aggregate
of such investments so far made or to be made are in excess
of the limits prescribed under Section 186 of the Companies
Act, 2013, by passing a Special Resolution at the Annual
General Meeting of the Company held on 9th August, 2019.
(xii)30,000 Equity Shares of INR 100/- each of the Company
were transferred by Mr. Ravichandra Madapati to Mr. Shirish
Godbole on 9th October, 2019 in demat mode.
Company held on 9th August, 2019.
owned subsidiary company, upto an amount not exceeding
INR 200 Crores in one or more tranches.
(v) The Board at its meeting held on 31st July, 2019 noted co-
origination of loans with scheduled commercial banks for
creation of loans.
(vi) The remuneration payable to Mr. Sandeep Menon (DIN:
02032154), Managing Director of the Company was revised
with effect from the Financial Year 2019-20 from the existing
INR 17,500,000/- to INR 1,87,25,000/- pursuant to the
provisions of Sections 196, 197 and 203 read with Schedule
V of the Companies Act, 2013, by passing a Special
Resolution at the Annual General Meeting of the Company
held on 9th August, 2019.
(vii)The appointment of Mr. Natrajh Ramakrishna (DIN:
06597041) as Independent Director for a period of five
consecutive years, to hold office from 12th February, 2019 to
11th February, 2024, was approved by the shareholders by
passing of an Ordinary Resolution at their Annual General
Meeting held on 9th August, 2019.
(viii) The borrowing limit of the Company was increased from INR
2,000 Crores to INR 2,500 Crores pursuant to the provisions
of Section 180(1)(c) of the Companies Act, 2013, by passing
a Special Resolution at the Annual General Meeting of the
(ix) Authority to create charge on the properties of the Company
not exceeding INR 2,500 Crores pursuant to the provisions
of Section 180(1)(a) of the Companies Act, 2013, was
accorded to the Board of Directors by passing a Special
Resolution at the Annual General Meeting of the Company
held on 9th August, 2019.
(x)Authority to raise funds through Private Placement of
Unsecured/ Secured Redeemable Non-Convertible
Debentures/ Bonds pursuant to the provisions of Sections
42 & 71 of the Companies Act, 2013 for an amount not
exceeding INR 2,500 Crores, in or more tranches during the
period of one year from the date of passing of the , resolution
by passing a Special Resolution at the Annual General
Meeting of the Company held on 9th August, 2019.
(xiii)The Company made an investment of INR 50 Crores in
Vastu Finserve India Private Limited, wholly owned
subsidiary company, through subscription of rights issue of
Equity Shares and the shares were allotted to the Company
on 13th September, 2019.
(xvii) The Board at its meeting held on 18th February, 2020 noted
transfers of 2,337,802 Equity Shares of the Company
between 19th December, 2019 to 24th December, 2019, in
demat mode.
(xviii) Mr. Samir Bhatia (DIN: 01769655), Non-Executive Director of
the Company resigned from the Board of the Company with
effect from 18th February, 2020.
(xix) The Board at its meeting held on 18th February, 2020 ratified
the Software License Agreement executed by the Company
with People Strong Technologies Private Limited on 18th
December, 2019 for using their technology services,
pursuant to Section 188 of the Companies Act, 2013 read
with Rule 15 of the Companies (Meetings of Board and its
Powers) Rule 2014.
(xiv) Mr. Ravikumar Hayagreeva Puranam exercised his right to
subscribe to 50,000 Equity Shares of the Company against
50,000 Stock Options granted under Employees Stock
Options Plan 2018 – Scheme I (ESOP Scheme-2018) and
shares were allotted to him jointly with Ms. Namagiri
Ravikumar on 24th December, 2019.
(xx) 500, Secured, Senior, Rated, Redeemable, Taxable,
Transferable, Listed Series B -Non Convertible Debentures
of INR 10 Lakh each of the Company (‘NCD’) which were
allotted on Private Placement basis on 26th October, 2018
and listed on the WDM of BSE Limited on 5th November,
2018 were redeemed early on 31st March, 2020 as per the
request received from the NCD holder.
For Pradeep Purwar & Associates
Company Secretaries
[Unique Identification No.: S2003MH071600]
(xv) Mr. Ravikumar Hayagreeva Puranam (DIN: 00280010), Non-
Executive Nominee Director of the Company resigned from
the Board of the Company with effect from 31st December,
2019.
(xvi) The Board at its meeting held on 18th February, 2020
accorded its approval to enter into and execute an
Agreement of Management and Administrative Services with
Vastu Finserve India Private Limited, wholly owned
Subsidiary company, for providing Management and
Administrative services to Vastu Finserve.
[PR: 599/2019]
Pradeep Kumar PurwarProprietor
FCS No. 5769 CoP No. 5918
Place: Thane
Date: 6th April, 2020
sd/-
1. Opinion
To the Members of Vastu Housing Finance Corporation Limited
Report on the Audit of the Consolidated Financial Statements
2. Basis for Opinion
We have audited the accompanying consolidated Ind AS financial
statements of Vastu Housing Finance Corporation Limited
(‘Holding Company’) and its subsidiary (the Company and its
subsidiary together referred to as ‘the Group’), which comprise the
Consolidated Balance Sheet as at 31st March 2020, the
Consolidated Statement of Profit and Loss (including Other
Comprehensive Income), the Consolidated Statement of Change in
Equity, the Consolidated Statement of Cash Flows for the year then
ended, and notes to the consolidated financial statements,
including a summary of the significant accounting policies and other
explanatory information (hereinafter referred to as “consolidated
Ind AS financial statements”).
In our opinion and to the best of our information and according to
the explanations given to us,the aforesaid consolidated Ind AS
financial statements prepared in accordance with the Accounting
Standards prescribed under Section 133 of the Companies Act,
2013 (‘the Act’) read with Companies (Indian Accounting
Standards) Rules, 2015, as amended, (‘Ind AS’), gives the
information required by the Act in the manner so required and gives
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Group as at
March 31, 2020, the profit (including other comprehensive income),
changes in equity and its cash flows for the year ended on that date
We conducted our audit of the consolidated Ind As financial
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Independent Auditors’ Report
3. Emphasis of matter
4. Key Audit Matter
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
consolidated Ind AS financial statements of the current period.
These matters were addressed in the context of our audit of the
consolidated Ind AS financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on
these matters. We have determined the matters described below to
be the key audit matter to be communicated in our report.
in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the consolidated Ind
AS financial statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
ICAI’s Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
audit opinion on the consolidated Ind AS financial statements.
We draw attention to Note 47 to the consolidated Ind AS financial
statement, which describes the extent to which the Covid-19
pandemic will impact the Company’s consolidated Ind AS financial
statement will depend on the future developments, which are highly
uncertain.Our opinion is not modified in respect of this matter.
statements in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities
under those SAs are further described in the Auditor’s
Responsibilities for the Audit of the consolidated Ind AS financial
statements section of our report. We are independent of the Group
Understood the consolidated financial statement closure
process and the additional controls (including IT controls)
established by the Group for transition to Ind AS.
Assessed the judgement applied by the Group in determining
its business model for classification of financial assets.
Read the Ind AS impact assessment performed by the
management to identify areas to be impacted on account of Ind
AS transition.
Read changes made to the accounting policies in light of the
requirements of the new framework.
Assessed the judgement exercised by the management in
applying the first-time adoption principles of Ind AS 101
especially in respect of fair valuation of assets and liabilities
existing as at transition date.
Transition to Ind AS accounting framework (as described in note 42 of the Ind AS financial statements)
frameworks.
Ind AS is applicable to the Group with effect from April 1, 2019.
Accordingly, the Group has prepared financial statements which
comply with Ind AS for the period ended March 31, 2020. In
preparing these financial statements,the Group’s opening
balance sheet under Ind AS was prepared as at 1 April 2018,
the Group’s date of transition to Ind AS.
The transition has involved significant change in the Group’s
policies and processes relating to financial reporting, including
generation of reliable and supportable information. Further, the
management has exercised significant judgement for giving an
appropriate effect of the first-time adoption principles of Ind AS
101, as at transition date and to determine the impact of the
new accounting framework on certain accounting and
disclosure requirements prescribed under extant regulatory
Key Audit Matter How our audit addressed the Key Audit Matter
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
Assessed disclosures included in the Ind AS financial
statements in accordance with the requirements of Ind AS 101,
with respect to the previous periods presented.
Assessed the judgements applied by the Group in respect of
areas where the accounting treatment adopted or the
disclosures made under the new accounting framework were
inconsistent with the extant regulatory requirements.
Performed test of details on the accounting adjustments posted
as at the transition date and in respect of the previous year to
convert the financial information reported under erstwhile
Indian GAAP to Ind AS.
Transition to Ind AS accounting framework (as described in note 42 of the Ind AS financial statements)
In view of the complexity and the resultant risk of material
misstatement arising from an error or omission in correctly
implementing the principles of Ind AS at the transition date,
which could result in a misstatement of one or more periods
presented in these consolidated Ind AS financials statements,
this has been an area of key focus in our audit.
Impairment of financial asset (expected credit loss)
Our audit procedures included reading the Group’s accounting
policies for impairment of financial instruments and assessing
compliance with the policies in terms of Ind AS 109.
Assessed the assumptions used by the Group for grouping and
staging of loan portfolio into various categories and default
buckets and determining the probability-weighted default (PD)
and loss-given default (LGD) rates including those of peers.
Assessed the disclosures included in the Consolidated Ind AS
financial statements with respect to such allowance / estimate
in accordance with the requirements of Ind AS 109 and Ind AS
107.
Tested the arithmetical accuracy of computation of ECL
Provision performed by the Group in spreadsheets.
Tested the operating effectiveness of the controls for staging of
loans based on their past-due status. We also reviewed a
sample of stage 1 and Stage 2 loans to assess whether any
loss indicators were present requiring them to be classified
under stage 2 or 3.
Performed sample testing to ascertain the completeness and
accuracy of the input data used for determining the PD and
LGD rates and agreed the data with the underlying books of
accounts and records.
Ind AS 109 requires the Group to provide for impairment of its
financial assets using the expected credit loss (‘ECL’) approach
involving an estimation of probability of loss on the financial
assets over their life, considering reasonable and supportable
information about past events, current conditions and forecasts
of future economic conditions which could impact the credit
quality of the Group’s loans and advances. In the process, a
significant degree of judgement has been applied by the
management in respect of following matters:
Estimation of losses in respect of those groups of loans which
had no/ minimal defaults in the past.
Estimation of expected loss from historical observation of
Group and its peers.
Estimation of expected delinquency from Covid 19 lockdown.
Staging of loans and estimation of behavioural life.
The Group has developed models that derive key assumptions
used within the provision calculation such as probability of
default (PD) and loss given default (LGD). The output of these
models is then applied to the provision calculation with other
information including and the exposure at default (EAD).
The Group has grouped its loan portfolio into Housing Loan
and Loan Against property. Loans grouped under a particular
category are assumed to represent a homogeneous pool
thereby expected to demonstrate similar credit
characteristics.
Considering the significance of such provision to the overall
consolidated financial statements and the degree of
management’s judgment, any error or misstatement in such
estimate may give rise to a material misstatement of the Ind AS
financial statements or omission of any disclosure required by
the standards. Therefore, it is considered as a key audit matter.
Key Audit Matter How our audit addressed the Key Audit Matter
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
The Holding Company’s management and board of directors
are responsible for the matters stated in section 134(5) of the
Act with respect to the preparation of these consolidated Ind AS
financial statements that give a true and fair view of the
consolidated financial position, consolidated financial
performance including other comprehensive income,
consolidated changes in equity and consolidated cash flows of
the Group in accordance with the Ind AS and other accounting
principles generally accepted in India. The respective Board of
Directors of the companies included in the Group are
responsible for maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of
the assets of the Group and for preventing and detecting frauds
and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the consolidated Ind AS
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error,
which have been used for the purpose of preparation of the
consolidated Ind AS financial statements by the Directors of the
Holding Company, as aforesaid.
In preparing the consolidated Ind AS financial statements, the
respective Board of Directors of the Companies included in the
Group are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the
Group or to cease operations, or has no realistic alternative but
to do so.
The Holding Company’s management and Board of Directors
are responsible for the other information. The other information
comprises the information included in Holding Company’s
Annual report but does not include the consolidated Ind AS
financial statements and our auditor’s report thereon. The other
information is expected to be made available to us after the
date of this auditor's report.
5. Information Other than the Consolidated Financial
Statements and Auditor’s Report thereon
Our opinion on the consolidated Ind AS financial statements
does not cover the other information and we will not express
any form of assurance conclusion thereon. In connection with
our audit of the consolidated Ind AS financial statements, our
responsibility is to read the other information when it becomes
available and, in doing so, consider whether the other
information is materially inconsistent with the consolidated Ind
AS financial statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated.
6. Responsibilities of Management and Those Charged with
Governance for the consolidated Ind AS financial
statements
The respective Board of Directors of the Companies included in
the Group are also responsible for overseeing the Group’s
financial reporting process.
7. Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the consolidated Ind AS financial statements as a whole
are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken
on the basis of these consolidated Ind AS financial statements.
Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(I) of the Act, we
are also responsible for expressing our opinion on whether the
Holding Company has adequate internal financial controls
system in place and the operating effectiveness of such
controls.
Evaluate the overall presentation, structure and content of the
consolidated Ind AS financial statements, including the
disclosures, and whether the consolidated Ind AS financial
statements represent the underlying transactions and events
in a manner that achieves fair presentation.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the
consolidated Ind AS financial statements, whether due to fraud
or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related
disclosures made by management.
Conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures
in the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
The comparative financial information of the Group for the year
ended March 31, 2019 included in these consolidated financial
statements, have been prepared after adjusting previously issued
8. Reporting on comparatives in case of First Consolidated Ind
AS Financial statements
the consolidated financial statements prepared in accordance with
the Companies (Accounting Standards) Rules, 2006 to comply with
Ind AS.
9. Report on Other Legal and Regulatory Requirements
a. As required by Section 143(3) of the Act, based on our audit we
report that:
auditors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our
audit.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the consolidated Ind AS financial
statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
We communicate with those charged with governance of the
Holding Company and such other entities included in the
consolidated financial statement of which we are the independent
iii. The Consolidated Balance Sheet, the Consolidated Statement
of Profit and Loss including Other Comprehensive Income,
Consolidated Statement of Changes in Equity and the
Consolidated Cash Flow Statement dealt with by this Report
are in agreement with the relevant books of account
maintained for the purpose of preparation of consolidated Ind
AS financial statements.
ii. In our opinion, proper books of account as required by law
relating to preparation of the aforesaid consolidated Ind AS
financial statements have been kept so far as it appears from
our examination of those books.
i. We have sought and obtained, all the information and
explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit of the
consolidated Ind AS financial statements.
iv. In our opinion, the aforesaid consolidated Ind AS financial
statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
v. On the basis of the written representations received from the
Directors of the Holding Company as on 31st March, 2020
taken on record by the Board of Directors of the Holding
Company and the report of the statutory auditors of its
subsidiary company incorporated in India, none of the
directors of the Group Companies incorporated in India is
disqualified as on 31st March, 2020 from being appointed as a
director in terms of Section 164 (2) of the Act.
vii. With respect to the matter to be included in the Auditor’s
Report under section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according
to the explanations given to us, the remuneration paid by the
Companies, under the Group, to its directors during the
current year is in accordance with the provisions of section
197 of the Act.
i. The Group does not have any pending litigations which would
impact its financial position.
Firm’s Registration No. 006711N/N500028
viii. With respect to the other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, in our opinion and to the
best of our information and according to the explanations
given to us:
For T R Chadha & Co LLP
subsidiary company incorporated in India.
Chartered Accountants
vi. With respect to the adequacy of the internal financial controls
over financial reporting and the operating effectiveness of
such controls, refer to our separate Report in ‘Annexure A’
which is based on the auditor’s reports of the Holding
Company and its
ii. The Group did not have any long-term contracts including
derivative contracts for which there were any material
foreseeable losses.
iii. There were no amounts which were required to be transferred
to the Investor Education and Protection Fund by the Group.
Vikas Kumar
Partner
Membership No. 075363
UDIN: 20075363AAAAAH5601
Place: Mumbai
29th April, 2020Date:
sd/-
Our responsibility is to express an opinion on the internal financial
controls with reference to financial statement of the Company and its
subsidiary company, which are companies incorporated in India, based
on our audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) issued by the ICAI and the Standards on Auditing
prescribed under section 143(10) of the Act to the extent applicable to an
audit of internal financial controls with reference to financial statement.
Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial
controls with reference to financial statement was established and
maintained and if such controls operated effectively in all material
respects.
We have audited the internal financial controls with reference to financial
statement of Vastu Housing Finance Corporation Limited (‘the
Company’) and its subsidiary company, which are companies
incorporated in India, as of 31st March, 2020, in conjunction with our
audit of the consolidated Ind AS financial statements of the Company for
the year ended on that date.
Auditors’ Responsibility
Report on the Internal Financial Controls with reference to
consolidated financial statements, of Vastu Housing Finance
Corporation Limited (‘Company’), under Clause (i) of Sub-section 3
of Section 143 of the Companies Act, 2013 (“the Act”)
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company and its subsidiary company,
which are companies incorporated in India, are responsible for
establishing and maintaining internal financial controls based on the
internal control with reference to financial statement criteria established
by the respective companies considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to respective Company’s
policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as
required under the Act.
In our opinion, to the best of our information and according to the
explanations given to us, the Company and its subsidiary company,
which are companies incorporated in India, have, in all material
respects, an adequate internal financial controls with reference to
financial statement and such internal financial controls with reference to
financial statement were operating effectively as at 31st March, 2020,
based on the internal control with reference to financial statement criteria
established by the respective Companies considering the essential
components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
Opinion
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
‘Annexure A’ to the Independent Auditor’s Report
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls with reference to financial
statement and their operating effectiveness. Our audit of internal
financial controls with reference to financial statement included
obtaining an understanding of internal financial controls with reference
to financial statement, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the internal
financial controls with reference to financial statement of the Company
and its subsidiary company, which are companies incorporate in India.
Meaning of Internal Financial Controls with reference to financial
statement
A company's internal financial control with reference to financial
statement is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal financial control
with reference to financial statement includes those policies and
procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a
material effect on the financial statements.
Because of the inherent limitations of internal financial controls with
reference to financial statement, including the possibility of collusion or
improper management override of controls, material misstatements due
to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls with reference to financial
statement to future periods are subject to the risk that the internal
financial control with reference to financial statement may become
inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
For T R Chadha & Co LLP
Chartered Accountants
Inherent Limitations of Internal Financial Controls with reference to
financial statement
Firm’s Registration No. 006711N/N500028
Vikas Kumar
Partner
Membership No. 075363
UDIN: 20075363AAAAAH5601
Place: Mumbai
29th April, 2020Date:
sd/-
VASTU HOUSING FINANCE CORPORATION LIMITED
CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2020 (Rs. in Lakh)
ASSETS
I. Financial assets
(a) Cash and cash equivalents 5 5,807.36
13,020.72
(b) Bank balances other than (a) above 6 20,544.63
30,522.00
(c) Loans 7 169,454.34
133,652.17
(d) Investments 8 26,648.42
8,038.20
(e) Other financial assets 9 2,296.57
284.70
224,751.31
185,517.79
II. Non-financial assets
(a) Current tax assets (net) 10 290.30
0.54
(b) Deferred tax assets (net) 11 178.63
540.97
(c) Property, plant and equipment 12 153.98
102.52
(d) Other intangible assets 12 36.69
36.01
(e) Right of use asset 13 538.65
-
(f) Other non-financial assets 14 108.26
81.70
1,306.52
761.74
III. Assets held for sale 15 652.22
49.76
Total Assets 226,710.05
186,329.28
LIABILITIES AND EQUITY
I. Financial liabilities
(a) Trade payables 16
- total outstanding dues of micro and small enterprises 4.15
-
- total outstanding dues to creditors other than micro and
small enterprises
147.57
88.43
(b) Debt securities 17 36,129.00
41,891.30
(c) Borrowings (other than debt securities) 18 93,052.01
56,951.73
(d) Other financial liabilities 19 8,432.64
11,093.87
137,765.37
110,025.33
Non-financial liabilities
(a) Current tax liabilities (net) 20 -
143.68
(b) Provisions 21 160.21
79.05
(c) Deferred tax liabilities 11 -
0.15
(c) Other non-financial liabilities 22 287.03
330.08
447.24
552.96
III. EQUITY
(a) Equity share capital 23 51,845.53
35,382.18
(b) Other equity 24 36,651.92
40,368.81
Total equity 88,497.44
75,750.99
Total liabilities and equity 226,710.05
186,329.28
1 to 51
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
The accompanying notes form an integral part of the financial statements
Particulars Note
No.
As at
March 31, 2019
As at
March 31, 2020
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
II.
In terms of our report attached
(Rs. in Lakh)
1 to 51The accompanying notes form an integral part of the financial statements
Particulars Note
No.
For the year ended
March 31, 2020
For the year ended
March 31, 2019
I. IncomeRevenue from operations
Interest income 25 22,896.27
15,035.11
Fees and commission income 26 301.07
371.31
Net gain on derecognition of financial instruments 27 1,636.39
-
Other operating income 28 238.25
95.65
Total revenue from operations 25,071.98
15,502.07
Other income 29 4,320.60
2,119.75
Total income 29,392.58
17,621.83
II. Expenses
Finance costs 30 11,061.87
6,928.06
Impairment on financial instruments 31 432.18
356.76
Employee benefits expense 32 4,778.49
4,476.46
Depreciation and amortisation expense 12 163.38
44.73
Other expenses 33 1,215.00
873.37
Total expenses 17,650.92
12,679.38
III. Profit before tax 11,741.66
4,942.45
IV. Tax expense
Current tax 34 2,329.44
1,528.88
Earlier year tax 13.76
153.73
Deferred tax 34 368.90
(349.64)
Total tax expense 2,712.09
1,332.97
V. Net profit after tax 9,029.56
3,609.48
VI. Other comprehensive income
Items that will not be reclassified to profit or loss- Actuarial loss on post retirement benefit plans (33.57)
(13.74)
- Income tax on above 8.60
3.79
Total other comprehensive income (24.96)
(9.95)
VII. Total comprehensive income 9,004.60
3,599.53
VIII. Earnings per equity share 36
(Face value of Rs. 100/- each)Basic (Rs.) 17.81
10.20
Diluted (Rs.) 17.58
9.45
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
In terms of our report attached
VASTU HOUSING FINANCE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2020
(Rs. in Lakh)
Particulars Note
No.
A. Cash flow from operating activitiesProfit before tax 11,741.66
6,006.91
Adjustment for:Depreciation and amortisation expenses 12 65.70
44.73
Depreciation and amortisation expenses (ROU) 13 97.68
-
Net gain on fair value changes (unrealised) 29 (13.11)
(8.20)
Net gain on fair value changes (realised) 29 (477.24)
Provision for impairment on financial instruments 31 432.18
356.76
Interest on fixed deposits (2,439.44)
(798.53)
Interest expense on lease liabilty 30 41.24
-
Reversal of rent equalization (opening) 4.81
-
Gain / loss on derecognition of financial asset 27 (1,636.39)
-
Employee stock option 32 299.95
-
Provision for employee benefit expense (OCI) (24.97)
-
Gain/Loss on sale of fixed asset 29 (0.02)
(10.50)
Operating profit before working capital changes 8,092.04
5,591.17
Adjustment for:Decrease / (Increase) in non-financial assets (27.73)
(60.82)
Decrease / (Increase) in other financial assets (984.62)
833.89
Decrease / (Increase) in financial liabilities (3,057.53)
436.51
Decrease / (Increase) in non financial liabilities 43.26
(168.91)
Cash generated from (used in) operations 4,065.42
6,631.82
Direct taxes paid (net) (2,776.64)
(1,465.17)
Net cash (used in) operating activities 1,288.78
5,166.65
Loans disbursed to customer (67,339.68)
(76,523.77)
Loans repayment received (incl. foreclosed, direct assignment, etc.) 31,105.32
16,887.99
Net cash (used in) operating activities (34,945.58)
(54,469.12)
B. Cash flow from investing activitiesInvestments in mutual fund units (703,474.93)
(231,053.20)
Sale of mutual fund units 705,355.06
223,023.20
Investment in other deposits 8 (20,000.00)
-
Interest received on bank deposits 2,439.44
798.53
12 (117.82)
(57.04)
Investment in Bank deposits (65,194.70)
(68,046.68)
Proceeds from redemption of Bank deposit 75,172.07
36,545.68
Net cash (used in) investment activities (5,820.89)
(38,789.51)
C. Cash flow from financing activities
Proceeds from issue of equity share 3,437.11
-
Payment of lease liabilities (221.99)
-
Share application money (pending allotment) -
34,363.59
Proceeds from long-term borrowings 49,783.02
61,720.31
Repayment of long-term borrowings (21,443.68)
(10,309.25)
(Repayment of) / proceeds from short-term borrowings (net) 1,998.64
(17.15)
Net cash generated from financing activities
Net (decrease) / increase in cash and cash equivalents (A+B+C) (7,213.36)
(7,501.13)
Cash and cash equivalents at the beginning of the year 13,020.72
20,521.85
Acquisition/Purchase/Sale of property, plant & equipment and intangible assets (net)
5,807.36 13,020.72Cash and cash equivalents at the end of the year (refer note 5)
For the year ended
March 31, 2020
For the year ended
March 31, 2019
33,553.09 85,757.50
VASTU HOUSING FINANCE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2020
Components of Cash & Cash EquivalentsCash on hand 13.92 8.87
Balance with banks:768.92
1,688.06
24.51
13.79
5,000.00
11,310.00
Total cash & cash equivalents 5,807.36
13,020.72
Operational cash flow from InterestInterest received 20,684.87
13,402.93
Interest paid (10,474.19)
(6,618.03)
The accompanying notes form an integral part of the financial statements 1 to 51
- In deposit accounts with original maturity less than 3 months or less
- In cash credit accounts- In current accounts
(Rs. in Lakh)
Particulars Note
No. For the year ended
March 31, 2020
For the year ended
March 31, 2019
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
In terms of our report attached
VASTU HOUSING FINANCE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2020
A. E
QU
ITY
SH
AR
E C
AP
ITA
L(R
s. in
Lakh
)
Bala
nc
e a
s a
t
Ap
ril
1,
2018
Bala
nc
e a
s a
t
Marc
h 3
1,2
020
35,3
82.1
8
-
35
,382
.18
1
6,4
63
.35
5
1,8
45
.53
S
pe
cial r
ese
rve
S
ecu
rities
Pre
miu
m
Ge
nera
l Rese
rve
Sh
are
Op
tio
n
Ou
tsta
nd
ing
Acc
ou
nt
Re
tain
ed
Earn
ing
s
Bala
nc
e a
s a
t A
pri
l 1, 2018
-
627
.65
-
11
1.9
9
-
5
91
.64
Oth
er
com
pre
hensiv
e incom
e for
the y
ear
-
-
-
-
-
Re
ceiv
ed d
uri
ng the y
ear
34,3
63.5
9
-
-
-
-
Tra
nsfe
rred fro
m s
tate
ment of
pro
fit and
-
1,1
25.0
0
-
-
-
(1
,12
5.0
0)
Em
plo
yee s
tock
option s
che
me
-
-
-
-
1,0
74.4
1
-
-
-
-
-
3,6
09.3
4
Bala
nc
e a
s a
t M
arc
h 3
1, 2
019
34,3
63.5
9
1,7
52.6
5
-
11
1.9
9
1,0
74.4
1
3,0
66.0
3
-
-
-
-
-
9,2
24.8
1
Re
vers
al fo
r openin
g -
rent equaliz
ation
-
-
-
-
-
Pre
miu
m r
eceiv
ed o
n s
hare
s issued d
uri
ng
-
-
21,3
37
.35
-
-
Tra
nsfe
rred fro
m s
tate
ment of
pro
fit and
-
1,9
51.6
3
-
-
299
.95
(1,9
51.6
3)
Pre
miu
m o
n s
hare
s issued u
nder
em
plo
yee
-
-
39.3
6
-
(39.3
6)
Sha
re issu
ed a
gain
st share
applic
ation
(34,3
63.5
9)
-
-
-
-
Oth
er
com
pre
hensiv
e incom
e for
the y
ear
-
-
(4.9
8)
-
-
(24.9
7)
Bala
nc
e a
s a
t M
arc
h 3
1, 2020
-
3,7
04.2
8
21,3
71
.73
11
1.9
9
1,3
35.0
1
10,3
19
.03
Th
e a
ccom
panyi
ng n
ote
s form
an inte
gra
l part
of
the fi
nancia
l sta
tem
en
ts 1
to
51
Ch
an
ge
s i
n e
qu
ity
sh
are
cap
ita
l d
uri
ng
th
e y
ea
r
Re
serv
es
an
d S
urp
lus
Bala
nc
e a
s a
t
Marc
h 3
1,2
01
9
Ch
an
ge
s i
n e
qu
ity
sh
are
cap
ita
l d
uri
ng
th
e y
ea
r
Eq
uit
y s
ha
re c
ap
ital
B. O
TH
ER
EQ
UIT
Y
sto
ck
option s
chem
e
Share
Ap
plic
atio
n
Mo
ney
(Pen
din
g
Allo
tmen
t)
Part
icu
lars
Pa
tla
s
ric
ur
(Rs.
in L
akh
)
1,3
31.2
8
(9.9
5)
(9.9
5)
-3
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(DIN
00147182)
(DIN
06597041)
(DIN
02032154 )
Su
jay
Pati
lP
allav
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bere
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tratio
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o.: 0
6711
N/N
500028
Vik
as
Ku
ma
r
Part
ner
Me
mb
ers
hip
No. 075363
Da
te :
April 2
9, 2020
Pla
ce : M
um
bai
Ch
art
ere
d A
ccounta
nts
Fo
r a
nd
on
be
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f D
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Va
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us
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Fin
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sd/-
sd/-
sd/-
sd/-
sd/-
In te
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of our
report
attach
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VA
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H 3
1, 2020
VASTU HOUSING FINANCE CORPORATION LIMITEDNotes forming part of the consolidated financial statements
Vastu Housing Finance Corporation Limited ('the Holding
Company') is a public limited company domiciled in India and
incorporated under the provisions of the Companies Act, 1956
and holding a certificate of registration number 02.0062.05 from
the National Housing Bank ("NHB") dated October 27, 2005. The
principal business of the Company is to provide long term
financing regarding housing finance for purchase, construction,
development and repair of houses, apartments and other in India.
The Company is registered with the National Housing Bank as
Non-Deposit taking Housing Finance Company (HFC). At
present, the Company is providing its service in 12 states through
66 branches including 3 Head offices.
Vastu Finserve India Private Limited ('the Subsidiary') is a
deemed public company domiciled in India and incorporated
under the provisions of the Companies Act, 2013. The Company
is a Non-Banking Financial Company (NBFC) engaged in the
business of providing financial services, to lend and advance
money and assets of all kinds or give credit on any terms or mode
and with or without security to any individual, firm, body corporate
or any other entity, to enter into guarantees, contracts of
indemnity and suretyship of all kinds, and to secure or guarantee
in any manner and upon any terms the payment of any sum of
money or the performance of any obligation by any person, firm or
company.The Company is registered as a Non-Systemically
Important Non-Deposit taking NBFC as defined under Section 45-
IA of the Reserve Bank of India (’RBI’) Act,1934 with effect from
April 22, 2019.The consolidated financial statements were
authorised for issue by the Company's Board of Directors on April
29, 2020.
The Consolidated Financial Statement ('Financial Statement')
relates to Vastu Housing Finance Corporation Limited ('the
Holding Company') and its wholly owned subsidiary Vastu
Finserve India Private Limited (hereinafter collectively referred to
as 'Group' or 'Company')
Effective April 01, 2019, the Group has adopted Ind AS, and the
adoption was carried out under Ind AS 101, First-time Adoption of
Indian Accounting Standards, with April 1, 2018, as the transition
date.
The Consolidated financial statements of the Group are prepared
under the Indian Accounting Standards (Ind AS) and the relevant
provisions of the Companies Act, 2013 (the “Act”) (to the extent
notified). Ind AS are prescribed under Section 133 of the Act read
with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and relevant amendment rules issued after that.
Basis of preparation and presentation of consolidated financial statements & significant accounting policies
Basis of preparation and presentation of financial statementsStatement of compliance / basis of preparation
Corporate information1.
2.
2.1.
The financial statements presented in Indian Rupees which is the
functional and the presentation currency and all values rounded
to the nearest lakh, except when otherwise indicated.
Accounting policies have been consistently applied except where
a newly-issued Ind AS is initially adopted or a revision to an
existing Ind AS requires a change in the accounting policy
hitherto in use.
The transition was carried out from Indian Accounting Principles
generally accepted in India as prescribed under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014 (IGAAP) (Indian Generally Accepted Accounting Principles),
Regulatory directions and guidelines as amended, from time to
time, to the extent applicable, which was the previous Generally
Accepted Accounting Principles (GAAP).
Basis of measurementb.
Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.
The consolidated financial statements have been prepared on
accrual basis under the historical cost convention except for
specific financial instruments that are measured at fair values at
the end of each reporting period, as explained in the accounting
policies below:
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, regardless of
whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of an
asset or a liability, the Group takes into account the
characteristics of the asset or liability that market participants
would take those characteristics into account when pricing the
asset or liability at the measurement date. Fair value for
measurement and disclosure purposes in these financial
statements is determined on such a basis, except for share-
based payment transactions that are within the scope of Ind AS
102, leasing transactions that are within the scope of Ind AS 17,
and measurements that have some similarities to fair value but
are not fair value in use under Ind AS 36.
Fair value measurements under Ind AS are categorised into Level
1, 2, or 3 based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs
to the fair value measurement in its entirety, which are as follows;
Level 2 inputs are inputs, other than quoted prices included
within level 1, that are observable for the asset or liability, either
directly or indirectly; and
Level 1 inputs are quoted prices (unadjusted) in active markets
for identical assets or liabilities that the Group can access at the
measurement date.
a.
Level 3 inputs are unobservable inputs for the valuation of assets
or liabilities.
Presentation of financial statements
The consolidated financial statements comprise the financial
statements of the Company and its subsidiary as of March 31st,
2020. The Company consolidates a subsidiary when its controls
exist. Control is achieved when the Company is exposed, or has
rights, to variable returns from its involvement with the investee
and can affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights
result in control. To support this presumption and when the
Company has less than a majority of the voting or similar rights of
an investee, the Company considers all relevant facts and
circumstances in assessing whether it has power over an
investee, including :
The Balance Sheet and the Statement of Profit and Loss are
prepared and presented in the format prescribed in Schedule III
to the Act. The Statement of Cash Flows has been prepared and
presented as per the requirements of Ind AS 7 “Statement of
Cash Flows”.
Basis of consolidation
c.
d.
Rights arising from other contractual arrangements
The size of the Company’s holding of voting rights relative
to the size and dispersion of the holdings of the other
voting rights holders
The Company’s voting rights and potential voting rights
The contractual arrangement with the other vote holders
of the investee
The Company re-assesses whether or not it controls an investee
if facts and circumstances indicate that there are changes to one
or more of the three elements of control. Consolidation of a
subsidiary begins when the Company obtains control over the
subsidiary and ceases when the Company loses control of the
subsidiary. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the year are included in
the consolidated financial statements from the date the Company
gains control until the date the Company ceases to control the
subsidiary.
Consolidated financial statements are prepared using uniform
accounting policies for like transactions and other events in
similar circumstances. If a member of the Company uses
accounting policies other than those adopted in the consolidated
financial statements for like transactions and events in similar
circumstances, appropriate adjustments are made to that
Company member’s financial statements in preparing the
consolidated financial statements to ensure conformity with the
Company’s accounting policies.
The financial statements of all entities used for the purpose of
consolidation are drawn up to same reporting date as that of the
parent company, i.e., year ended on 31 March.
Combine like items of assets, liabilities, equity, income,
expenses and cash flows of the parent with those of its
subsidiary. For this purpose, income and expenses of the
subsidiary are based on the amounts of the assets and
liabilities recognised in the consolidated financial statements at
the acquisition date.
Eliminate in full intra-Company assets and liabilities, equity,
income, expenses and cash flows relating to transactions
between entities of the Company (profits or losses resulting
from intra Company transactions that are recognised in assets,
such as inventory and fixed assets, are eliminated in full). Intra
Company losses may indicate an impairment that requires
recognition in the consolidated financial statements. Ind AS 12
Income Taxes applies to temporary differences that arise from
the elimination of profits and losses resulting from intra
Company transactions. Profit or loss and each component of
OCI are attributed to the equity holders of the parent of the
Company and to the noncontrolling interests, even if this results
in the non-controlling interests having a deficit balance.When
necessary, adjustments are made to the financial statements of
subsidiary to bring their accounting policies in line with the
Company’s accounting policies. All intra-Company assets,
liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Company are eliminated
in full on consolidation.
Offset (eliminate) the carrying amount of the parent’s
investment in each subsidiary and the parent’s portion of equity
of each subsidiary. Business combinations policy explains how
to account for any related goodwill.
Consolidation Procedure
a.
b.
c.
2.2. Significant Accounting Policies
Property, plant and equipment and intangible assets
Depreciation/amortization is recognized on a straight-line basis
over the lower of the estimated useful lives of respective assets
prescribed under the Schedule II to the Companies Act, 2013 or
as estimated by Management as under:
I. Property, plant and equipment (PPE) are recognised when
it is probable that future economic benefits associated with the
item flows to the group Companies, and the cost of the item can
be measured reliably. The cost comprises of the purchase price,
and any attributable cost of bringing the asset to its working
condition for intended use net of tax/duty credits availed, less
accumulated depreciation and cumulative impairment if any.
Premises
Furniture & Fixtures
Computer Hardware
Leasehold Improvements
Office Equipment
30 Years
10 Years
3 Years
3 Years
5 Years
Category of Assets Useful Life
a.
Assets costing less than Rs 5,000 are fully depreciated in the
year of capitalization. The estimated useful lives, residual
values and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis. An item of property, plant
and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use
of the asset. Gain/loss arising on disposal/retirement of an item
of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the
asset and is recognised in profit or loss.
ii. Intangible: Intangible assets are recognised when it is
probable that the future economic benefits that are attributable
to the asset flow to the enterprise, and the cost of the asset can
be measured reliably. Intangible assets are stated at original
cost net of tax/duty credits availed, if any, less accumulated
amortisation and cumulative impairment. Administrative and
other general overhead expenses that are individually
attributable to the acquisition of intangible assets are allocated
and capitalised as a part of the cost of the intangible assets.
Intangible assets are amortised on a straight-line basis over the
estimated useful life of 3 years. The method of amortisation,
useful life are reviewed at end of accounting year with the effect
of changes in the estimate being accounted for on a prospective
basis.
Amortisation on impaired assets is provided by adjusting the
amortisation charge in the remaining periods to allocate the
asset’s revised carrying amount over its remaining useful life.
An intangible asset is derecognised on disposal, or when no
future economic benefits are expected from use or disposal.
Gains or losses arising from derecognition of an intangible
asset, measured as the difference between the net disposal
proceeds and the carrying amount of the asset, are recognised
in profit or loss when the asset is derecognised.
Deemed cost on transition to Ind AS
For the transition to Ind AS, the group Companies has elected
to continue with the carrying value of all of its property, plant
and equipment and intangible assets recognised as of April 1,
2018 (transition date) measured as per the previous GAAP and
use that carrying value as its deemed cost as of the transition
date.
As at the end of each year, the group Companies reviews the
carrying amount of its non-financial assets that is PPE and
intangible to determine whether there is any indication that
these assets have suffered an impairment loss. An asset is
considered as impaired when on the balance sheet date there
are indications of impairment in the carrying amount of the
assets, or where applicable the cash-generating unit to which
the asset belongs, exceeds its recoverable amount (i.e. the
higher of the assets’ net selling price and value in use). Carrying
amount is reduced to the level of recoverable amount, and the
reduction is recognized as an impairment loss in the Statement
of Profit and Loss.
Impairment on non-financial assetsb.
When an impairment loss is subsequently reversed, the
carrying amount of the asset (or the cash-generating unit) is
increased to the revised estimate of its recoverable amount. But
so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no
impairment loss been recognised for the asset (or the cash-
generating unit) in prior years. A reversal of an impairment loss
is recognised immediately in the statement of profit or loss.
Revenue Recognition
ii. Fees and commission income Fee and commission income
include fees and commitment charges other than those that are
an integral part of EIR. The group Companies recognises the
other fee and commission income under the terms and
conditions of the relevant contract/agreement.
iii. Investment Income Gains/ losses on the sale of
investments are recognized in the Statement of Profit and Loss
on the trade date. Gain or loss on the sale o investments is
determined after consideration of cost on a first in first out
(FIFO) basis.
Revenue is recognised to the extent that the economic benefits
probably flow to the group Companies, and the revenue can be
reliably measured, and there exists reasonable certainty of its
recovery.
The calculation takes into account all contractual terms of the
financial instrument (for example, prepayment options). It
includes all fees paid or received between parties to the
contract that are incremental and are directly attributable to the
specific lending arrangement, transaction costs, and all other
premiums or discounts. For financial assets at FVTPL (fair
value through profit & loss), transaction costs are recognised in
profit or loss at initial recognition.
Overdue interest and other ancillary charges in respect of loans
are recognized upon realisation.
The EIR is the rate that exactly discounts estimated future cash
flows of the financial instrument through the expected life of the
financial instrument or, where appropriate, a shorter period, to
the net carrying amount of the financial instrument. The future
cash flows are estimated, taking into account all the contractual
terms of the instrument.
The interest income is calculated by applying the EIR to the
gross carrying amount of non-credit impaired financial assets
(i.e. at the amortised cost of the financial asset before adjusting
for any expected credit loss allowance). For credit-impaired
financial assets, the interest income is calculated by applying
the EIR to the amortised cost of the credit-impaired financial
assets (i.e. the gross carrying amount less the allowance for
expected credit losses (ECLs). However, no interest has been
charged on credit impaired loans as a matter of prudence.
i. Interest income Interest income on financial instruments at
amortised cost is recognised on a time proportion basis, taking
into account the amount outstanding and the effective interest
rate (EIR) applicable. Interest on financial instruments
measured as at fair value is included within the fair value
movement during the period.
c.
Right of use assets is depreciated from the commencement
date on a straight-line basis over the shorter of the lease term
the recognition of the gain or loss on the change in fair value of
the item (i.e., translation differences on items whose fair value
gain or loss is
Transactions in foreign currencies are initially recorded by the
group Companies at their respective functional currency spot
rates at the date the transaction first qualifies for recognition.
iv Dividend Income Dividend income is recognized when the
group’s right to receive the payment is established; probably,
the economic benefits associated with the dividend flow to the
entity and the amount of the dividend can be measured reliably.
Generally, when shareholders approve the dividend.
Income and expenses in foreign currencies are initially
recorded by the group Companies at the exchange rates
prevailing on the date of the transaction.
Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value is
determined. The gain or loss arising on translation of non-
monetary items measured at fair value is treated in line with
Lease
The group’s lease asset primarily consists of leases for
buildings. The group assesses whether a contract contains a
lease, at the inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for a
consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the group Companies
assesses whether: (i) the contract involves the use of an
identified asset (ii) the group Companies has substantially all of
the economic benefits from the use of the asset through the
period of the lease and (iii) the group Companies has the right
to direct the use of the asset.
At the date of commencement of the lease, the group
Companies recognizes a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in which
it is a lessee, except for leases with a term of twelve months or
less (short-term leases) and low-value leases. For these short-
term and low-value leases, the group Companies recognizes
the lease payments as an operating expense.
The right-of-use assets initially recognized at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date
of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Foreign currency
Foreign currency denominated monetary assets and liabilities
are translated at the functional currency spot rates of exchange
at the reporting date, and exchange gains and losses arising on
settlement and restatement are recognized in the Statement of
profit and loss.
d.
e.
and useful life of the underlying asset. Right of use assets is
evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be
recoverable. For impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and the value-in-
use) is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit (CGU) to which the
asset belongs.
The lease liability is initially measured at amortized cost at the
present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the
lease or, if not readily determinable, using the incremental
borrowing rates. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset if the
group Companies changes its assessment of whether it
exercises an extension or a termination option.
Lease liability and ROU asset have been separately presented
in the Balance Sheet, and lease payments have been classified
as financing
cash flows.
Borrowing costs
Borrowing costs that are attributable to the acquisition,
construction or production of qualifying assets as defined in Ind
AS 23 are capitalized as a part of costs of such assets. A
qualifying asset is one that necessarily takes a substantial time
to get ready for its intended use.
Employee Benefits
Interest expenses are calculated using the effective interest
rate (EIR), and all other Borrowing costs are recognised in the
Statement of profit and loss in the period in which they are
incurred.
Share-based payment arrangements
the vesting period, the cumulative discount recognised as an
expense in respect of such grant is transferred to the general
reserve within other equity.
Defined contribution plan
Retirement benefit costs and termination benefits
Retirement benefit in the form of provident fund is a defined
contribution scheme. The group Companies has no obligation,
other than the contribution payable to the provident fund. The
group Companies recognizes contribution payable to the
provident fund scheme as an employee benefit expense when
an employee renders the related service. If the contribution
payable to the scheme for service received before the balance
sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after
deducting the contribution already paid.
The stock options granted to employees under the group’s
stock options schemes are measured at the fair value of the
options at the grant date. The fair value of the options is treated
as a discount and accounted as employee compensation cost
over the vesting period on a straightline basis. Amount
recognised as an expense in each year is arrived at based on
the number of grants expected to vest. If a grant lapses after
f.
g.
Defined benefit obligation
The group Companies gratuity liability under the Payment of
Gratuity Act,1972 is determined based on an actuarial valuation
made at the end of each financial year using the projected unit
credit method.
The group Companies net obligation in respect of defined
benefit plans is calculated by estimating the amount of future
benefit that employees have earned in the current and prior
periods, discounting that amount and deducting the fair value of
any plan assets. The calculation of defined benefit obligations is
performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential
asset for the group Companies, the recognised asset is limited
to the present value of economic benefits available in the form
of any future refunds from the plan or reductions in future
contributions to the plan.
Remeasurement of the net defined benefit liability, which
comprises of actuarial gains and losses, the return on plan
assets (excluding interest) and the effect of the asset ceiling (if
any, excluding interest), are recognised immediately in other
comprehensive income (OCI). Remeasurements are not
reclassified to profit or loss in the subsequent year. Net interest
expense (income) on the net defined liability (assets) is
computed by applying the discount rate, used to measure the
net defined liability (asset), to the net defined liability (asset) at
the start of the financial year after taking into account any
changes as a result of contribution and benefit payments made
during the year. Net interest expense and other expenses
related to defined benefit plans are recognised in the statement
of profit and loss.
When the benefits of a plan are changed or when a plan is
curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised
immediately in Statement of profit and loss. The group
Companies recognises gains and losses on the settlement of a
defined benefit plan when the settlement occurs.
The undiscounted amount of short term employee benefits
expected to be paid in exchange for the services rendered by
employees are recognised during the year when the employee
renders the service. A liability is recognised for the amount
expected to be paid if the group Companies has a present legal
or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be
estimated reliably. These benefits include performance
incentive etc. which are expected to occur within twelve months
after the end of the period in which the employee renders the
related service.
Short-term employee benefits
Other Long-term employee benefits
Liabilities recognised in respect of other long-term employee
benefits are measured at the present value of the estimated
future cash outflows expected to be made by the group
Companies in respect of services provided by employees up to
the reporting date.
The Income tax expense represents the sum of the current tax
and deferred tax. Current and deferred taxes are recognised in
the Statement of profit and loss, except when they relate to
items that are recognised in other comprehensive income or
directly in equity, in which case, the current and deferred tax are
also recognised in other comprehensive income or directly in
equity respectively.
Income tax
Current tax
The tax currently payable is based on the taxable profit for the
year of the group Companies. Taxable profit differs from 'profit
before tax' as reported in the Statement of profit and loss
because of items of income or expense that are taxable or
deductible in other years and items that are never taxable or
deductible. The current tax is calculated using applicable tax
rates that have been enacted or substantively enacted by the
end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the
end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits are available to
allow all or part of the assets to be recovered.
Deferred tax liabilities and assets are measured at the tax rates
that are expected to apply in the period in which the liability is
settled, or the asset is realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the
end of the reporting period.
Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the Company’s
consolidated financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred tax
assets are generally recognised, for all temporary deductible
differences, to the extent that it is probable that taxable profits
are available against which those temporary deductible
differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit. Also,
deferred tax liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary
differences associated with investments in subsidiaries, except
where the group Companies is able to control the reversal of
temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future. Deferred
tax assets arising from deductible temporary differences
associated with such investments and interests are only
recognised to the extent that it is probable that there will be
sufficient taxable profits against which it can utilise the benefits
of the temporary differences and they are expected to reverse
in the foreseeable future.
Deferred tax
h.
Provisions, contingent liabilities and contingent assets
Goods and Services tax input credit is accounted for in the
books for the period in which the supply of goods or service
received is accounted and when there is no uncertainty in
availing/utilising the credits.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes
levied by the same taxation authority and the group Companies
intends to settle its current tax assets and liabilities on a net
basis.
Goods and Service tax input credit
Group has a present obligation (legal or constructive) as a
result of a past event; and
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation;
and
a reliable estimate can be made of the amount of the
obligation.
These are reviewed at each balance sheet date and adjusted to
reflect the current best estimates.Long term provisions are
determined by discounting the expected future cash flows
specific to the liability. The unwinding of the discount is
recognised as a finance cost. A provision for onerous contracts
is measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established,
the group Companies recognises any impairment loss on the
assets associated with that contract.
Contingent liability is disclosed in case of:
i. a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle
the obligation; and
Contingent liabilities are reviewed at each balance sheet date.
ii. a present obligation arising from past events, when no reliable
estimate is possible.
Provisions are recognised when:
Contingent assets:
Contingent assets are not recognized in the financial
statements. Contingent asset are disclosed where an inflow of
economic benefits is
Commitments are future liabilities for contractual expenditure,
classified and disclosed as follows:
Uncalled liability on shares and other investments partly paid;
Other non-cancellable commitments, if any, to the extent they
are considered material and relevant in the opinion of
management. Other commitments related to ales/
procurements made in the normal course of business are not
disclosed to avoid excessive details.
Commitments
Estimated amount of contracts remaining to be executed on
capital account and not provided for;
j.
ii.
iii.
k.
Cash and cash equivalents (including bank balances) shown in
the Statement of Cash Flows exclude items which are not
available for general use as on the date of Balance Sheet
Segments
in all other cases, the fair value will be adjusted to bring it in line
with the transaction price (i.e. day 1 profit or loss will be
deferred by including it in the initial carrying amount of the asset
or liability). After initial recognition, the deferred gain or loss is
released to the Statement of profit and loss on a rational basis,
only to the extent that it arises from a change in a factor
(including time) that market participants would take into account
when pricing the asset or liability.
iii. All other items for which the cash effects are investing or
financing cash flows.
Recognised financial assets and financial liabilities are initially
measured at fair value. Transaction costs and revenues that are
directly attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and financial
liabilities at FVTPL) are added to or deducted from the fair value
of the financial assets or financial liabilities, as appropriate, on
initial recognition. Transaction costs and revenues directly
attributable to the acquisition of financial assets or financial
liabilities at FVTPL are recognised immediately in the statement
of profit or loss.
ii. Non-cash items such as depreciation, provisions, deferred
taxes, unrealised foreign currency gains and losses, and;
Statement of Cash Flows is prepared segregating the cash
flows into operating, investing and financing activities. Cash
flow from operating activities is reported using indirect method
adjusting the net profit for the effects of:
Financial Instruments
i. Changes during the period in inventories and operating
receivables and payables transactions of a non-cash nature;
The group's primary business is financing by way of loans for
the purchase or construction of residential houses and other
mortgage loans in India. All other activities of the group
Companies revolve around the main business. In the context of
Ind AS 108 – Operating Segments reporting is considered to
constitute as one reportable segment.
i. Recognition of financial instruments
Financial instruments comprise of financial assets and financial
liabilities. Financial assets and liabilities are recognized when
the group Companies becomes the party to the contractual
provisions of the instruments. Financial assets primarily
comprise of loans and advances, deposits, trade receivables
and cash and cash equivalents. Financial liabilities primarily
comprise of borrowings and trade payables.
ii. Initial measurement of financial instruments
If the transaction price differs from fair value at initial
recognition, the group Companies will account for such
difference as follows:
if fair value is evidenced by a quoted price in an active market
for an identical asset or liability or based on a valuation
technique that uses only data from observable markets, then
the difference is recognised in profit or loss on initial recognition
(i.e. day 1 profit or loss);
m.
n.
ii.
iii.
i.
i.
i.
the group Companies may irrevocably designate a debt
instrument that meets the amortised cost or FVTOCI criteria as
measured at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch (referred to as the fair value
option).
all other debt instruments (e.g. debt instruments managed on a
fair value basis, or held for sale) and equity investments are
subsequently measured at FVTPL.
Subsequent measurement of financial assets:
All recognised financial assets that are within the scope of Ind
AS 109 are required to be subsequently measured at amortised
cost or fair value on the basis of the entity’s business model for
managing the financial assets and the contractual cash flow
characteristics of the financial assets
Classification of Financial Assets:
Debt instruments that are held within a business model whose
objective is to collect the contractual cash flows, and that have
contractual cash flows that are solely payments of principal and
interest on the principal amount outstanding (SPPI), are
subsequently measured at amortised cost;
However, the group Companies may make the following
irrevocable election / designation at initial recognition of a
financial asset on an asset-by-asset basis:
iii. Financial Assets
the group Companies may irrevocably elect to present
subsequent changes in fair value of an equity investment that is
neither held for trading nor contingent consideration recognised
by an acquirer in a business combination to which Ind AS 103
applies, in OCI; and
A. financial asset is held for trading if:
it has been acquired principally for the purpose of selling it in
the near term; or
Debt instruments at amortised cost or at FVTOCI
The group Companies assesses the classification and
measurement of a financial asset based on the contractual cash
flow characteristics of the individual asset basis and the group
Companies business model for managing the asset.
For an asset to be classified and measured at amortised cost or
at FVTOCI, its contractual terms should give rise to cash flows
that are meeting SPPI test.
For SPPI test, the principal is the fair value of the financial asset
at initial recognition. That principal amount may change over
the life of the financial asset (e.g. if there are repayments of
principal). Interest consists of consideration for the time value
of money, for the credit risk associated with the principal
amount outstanding during a particular time and for other
primary lending risks and costs, as well as a profit margin. The
SPPI assessment is made in the currency in which the financial
asset is denominated.
it is a derivative that is not designated and effective as a
hedging instrument or a financial guarantee.
on initial recognition it is part of a portfolio of identified financial
instruments that the group Companies manages together and
has a recent actual pattern of short-term profit-taking; or
Debt instruments that are subsequently measured at amortised
cost or at FVTOCI are subject to impairment.
An assessment of the business model for managing financial
assets is fundamental to the classification of a financial asset.
The group Companies determines the business model at a level
that reflects how financial assets are managed at an individual
basis and collectively to achieve a particular business objective.
Reclassifications
Contractual cash flows that are SPPI are consistent with a basic
lending arrangement. Contractual terms that introduce
exposure to risks or volatility in the contractual cash flows that
are unrelated to a basic lending arrangement, such as exposure
to changes in equity prices or commodity prices, do not give
rise to contractual cash flows that are SPPI. An originated, or an
acquired financial asset can be a basic lending arrangement
irrespective of whether it is a loan in its legal form.
Financial assets at fair value through profit or loss (FVTPL)
When a debt instrument measured at FVTOCI is derecognised,
the cumulative gain/loss previously recognised in OCI is
reclassified from equity to profit or loss. In contrast, for an
equity investment designated as measured at FVTOCI, the
cumulative gain/loss previously recognised in OCI is not
subsequently reclassified to profit or loss but transferred within
equity.
A financial asset that meets the amortised cost criteria or debt
instruments that meet the FVTOCI criteria may be designated
as FVTPL upon initial recognition if such designation eliminates
or significantly reduces a measurement or recognition
inconsistency that would arise from measuring assets or
liabilities or recognising the gains and losses on them on
different bases.
If the business model under which the group Companies holds
financial assets changes, the financial assets affected are
reclassified. The classification and measurement requirements
related to the new category apply prospectively from the first
day of the first reporting period following the change in the
business model that results in reclassifying the group’s financial
assets.
Financial assets at FVTPL are measured at fair value at the end
of each reporting period, with any gains or losses arising on
remeasurement recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any dividend or interest
earned on the financial asset. Dividend on financial assets at
FVTPL is recognised when the group's right to receive the
dividends is established, and the economic benefits associated
with the dividend probably flow to the entity, the dividend does
not represent a recovery of a part of the cost of the investment,
and the amount of dividend can be measured reliably.
Debt instruments that do not meet the amortised cost criteria or
FVTOCI criteria are measured at FVTPL. In addition, debt
instruments that meet the amortised cost criteria or the FVTOCI
criteria but are designated as at FVTPL are measured at
FVTPL.
Impairment of financial assets
During the current financial year and previous accounting
period, there was no change in the business model under which
the group Companies holds financial assets, and therefore no
reclassifications were made. Changes in contractual cash flows
are considered under the accounting policy on Modification and
derecognition of financial assets described below.
Overview of the Expected Credit Loss (ECL) principles :
The group Companies records allowance for expected credit
losses for all loans, other debt financial assets not held at
FVTPL, together with loan commitments and financial
guarantee contracts, in this section all referred to as ‘financial
instruments’. Equity instruments are not subject to impairment
under Ind AS 109.
Expected credit losses (ECL) are a probability-weighted
estimate of the present value of credit losses. Credit loss is the
difference between all contractual cash flows that are due to the
group Companies under the contract, and all the cash flows that
the group Companies expects to receive (i.e. net cash
shortfalls), discounted at the original effective interest rate (or
credit-adjusted effective interest rate for purchased or
originated credit-impaired financial assets). The group
Companies estimates cash flows by considering all contractual
terms of the financial instrument (for example, prepayment,
extension, call and similar options) through the expected life of
that financial instrument.
The group Companies measures the loss allowance for a
financial instrument at an amount equal to the lifetime expected
credit losses if the credit risk on that financial instrument has
increased significantly since initial recognition. If the credit risk
on a financial instrument has not increased significantly since
initial recognition, the group Companies measures the loss
allowance for that financial instrument at an amount
equal to 12-month expected credit losses. 12-month expected
credit losses are a portion of the lifetime expected credit losses
and represent the lifetime cash shortfalls that result if a default
occurs within the 12 months after the reporting date and thus,
are not cash shortfalls that are predicted over the next 12
months.
Impairment losses and releases are accounted for and
disclosed separately from modification losses or gains that are
accounted for as an adjustment of the financial asset’s gross
carrying value.
A loss allowance for full lifetime ECL is required for a financial
instrument if the credit risk on that financial instrument has
increased significantly since initial recognition. For all other
financial instruments, ECLs are measured at an amount equal
to the 12-month ECL.
The group Companies measures ECL for stage 3 assets (as
defined below) on an individual basis. The measurement of the
loss allowance is based on the present value of the asset’s
expected cash flows using the asset’s original effective interest
rate (EIR).
The group Companies has established a policy to perform an
assessment, at the end of each reporting period, whether a
financial instrument’s credit risk has increased significantly
since initial recognition, by considering the change in the risk of
a default occurring over the remaining life of the financial
instrument.
Based on the above process, the group Companies categorises
its loans into Stage 1, Stage 2 and Stage 3, as described below:
Stage 3 - Non-performing assets (credit impaired assets) with
overdue more than 90 DPD.
Stage 1 - Performing assets (high quality assets) with zero to
thirty days past due (DPD). Stage 1 loans also include facilities
where the credit risk has improved and the loans has been
reclassified from Stage 2.
Stage 2 - Under-performing assets (assets for which there is
significant increase in credit risk) having 31 to 90 DPD. Stage 2
loans also include facilities, where the credit risk has improved
and the loan has been reclassified from Stage 3.
Definition of Default
The definition of default is used in measuring the amount of ECL
and in the determination of whether the loss allowance is based
on 12-
Retains the contractual rights to receive the cash flows of the
financial assets, but assumes a contractual obligation to pay the
cash flows to one or more recipients.
This expected credit loss allowance is computed based on a
provision matrix which takes into account historical credit loss
experience and adjusted for forward-looking information. The
impairment requirements for the recognition and measurement
of a loss allowance are equally applied to debt instruments at
FVTOCI except that the loss allowance is recognised in other
comprehensive income and is not reduced from the carrying
amount in the balance sheet.
A financial asset is derecognised only when :
The Financial assets for which the group Companies has no
reasonable expectations of recovering either the entire
outstanding amount, or a proportion thereof, the gross carrying
amount of the financial asset is reduced. This is considered a
(partial) derecognition of the financial asset.
Derecognition of financial assets
Where the entity has transferred an asset, the group
Companies evaluates whether it has transferred all risks and
rewards of ownership of the financial assets substantially. In
such cases, the financial assets are derecognised.
For trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are
within the scope of Ind AS 18 and loans under short term
financing, the group Companies always measures the loss
allowance at an amount equal to lifetime expected credit losses.
Further, to measure lifetime expected credit loss allowance for
trade receivables, the group Companies have used a practical
expedient as permitted under Ind AS 109.
The group has transferred the rights to receive cash flows from
the financial assets or
On derecognition of a financial asset under assignment
transaction, the difference between the carrying amount and the
consideration received shall be recognized in the statement of
Profit and Loss.
Write-off
Collateral Valuation and Repossession
Loans and debt securities are written off when the group
Companies have no reasonable expectations of recovering the
financial asset (either in its entirety or a portion of it). In such
cases, the group Companies determines that the borrower does
not have assets or sources of income that could generate
sufficient cash flows to repay the amounts subject to the write-
off. A write-off constitutes a derecognition event. The group
Companies may apply enforcement activities to financial assets
written off. Recoveries resulting from the group’s enforcement
activities result in impairment gains and are credited to
statement of profit and loss.
Financial liabilities and equity instruments
Classification as debt or equity
Debt and equity instruments issued by a group Companies
entity are classified as either financial liabilities or as equity
under the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.
Financial liabilities at FVTPL
cash (or another financial asset) for a fixed number of the
group’s equity instruments.
A financial liability is a contractual obligation to deliver cash or
another financial asset or to exchange financial assets or
financial liabilities with another entity under conditions that are
potentially unfavourable to the group Companies or a contract
that will or may be settled in the group’s equity instruments and
is a non-derivative contract for which the group Companies are
or may be obliged to deliver a variable number of its equity
instruments, or a derivative contract over own equity that will or
may be settled other than by the exchange of a fixed amount of
All financial liabilities are subsequently measured at amortised
cost using the effective interest method or at FVTPL. However,
financial liabilities that arise when a transfer of a financial asset
does not qualify for derecognition or when the continuing
involvement approach applies, financial guarantee contracts
issued by the group Companies, and commitments issued by
the group Companies to provide a loan at below-market interest
rate are measured under the specific accounting policies set out
below.
Financial liabilities
Financial liabilities are classified as at FVTPL when the financial
liability is either contingent consideration recognised by the
group Companies as an acquirer in a business combination to
which Ind AS 103 applies or is held for trading or it is designated
as at FVTPL. A financial liability is classified as held for trading
if:
it has been incurred principally for the purpose of repurchasing
it in the near term; or
.
iv.
Financial liabilities subsequently measured at amortized
cost
on initial recognition it is part of a portfolio of identified financial
instruments that the group Companies manages together and
has a recent actual pattern of short-term profit-taking; or
liability (whether or not attributable to the financial difficulty of
the debtor) is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable is
recognised in profit or loss.
Cash and cash equivalent in the balance sheet comprise cash
at banks and on hand and short-term investments with an
original maturity of three months or less, which are subject to an
insignificant risk of changes in value. For the purpose of the
statement of cash flows, cash and cash equivalents consist of
cash and short-term investments, as defined above.
Earnings per share
it is a derivative that is not designated and effective as a
hedging instrument. Financial liabilities that are not held-for-
trading and are not designated as at FVTPL are measured at
amortized cost.
Financial liabilities that are not held-for-trading and are not
designated as at FVTPL are measured at amortized cost at the
end of subsequent accounting periods. The carrying amounts of
financial liabilities that are subsequently measured at amortized
cost are determined based on the effective interest method.
Interest expense that is not capitalized as part of the costs of an
asset is included in the 'Finance costs' line item.
The effective interest method is a method of calculating the
amortized cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the
financial liability, or (where appropriate) a shorter period, to the
net carrying amount on initial recognition.
Derecognition of financial liabilities
The group Companies derecognises financial liabilities when,
and only when, the group’s obligations are discharged,
cancelled or have expired. An exchange between/with a lender
of debt instruments with substantially different terms is
accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. Similarly,
a substantial modification of the terms of an existing financial
Cash and cash equivalents
Basic earnings per share are calculated by dividing the net
profit or loss (before Other Comprehensive Income) for the year
attributable to equity shareholders (after deducting attributable
taxes) by the weighted average number of equity shares
outstanding during the year.
For calculating diluted earnings per share, the net profit or loss
(before Other Comprehensive Income) for the year attributable
to equity shareholders and the weighted average number of
shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.
o.
p.
Assets held for sale
date.
In the ordinary course of business, the group Companies does
not physically repossess properties or other assets in its retail
portfolio but generally engages external or internal agents to
recover funds generally at auctions to settle outstanding debt.
Any surplus funds are returned to the customers/obligors. As a
result of this practice, the residential properties under legal
repossession are not recorded on the balance sheet and are
treated as assets held for sale at (i) fair value less cost to sell or
(ii) principal outstanding, whichever is less, at the repossession
Investments in Subsidiaries, Joint Ventures and Associates
Investments in Subsidiaries are measured at cost less
impairment loss (if any) as per Ind AS 27 – Separate Financial
Statements.
Use of Estimates
The preparation of financial statements in conformity with the
Ind AS requires the management to make judgments, estimates
and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the accompanying
disclosure and the disclosure of contingent liabilities, at the end
of the reporting year. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimates are
revised. Although these estimates are based on the
management’s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result
in the outcomes requiring a material adjustment to the carrying
amounts of assets or liabilities in future years.
In particular, information about significant areas of estimation,
uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts
recognized in the financial statements is included in the
following notes:
Business model assessment
The group determines its business model at the level that best
reflects how it manages groups of financial assets to achieve its
business objective. The group determines its business model at
a level that reflects how financial assets as a whole and not an
individual instrument performs; therefore the business model is
developed basis a higher level of assessment at portfolio level
rather than on granular instrument-level information and is
based on observable factors such as :
(iv) How managers of the business are compensated (e.g.
whether the compensation is based on the fair value of the
assets managed or on the contractual cash flows collected).
(ii) The risks that affect the performance of the business model
(I) How the performance of the business model and the
financial assets held within that business model are
evaluated and reported to the entity’s key management
personnel.
and, in particular, the way those risks are managed.
(iii) The expected frequency, value and timing of sales are also
essential aspects of the group’s assessment.
The group’s EIR methodology recognises interest income using
a rate of return that represents the best estimate of a constant
rate of return over the expected behavioural life of loans and
recognises the effect of potentially different interest rates
charged at various stages and other characteristics of the
product life cycle (including prepayments and penalty interest
and charges). This estimation, by nature, requires an element
of judgement regarding the expected behaviour and life-cycle of
the instruments, as well expected changes to the group’s base
rate and other fee income/expense that are integral parts of the
Defined employee benefit assets and liabilities
Fair value measurement
quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The inputs
to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could
affect the reported fair value of financial instruments.
When the fair values of financial assets and financial liabilities
recorded in the balance sheet cannot be measured based on
Inputs used and the process followed by the group Companies
in determining the increase in credit risk has been detailed in
the notes to accounts on Impairment. Estimation is also
involved in the selection of forward-looking macroeconomic
scenarios and their probability weightings, to derive the
economic inputs into the ECL models.
which is dependent on the terms and conditions of the grant.
This estimate also requires determination of the most
appropriate inputs to the valuation model, including the
expected life of the share option, volatility and dividend yield
and making assumptions about them.
Share based payment
Effective interest rate method
instrument.
Estimating fair value for share-based payment transactions
requires determination of the most appropriate valuation model,
The cost of the defined benefit gratuity plan the present value of
the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the
future; these include the determination of the discount rate,
future salary increases and mortality rate. Due to the
complexities involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at the end of
each reporting date.
Impairment losses on financial assets (ECL)
When determining whether the risk of default on a financial
instrument has increased significantly since initial recognition,
the group Companies considers reasonable and supportable
information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative
information and analysis, based on the group’s historical
experience and credit assessment and including forward-
looking information. In some instances, the assessment based
on experience is required for future estimation of cash flows
which requires significant judgment.
vi.
v.
iv.
ii.q.
r.
3.
iii.
i.
Deemed cost for property, plant and equipment and other
intangible assets:
Income tax
The assessment of derecognition criteria being met involves
significant judgements. Furthermore, the measurement of the
the amount expected to be paid/recovered for uncertain tax
positions.
Exemptions and exceptions availed:
We have set out below the applicable Ind AS 101 optional and
mandatory exceptions applied in the transition from previous
GAAP to Ind AS.
Ind AS exemptions:
Companies made estimates for following items under Ind AS at
the date of transition as these were not required under the
previous GAAP:
related EIS receivable income, servicing asset and liability
requires significant estimates to be made for the discount rate,
expected portfolio life, prepayment and foreclosures.
Transition to Ind AS:
Overall principle
The group’s tax jurisdiction is in India. Significant judgments are
involved in determining the provision for income tax, including
The accounting policies set out in note 2 have been applied in
preparing the financial statements for the year ended March 31,
2020, the comparative information presented in these financial
statements for the year ended March 31, 2019, and in the
preparation of an opening Ind AS transition balance sheet as at
April 1, 2018 (the group's date of transition). In preparing it's
opening Ind AS balance sheet, the group Companies has
adjusted the amounts reported previously in financial
statements prepared under the accounting standards notified
under Companies (Accounting Standards) Rules, 2006 (as
amended) and other relevant provisions of the Act (previous
GAAP or Indian GAAP). An explanation of how the transition
from previous Indian GAAP to Ind AS has affected the group's
financial position, financial performance and cash flows is set
out in the following tables and note 42.
Excess interest spread on direct assignment
Ind AS 101 permits a first-time adopter to select to continue with
the carrying value for all of its property, plant and equipment as
recognised in the financial statements as at the date of
transition to Ind AS, measured as per the previous GAAP and
use that as its deemed cost as at the date of transition after
making necessary adjustments for de-commissioning liabilities.
This exemption has also been used for intangible assets
covered by Ind AS 38 Intangible Assets.
Accordingly, the group Companies have elected to measure all
of its property, plant and equipment and intangible assets at its
previous GAAP carrying value.
Estimates:
An entity’s estimates under Ind AS at the date of transition to
Ind AS shall be consistent with estimates made for the same
date under previous GAAP (after adjustments to reflect any
difference in accounting policies), unless there is objective
evidence that those estimates were in error. Ind AS estimates
as at 1 April 2018 are consistent with the estimates as at the
same date made in conformity with previous GAAP. The group
vii.
viii.
4.
Effective April 1, 2019, the group Companies adopted Ind AS
116 “Leases” and applied the standard to all lease contracts
existing on April 1, 2019, using the modified retrospective
method and has taken the cumulative adjustment to retained
earnings, on the date of initial application. Consequently, the
group Companies recorded the lease liability, of Rs. 455.57 lakh
(PY Nil) as at March 31, 2020, at the present value of the lease
payments, discounted at the incremental borrowing rate and the
right of use asset at its carrying amount, of Rs. 538.65 Lakh (PY
Nil) as at March 31, 2020, as if the standard had been applied
since the commencement date of the lease, but discounted at
the group’s incremental borrowing rate at the date of initial
application. Comparatives as at and for the year ended March
31, 2019, have not been retrospectively adjusted and therefore
continues to be reported under the accounting policies included
as part of our Annual Report for the year ended March 31, 2019.
Impairment of financial assets
The group Companies classify the financial assets under Ind AS
109 based on facts and circumstances that exist at the date of
transition to
Lease
Classification and measurement of financial assets
Ind AS.
The group Companies have applied the impairment
requirements of Ind AS 109 retrospectively; however, as
permitted by Ind AS 101, it has used reasonable and
supportable information that is available without undue cost or
effort to determine the credit risk at the date that financial
instruments were initially recognized to compare it with the
credit risk at the transition date.
March 31, 2020 March 31, 2019
13.92
8.87
768.92 1,688.06
24.51 13.79
5,000.00 11,310.00
5,807.36 13,020.72
- In cash credit accounts- In deposit accounts with original maturity less than 3 months or less
Total
Balances with banks:
- In current accounts
Cash in hand
5.1. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of
the Company, and earn interest at the respective short-term deposit rates.
20,544.63
30,522.00
20,544.63
30,522.00
Total
In deposits account with original maturity of more than 3 months to upto 12 months
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019 Particulars
6. Bank balances other than cash and cash equivalents
6.2. Includes deposit under lien aggregating to Rs.1,000 Lakh (as at March '31, 2019 is Nil and as at April 1, 2018 is Nil) towards guarantee
provided by the group Companies towards refinance facility provided by the National Housing Bank.
6.1. Deposits are made for varying period and earn interest at the respective fixed rates.
Particulars
At amortised costLoans given in India to other than public sector
Housing loans 107,792.42
86,063.15
Loans against properties 60,990.31
47,539.40
Interest accrued on loans 2,038.11
1,400.67
Total – Gross (A) 170,820.84
135,003.22
Less: Impairment loss allowance 1,012.35
668.01
Less: Unamortized processing fee 354.15
683.05
Total – Net (A) 169,454.34
133,652.17
(a) Secured by tangible assets 170,820.84
135,003.22
Total – Gross (B) 170,820.84
135,003.22
Less: Impairment loss allowance 1,012.35
668.01
Less: Umamortized processing fee 354.15
683.05
Total – Net (B) 169,454.34 133,652.17
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
7. Loans
5. Cash and cash equivalents (Rs. in Lakh)
As at As at Particulars
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
a) Equitable / Registered Mortgage of Property.
d) Assignment of insurance policies.
7.5 Includes loans under on-going cheque handover post completion of disbursement process but under security creation.
7.3 Collateral and Other Credit Enhancements :
Loans granted by the group Companies are secured by any or all of the following as applicable, based on their categorisation:
c) The personal guarantees of borrowers.
7.2 Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income for the group Companies. The
carrying value may be affected by changes in the credit risk of the counterparties.
b) Undertaking to create a security.
7.4 The group Companies monitors the value of collateral and will request additional collateral in accordance with the loan agreement.
7.6 There were no loans given against the collateral of gold jewellery & hence the percentage of such loan to the total outstanding assets is Nil
(as at March '31, 2019 is Nil and as at April 1, 2018 is Nil).
7,625.18 -
Carrying amount of associated liabilities -
-
Fair value of assets of the assets that represent the entity’s continuing involvement in the derecognised
financial assets (representing 90% of the outstanding amount)
7,625.18
-
Fair value of associated liabilities
Net position at FV
-
-
7,625.18
-
-
Gain or loss recognised at the date of transfer of the assets (Refer Note 9 & 27) 1,901.86
-
Carrying amount of the assets that represent the entity’s continuing involvement in the derecognised
financial assets (representing 90% of the outstanding amount)
Particulars
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
7.7 Housing Loan
An analysis of changes in the gross carrying amount and the corresponding Expected Credit Loss allowances in relation to lending is as follows;
(Rs. in Lakh)
Particulars Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Gross Carrying amount opening balance 85,555.03
427.83
80.29
86,063.15
48,926.83
148.65
-
49,075.49
New Asset Originated / purchased /
further increase in existing asset (net)
36,757.89
-
-
36,757.89
47,875.06
-
-
47,875.06
Assets derecognised or repaid
(excluding write offs)
(14,505.48) (378.44) (144.56) (15,028.48) (10,711.47) (124.00) 0.33 (10,835.13)
Transfers to/(from) Stage 1 (1,415.77)
-
-
(1,415.77)
(535.29)
-
-
(535.29)
Transfers to/(from) Stage 2 -
1,108.43
-
1,108.43
-
423.84
-
423.84
Transfers to/(from) Stage 3 -
-
307.34
307.34
-
-
111.45
111.45
Amount Written off (0.14)
-
-
(0.14)
(0.11)
(20.66)
(31.49)
(52.26)
Gross Carrying amount closing balance 106,391.53
1,157.82
243.07
107,792.42
85,555.03
427.83
80.29
86,063.15
For the year 31st March '20 For the period 31st March '19
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
7.1 Disclosure for transferred financial assets
The group Companies have derecognised certain financial assets on account of assignment without recourse. However, the group Companies
have retained 10% of the financial assets and below are the disclosures of assets and liabilities associated with the continuing involvement in
the financial assets.
Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
For the year 31st March '20 For the period 31st March '19
Reconciliation of Expected Credit Loss allowances balance is given below :
ECL Allowance - opening balance 371.59 41.06 17.66 430.32 362.31 14.27 - 376.58
New Asset Originated / purchased /
further increase in existing asset (net)
123.13
- - 123.13 12.13
-
-
12.13
Assets derecognised or repaid
(excluding write offs)
(10.11)
(36.38)
(31.80)
(78.29)
(2.71)
(11.90)
0.07
(14.54)
Transfers to/(from) Stage 1 (0.99)
-
-
(0.99)
(0.14)
-
-
(0.14)
Transfers to/(from) Stage 2 -
104.97
-
104.97
-
40.68
-
40.68
Transfers to/(from) Stage 3 -
-
67.62
67.62
-
-
24.52
24.52
Amount Written off (0.00)
-
-
(0.00)
(0.00)
(1.98)
(6.93)
(8.91)
ECL Allowance closing balance 483.63
109.65
53.47
646.75
371.59
41.06
17.66
430.32
Stage 1 allowance includes excess provision of Rs. 409.51 Lakh as at March 31, 2020 (Rs. 349.91 Lakh as at March 31, 2019 and Rs. 218.71
Lakh as at April 1, 2018).
Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
For the year 31st March '20 For the period 31st March '19
7.8 Non-Housing Loan
An analysis of changes in the gross carrying amount and the corresponding Expected credit loss allowances is as follows :
Gross Carrying amount opening balance 47,151.10
349.93
38.38
47,539.40
25,184.93
134.14
-
25,319.07
New Asset Originated / purchased /
further increase in existing asset (net)
29,920.39
-
-
29,920.39
28,220.82
-
-
28,220.82
Assets derecognised or repaid
(excluding write offs)
(16,181.10)
(208.76)
(79.51)
(16,469.38)
(5,956.42)
(35.55)
(7.02)
(5,998.98)
Transfers to/(from) Stage 1 (1,105.77)
-
-
(1,105.77)
(297.84)
-
-
(297.84)
Transfers to/(from) Stage 2 -
733.30
-
733.30
-
251.55
-
251.55
Transfers to/(from) Stage 3 -
-
372.47
372.47
-
-
46.29
46.29
Amount Written off -
(0.10)
-
(0.10)
(0.39)
(0.21)
(0.90)
(1.49)
Gross Carrying amount closing balance 59,784.61
874.37
331.33
60,990.31
47,151.10
349.93
38.38
47,539.40
Particulars
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
For the year 31st March '20 For the period 31st March '19
Reconciliation of Expected credit loss allowances balance is given below :
ECL Allowance - opening balance 195.67 33.58 8.44 237.70 190.10 12.87 - 202.98
New Asset Originated / purchased /
further increase in existing asset (net)
26.27 - - 26.27 7.15 - - 7.15
Assets derecognised or repaid
(excluding write offs)
(11.27) (20.21) (17.49) (48.98) (1.51) (3.41) (1.54) (6.47)
Transfers to/(from) Stage 1 (0.77) - - (0.77) (0.08) - - (0.08)
Transfers to/(from) Stage 2 - 69.45 - 69.45 - 24.14 - 24.14
Transfers to/(from) Stage 3 - - 81.94 81.94 - - 10.18 10.18
Amount Written off - (0.01) - (0.01) (0.00) (0.02) (0.20) (0.22)
ECL Allowance closing balance 209.89
82.80
72.89
365.59
195.67
33.58
8.44
237.70
Stage 1 allowance includes excess provision of Rs. 166.74 Lakh as at March 31, 2020 (Rs. 183.72 Lakh as at March 31, 2019 and Rs. 107.34
Lakh as at April 1, 2018).
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
8 In
ve
stm
en
ts(R
s. in
La
kh)
Th
rou
gh
Oth
er
Co
mp
reh
en
siv
e
Inc
om
e
Th
rou
gh
pro
fit
or
los
s
De
sig
na
ted
at
fair
va
lue
th
rou
gh
pro
fit
or
los
s
Su
b-T
ota
l
(1)
(2)
(3)
(4)
(5
)=(2
)+(3
)+(4
) (6
) (
7)=
(1)+
(5)+
(6)
As
as
Ma
rch
31
,20
20
Mu
tua
l fu
nd
s-
-
6,6
48
.42
-
6,6
48
.42
-
- 1
,85
6,2
08
.79
un
its o
f IC
ICI o
vern
igh
t fu
nd
DP
-
-
2,0
08
.24
-
2,0
08
.24
-
- 8
5,9
07
.21
un
its o
f H
DF
C o
vern
igh
t fu
nd
--
2,5
50
.69
-
2,5
50
.69
-
- 1
,95
,03
7.5
4 u
nits
of K
ota
k ove
rnig
ht fu
nd
--
2,0
89
.49
-
2,0
89
.49
-
Dep
osi
ts w
ith H
DF
C li
mite
d2
0,0
00
.00
-
--
--
20
,00
0.0
0
20
,00
0.0
0-
6,6
48
.42
-
6,6
48
.42
-
26
,64
8.4
2
Inve
stm
en
t ou
tsid
e In
dia
--
--
--
Inve
stm
en
t in
Ind
ia2
0,0
00
.00
-
6,6
48
.42
-
6,6
48
.42
-
26
,64
8.4
2
20
,00
0.0
0-
6,6
48
.42
-
6,6
48
.42
-
26
,64
8.4
2
Less
: A
llow
an
ce for
imp
air
men
t lo
ss (
C)
--
--
--
To
tal N
et
(D =
A -
C)
20
,00
0.0
0
-
6,6
48
.42
-
6,6
48
.42
-
26
,64
8.4
2
As
at
Ma
rch
31
, 2
01
9
Mu
tua
l fu
nd
s-
-
8,0
38
.20
-
8,0
38
.20
-
63
,68
0.8
0 u
nits
of H
DF
C li
qu
id fu
nd
- g
row
th-
-
2,3
42
.36
-
2,3
42
.36
-
5,9
57
,14
4.1
3 u
nits
of S
un
dara
m m
on
ey
fun
d -
-
-
2,3
47
.80
-
2,3
47
.80
-
79
,70
4.2
2 u
nits
of T
ata
liq
uid
fu
nd
- g
row
th-
-
2,3
46
.84
-
2,3
46
.84
-
35
,77
5.9
07
un
its o
f F
ran
klin
In
dia
liq
uid
fu
nd
--
1,0
01
.20
-
1,0
01
.20
-
--
8,0
38
.20
-
8,0
38
.20
-
Inve
stm
en
t ou
tsid
e In
dia
--
--
--
Inve
stm
en
t in
Ind
ia-
-
-8
,03
8.2
0
8,0
38
.20
-
--
-8
,03
8.2
0
8,0
38
.20
-
Less
: A
llow
an
ce for
imp
air
men
t lo
ss (
C)
--
--
--
To
tal N
et
(D =
A -
C)
--
8,0
38
.20
-
8,0
38
.20
-
To
tal
Am
ort
ise
d
co
st
At
Fa
ir V
alu
e
Oth
ers
6,6
48
.42
gro
wth
2,0
08
.24
2,5
50
.69
2,0
89
.49
To
tal (A
)
-
To
tal (B
)
-
8,0
38
.20
2,3
42
.36
gro
wth
2,3
47
.80
2,3
46
.84
1,0
01
.20
To
tal (A
)8
,03
8.2
0
-
8,0
38
.20
To
tal (B
)8
,03
8.2
0
-
8,0
38
.20
Pa
rtic
ula
rs
VA
ST
U H
OU
SIN
G F
INA
NC
E C
OR
PO
RA
TIO
N L
IMIT
ED
No
tes
to
co
ns
olid
ate
d fi
na
nc
ial s
tate
me
nt
for
the
ye
ar
en
de
d M
arc
h 3
1, 2020
As at March 31, 2020
As at March 31, 2019
Particulars
Total
Current Tax Asset (net)
(Rs. in Lakh)
Particulars
10. Current tax assets (net)
Particulars
*Refer note 34
(Rs. in Lakh)11. Deferred tax assets (net)*
Total
133.73 101.25
1,636.39
-
397.44
139.58
129.01
43.88
2,296.57
284.70
Total
Security deposits
Other receivables - Unsecured; considered good
Interest only strip receivable*
Interest accrued but not due on bank deposits
*Under Ind AS, with respect to assignment deals, the group has created an Interest only strip receivable amounting to Rs. 1,636.39 Lakh as on
March 31, 2020 (Nil as on Mar. 2019, April 01, 2018) with corresponding credit to Profit and loss for the year, which has been computed by
discounting Excess Interest Spread (EIS) to present value with necessary adjustment.
290.30 0.54
290.30 0.54
As at March 31, 2020
As at March 31, 2019
As at March 31, 2020
As at March 31, 2019
256.66 197.82
68.59 23.84
286.01 323.91
Unrealised profit on change in fair value of mutual funds (1.11) -
Impact on assignment transaction on account of EIS (419.33) -
Changes in Tax rate (19.99) -
7.80 (4.75)
178.63 540.82
Ind AS adjustment (effective interest rate on fee income and exp)
Disallowances under section 43B of the Income Tax Act, 1961
Difference between books and tax written down value of fixed assets
Impairment of financial instruments (expected credit loss)
9. Other financial assets (Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
As
set
for
ow
n u
se
Lease
hold
impro
vem
ents
*All
redeem
able
non-c
onve
rtib
le d
ebentu
res
are
secu
red o
n p
ari p
ass
u b
asi
s b
y a
firs
t ra
nki
ng
ch
arg
e b
y w
ay
of
leg
al m
ort
ga
ge
on
th
e p
rem
ise
s si
tua
ted
at C
oim
ba
tore
in th
e s
tate
of Ta
mil
Na
du
.
12. P
rop
ert
y, p
lan
t a
nd
eq
uip
men
t
As
at
Ap
ril
01,
20
19
As
at
Ap
ril
01,
20
18
As
at
Ma
rch
31
, 2
02
0
As
at
Ma
rch
31
, 2
01
9
As
at
Ma
rch
31
, 2
02
0
As
at
Ma
rch
31
, 2
01
9
Fo
r th
e
ye
ar
Fo
r th
e
ye
ar
As
at
Ap
ril
01
, 2
01
9
As
at
Ap
ril
01
, 2
01
8
As
at
Ma
rch
31
, 2
02
0
As
at
Ma
rch
31
, 2
01
9
Dis
po
sa
l
du
rin
g t
he
ye
ar
Dis
po
sa
l
du
rin
g t
he
ye
ar
Dis
po
sa
l
du
rin
g t
he
ye
ar
Dis
po
sa
l
du
rin
g t
he
ye
ar
Ad
dit
ion
du
rin
g t
he
ye
ar
Ad
dit
ion
du
rin
g t
he
ye
ar
At
Fa
ir V
alu
e
Ne
t B
loc
k
De
pre
cia
tio
n
De
pre
cia
tio
nG
los
s B
loc
k (
at
co
st)
10
.25
--
10
.25
1.9
00
.28
-2
.17
22
.54
5.3
4-
27
.88
5.4
64
.68
-1
0.2
0
23
.08
9.7
6
-
32
.85
9.1
4
2.1
4
-
11.2
8
8.3
40
.74
-
9.0
8
5.6
2
1.7
0
-
7.3
1
111
.14
84
.77
0.4
5
19
5.4
6
50
.73
39
.59
0.0
2
90
.57
175
.36
10
0.6
1
0.4
5
27
5.5
1
72
.84
48
.38
0.0
2
12
1.5
3
15
3.9
8
As
set
for
ow
n u
se
10
.25
--
10
.25
1.6
20
.28
-1
.90
8.3
5
12
.22
10
.32
-2
2.5
42
.11
3.3
4-
5.4
61
7.0
8
18
.47
4.6
1-
23
.08
8.3
70
.77
-9
.14
13
.95
Lease
hold
impro
vem
ents
6.5
71
.78
-8
.34
3.2
72
.34
-5
.62
2.7
3
107
.22
40
.07
36
.15
111
.14
45
.88
25
.47
20
.62
50
.73
60
.41
154
.73
56
.78
36
.15
17
5.3
66
1.2
63
2.2
02
0.6
27
2.8
41
02
.52
*All
redeem
able
non-c
onve
rtib
le d
ebentu
res
are
secu
red o
n p
ari p
ass
u b
asi
s b
y a
firs
t ra
nki
ng
ch
arg
e b
y w
ay
of
leg
al m
ort
ga
ge
on
th
e p
rem
ise
s si
tua
ted
at C
oim
ba
tore
in th
e s
tate
of Ta
mi N
ad
u.
8.0
8
17
.68
21
.57
1.7
7
10
4.8
9
Fu
rnitu
re a
nd fi
ttin
gs
Fu
rnitu
re a
nd fi
ttin
gs
Glo
ss
Blo
ck
(a
t c
os
t)
To
tal
Pre
mis
es*
Offi
ce e
quip
ments
Co
mp
ute
rs
Ta
ng
ible
As
set
As
at
Ma
rch
31
, 2
01
9
As
at
Ma
rch
31
, 2
01
8
(Rs.
in L
akh
)
(Rs.
in L
akh
)
8.3
5
17
.08
13
.95
2.7
3
60
.41
10
2.5
2
Pre
mis
es*
8.6
3
Offi
ce e
quip
ments
10
.11
10
.11
3.3
0
Co
mp
ute
rs6
1.3
4
To
tal
93
.48
Note
s to the
consolid
ate
d fi
na
ncia
l sta
tem
ents
for
yea
r e
ndin
g 3
1st M
arc
h 2
01
9
As
at
Ap
ril
01,
20
19
As
at
Ma
rch
31
, 2
02
0
As
at
Ma
rch
31
, 2
02
0 F
or
the
ye
ar
As
at
Ap
ril
01
, 2
01
9
As
at
Ma
rch
31
, 2
02
0
Dis
po
sa
l
du
rin
g t
he
ye
ar
Dis
po
sa
l
du
rin
g t
he
ye
ar
Ad
dit
ion
du
rin
g t
he
ye
ar
Ne
t B
loc
k
- -
39
.42
- -
75
.42
17
.67
93
.09
16
.98
56
.40
36
.69
75
.42
17
.67
93
.09
16
.98
56
.40
36
.69
39
.42
Glo
ss
Blo
ck
(a
t c
os
t)
Inta
ng
ible
as
sets
To
tal
Co
mp
ute
r so
ftw
are
As
at
Ma
rch
31
, 2
01
9
(Rs.
in L
akh
)
36
.01
36
.01
Ta
ng
ible
as
sets
De
pre
cia
tio
n
VA
ST
U H
OU
SIN
G F
INA
NC
E C
OR
PO
RA
TIO
N L
IMIT
ED
No
tes
to
co
ns
olid
ate
d fi
na
nc
ial s
tate
me
nt
for
the
ye
ar
en
de
d M
arc
h 3
1, 2020
Th
e g
roup C
om
panie
s ha
ve a
vaile
d t
he d
eem
ed c
ost
exe
mp
tion
in r
ela
tion
to
th
e p
rop
ert
y, p
lan
t a
nd
eq
uip
me
nt
on
th
e d
ate
of
tra
nsi
tion
an
d h
en
ce th
e n
et b
lock
ca
rryi
ng
am
ou
nt h
as
be
en
consi
dere
d a
s th
e g
ross
blo
ck c
arr
ying a
mount
on t
hat
date
. R
efe
r b
elo
w f
or
the
gro
ss b
lock
va
lue
an
d t
he
acc
um
ula
ted
de
pre
cia
tion
on
Ap
ril 1
, 2
01
8 u
nd
er
the
pre
vio
us
GA
AP.
A
s a
t A
pri
l
01, 2
01
8
As
at
Ma
rch
31
, 2
01
9
As
at
Ma
rch
31
, 2
01
9 F
or
the
ye
ar
As
at
Ap
ril
01
, 2
01
8
As
at
Ma
rch
31
, 2
01
9
Dis
po
sa
l
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14. Other non-financial assets (Rs. in Lakh)
As at
March 31, 2020
As at
April 1, 2019
Total
Particulars
Prepaid expenses
Particulars
(I) The principal amount and the interest due thereon remaining unpaid to any supplier at the end of
each accounting year;
(ii) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium
Enterprises Development Act, 2006, along with the amount of the payment made to the supplier
beyond the appointed day during each accounting year
(iii) the amount of interest due and payable for the period of delay in making payment (which has
been paid but beyond the appointed day during the year) but without adding the interest specified
under the Micro, Small and Medium Enterprises Development Act, 2006
(iv) the amount of interest accrued and remaining unpaid at the end of each accounting year; and
(vi) the amount of further interest remaining due and payable even in the succeeding years, until
such date when the interest dues above are actually paid to the small enterprise, for the purpose
of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium
Enterprises Development Act, 2006.
-
-
(Rs. in Lakh)
As at As at
March 31, 2019 April 1, 2018
Disclosure pertaining to Micro and Small Enterprises as at March 31,2020 are as under:
15. Assets held for sale
16. Trade payables
(Rs. in Lakh)
(Rs. in Lakh)
As at
As at
March 31, 2020
March 31, 2019
As at
April 1, 2019
As at
April 1, 2018
4.15
147.57
147.57
-
88.43
88.43
Total
Total
Particulars
Particulars
Properties obtained by taking possession (refer note below)
Payable to micro and small enterprises
The amounts due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, has been
determined to the extent of information available and compiled by the Company. This has been relied upon by the auditors.
Less: Provision for diminution in value of property
Payable to others
108.26 81.70
108.26 81.70
664.68 49.76 (12.46) -
652.22 49.76
Note: Assets held for sale represents loan value or market value of property whichever is lower of properties acquired by taking possession of
collateral held as security against loans and advances and held at the year-end. The group's policy is to realized collateral on a timely basis.
and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Assets held for sale includes Rs. 652.22 Lakhs (Previous Year Rs. 49.76 Lakhs) in respect of properties held for disposal under Securitisation
4.15
0.11
0.11
-
-
-
-
-
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
17. Debt securities
17.2. Non-Convertible Debentures (NCD) at Face Value repayable at par;
18. Borrowings (other than debt securities)
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
Total
Total
Total
Particulars
Instrument No. - fixed / variable - rate of interest
Particulars
17.1. Non-convertible debentures are secured by a first ranking exclusive and continuing charge on the hypothecated receivables in favour of the
debenture trustee and first ranking pari passu basis charge over the immovable property (on the premises situated at Coimbatore in the state
of Tamil Nadu) created by way of a mortgage (without possession) under the debenture trust deed in favour of the debenture trustee.
At amortised cost (within India)
Secured
Non-Convertible Debentures 36,153.85 41,923.08
Less: Unamortised borrowing cost (24.85) (31.78)
36,129.00 41,891.30
INE459T07017 - variable - SBI MCLR + spread 2.4%
INE459T07025 - fixed 9.95%
INE459T07033 - fixed 9.95%
INE459T07041 - fixed 9.95%
INE459T07058 - fixed 9.95%
INE459T07066 - variable - SBI MCLR + spread 3.5%
INE459T07074 - variable - SBI MCLR + spread 3.75% *
INE459T07082 - fixed 10.4%
INE459T07090 - fixed 10.4%
*Early redemption during the year.
18.1. Nature of security
As at
March 31, 2020 Maturity date As at
March 31, 2019
22/May/21 1,153.85 1,923.08
27/Feb/25 5,000.00 5,000.00
27/Feb/25 5,000.00 5,000.00
27/Feb/25 4,000.00 5,000.00
27/Feb/25 6,000.00 5,000.00
25/Aug/23 5,000.00 5,000.00
25/Aug/23 - 5,000.00
27/Nov/25 5,000.00 5,000.00
27/Nov/25 5,000.00 5,000.00
36,153.85 41,923.08
Cash credit from banks (refer note 18.4)
Term loan and cash credit from banks, term loan from NHB and other parties are secured by way of exclusive first charge and hypothecation
of specific loan receivables.
Total borrowings (other than debt securities) (A)
Less: Unamortised borrowing cost
As at
March 31, 2020
As at
March 31, 2019
22,594.65 4,383.90
48,672.69 32,564.11
19,963.83 20,149.90
1,998.64 -
93,229.81 57,097.91
(177.81) (146.19)
93,052.01 56,951.73
Term loans from banks (refer note 18.1, 18.2 & 18.3)
At amortised cost (within India)
Secured
Term loans from NHB (refer note 18.1 & 18.2)
Term loans from other parties (refer note 18.1, 18.2 & 18.3)
18.2 Terms of repayment & rate of interest in case of borrowings (other than debt securities)(Rs. in Lakh)
1-3 years Up to one year 3-5 years
As at 31.03.2020
5 years & aboveResidual maturities
Term loan from NHB - Quarterly
Variable Rate 7.4% - 8.15% 2,693.18 7,118.08 6,018.08 6,765.31
Term loan from banks & other parties - half yearly
Variable Rate 9.55% 450.00
945.00 - -
Term loan from banks & other parties - quarterly
Fixed Rate 9.63% - 11.00% 1,160.00
9,199.58 6,166.67 -
Variable 9.40% - 10.57% 10,573.13 15,906.52 2,979.17 -
Term loan from banks & other parties - monthly
Fixed Rate 9.5% - 9.85% 2,666.21
4,965.25 62.16 -
Variable 9.4% - 11.05% 3,690.21 7,138.46 2,734.18 -
21,232.73
45,272.89
17,960.25
6,765.31
Total
1-3 years Up to one year 3-5 years
As at 31.03.2019
5 years & aboveResidual maturities
Term loan from NHB - Quarterly
Variable Rate 9.05% - 10.50 % 254.98
611.68
611.68
2,905.56
Term loan from banks & other parties - half yearly
Variable Rate 10% 270.00
1,080.00
315.00
-
Term loan from banks & other parties - quarterly-
Fixed Rate 9.63 - 10.95 % -
1,160.00
4,017.92
3,583.33
Variable 9.5 - 10.84 % 5,807.15
11,331.35
2,737.50
-
Term loan from banks & other parties - monthly
Fixed Rate 9.5 - 9.85 % 2,419.46
5,652.76
2,040.86
-
Variable 9.95 - 11.30 % 3,603.64
5,667.17
3,027.88
-
13,515.23 28,360.87 12,316.26 2,905.56Total
18.5 There has been no default in repayment of principal and/or interest for borrowing as per the repayment schedules during the year. Further,
the Company is compliant of the covenants mentioned in the respective borrowing's deeds.
18.3 For variable interest rate borrowings, rate of interest is linked to the MCLR/base rates of the banks and is subject to change from time to
time. The above categorisation of loans has been based on the interest rates, prevalent as on the respective reporting dates.
18.4 The rate of interest for the cash credit from bank, repayable on demand, ranges from 10.00% to 12.00%.
19. Other financial liabilities (Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
Total
Particulars
5,774.26
9,548.61
475.52
204.46
10.91 11.99
455.57 -
1,716.39 1,328.82
8,432.64 11,093.87
Interest accrued but not due on borrowings
Employee benefits payable
Other financial liabilities
Book overdraft
Lease rental liability
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
(Rs. in Lakh)
Total
Total
Particulars
Particulars
Total
Total
Particulars
Particulars
Particulars
20. Current tax liabilities (net)
21. Provisions
22. Other non-financial liabilities
23. Equity share capital
Less than one year
One to three years
More than three years
Current tax liability (net)
Provision for employee benefits - gratuity (refer note 39)
Other non-current financial liabilities
Instalments received in advance
Statutory dues
Issued, subscribed and paid up
5,18,45,527 Equity Shares of ₹ 100 each
(FY 2019 and FY 2018 - 3,53,82,180 Equity Shares of ₹ 100 each)
Authorised
10,00,00,000 Equity Shares of ₹ 100 each
(FY 2019 10,00,00,000 FY 2018 6,00,00,000, Equity Shares of ₹ 100 each)
As at
As at
March 31, 2020
March 31, 2020
As at
As at
March 31, 2019
March 31, 2019
As at
As at
As at
March 31, 2020
March 31, 2020
March 31, 2020
As at
As at
As at
March 31, 2019
March 31, 2019
March 31, 2019
260.40 -
153.97 -
41.20 -
455.57 -
- 143.68
- 143.68
160.21
79.05
160.21 79.05
158.90 54.77
126.62
270.47
1.51
4.84
287.03
330.08
100,000.00 100,000.00
100,000 100,000
51,845.53 35,382.18
Particulars
23.1. (a) Reconciliation of number of shares outstanding at the beginning and at the end of the reporting period:
Shares outstanding at the beginning of the year
Shares issued under right issue
As at March 31, 2019
Shares issued under ESOP
Shares outstanding at the end of the year
As at March 31, 2020
Rs in LakhNumberRs in LakhNumber
35,382,180
16,413,347
50,000
51,845,527
35,382.18
16,413.35
50.00
51,845.53
35,382,180
-
-
35,382,180
35,382.18
35,382.18
-
-
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2020 on an undiscounted basis:
51,845.53 35,382.18
23.1. (b) Rights, Preferences and Restrictions
Particulars
Plenty Private Equity Fund I Limited
As at March 31, 2019As at March 31, 2020
%NumberNumber
35,273,730 68.04% 27,290,421 77.13%
The Company has only one class of equity shares, having a par value of Rs.100 per share. Each shareholder of equity shares is eligible for one
vote per share. The dividend, if any, proposed by the Board of Directors, is subject to the approval of the shareholders at the ensuing Annual
General Meeting except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares shall be eligible to
receive the remaining assets of the Company, after distribution of all preferential amounts, in the proportion of their shareholding.
23.1. (c) List of shares held by Holding Company
%
Particulars
Plenty Private Equity Fund I Limited
Plenty CI Fund I Limited
Multiples Private Equity Fund II LLP
As at March 31, 2019As at March 31, 2020
%NumberNumber
35,273,730 68.04% 27,290,421 77.13%
23.1. (d) List of shareholders holding more than 5% shares
%
9,663,707 18.64% - -
3,864,856 7.45% 8.61%3,045,664
During the period the company has issued equity shares at a premium of Rs.130 (face value Rs.100) aggregating to Rs.37,750.70 Lakh (face
value Rs. 16,413.35 Lakh) through right issue.
During the year 2018-19, the Company had introduced 2 ESOP schemes. The primary objective of the ESOP 2018 Scheme I & II is to reward
the key employees for their association, dedication and contribution to the goals of the Company. The Company intends to use this ESOP
2018 - Scheme I & II to attract, retain and motivate critical talents working with the Company, by way of rewarding their high performance and
motivate them to contribute to the overall corporate growth and profitability. The Company views employee stock options as long-term
incentive tools that would enable the employees not only to become shareholders but also to create potential wealth out of such shareholding
in future.
The stock option granted to eligible employees operate under the employee stock option plan: Employees Stock Options Plan 2018 Scheme I
and Employees Stock Options Plan 2018 Scheme II. (Refer Note 40)
23.3. Equity shares reserved for issue under stock options.
24. Other equity (Rs. in Lakh)
- 34,363.59
3,704.28 1,752.65
Securities premium 21,376.71 -
111.99 111.99
Share option outstanding account 1,335.01 1,074.41
10,123.93 3,066.17
36,651.92 40,368.81
Particulars
Share application money pending allotment
Retained earnings
Total
Statutory / Special Reserve
General reserve
Note: For additions and deductions under each of the above heads, refer statement of changes in equity
As at
March 31, 2020
As at
March 31, 2019
(Rs. in Lakh)
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
ANNUAL REPORT 2019-2020
Vastu Housing Finance Corporation Limited |
23.2.
The statutory reserve is the reserve created by transferring a sum not less than twenty per cent of the group's net profit after tax every year in
terms of Section 29 C of the National Housing Bank Act, 1987 and Section 45-IC of the Reserve Bank of India Act, 1934. For this purpose, any
special reserve created by group Companies under section 36(1)(viii) of the Income Tax Act, 1961 is considered to be an eligible transfer.
Further, the group Companies doesn't anticipate any withdrawal from the statutory reserve in the foreseeable future.
Securities premium account is used to record the premium on issue of shares.
Statutory reserve:
Retained earnings:
This reserve relates to stock options granted by the group Companies to employees under various ESOP schemes. This reserve is transferred to
securities premium account on exercise of vested options.
Share option outstanding account
General reserve
The general reserve created from time to time by transferring profits from retained earnings for appropriation purpose.
Securities premium
Retained earnings are the profits that the group Companies has earned till date, less any transfers to general reserve, statutory reserve,
dividends or other distributions paid to shareholders.
25. Interest income (Rs. in Lakh)
22,896.27 15,035.11
15,035.11
Particulars
On financial assets measured at amortised cost
Total
- Interest on loans
For the year ended
March 31, 2020
22,89627
For the year ended
March 31, 2019
Loan origination income included in Interest income on Loan is disclosed net of the direct incremental costs of Rs. 686.88 lakh for year ended
March 31, 2020 (P.Y. 386.97 lakh) associated with the origination of the underlying loans.
26. Fees and commission income (Rs. in Lakh)
301.07 371.31
371.31
Particulars
Total
Login fee and other charges
For the year ended
March 31, 2020
301.07
For the year ended
March 31, 2019
27. Net gain on derecognition of financial instruments (Rs. in Lakh)
1,636.39 -
-
Particulars
Total
On assignment of portfolio
For the year ended
March 31, 2020
1,636.39
For the year ended
March 31, 2019
28. Other operating income (Rs. in Lakh)
238.25
Particulars
Total
Other charges (cersai, cancellation, cheque bouncing charges, etc.)
For the year ended
March 31, 2020
238.25
For the year ended
March 31, 2019
95.65
95.65
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
29. Other income (Rs. in Lakh)
Particulars For the year ended
March 31, 2020
For the year ended
March 31, 2019
Net gain/loss on fair value changes (realised) 477.24 189.20
Net gain/loss on fair value changes (unrealised) 13.11 8.20
Interest Income on fixed deposit 2,697.30 885.37
Discount on buyback of debenture 60.32 -
Income from display of advertisement 939.86 826.95
Training development and consultancy charges 131.30 199.05
Profit on sale of property, plant & equipment 0.02 10.50
Other misc. income 1.45 0.48
Total 4,320.60 2,119.75
Particulars For the year ended
March 31, 2020
For the year ended
March 31, 2019
30. Finance costs
6,648.46 3,889.03
4,273.90 2,933.46
27.35 -
Interest Expense on lease liabilities 41.24 -
70.93 105.57
11,061.87 6,928.06
On financial liabilities measured at amortised cost
Total
Interest on borrowings (other than debt securities)
Interest on debt securities
Interest on overdraft facility
Other interest expense
Particulars For the year ended
March 31, 2020
For the year ended
March 31, 2019
31. Impairment on financial instruments
344.33 296,03
432.18 356.76
On financial liabilities measured at amortised cost
Total
Provision for expected credit loss
Bad debt written off (net)
Diminution in value of properties (unrealized)
75.38
12.46
60.72
-
Particulars For the year ended
March 31, 2020
For the year ended
March 31, 2019
32. Employee benefits expense
4,138.89 3,190.84
218.23 149.69
63.45 32.28
Employee stock option scheme (refer note 40) 299.95 1,074.41
57.97 29.25
Salaries, bonus and other allowances
Contribution to provident fund and other funds (refer note 39)
Staff welfare and training expenses
Gratuity (refer note 39)
4,778.49 4,476.47Total
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
33. Other expenses (Rs. in Lakh)
Particulars For the year ended
March 31, 2020
For the year ended
March 31, 2019
Rent, taxes and energy costs 129.29 245.40
Communication costs 201.85 120.51
Advertisement and publicity 18.98 3.72
Printing and stationery 69.05 84.49
Repairs and maintenance 67.95 52.51
Insurance 85.50 38.60
Auditor’s fees and expenses (refer details below) 62.65 29.91
Legal & professional charges 305.65 196.44
Corporate social responsibility (refer note 38) 73.78 -
Travelling and conveyance 29.77 36.31
ROC fees and stamp duty 93.97 0.60
Other expense (indirect tax reversal, admin exp. etc.) 73.07
59.59
Director’s fees, allowances, and expenses 3.48
5.30
1,215.00 873.37Total
34. Payment to auditor (Rs. in Lakh)
Particulars For the year ended
March 31, 2020
For the year ended
March 31, 2019
a) For audit 36.25
23.16
b) For taxation matter 2.50
2.00
c) For other services (limited review) etc. 23.90
5.01
Total 62.65 30.17
Current tax 2,329.44
1,528.88 Deferred tax 368.90
(349.64)
Total income tax expenses recognised in the current year 2,698.34
1,179.24
Income tax expense recognised in other comprehensive income (8.60)
(3.79)
Income tax expense for the year reconciled to the accounting profit:
Profit before tax 11,741.67 4,942.45
Income tax rate 25.63% 27.82%
Income tax expense 3,059.61
1,374.96
Tax effect of:
Effect of Ind AS adjustments (net) (520.99)
-
Provision for special reserve (237.28) -
Others (including tax adjustment for earlier years) 28.10 153.92
Income tax expense recognised in Profit and Loss 2,329.44 1,528.88
34. 1. Reconciliation of total tax charge (Rs. in Lakh)
Particulars For the year ended
March 31, 2020
For the year ended
March 31, 2019
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
34. 2. The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:
a. For the year ended March 31, 2020
b. For the year ended March 31, 2019
(Rs. in Lakh)
(Rs. in Lakh)
Recognised inother comprehensive
income
Recognised inother comprehensive
income
Opening balances
as on 01.04.2019
Opening balances
as on 01.04.2018
Closingbalances as on
31.03.2020
Closingbalances as on
31.03.2019
Recognised in profitor loss (Expense) /
Income
Recognised in profitor loss (Expense) /
Income
Total
Total
Deferred tax asset / (liability)
Deferred tax asset / (liability)
8.60
3.79
540.82
187.39
178.63
540.82
(368.90)
349.64
Impairment of financial instruments Ind AS adjustment (effective interest rate onfee income and exp)
197.82 58.84 - 256.66
323.91 (37.90) - 286.01
Changes in the Tax Rate - (19.99) - (19.99)
Disallowances under section 43B of the
Income Tax Act, 1961
23.84 37.15 8.60 68.59
Impact on assignment transaction on
account of EIS
- (419.33) - (419.33)
Difference between books and tax written
down value of fixed assets
(4.75) 12.56 - 7.80
Impairment of financial instruments 102.19 95.63 - 197.82
Ind AS adjustment (effective interest rate on
fee income and exp, EIS on assignment)
90.97 232.94 323.91
Disallowances under section 43B of the
Income Tax Act, 1961
9.12 10.93 3.79 23.84
Difference between books and tax written
down value of fixed assets
(14.90) 10.14 - (4.75)
(Rs. in Lakh)
Contingent liabilities*
Capital commitments:
Undisbursed commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for
*Bank guarantee aggregating to Rs 1,000 Lakhs to National Housing Bank against refinance assistance.
As at
March 31, 2020
As at
March 31, 2019
1,000.00
-
6,851.58 4,706.72
- -
Unrealised profit on change in fair value of mutual funds
(1.11)-(1.11) -
35. Contingent Liabilities and commitments
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
(Rs. in Lakh)
(Rs. in Lakh)
For the Year Ended
March 31,2020
For the Year Ended
March 31,2020
For the Year Ended
March 31,2019
For the Year Ended
March 31,2019Particular
Profit attributable to equity shareholders (Rs. in Lakh) 9,029.56
3,609.48
50,687,921
35,382,180
Dilutive effect of stock option (Nos.) 667,551 313,283
51,355,472 38,195,463
Basic earnings per share (Rs.) 17.81
10.20
Diluted earnings per share (Rs.) 17.58
9.45
Nominal value per share (Rs.)
The Company operates in a single reportable operating segment of providing loans. Accordingly, there are no separate reportable segments,
as per the Accounting Standard on 'Operating Segments' (Ind AS 108) prescribed under section 133 of the Companies Act, 2013.
a Gross amount required to be spent by the group Companies during the year – Rs. 56.26 lakh (Previous Year, Rs. 17.52 lakh)
The Company operates a defined contribution plan (Provident fund & ESIC) for all qualifying employees of the Company. The employees of the
Company are members of a retirement contribution plan & ESIC operated by the government. The Company is required to contribute a specified
percentage of payroll cost to the retirement contribution scheme & ESIC to fund the benefits. The only obligation of the Company for the plan is to
make the specified contributions.
The liability under the Payment of Gratuity Act,1972 is determined based on the actuarial valuation made at the end of each financial year using
the projected unit credit method. The plan is of a final salary defined benefit in nature which is sponsored by the group Companies, and hence it
underwrites all the risks of the plan. The actuarial risks associated are:
b Operating expense include Rs. 41.50 lakhs (Previous Year, Rs. Nil) towards CSR in accordance with Companies Act, 2013.
The Company has its operation within India, and all revenues generated within India.
37. Segment reporting
38. Expenditure towards corporate social responsibility as per Section 135 of the Companies Act, 2013 (read with schedule VII thereof)
39. Employee benefit
Defined contribution plan
Defined benefit obligation plan
100.00
110.00
Weighted average number of equity shares outstanding during the year for calculating basic
earnings per share (Nos.)
Weighted average number of equity shares outstanding during the year for calculating for diluted earnings per share (Nos.)
1. Construction / acquisition of asset
Amount spent - -
Amount unpaid / provision - -
2. On purposes other than above
Amount spent 41.50
-
Amount unpaid / provision 32.28
-
(Rs. in Lakh)
March 31, 2020 March 31, 2019 April 1, 2018 Particulars
Employers Contribution to Provident Fund 215.42 149.69 92.79
36. Earning per equity share
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
The details of amount spent in respective year towards CSR as follows;
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
a. The assumptions used for the purposes of the actuarial valuations were as follows;
b. Amount recognised in the balance sheet
c. Expenses recognized in the statement of profit and loss
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
March 31, 2020
March 31, 2020
March 31, 2020
March 31, 2019
March 31, 2019
March 31, 2019
April 1, 2018
April 1, 2018
April 1, 2018
Particulars
Particulars
Particulars
Significant assumption
Closing present value of obligations
Discount rate
Closing fair value of plan assets
Salary escalation rate
Liability recognised in the balance sheet
Mortality rate table
Other assumption
6.35%
160.21
-
12.00%
160.21
IALM 2012 - 14
7.10%
79.05
-
12.00%
79.05
IALM 2012 - 14
7.80%
33.04
-
12.00%
33.04
IALM 2006 - 08
Investment / interest rate risk:
Longevity risks:
Salary risks:
The group Companies are exposed to Investment / Interest risk if the return on the invested fund falls below the discount rate used to arrive at
the present value of the benefit.
The group Companies are unexposed to the risk of employees living longer since benefit under the scheme ceases on the employee separating
from the employer for any reason.
Current service cost 41.78 26.46 20.40
Past service cost -
0.89
-
Interest cost 5.80
4.92
2.58
Expected return on plan assets -
-
-
Losses / (gains) on “Curtailments and Settlements” -
-
-
Total expenses to be recognized in the statement of profit and loss
Remeasurements on the net defined benefit liability :
47.58
32.27
22.98
Actuarial losses / (gain) 33.57
13.74
(4.72)
Total expenses to be recognized in the other comprehensive income 33.57
13.74
(4.72)
Total 81.15
46.01
18.26
The gratuity benefits under the plan are related to the employee’s last drawn salary. Consequently, any unusual rise in future salary of the
employee raises the quantum of benefit payable by the group Companies, which results in a higher liability for the group Companies and is,
therefore, a plan risk for the group Companies.
The following table summarises the component of net benefit expense recognised in the statement of profit and loss and amounts recognised in
the balance sheet for the individual plans based on actuarial report and relied upon by auditors.
d. Change in in the present value of the defined benefit obligation are as follows:
e. Changes in the fair value of plan assets are as follows:
g. Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase. The
sensitivity analysis below has been determined based on reasonable possible changes of the assumptions occurring at the end of the reporting
period, while holding all other assumptions constant. The results of sensitivity analysis are as follows :
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
March 31, 2020
March 31, 2020
March 31, 2019
March 31, 2019
April 1, 2018
April 1, 2018
2015 - 162016 - 172018 - 19 2017 - 182019 - 20
Particulars
Particulars
Particulars
Opening present value of obligation 79.05
33.04
14.77
Current service cost 41.78
26.46
20.40
Interest on defined benefit obligation 5.80
4.92
2.58
Remeasurements (gains) / losses:
- Actuarial gain from change in demographic assumptions
Benefits paid -
-
-
Past service cost -
0.89
0.00
Liabilities assumed on acquisition / (settled on divestiture) -
-
-
Closing present value of obligations 160.20 79.05 33.04
13.74
33.57
-4.72
- Actuarial loss from change in financial assumptions
- Actuarial gain from change in experience adjustments
Opening fair value of plan assets - - -
Expected return on plan assets - - -
Actuarial gains / (losses) - - -
Contributions by employer -
-
-
Benefits paid -
-
-
Closing fair value of plan assets -
-
-
Defined benefit obligation 159.26 79.05 33.04 14.77 2.25
Plan asset -
- - - -
Surplus / (deficit) (159.26) (79.05) (33.04) (14.77) (2.25)
Experience adj. on plan liabilities 23.79
9.48 7.54 2.76 -
Experience adj. on plan asset -
- - - -
Expected contribution next year 12.28
0.16 0.09 0.03 -
(Rs. in Lakh)
Particulars
Defined benefit obligation on increase
in 50 bps
Impact of increase in 50 bps on DBO
Impact of increase in 50 bps on DBO
Defined benefit obligation ondecrease in 50 bps
Discount rate Discount rateSalary
Escalation RateSalary
Escalation Rate
March 31, 2019March 31, 2020
154.57 165.84 78.68 84.40
-3.51% 3.52% -3.76% 3.24%
166.17 154.83 85.02 79.23
3.73% -3.35% 3.99% -3.08%
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
f.
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.
There is no change in the method of valuation for the prior periods in preparing the sensitivity analysis. For change in assumptions refer to note
(a) above
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. It's applied in calculating the defined benefit obligation asset recognised in the
balance sheet.
h. Projected benefits payable:
The weighted average duration to the payment of these cash flows is 7.31 years (FY2018-19 : 7.75 years, FY 2017- 18 : 8.47 years)
40. Employee stock option plan
Employees stock options plan 2018 - Scheme I
Employees stock options plan 2018 - Scheme II
The Board of Directors took the decision to introduce Vastu Employees Stock Option Scheme, 2018 (hereinafter called “Employees Stock
Options Plan 2018 – Scheme I” or referred as “The Scheme”) at the meeting held on 21st July 2017. The shareholders approved it at the Annual
General Meeting held on 23rd March 2018. The plan provides for the issuance of stock options to eligible employees based on the ESOP
committee’s recommendations. Under the plan, the options vest not later than the maximum period of 10 (Ten) years from the date of the Grant
The Board of Directors took the decision to introduce Vastu Employees Stock Option Scheme, 2018 (hereinafter called “Employees Stock
Options Plan 2018 – Scheme II” or referred as “The Scheme”) at the meeting held on 8th August 2018. The shareholders approved it at the
Annual General Meeting held on 21st August 2018. The plan provides for the issuance of stock options to eligible employees based on the ESOP
committee’s recommendations. Under the plan, the options vest not later than the maximum period of 10 (Ten) years from the date of the Grant
Pursuant to Rule 12(9) of Companies (Share Capital and Debentures) Rules, 2014, the details of the Vastu Employees Stock Option Scheme,
(Rs. in Lakh)
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
Scheme IIScheme I
Particulars
Particulars
Expected benefits for year 1 12.28 0.16
Expected benefits for year 2 19.30 7.66
Expected benefits for year 3 21.64 11.72
Expected benefits for year 4 20.02 13.36
Expected benefits for year 5 17.83 12.06
Expected benefits for year 6 to 9 50.60 28.62
Expected benefits for year 10 years and above 135.12 83.24
Scheme Name Employees Stock
Options Plan 2018
Employees Stock
Options Plan 2018
Options approved to be issued as ESOPs 2,000,000 500,000
Date of Grant 22nd Apr. 2018 2nd Nov. 2018
Options granted 1,841,400 462,500
Method of Settlement Equity Equity
Pursuant to Rule 12(9) of Companies (Share Capital and Debentures) Rules, 2014, the details of the Vastu Employees Stock Option
Scheme, 2018 as on 31st March 2020 are :-
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
a. Reconciliation of options
b. Balance outstanding at the end of the year are as follows
(Rs. in Lakh)
(Rs. in Lakh)
Particulars
Particulars
Shares arisingfrom Option
Nos.
Shares arisingfrom Option
Nos.
Wt. avg.exercise price
Exercise price
Wt. avg.exercise price
Exercise price
As at 31st March '19
As at 31st March '19
As at 31st March '20
As at 31st March '20
Scheme IOutstanding at the beginning of the year 1,841,400
100
-
-
Granted -
-
1,841,400
100
Exercised 50,000
100
-
-
Reinstated -
-
-
-
Lapsed -
-
-
-
Forfeited -
-
-
-
Outstanding at the end of the year 1,791,400
100
1,841,400
100
Scheme IIOutstanding at the beginning of the year 462,500
100
-
-
Granted -
-
462,500
100
Exercised -
-
-
Reinstated -
-
-
-
Lapsed -
-
-
-
Forfeited -
-
-
-
462,500
100
462,500
100
Outstanding at the end of the year
Vested Options
Scheme I 1,301,810 100 973,548 100
Scheme II 277,500 100 185,000 100
Un-Vested Options
d. Following amount has been recognized as an expense and included in 'Note 32 - Employee benefit expenses' and total carrying
amount at the end of the period.
Scheme I 489,590 100 867,852 100
Scheme II 100 100
2018 - 19
2018 - 19
2019 - 20
2019 - 20
c. Weighted average remaining life of the of the ESOP outstanding
Particulars
Scheme I
Expense arising from equity settled share based payment transaction
1.34
299.95
2.33
1,074.41
Scheme II
Carrying amount at the end of the period
2.00
1,335.01
3.00
1,074.41
-
185,000 277,500
(Rs. in Lakh)
(Rs. in Lakh)
e. Fair value of the options granted;
b. Disclosure of related party transactions:
Scheme II
31-Mar-19
Scheme I
31-Mar-20
Particulars
Nature of transactions
Note :The remuneration to the key managerial personnel does not include the provisions made for gratuity benefits, as
they are determined on an actuarial basis for the Company as a whole.
The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise
patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a year similar to the life of the options
is indicative of future trends, which may not necessarily be the actual outcome.
41. Related party disclosures
a. List of related parties:
Share price as on the date of grant (INR) 130 130
Exercise price (INR) 100 100
Expected volatility (%) 12.25% 12.25%
Life of the options granted (years) 9.07 9.6
Risk free interest rate (%) 7.35% 7.35%
Expected dividend rate (%) Nil Nil
Fair value of options as per black scholes (INR) 178.71 180.67
ii. Key Managerial Personnel (KMP)
iii. Other Related Company
Plenty Private Equity Fund I Limited
People Strong Technologies Private Limited
- having common director (related party by virtue of sec2(76)(iv))
Managerial remunerations (included in employee benefit exps.)
Sandeep Menon - Managing Director 362.25
300.00
Sujay Patil - Chief Financial Officer 168.50
145.00
Pallavi Bhambere - Company Secretary 7.71
5.61
People Strong Technologies Private Limited
Software License 3.35 -
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
i. Holding Company
c. There are no transaction other than sitting fees paid to Non-Executive director details are as under:
31-Mar-1931-Mar-20Nature of transactions
Sitting Fees
Puranam Hayagreeva Ravikumar 1.75 3.50
Girija Shankar Nayak 0.75 1.80
Sandeep Menon - Managing Director
Sujay Patil - Chief Financial Officer
Pallavi Bhambere - Company Secretary
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
42. First-time Ind AS adoption reconciliations
42.1. Reconciliation of total equity as at March 31, 2019 and April 01, 2018 and profit or loss for the year ended March 31, 2019:
Note: Related party relationship is as identified by the company and relied upon by the auditors. The transactions with related parties are
disclosed only till the relationship exists
(Rs. in Lakh)
Particulars Note No.As at
April 01, 2018As at
March 31, 2019Year ended
March 31, 2019
Equity Reconciliation Net profit Reconciliation
Net profit / equity as per previous GAAP 3,765.47 39,853.17 1,317.25
IndAS Adjustments:
Provision for Expected Credit Loss e 142.83 253.66 110.83
Effective interest rate for financial assets and liabilities at amortised cost g (178.12) (505.28) (327.16)
Reclassification of actuarial gains and losses on employee benefit plans to
other comprehensive income
j 9.95 8.86 (1.10)
Fair value of financial assets c & f 8.20
8.20
-
Fair value of employee stock option i (667.41)
-
-
Rent equalization and interest free deposit c & f (2.09)
(4.81)
(2.71)
Reversal of deferred tax liability on special reserve h 337.44
510.37
172.93
Deferred tax impact on above 193.21
253.35
60.14
Total (155.99)
524.36
12.93
Net profit / equity for the year as per Ind AS 3,609.34
40,377.53
1,330.18
Other comprehensive income (net of tax) (9.95)
(8.86)
1.10
Total comprehensive income / equity as per Ind AS
42.2. Effect of Ind AS adoption on the statement of cash flows for the year ended March 31, 2019:
3,599.53 40,368.67 1,331.28
(Rs. in Lakh)
As per Previous
GAAP Effect of ransition
to Ind AS As per Ind ASBalance sheetParticulars
Net cash flow from operating activities (55,775.87) (1,306.75) (54,469.12)
Net cash flow (used in) investing activities (35,292.23) 3,747.27 (39,039.51)
Net cash flow (used in) financing activities
The cash flow adjustments are primarily on account of Ind AS reclassification.
85,856.50 99.00 86,007.50
Net (decrease) / increase in cash and cash equivalents (4,961.61) 2,539.52 (7,501.13)
Cash and cash equivalents at the beginning of the year 20,503.33 (18.52) 20,521.85
Cash and cash equivalents at the end of the year 15,541.72 2,521.00 13,020.72
For the periods up to and including the year ended March 31, 2019, the group Companies prepared its financial statements under the accounting
standards notified under Section 133 of the Companies Act, 2013, read together with the Companies (Accounting Standards) Rules, 2006, as
amended (Previous GAAP). Accordingly, the group Companies has prepared its first financial statements to comply with Ind AS for the year
ending March 31, 2020, together with comparative information as at and for the year ended March 31, 2019. In preparing these financial s
tatements, the group Companies prepared its opening Balance Sheet as of April 1, 2018, i.e. the transition date to Ind AS for the group. Previous
GAAP financial statements as on April 1, 2018, being transition date and for the previous year ended March 31, 2019, have been restated as per
Ind AS.
Exemption availed
The group Companies has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognised
as of April 1, 2018 (the transition date), measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition
date under Ind AS.
Under Indian GAAP, the group Companies have created provision for loans and advances based on the Guidelines on prudential norms issued
by National Housing Bank and Reserve Bank of India. Under Ind AS, impairment allowance has been determined based on the Expected Loss
model (ECL). However, as the group have little historical information about its own credit loss experience, the expected credit loss has been
calculated based on self-experience, peer group experience for comparable financial instruments as allowed as per Ind AS 109.
Deferred tax on special reserve :
The application of Ind AS 12 approach has resulted in the various transitional adjustments being temporary differences. Accordingly, the group
Companies have accounted for such differences. Adjustments recognised in correlation to the underlying transaction either in retained earnings,
OCI or profit and loss, respectively.
Share-based payments :
The group Companies have classified the financial assets under Ind AS 109 based on facts and circumstances that exist at the date of transition
to Ind AS.
Deemed cost for property, plant and equipment and intangible assets :
Impairment of financial assets
Investments
Effective interest rate (EIR) :
Classification and measurement of financial assets :
recognized and compared that to the credit risk as at April 1, 2018.
Under previous GAAP, transaction costs (processing fee) charged to customers was recognised upfront while under Ind AS, such costs are
included in the initial recognition amount of financial asset and recognised as interest income using the effective interest method. Similarly,
Under Indian GAAP, transaction costs incurred in connection with loans and advances are amortised upfront and charge to profit and loss for the
year. Under Ind AS, transactions cost are included in the initial recognition amount of financial assets measured at amortised cost and charged
to profit and loss using the effective interest method.
Fair value of financials assets and liabilities :
Expected credit loss on financial assets
As per Ind AS exemption, the group Companies has not fair valued the financial assets and liabilities retrospectively and has measured the
same prospectively.
The group Companies have applied the exception related impairment of financial assets given in Ind AS 101. It has used reasonable and
supportable information that is available without undue cost or effort to determine the credit risk at the date that financial assets were initially
Under Previous GAAP, Investments in Mutual Funds are valued at Lower of Cost or Net Assets Value. Under Ind AS the same has been
classified
Under previous GAAP, transaction costs incurred on borrowings was charged to statement of profit and loss while under Ind AS, such costs are
included in the initial recognition amount of financial liabilities and recognised as interest expense using the effective interest method.
Under previous GAAP, as per NHB and RBI guidelines, the deferred tax liability is required to be created on special reserve. Creation of
deferred tax liability
on account of the special reserve is not required under IND AS and the same is reversed.
Under previous GAAP, the cost of equity-settled employee share-based payments was recognised using the intrinsic value method. Under Ind
AS, the cost of equity-settled employee share-based payments is recognised based on the fair value of the options as on the grant date. The
change does not affect total equity, but there is a decrease in profit.
Defined benefit obligation :
Both under previous GAAP and Ind AS, the group Companies recognised costs related to its post-employment defined benefit plan on an
actuarial basis. Under Previous GAAP, the entire cost, including actuarial gain and losses, are charged to profit or loss. Under Ind AS,
remeasurements comprising of actuarial gains and losses are recognised in other comprehensive income (OCI).
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
j.
i.
h.
g.
f.
e.
d.
c.
b.
a.
43. Maturity Analysis of Assets and Liabilities
54,784.07 131,545.21Total
Particulars
186,329.2859,776.47 166,933.58 226,710.05
Within 12
months
After 12
months
31st March '19
Total
(Rs. in Lakh)
Within 12
months
After 12
months
31st March '20
Total
Assets
Financial assets
Cash and cash equivalents 5,807.36 - 5,807.36 13,020.72 - 13,020.72
Bank balances other than (a) above 19,544.63 1,000.00 20,544.63 30,522.00 - 30,522.00
Loans 6,446.58 163,007.77 169,454.34 2,938.00 130,714.17 133,652.17
Investments 26,648.42 - 26,648.42 8,038.20 0.00 8,038.20
Other financial assets 975.46 1,321.11 2,296.57 183.45 101.25 284.70
59,422.44 165,328.87 224,751.31 54,702.37 130,815.42 185,517.79
Non financial assets
Current tax assets (net) - 290.30 290.30 - 0.54 0.54
Deferred tax assets (net) - 178.63 178.63 - 540.97 540.97
Property, plant and equipment -
153.98
153.98
-
102.52
102.52
Other intangible assets -
36.69
36.69
-
36.01
36.01
Right of use asset 245.76
292.89
538.65
-
-
-
Other non-financial assets 108.26
-
108.26
81.70
-
81.70
354.02
952.49
1,306.52
81.70
680.04
761.74
Asset held for sale -
652.22
652.22
-
49.76
49.76
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
Sr. No.
A
I
a
b
c
d
e
II
a
b
c
d
e
f
III
Liabilities
Financial liabilities
Trade payables - 151.72 88.43 - 88.43
Debt securities 30,366.70 36,129.00 41,122.62 41,891.30
Borrowings (other than debt securities) 69,878.41 93,052.01 43,436.50 56,951.73
Other financial liabilities 8,237.47 195.16 8,432.64 - 11,093.87
151.72
B
a
b
c
d
I
Non-financial liabilitiesII
Current tax liabilities (net)
Provisions
Deferred tax liabilities
Other non-financial liabilities
a
b
c
d
5,762.30
23,173.60
37,325.09
26,019.17 84,559.12Total 186,329.2837,612.12 100,600.48 138,212.60
287.03
287.03
-
-
-
160.21
160.21
-
-
-
100,440.27 137,765.37
447.24
160.21
-
-
287.03
768.68
13,515.23
11,093.87
25,466.21
143.68
79.05
0.15
330.08
552.97
-
-
-
-
-
84,559.12 110,025.33
143.68
79.05
0.15
330.08
552.97
Total
As at March 31, 2020
To achieve this overall objective, the group's capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in financial covenants would permit
the lender to call loans and borrowings immediately. Under the terms of the significant borrowing facilities, the group Companies have complied
with the covenants throughout the reporting period.
The following table combines comparable information about:
- fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:
- classes of financial instruments based on their nature and characteristics
- the carrying amounts of financial instruments
- fair values of financial instruments (except financial instruments when carrying amount approximates their fair value); and
As at March 31, 2020
Accounting classifications and fair values
Cash and cash equivalents -
5,807.36
5,807.36
-
-
-
Other bank balances -
20,544.63
20,544.63
-
-
-
-
169,454.34
169,454.34
-
-
-
6,648.42
20,000.00
26,648.42
6,648.42
-
-
Other financial assets -
2,296.57
2,296.57
-
-
-
6,648.42
218,102.90
224,751.31
6,648.42
-
-
Assets Held for Sale 652.22 - 652.22 - 652.22 -
Financial liabilities
-
147.57
147.57
-
-
-
-
36,129.00
36,129.00
-
-
-
Borrowings (other than debt securities) -
93,052.01
93,052.01
-
-
-
Other financial liabilities -
8,432.64
8,432.64
-
-
-
-
137,761.22
137,761.22
-
-
-
Debt to Equity Ratio (in times)
For the purpose of the group's capital management, capital includes issued capital and other equity reserves.
The group Companies manages its capital to ensure that the group would be able to continue as going concern while maximizing the return to
stakeholders through the optimization of the debt and equity balance.
Financial assets
Loans
Investments
Total
Trade payables
Debt securities
Level 2Amortised Cost Level 3Total
Fair ValueCarrying Value
Level 1FVTPL Total
-
-
-
6,648.42
-
6,648.42
652.22
-
-
-
-
-
(Rs. in Lakh)
Particulars
Debt
Total Equity
44.2. Fair Value
44. Financial instruments
44.1. Capital management
The group maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy
requirements of National Housing Bank (NHB) and Reserve Bank of India (RBI). The adequacy of the group’s capital is monitored using,
among other measures, the regulations issued by NHB and RBI. The group Companies have complied with the applicable capital
requirements over the reported period.
(Rs. in Lakh)
98,843.03
75,750.99
1.30
As at March 31, 2019
129,181.01
88,497.44
1.46
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
Total
As at March 31, 2019 Level 2Amortised Cost Level 3Total
Fair ValueCarrying Value
Level 1FVTPL
Cash and cash equivalents
Other bank balances
Other financial assets
Assets Held for Sale
Financial liabilities
Borrowings (other than debt securities)
Other financial liabilities
Financial assets
Loans
Investments
Total
Trade payables
Debt securities
Total
(Rs. in Lakh)
- 13,020.72 13,020.72 - - -
- 30,522.00 30,522.00 - - -
- 133,652.17 133,652.17 - - -
-
-
-
-
-
- 284.70
284.70
-
-
-
177,479.59
177,479.59
-
-
-
49.76 -
49.76
-
49.76
-
- 88.43
88.43
-
-
-
- 41,891.30
41,891.30
-
-
-
- 56,951.73
56,951.73
-
-
-
- 11,093.43
11,093.43
-
-
-
- 110,025.33
110,025.33
-
-
-
-
-
-
-
-
49.76
-
-
-
-
-
-
-
a) All loans are floating interest bearing thus, amortised costs equals their fair value.
b) For financial assets and liabilities measured at amortised cost other than as mentioned in (a) above, the group Companies considers that the
carrying amounts recognised in the financial statements approximate their fair values except as under:
Fixed rate debt securities March 31, 2019March 31, 2020
Carrying Value
Debt securities & borrowings other than short term debt 48,874.32 54,219.87
Note: Fair value is determined by discounting the contractual cashflows using weighted average rate of variable rate borrowing.
c) Asset held for sale - Real estate properties are valued on the basis of a well progressed sale process with price quotes from real estate valuers.
(Rs. in Lakh)
March 31, 2019March 31,2020
Fair Value
55,492.70 48,819.20
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
44.3. Financial risk management
Risk management framework
The Company has exposure to the following risks arising from financial instruments:
Credit risk;
Operational risk;
Liquidity risk; and
Market risk (including interest rate risk)
Risk Management is an integral part of the group's business strategy with a focus on building risk management culture
across the organization. The Risk Management oversight structure includes Committees of the Board and Senior
Management Committees. Risk Management Framework which lays down guidelines for Risk identification, assessment
and monitoring as an on-going process that is supported by a robust risk reporting framework. It entails the establishment
of robust systems and processes within the Risk Management Framework to mitigate risks effectively. Risk Management at
the group Companies cover Credit Risk, Market Risk, Operational Risk, Fraud Risk and other risks, such as compliance
risk, reputation risk and other risks.
The group’s Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. The Board of Directors has constituted several committees, including the Audit Committee, the Asset Liability
Management Committee, Risk Management Committee and defined their role for monitoring the risk management policies
of the group Companies.
The Risk management framework adopted is enabled by the risk-oriented Company level culture characterized by:
1. The rigour and discipline required in managing the portfolio and transactional risk are embedded in the Vastu culture with a
consensus that risk management is everyone’s responsibility.
2. Staff members across all verticals appreciate it and actively partake in ensuring that risk management remains strong, even
as the Company makes incremental strides in its business growth.
3. An iterative process of identifying and evaluating risks, setting risk strategies, and monitoring results are within the oversight
by Senior Management & Board of Directors, via Risk Management Committee.
Risk Management systems have been evaluated in detail and are discussed at every Board meeting by the Risk
Committee outside of Board meeting. Detail review of Risk MIS, Portfolio quality reports, collection MIS, Data analytics
report and various other analytics and risk matrix are the cornerstones of Vastu's Risk Management which has been
certified as best in class and indicated by performance.
i) Credit risk
Credit risk refers to the risk of the inability of the borrower to repay the loan availed due to any circumstance. In any lending
operation, credit risk remains on the top of all risks to be managed well. Therefore, managing credit risk in the business has
remained a priority. The credit risk management framework that has been put together by Vastu constitutes a robust
alignment of the following:
Well-constructed detailed manuals guiding the teams on the group Companies policies and processes which are approved
by the Board backed by technology, analytics and decision science. The documents articulate in detail the various products
and programs that can be offered to the customers, with clearly defined norms for all the credit parameters across all product
variants and programs.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
An experienced, well-trained, professional team are working on exercising adequate rigour and discipline in the process of
customer assessment. The team undergoes adequate refresher training sessions and interactive sessions with the senior
leadership at frequent intervals reinforcing the rigour and discipline required in the evaluation process. The credit appraisal
process used by the team encompasses identification of underlying risks, mitigating factors and residual risks associated
with the customer.
The credit team works closely with the relationship management team in ensuring that growth of the business in every
location is well supported while maintaining the focus on the asset quality.
Data science know-how supporting the underwriting process, wherein a well-curated data scoring model, produces an
application-level score, defining the probability of default for each loan at the time of approval. This score supports the credit
decision process at each loan level, even as the qualitative factors of each loan are appraised in detail by the team.
Structured and standardized credit approving process, which includes a well-established procedure of comprehensive credit
appraisal across all the markets.
State-of-the-art technology platform built In-house to support the capture of data, information and other details
required for decision making. The technology application is available to the users on their mobile phones for use. Every staff
member, when they meet a customer for collection of any data, information or document, the mobile application facilitates
the capture of the same. Vastu is the first group to implement an entirely paperless loan approval and disbursal process.
Measurement, monitoring and reporting of the Credit risk are regularly done during periodic reviews and Risk Management
Committee meetings using detailed Portfolio Quality reports.
Credit Approval Authority
As a part of the risk management framework, the group Companies has well-defined metrics for delegation of authorities for
standard approvals and deviation approvals. The sanctioning authorities delegated to individual staff members, based on
defined norms of the group Companies on the staff members' experience, position and knowledge of the business.
The group Companies measures, monitors, and manages credit risk at an individual borrower level and at the group
exposure level for other borrowers. Actual credit exposures, credit limits and asset quality are regularly monitored and
analyzed at various levels.
Exposure to Credit Risk and Concentration
The carrying amount of financial assets represents the maximum credit exposure. The group’s concentrations of risk are
managed based on Loan to value (LTV) segregation as well as geographical spread. LTV calculated by the gross amount of
the loan to the value of the collateral at origination. Average Loan to Value for Vastu is at 38%, and only 13% of the portfolio
has LTV > 70%. Vastu has a well-balanced portfolio across all operating states and does not contribute to > 16- 17% in any
of the states. Vastu portfolio is highly granular, with majority business categories contributing less than 3%, representing
diverse elements in the supply chain that deal in goods which are domestic consumption-led, focus on daily needs, are
standalone businesses that are mostly B2B models, have a loyal customer base, and have a resilient business
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
The group Companies follows a bureau led approach besides of right customers, the launch of new markets with high
delinquencies. The group Companies has a dedicated team to develop a robust technology platform to digitize processes,
risk management and analytics. It enables the sales officer to input customer records online, digitize customer documents,
record customer discussions, and check the credit score real-time. The system backed by data science, analytics along with
a physical on- ground model where every customer met by a Vastu employee and personal credit decision done has
The group Companies caters to primarily from low, middle and high income salaried and self-employed individuals in Tier
2/3/4 markets. The founder team, the board, and the management focused on prudent underwriting practices, 100% in-
house fulfilment, 100% retail book, stable higher credit-rated customer (>63% of customers with a CIBIL score of more than
700 and good Bureau vintage), a higher proportion of self-constructed properties to manage asset quality and local
economy focused business lines. Along with the intense focus on self-employed self-construction and resale properties
(77% of the book) it is ensured Vastu is not exposed to the risk of financing under construction apartment by Tier II, III
builders.
enabled the team to pursue leads with a higher probability of sanctions while rejecting weak applications upfront and
reducing incidents of frauds and misrepresentations.
The group's credit officers evaluate credit proposals based on active credit policies as on the date of approval. A structured
and standardized credit approval process includes customer selection criteria, comprehensive credit risk assessment and
cash flow analysis, which encompasses an analysis of relevant quantitative and qualitative information to ascertain the
creditworthiness of a potential customer. The criteria also 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.
Risk Management and Portfolio Review
Credit Risk Assessment methodology for retail Loans
The group Companies caters to primarily from low, middle and high income salaried and self employed individuals in Tier 2/
3/ 4 markets. The founder team, the Board, management has focused on prudent underwriting practices, 100% in-house
fulfilment, 100% retail book, Stable higher credit-rated customer (>63% of customers with a CIBIL score of more than 700
and good Bureau vintage), a higher proportion of self-constructed properties to manage asset quality and local economy
focused business lines. Along with the intense focus on Self Occupied Self construction and resale properties (77% of the
book) ensures Vastu not exposed to the risk of financing under construction apartment by Tier II, III builders has a
comprehensive portfolio monitoring process under which there is a monthly review of portfolio asset quality and efficiency of
its collection processes. The portfolio monitoring process engages all the members of senior leadership in studying the
behaviour of various portfolio segments. These reviews are done in the monthly Risk Management Committee meetings.
Based on these reviews, well-informed, data-driven decision are taken in giving the future direction to the policies of the
group Companies. The collection efficiency review focusses on formulating and implementing location-based collection
strategies. In this manner, group Companies 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.
As a part of the RMC meetings, the group Companies also reviews various other process adherences for retail borrowers,
to ensure that the terms of sanctions and disbursements have been met. The technology platform of the group Companies
has appropriate mechanisms to carve out and publish exception at granular, segmental levels that help in ensuring a well-
structured watch on process adherence.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
The group Companies have a central monitoring unit that on an on-going basis, conducts a thorough review and audit of the
quality of the credit appraisal and documentation that has been done by the different teams across locations. This process
ensures that any gaps noticed in the location level processing of the loans are immediately identified, and corrective action
is taken. There is also an internal auditor who independently reviews adherence to policies and processes, carries out an
internal audit and briefs the Audit Committee and the Board periodically.
The group company’s current credit risk grading framework comprises the following categories:
Basis for recognising expected credit lossesCategory
Stage 1
Stage 2
Stage 3
Outstanding between 0 to 30 days
Outstanding between 31 to 90 days
Outstanding for more than 90 days
The key elements in calculation of ECL are as follows:
PD - The Probability of Default is an estimate of the likelihood of default over a given time horizon. A default may only
happen at a specific time over the assessed period if the facility has not been previously derecognised and s still in
the portfolio. The PD has been determined based on the historical behaviour of the book & roll rates for retail and
comparative financial instruments of peer group companies.
EAD – The estimated credit exposure at point of default
The table below shows the credit quality and the exposure to credit risk based on the year-end stage classification.
The amounts presented are gross of impairment allowances.
LGD - The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is
based on the difference between the contractual cash flows due and those that the lender would expect to receive,
including from the realisation of any collateral. It is usually expressed as a percentage of the EAD. The LGD is
determined based on valuation of collaterals and other relevant factors
Category
Stage 1 – High quality assets Loan 166,176.14 693.53 165,482.61
Loan 2,032.19 192.45 1,839.74
Loan 574.40 126.37 448.03
Stage 2 – Assets for which there is significant increase in
credit risk
Stage 3 - Credit impaired assets
(Rs. in Lakh)
As at March 31, 2020
Net Carrying
Amount
Expected
Credit Loss
Gross Carrying
Amount
Assets category
168,782.73 1,012.35 167,770.38Total
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
Category
Stage 1 – High quality assets Loan 132,706.13 567.26 132,138.86
Loan 777.76 74.64 703.12
Loan 118.67 26.11 92.56
Stage 2 – Assets for which there is significant increase in
credit risk
Stage 3 - Credit impaired assets
(Rs. in Lakh)
As at March 31, 2019
Net Carrying
Amount
Expected
Credit Loss
Gross Carrying
Amount
Assets category
133,602.56 668.01 132,934.54Total
(Rs. in Lakh)
(Rs. in Lakh)
Stage 2
Stage 2
Stage 1
Stage 1
Stage 3
Stage 3
Total
Total
FY 2019-20
FY 2018-19
Gross carrying amount opening balance 132,706.13 777.76 118.67 133,602.56
New assets originated or purchased 66,678.28 - - 66,678.28
Assets derecognised or repaid (excluding write offs) (30,686.58) (587.20) (224.08) (31,497.86)
Transfers to Stage 1 (2,521.54) - - (2,521.54)
Transfers to Stage 2 -
1,841.73
-
1,841.73
Transfers to Stage 3 -
-
679.81
679.81
-
-
-
-
Amounts written off (0.14)
(0.10)
-
(0.24)
Gross carrying amount closing balance 166,176.14 2,032.19 574.40 168,782.73
Changes to contractual cash flows due to modifications not
resulting in derecognition
Gross carrying amount opening balance 74,111.76 282.79 - 74,394.55
New assets originated or purchased 76,095.87 - - 76,095.87
Assets derecognised or repaid (excluding write offs) (16,667.88) (159.55) (6.69) (16,834.12)
Transfers to Stage 1 (833.13)
-
-
(833.13)
Transfers to Stage 2 -
675.38
-
675.38
Transfers to Stage 3 -
-
157.74
157.74
-
-
-
-
Amounts written off (0.50)
(20.86)
(32.39)
(53.75)
Gross carrying amount closing balance 132,706.13 777.76 118.67 133,602.56
Changes to contractual cash flows due to modifications not resulting in derecognition
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
(Rs. in Lakh)
Stage 2Stage 1 Stage 3 TotalFY 2019-20
567.26 74.64 26.11 668.01
New assets originated or purchased 149.40 - - 149.40
Assets derecognised or repaid (excluding write offs) (21.38) (56.60) (49.30) (127.27)
Transfers to Stage 1 (1.76) - - (1.76)
Transfers to Stage 2 - 174.42 - 174.42
Transfers to Stage 3 - - 149.56 149.56
Amounts written off (0.00) (0.01) - (0.01)
693.53 192.45 126.37 1,012.35ECL allowance - closing balance
ECL allowance - opening balances
(Rs. in Lakh)
Stage 2Stage 1 Stage 3 TotalFY 2018-19
552.41 27.14 - 579.55
New assets originated or purchased 19.28 - - 19.28
Assets derecognised or repaid (excluding write offs) (4.22) (15.31) (1.47) (21.01)
Transfers to Stage 1 (0.21) - - (0.21)
Transfers to Stage 2 - 64.82 - 64.82
Transfers to Stage 3 - - 34.70 34.70
Amounts written off (0.00) (2.00) (7.13) (9.13)
567.26 74.64 26.11 668.01ECL allowance - closing balance
ECL allowance - opening balances
Significant estimates and judgements related to Impairment of financial assets
The impairment provisions for financial assets disclosed above are based on assumptions about the risk of default and
expected loss rates. The group Companies uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on the group’s history, existing market conditions as well as forward-looking estimates at the
end of each reporting period.
The group’s first year full year of operation was FY 2016-17 and accordingly up to date of transition very little historical
information about its own experience of impairment is available. As on 31.03.2018, no account was above 90 days past
dues, whereas as on 31.03.2019 only 9 such accounts were there.
In such scenarios, peer group experience for the comparable financial instrument (or groups of financial instruments) used
as prescribed in Ind AS.
The group Companies have a sound operational process framework and infrastructure, which governs and mitigates the
operational risks that arise in the business. Operational risks refer to risk of loss arising from failure of any of the internal
processes, people frauds, vendor frauds, system malfunctions or from any external events. The operations risk
management framework for the group Companies consists of the following components:
ii) Operational risk
- A comprehensive system of internal controls, wherein the performance of each unit/branch is monitored against defined
thresholds. Thresholds are defined for various operational risk areas. These thresholds are monitored regularly, which
helps in identification and assessment of various operational risks, managing and responding to specific operational
incidents and mitigation through appropriate process and control enhancements.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
liquidity ratios considered while reviewing the liquidity position.
- A sound network of professional vendors across the country to support the group Companies in its process of collateral
evaluation. This network consists of lawyers and valuation agencies which operate under the close supervision of the
local and Head Office teams of the group Companies. Every security that comes to Vastu as a part of its loan is evaluated
thoroughly by the lawyers for a clear title and inspected by a valuer for determination of the market value. These
processes ensure that there is adequate security cover available to Vastu during the process of lending. The title
certification as a clear and marketable property is necessary for the group Companies to respond in default situations
where actions under SARFAESI or any other laws may be required.
- Fully technology-enabled to process pre and post disbursal processes and account maintenance. The home-grown
mobile application used by the frontend teams to collect data and sanction the loans is seamlessly integrated with the
back-end system to provide automated feeds, effecting smooth processing of loans with all checks and controls in place.
iii) Liquidity risk
Liquidity risk is the current and prospective risk arising out of an inability to meet financial commitments as they fall due,
through available cash flows or the sale of assets at fair market value. It includes both the risk of unexpected increases in
the cost of funding an asset portfolio at appropriate maturities and the risk of being unable to liquidate a position on time
at a reasonable price.
The group Companies manages liquidity risk by maintaining sufficient cash and marketable securities and by having
access to funding through an adequate amount of committed credit lines. Given the need to fund various products, the
group Companies maintains flexibility in funding by maintaining availability under committed credit lines to meet
obligations when due. Management regularly monitors the position of cash and cash equivalents vis-à-vis projections.
Assessment of maturity profiles of financial assets and financial liabilities, including debt financing plans and maintenance
of Balance Sheet
The group Companies manages liquidity risk under our asset-liability management policy. This policy is framed as per the
current regulatory guidelines and approved by the Board of Directors. The asset-liability management policy reviewed
periodically to incorporate changes as required by regulatory stipulation or to realign the policy with changes in the
economic landscape. The asset-liability committee (ALCO) of the group Companies formulates and reviews strategies
and provides guidance for management of liquidity risk within the framework laid out in the asset-liability management
policy.
The group Companies have the right to draw upon these lines of credit based on its requirement and terms of draw down.
The group Companies has undrawn lines of credit of Rs. 51,000 lakhs, Rs. 18,800 lakhs and Rs.4,300 lakhs as of March
31, 2020, March 31, 2019 and April 1,2018 respectively, from its bankers for working capital requirements.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
(Rs. in Lakh)
(Rs. in Lakh)
1 - 3 years
1 - 3 years
0 - 1 year
0 - 1 year
Carrying amount
Carrying amount
3 - 5 years
3 - 5 years
Contractual cash flows
Contractual cash flows
More than 5 years
More than 5 years
March 31, 2020
March 31, 2019
The following are the details of Company’s remaining contractual maturities of financial liabilities and assets at the reporting date. The amounts
are gross and undiscounted.
Exposure to liquidity risk
Financial liabilities
Trade payables 151.72
151.72
-
-
-
Debt securities 36,129.00
5,762.30
372.01
19,994.69
10,000.00
Borrowings (other than debt securities) 93,052.01
23,173.60
45,177.47
17,935.63
6,765.31
Other financial liabilities 8,432.64
8,237.47
158.06
37.10
-
Total 137,765.37
37,325.09
45,707.53
37,967.43
16,765.31
Financial Assets
Cash and cash equivalents 5,807.36
5,807.36
-
-
-
Bank balances other than (a) 20,544.63
19,544.63
1,000.00
-
-
Loans 169,454.34
6,446.58
11,029.74
14,561.20
137,416.82
Investments 26,648.42
26,648.42
-
-
-
Other financial assets 2,296.57
983.83
628.83
483.71
200.20
Total 224,751.31 59,430.81 12,658.57 15,044.92 137,617.01
Financial liabilities
Trade payables 88.43
88.43
-
-
-
Debt securities 41,891.30
768.68
1,152.97
9,992.41
29,977.24
Borrowings (other than debt securities) 56,951.73
13,515.23
28,360.87
12,316.26
2,759.37
Other financial liabilities 11,093.87
11,093.87
-
-
-
Total 110,025.33
25,466.21
29,513.84
22,308.67
32,736.61
Financial Assets
Cash and cash equivalents 13,020.72
13,020.72
-
-
-
Bank balances other than (a) 30,522.00
30,522.00
-
-
-
133,652.17
2,938.00
7,412.95
9,922.60
113,378.62
Investments 8,038.20
8,038.20
-
-
0.00
Other financial assets 284.70
183.45
-
101.25
-
Total 185,517.79
54,702.37
7,412.95
10,023.85
113,378.62
Loans
The gross inflows disclosed in the above table represent the contractual undiscounted cash flows relating to financial
liabilities held for risk management purposes and which are not usually closed out before contractual maturity.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
iv) Market risk (interest risk)
The group's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management section of this note.
Exposure to interest rate risk
The group Companies are exposed to interest rate risk as it has assets and liabilities based on floating interest rates as
well. The group Companies have an approved Asset and Liability Management Policy which empowers the Asset and
Liability Management Committee (ALCO) to assess the interest rate risk run by it and provide appropriate guidelines to
the Treasury to manage the risk. The ALCO reviews the interest rate risk periodically and decides on the asset profile
and the appropriate funding mix. The ALCO reviews the interest rate gap statement and the interest rate sensitivity
analysis.
(Rs. in Lakh)
March 31, 2020 March 31, 2019
45,544.63 41,622.00
168,781.39 135,003.22
214,326.02 176,625.22
54,219.87 48,874.32
75,163.79 50,146.67
129,383.66
99,020.99
Financial assets
Fixed-rate instruments
Floating-rate instruments
Total
Financial liabilities
Fixed-rate instruments
Floating-rate instruments
Total
If interest rates had been 100 basis points higher or lower and all other variables were constant, the group's profit before tax
would have changed by the following:
Fair value sensitivity analysis for Floating-rate instruments
The sensitivity analysis below has been determined based on exposure to the interest rates for financial instruments at the
end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant
throughout the reporting period in case of instruments that have floating rates.
(Rs. in Lakh)
Particulars
Floating rate loans
Floating rate borrowings
100 bps higher 100 bps lower 100 bps higher 100 bps lower
March 31, 2019March 31, 2020
1,687.81 (1,687.81) 1,350.03 (1,350.03)
(1,293.84) 1,293.84 (990.21) 990.21
393.98 (393.98) 359.82 (359.82)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
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8
(Rs
in L
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9.
Sr
No
Pa
rtic
ula
rs
(Rs
in L
akh
)
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ou
nt
As %
of
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nso
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d
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fit
or
loss
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ou
nt
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of
co
nso
lid
ate
d o
ther
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mp
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en
siv
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inco
me
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ou
nt
As %
of
tota
l
co
mp
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en
siv
e
inco
me
Am
ou
nt
88,6
92.5
5102.1
6%
9,2
24.8
1
100.0
0%
(24.9
6)
102.1
7%
9,1
99.8
4
(195.1
0)
-2.1
6%
(195.2
4)
0.0
0%
-
-2.1
7%
(195.2
4)
--
-
-
-
-
-
88,4
97.4
4100.0
0%
9,0
29.5
6
100.0
0%
(24.9
6)
100.0
0%
9,0
04.6
0
Net
Assets
, i.
e.,
to
tal
assets
min
us t
ota
l li
ab
ilit
ies
Sh
are
in
pro
fit
or
loss
Sh
are
in
oth
er
co
mp
reh
en
siv
e
inco
me
Sh
are
in
to
tal
co
mp
reh
en
siv
e
inco
me
(Rs
in L
akh
)
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ou
nt
As %
of
co
nso
lid
ate
d
pro
fit
or
loss
Am
ou
nt
As %
of
co
nso
lid
ate
d o
ther
co
mp
reh
en
siv
e
inco
me
Am
ou
nt
As %
of
tota
l
co
mp
reh
en
siv
e
inco
me
Am
ou
nt
75
,75
0.8
51
00
.00
%3
,60
9.3
4
100.0
0%
(9.9
5)
10
0.0
0%
3,5
99
.39
0.1
40
.00
%0
.14
0.0
0%
-
0.0
0%
0.1
4
--
-
-
-
-
-
75
,75
0.9
9100.0
0%
3,6
09
.48
100.0
0%
(9.9
5)
100.0
0%
3,5
99
.53
Net
Assets
, i.
e.,
to
tal
assets
min
us t
ota
l li
ab
ilit
ies
Sh
are
in
pro
fit
or
loss
Sh
are
in
oth
er
co
mp
reh
en
siv
e
inco
me
Sh
are
in
to
tal
co
mp
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en
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inco
me
Ad
dit
ion
al In
form
ati
on
as
req
uir
ed
by P
ara
gra
ph
2 o
f th
e g
en
era
l in
str
uc
tio
n o
f p
rep
ara
tio
n o
f C
on
so
lid
ate
d fi
na
nc
ial s
tate
me
nt
to S
ch
ed
ule
III t
o t
he c
om
pa
nie
s
Ac
t 2013 f
or
the
ye
ar
en
de
d M
arc
h 3
1,2
019
46. A
dd
itio
na
l In
form
ati
on
as
req
uir
ed
by P
ara
gra
ph
2 o
f th
e g
en
era
l in
str
uc
tio
n o
f p
rep
ara
tio
n o
f C
on
so
lid
ate
d fi
na
nc
ial s
tate
me
nt
to S
ch
ed
ule
III t
o t
he c
om
pa
nie
s
A
ct
2013 f
or
the
ye
ar
en
de
d M
arc
h 3
1,2
020
VA
ST
U H
OU
SIN
G F
INA
NC
E C
OR
PO
RA
TIO
N L
IMIT
ED
NO
TE
S T
O C
ON
SO
LID
AT
ED
FIN
AN
CIA
L S
TA
TE
ME
NT
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31
, 2
02
0
As %
of
co
nso
lid
ate
d n
et
assets
Vast
u H
ou
sin
g F
inan
ce
Corp
ora
tion
Lim
ited
100.2
2%
Vast
u F
inse
rve In
dia
Priva
te
-0.2
2%
Non
-con
trolli
ng
In
tere
sts
in
-
100.0
0%
Nam
e o
f th
e e
nti
ty i
n t
he
Gro
up
As %
of
co
nso
lid
ate
d n
et
assets
Vast
u H
ou
sin
g F
inan
ce
Corp
ora
tion
Lim
ited
100.0
0%
Vast
u F
inse
rve In
dia
Priva
te
0.0
0%
Non
-con
trolli
ng
In
tere
sts
in
-
100.0
0%
Nam
e o
f th
e e
nti
ty i
n t
he
Gro
up
Pare
nt
Su
bsid
iary
Lim
ited
Su
bsi
dia
ry
To
tal
Pare
nt
Su
bsid
iary
Lim
ited
Su
bsi
dia
ry
To
tal
47. The spread of COVID-19 across the globe and India has contributed to a significant decline and volatility in economic activity and financial
markets. The outbreak of the virus has already been declared a global pandemic by the World Health Organization (WHO) on March 11, 2020.
On March 24, 2020, the Indian government announced a strict 21-day lockdown which was further extended by 19 days. The extent to which
the COVID-19 pandemic will impact the group’s results will depend on future developments, which are highly uncertain, including, among other
things, any new information concerning the severity of the said pandemic and any action to contain its spread or mitigate its impact whether
government mandated or elected by the group Companies.
The group Companies holds provisions as at March 31, 2020 against the potential impact of COVID-19 based on the information available at this
point in time. The provisions held by the group Companies are in excess of the RBI prescribed norms.
In accordance to guidelines on COVID 19 - regulatory package issued by RBI dated March 27, 2020 and April 17, 2020, the group Companies
would be granting a moratorium of three months on the payment of all installments as applicable, falling due between March 1, 2020 and May
31, 2020 to all eligible borrowers classified as Standard, even if overdue, as on February 29, 2020. For all such accounts where the moratorium
is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the
moratorium period for the purposes of asset classification).
50.There is no amount due and payable to micro and small suppliers registered under the Micro, Small and Medium Enterprises Development Act,
2006 at the end of the year other than as disclosed. No interest has been paid/ is payable by the group Companies during / for the year to these
‘Suppliers’ other than as disclosed. The above information takes into account only those suppliers who have submitted their registration details or
has responded to the inquiries made by the group Companies for this purpose.
In the opinion of the management, the loans and advances are approximately of the value stated, if realized, paid in ordinary course of business.
The provision for all known liabilities is adequate and is not in excess of amount considered reasonably necessary.
49.Balance grouped under loans and advances in certain cases are subject to confirmation and reconciliation. Impact of the same, if any, shall be
accounted as and when determined, which are not expected to be material.
51.Previous year figures have been re-grouped / re-arranged and re-classified wherever necessary, to conform to current year's classification.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
In terms of our report attached
(Rs in Lakh)
Mar-20 Mar-19
- -
Particulars
Expenditure in Foreign Currency
48. Expenditure in foreign currency
1.
Key Audit Matter How our audit addressed the Key Audit Matter
Transition to Ind AS accounting framework (as described in note 42 of the Ind AS financial statements)
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements prepared in accordance with Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (‘the Act’) read with Companies (Indian Accounting Standards) Rules, 2015, as amended, (‘Ind AS’), gives the information required by the Act in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2020,the profits (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Vastu Housing Finance Corporation Limited (‘Company’), which comprise the Standalone Balance Sheet as at 31st March 2020, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Change in Equity, the Standalone Statement of Cash Flows for the year then ended and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “standalone financial statements”).
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the ‘Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements’ section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and
To the Members of Vastu Housing Finance Corporation Limited
Basis for Opinion
Emphasis of Matter
we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
We draw attention to Note 47 to the standalone Ind AS financial statement, which describes the extent to which the Covid-19 pandemic will impact the Company’s standalone financial statement will depend on the future developments, which are highly uncertain. our opinion is not modified in respect of this matter.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matter to be communicated in our report.
Ind AS is applicable to the Company with effect from April 1, 2019. Accordingly, the Company has prepared financial statements whichcomply with Ind AS for the period ended March 31, 2020. In preparing these financial statements, the Company’s opening balance sheet under Ind AS was prepared as at 1 April 2018, the Company’s date of transition to Ind AS.
The transition has involved significant change in the Company’s policies and processes relating to financial reporting, including generation of reliable and supportable information. Further, the management has exercised significant judgement for giving an appropriate effect of the first-time adoption principles of Ind AS 101, as at transition date and to determine the impact of the new accounting framework on certain accounting and disclosure requirements prescribed under extant National Housing Bank (NHB) directions.
In view of the complexity and the resultant risk of material misstatement arising from an error or omission in correctly implementing the principles of Ind AS at the transition date, which could result in a misstatement of one or more
Read the Ind AS impact assessment performed by the management to identify areas to be impacted on account of Ind AS transition.
Understood the financial statement closure process and the additional controls (including IT controls) established by the Company for transition to Ind AS.
Assessed the judgement exercised by the management in applying the first-time adoption principles of Ind AS 101 especially in respect of fair valuation of assets and liabilities existing as at transition date.
Assessed the judgement applied by the Company in determining its business model for classification of financial assets.
Performed test of details on the accounting adjustments posted as at the transition date and in respect of the previous year to convert the financial information reported under erstwhile Indian GAAP to Ind AS.
Read changes made to the accounting policies in light of the requirements of the new framework.
2.
3.
4.
Independent Auditors’ Report
Key Audit Matter How our audit addressed the Key Audit Matter
Transition to Ind AS accounting framework (as described in note 42 of the Ind AS financial statements)
Impairment of financial asset (expected credit loss)
periods presented in these Ind AS financials statements, this has been an area of key focus in our audit.
Assessed the judgements applied by the Company in respect of areas where the accounting treatment adopted or the disclosures made under the new accounting framework were inconsistent with the extant NHB directions.
Assessed disclosures included in the Ind AS financial statements in accordance with the requirements of Ind AS 101, with respect to the previous periods presented.
Ind AS 109 requires the Company to provide for impairment of its
financial assets using the expected credit loss (‘ECL’) approach
involving an estimation of probability of loss on the financial assets
over their life, considering reasonable and supportable information
about past events, current conditions and forecasts of future economic
conditions which could impact the credit quality of the Company’s
loans and advances. In the process, a significant degree of judgement
has been applied by the management in respect of following matters:
The Company has grouped its loan portfolio into Housing Loan and
Loan Against property. Loans grouped under a particular category
are assumed to represent a homogenous pool there by expected to
demonstrate similar credit characteristics.
Staging of loans and estimation of behavioural life.
Estimation of expected loss from historical observation of Company
and its peers.
The Company has developed models that derive key assumptions
used within the provision calculation such as probability of default (PD)
and loss given default (LGD). The output of these models is then
applied to the provision calculation with other information including
and the exposure at default (EAD).
misstatement in such estimate may give rise to a material
misstatement of the Ind AS financial statements or omission of any
disclosure required by the standards. Therefore, it is considered as a
key audit matter.
Considering the significance of such provision to the overall financial
statements and the degree of management’s judgment, any error or
Estimation of losses in respect of those groups of loans which had
no/ minimal defaults in the past.
Estimation of expected delinquency from Covid 19 lockdown.
Our audit procedures included reading the Company’s accounting
policies for impairment of financial instruments and assessing
compliance with the policies in terms of Ind AS 109.
Assessed the disclosures included in the Ind AS financial
statements with respect to such allowance / estimate in accordance
with the requirements of Ind AS 109 and Ind AS 107.
Tested the arithmetical accuracy of computation of ECL provision
Performed sample testing to ascertain the completeness and
accuracy of the input data used for determining the PD and LGD
rates and agreed the data with the underlying books of accounts and
records.
Assessed the assumptions used by the Company for grouping and
staging of loan portfolio into various categories and default buckets
and determining the probability-weighted default (PD) and loss-
given default (LGD) rates including those of peers.
Tested the operating effectiveness of the controls for staging of
loans based on their past-due status. We also reviewed a sample of
stage 1 and Stage 2 loans to assess whether any loss indicators
were present requiring them to be classified under stage 2 or 3.
performed by the Company in spreadsheets.
Our opinion on the standalone Ind AS financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
Information Other than the Standalone Ind AS Financial Statements and Auditor’s Report thereon
The Company’s management and Board of Directors are responsible for the other information. The other information comprises the information included in Company’s Annual report but does not include the standalone Ind AS financial statements and our auditor’s report thereon. The other information is expected to be made available to us after the date of this auditor's report.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone Ind AS financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
5.
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
In preparing the standalone Ind AS financial statements, management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Company’s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Responsibilities of Management and Those Charged with Governance for the Standalone Ind AS Financial Statements
The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial Ind AS statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the ‘Annexure A’, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The comparative financial information of the Company for the year ended March 31, 2019 and the related transition date opening balance sheet as at April 1, 2018 included in these standalone financial statements, have been prepared after adjusting previously issued the standalone financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Reporting on comparatives in case of First Ind AS Financial statements
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
As required by Section 143(3) of the Act, we report that:
6.
7.
8.
9.
a.
b.
i.
ii.
books of account.
With respect to the matter to be included in the Auditor’s Report under section 197(16) of the Act, as amended:
On the basis of the written representations received from the directors as on 31st March, 2020 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2020 from being appointed as a director in terms of Section 164 (2) of the Act.
With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
Firm’s Registration No. 006711N/N500028
There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Company does not have any pending litigations which would impact its financial position.
With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in ‘Annexure B’.
In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (India Accounting Standards) Rules, 2015, as amended.
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of section 197 of the Act.
The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Other Comprehensive Income, Standalone Statement of Changes in Equity and the Standalone Cash Flow Statement dealt with by this Report are in agreement with the
The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
For T R Chadha & Co LLPChartered Accountants
iii.
iv.
v.
vi.
vii.
viii.
a)
b)
c)
Vikas Kumar
Partner
Membership No. 075363
UDIN: 20075363AAAAAH5601
Place: Mumbai
29th April, 2020Date:
sd/-
According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the
title deeds of the immovable property is held in the name of the
Company as at the balance sheet date.
The Company is maintaining proper records showing full
particulars including quantitative details and situtation of its fixed
assets.
According to the information and explanation given to us, the
company has not accepted any deposits which are covered under
the directives issued by the Reserve Bank of India and the
provisions of section 73 to 76 or any other relevant provisions of the
Companies Act, 2013. Accordingly, paragraph 3 (v) of the Order is not
applicable to the Company.
The annexure referred to in Independent Auditors’ Report to the
member of Vastu Housing Finance Corporation Limited (‘the
Company’) on the standalone financial statement for the year
The Company has a regular program of physical verification to
cover all the items of fixed assets in a phased manner which, in
our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program,
certain fixed assets were physically verified by the management
during the year. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(i) In respect of Fixed Assets
The Company has not granted any secured or unsecured loan to
companies, firms, Limited Liability Partnerships or other parties
covered in the register maintained under Section 189 of the
Companies Act, 2013 (“the Act”). Accordingly, paragraph 3 (iii) (a), (b)
and (c) of the Order is not applicable to the Company.
In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of
Sections 185 and 186 of the Act in respect of grant of loans, making
investments and providing guarantees and securities, as applicable.
The nature of business of the company does not require to have any
physical inventory. Accordingly, paragraph 3(ii) of the Order is not
applicable to the company.
ended 31st March 2020, we report that;
The maintenance of cost records has not been specified by the
Central Government under section 148(1) of the Act for the business
activities carried out by the Company. Accordingly, paragraph 3(vi) of
the Order is not applicable to the Company.
According to the information and explanations given to us, in respect
of Statutory Dues:
The Company has been regular in depositing its undisputed
statutory dues (with respect to amounts deducted / accrued in the
books of account) including Provident Fund, Employees State
insurance, income-tax, goods and services tax, cess and other
material statutory dues (where applicable) to the appropriate
authorities. There were no material undisputed dues payable,
outstanding as on 31st March, 2020 for a period of more than six
months from the date they became payable.
‘Annexure A’ to the Independent Auditor’s Report
a)
b)
c)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
a)
There are no amounts in respect of income tax, service tax, goods
and service tax, duty of customs, duty of excise or value added tax
that have not been deposited with the appropriate authorities on
account of any dispute.
According to the information and explanation given to us, no material
fraud on the Company or any fraud on the company by its officers or
employees has been noticed or reported during the year.
The managerial remuneration has been paid or provided in
accordance with the requisite approvals mandated by the provisions
of section 197 read with Schedule V of the Act.
The company has applied the amount raised by it by way of term
loans and debt instruments for the purpose for which those loans
were obtained except parking of the funds amounting to Rs.47,545
Lakh (PY Rs. 15,288 Lakh) in fixed deposits or mutual funds pending
utilization. The company did not raise money by way of initial public
offer or further public offer during the year.
According to the information and explanations given to us and based
on the records of the Company examined by us, the Company has
not defaulted in the repayment of loans or borrowings to financial
institutions, banks, government or debenture holders.
In our opinion and according to the information and explanations
given to us, the Company is not a nidhi company. Accordingly,
paragraph 3(xii) of the Order is not applicable to the Company.
As per the information and explanations given by the management
and on the basis of our examination of the records of the Company,
the transactions with the related parties are in compliance with
section 177 and 188 of Act where applicable and the details have
been disclosed in the financial statements, as required by the
applicable accounting standards.
According to the information and explanations given to us, the
company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during
the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
As per the information and explanations given by the management,
the Company has not entered into any non-cash transaction with
directors or persons connected with him during the year and hence
the provisions of Section 192 of the Act is not applicable to the
company.
As per the information and explanations given by the management,
company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934. Accordingly, paragraph 3 (xvi) of
the order is not applicable to the company.
For T R Chadha & Co LLPChartered Accountants
Firm’s Registration No. 006711N/N500028
(xvi)
(xv)
(xiv)
(xiii)
(viii)
(ix)
(x)
(xi)
(xii)
Vikas Kumar
Partner
Membership No. 075363
UDIN: 20075363AAAAAH5601
Place: Mumbai
29th April, 2020Date:
sd/-
Report on the Internal Financial Controls with reference to
financial statements of Vastu Housing Finance Corporation
Limited (‘the Company’) under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
Opinion
We have audited the internal financial controls with reference to financial
statement of Vastu Housing Finance Corporation Limited (‘the
Company’) as of 31st March, 2020, in conjunction with our audit of the
standalone financial statements of the Company for the year ended on
that date.
In our opinion, to the best of our information and according to the
explanations given to us, the Company has, in all material respects, an
adequate internal financial controls with reference to financial
statements and such internal financial controls with reference to
financial statements were operating effectively as at 31st March, 2020,
based on the internal control with reference to financial statements
reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
Management’s Responsibility for Internal Financial Controls
Our responsibility is to express an opinion on the Company's internal
financial controls with reference to financial statements based on our
audit. We conducted our audit in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) issued by the ICAI and the Standards on Auditing
prescribed under section 143(10) of the Act to the extent applicable to an
audit of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in
all material respects.
The Company’s management and Board of Directors are responsible for
establishing and maintaining internal financial controls based on the
internal financial controls with reference to financial statements criteria
established by the Company considering the essential components of
internal control stated in theGuidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to respective Company’s
policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013 (‘the Act”).
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls with reference to financial
statements and their operating effectiveness. Our audit of internal
financial controls with reference to financial statements included
obtaining an understanding of internal financial controls with reference
to financial statements, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
Auditors’ Responsibility
‘Annexure B’ to the Independent Auditor’s Report
Inherent Limitations of internal financial controls with reference to
financial statements
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls with reference to financial statements of the
Company.
Meaning of internal financial controls with reference to financial
statements
A company's internal financial controls with reference to financial
statements is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal financial control
over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the company's assets that could have a material
effect on the financial statements.
For T R Chadha & Co LLP
Chartered Accountants
Firm’s Registration No. 006711N/N500028
Because of the inherent limitations of internal financial controls with
reference to financial statements, including the possibility of collusion or
improper management override of controls, material misstatements due
to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to
future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Vikas Kumar
Partner
Membership No. 075363
UDIN: 20075363AAAAAH5601
Place: Mumbai
29th April, 2020Date:
sd/-
(Rs. in Lakh)
LIABILITIES AND EQUITY
Particulars Note
No.
As at
April 01, 2018
As at
March 31, 2020
As at
March 31, 2019
I.
(a) Cash and cash equivalents 5 5,739.92 12,794.62 20,521.85
(b) Bank balances other than (a) above 6 20,544.63
30,522.00
21.00
(c) Loans 7 169,106.07
133,652.17
74,373.15
(d) Investments 8 27,258.24
8,288.20
-
(e) 9 2,288.20
283.85
169.34
224,937.06
185,540.84
95,085.34
II.
(a) Current tax assets (net) 10 289.55 - 74.30(b) Deferred tax assets (net) 176.04
540.97
187.39
(c) 12 145.82
102.52
93.48
(d) Other intangible assets 12 14.74
14.60
22.24
(e) Right of use asset 13 383.75
-
-
(f) 14 99.22
81.70
29.54
1,109.12
739.79
406.95
III. 15 652.22
49.76
-
226,698.40
186,330.39
95,492.29
I.
(a) 16
4.15 - -
141.20 88.43 65.39
(b) Debt securities 17 36,129.00 41,891.30 12,500.00
(c) Borrowings (other than debt securities) 18 93,052.01
56,951.73
34,949.12
(d) 19 8,229.00
10,684.43
137,555.36
58,198.94
(a) Current tax liabilities (net) 20 -
143.68
-
(b) Provisions 21 159.26
79.05
33.10
(c) 22 291.23
331.92
546.79
III.
II.
(a) Equity share capital 23 51,845.53
35,382.18
35,382.18
(b) Other equity 24 36,847.02
40,368.67
1,331.28
88,692.55
75,750.85
36,713.46
226,698.40
186,330.39
95,492.29
1 to 51
579.89450.49 554.65
- Total outstanding dues to creditors other than microand small enterprises
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
In terms of our report attached
VASTU HOUSING FINANCE CORPORATION LIMITED
STANDALONE BALANCE SHEET AS AT MARCH 31, 2020
(Rs. in Lakh)
The accompanying notes form an integral part of the financial statements
Particulars Note
No.
For the year ended
March 31, 2020
For the year ended
March 31, 2019
VI. Other comprehensive income
Items that will not be reclassified to profit or loss- Actuarial loss on post retirement benefit plans- Income tax on above
Total other comprehensive income
VII. Total comprehensive income
VIII. Earnings per equity share
(Face value of Rs. 100/- each)Basic (Rs.)Diluted (Rs.)
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
In terms of our report attached
VASTU HOUSING FINANCE CORPORATION LIMITED
STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2020
I. IncomeRevenue from operations
Interest income 25 22,875.40 15,035.11
Fees and commission income 26 297.55 371.31
Net gain on derecognition of financial instruments 27 1,636.39
-
Other operating income 28 238.06 95.65
Total revenue from operations 25,047.40
15,502.06
Other income 29 4,182.44
2,114.34
Total income
29,229.84 17,616.40
II. Expenses
Finance costs 11,050.55 6,928.05
Impairment on financial instruments 430.43 356.76
Employee benefits expense 4,616.54 4,476.46
Depreciation and amortisation expense 132.70 44.07
Other expenses 1,059.96 868.92
Total expenses
III. Profit before tax 11,939.66 4,942.15
IV. Tax expense
Current tax 2,329.44 1,528.88
Earlier year tax 13.76 153.73
Deferred tax 371.65 (349.80)
Total tax expense
V. Net profit after tax
17,290.18 12,674.26
9,224.81 3,609.34
2,714.85 1,332.82
303132
12 & 1333
34
34
(33.57) (13.74)8.60 3.79
36
18.20 10.20
17.96 10.11
1 to 51
(24.97) (9.95)
3,599.399,199.84
(Rs. in Lakh)
Particulars Note
No.
Operating profit before working capital changes
Adjustment for:Decrease / (Increase) in non-financial assetsDecrease / (Increase) in other financial assetsDecrease / (Increase) in financial liabilitiesDecrease / (Increase) in non financial liabilitiesCash generated from (used in) operationsDirect taxes paid (net)
Net cash (used in) operating activitiesLoans disbursed to customerLoans repayment received (incl. foreclosed, direct assignment, etc.)
Net cash (used in) operating activities
B. Cash flow from investing activitiesInvestments in mutual fund unitsSale of mutual fund unitsInvestment in other depositsInterest received on bank deposits
Investment in Bank depositsProceeds from redemption of Bank deposit
Net cash (used in) investment activities
C. Cash flow from financing activities
Proceeds from issue of equity share (net)
Payment of lease liabilities
Share application money (pending allotment)
Proceeds from long-term borrowings
Repayment of long-term borrowings
(Repayment of) / proceeds from short-term borrowings (net)
Net cash generated from financing activities
Net (decrease) / increase in cash and cash equivalents (A+B+C)
Cash and cash equivalents at the beginning of the year
Acquisition/Purchase/Sale of property, plant & equipment and intangible
assets (net)
Cash and cash equivalents at the end of the year (refer note 5)
For the year ended
March 31, 2020
For the year ended
March 31, 2019
A. Cash flow from operating activities
Profit before tax 11,939.65
6,006.62
Adjustment for:
Depreciation and amortisation expenses 12 58.56
44.07
Depreciation and amortisation expenses (ROU) 13 74.14
-
Net gain on fair value changes (unrealised) 29 (8.24)
(8.20)
Net gain on fair value changes (realised) 29 (346.02)
Provision for impairment on financial instruments (ECL) 31 430.43
356.76
Interest on fixed deposits (2,432.49)
(797.99)
Interest expense on lease liabilty 30 29.96
Reversal of rent equalization (opening) 4.81
-
Gain / loss on derecognition of financial asset 27 (1,636.39)
-
Employee stock option 32 299.95
-
Provision for employee benefit expense (OCI) (24.97) -
Gain/Loss on sale of fixed asset 29 (0.02) (10.50)
8,389.37 5,590.75
(24.23) (55.95)
(970.43) 835.74
(3,105.11) 432.04
(66,986.62) (76,523.77)
31,102.29 16,887.99
(5,000.00) (250.00)(685,452.04) (231,053.20)
691,836.26
223,023.20
8(20,000.00)
-
2,432.49
797.99
12
(101.98)
(34.97)
(65,194.70)
(68,046.68)
75,172.07
36,545.68
3,437.11 -
-(190.25)
- 34,363.59
49,783.02
61,720.31
(21,443.68) (10,309.25)
(7,054.71)
(7,727.22)
12,794.63 20,521.85
1,998.64 (17.15)
39.51 (168.92) 4,329.12 6,633.65
(2,776.43) (1,464.63)
1,552.69 5,169.03
33,584.83 85,757.50
(34,331.64) (54,466.75)
(6,307.90) (39,017.98)
5,739.92 12,794.63
VASTU HOUSING FINANCE CORPORATION LIMITED
STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2020
Components of Cash & Cash EquivalentsCash on handBalance with banks:
Total cash & cash equivalents
Operational cash flow from InterestInterest receivedInterest paid
The accompanying notes form an integral part of the financial statements
- In deposit accounts with original maturity less than 3 months or less
- In cash credit accounts- In current accounts
(Rs. in Lakh)
Particulars Note
No. For the year ended
March 31, 2020
For the year ended
March 31, 2019
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
In terms of our report attached
12.33 8.87
703.07 1,671.96
24.51 13.79
5,000.00 11,100.00
20,669.95 13,402.93(10,474.19) (6,618.03)
1 to 51
5,739.92 12,794.62
VASTU HOUSING FINANCE CORPORATION LIMITED
STANDALONE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2020
A. E
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Da
te :
April 2
9, 2020
VASTU HOUSING FINANCE CORPORATION LIMITEDNotes forming part of the standalone financial statements
Vastu Housing Finance Corporation Limited ('the Company') is a public limited company domiciled in India and incorporated under theprovisions of the Companies Act, 1956 and holding a certificate of registration number 02.0062.05 from the National Housing Bank ("NHB") dated October 27, 2005. The principal business of the Company is to provide long term financing regarding housing finance for purchase, construction, development and repair of houses, apartments and other in India. The Company is registered with the National Housing Bank as Non-Deposit taking Housing Finance Company (HFC). At present, the Company is providing its service in 12 states through 66 branches. The Standalone financial statements were authorised for issue by the Company's Board of Directors on April 29, 2020.
Basis of preparation and presentation of financial statements &significant accounting policies
Basis of preparation and presentation of financial statementsStatement of compliance / basis of preparation
Corporate information1.
2.
2.1.
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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability that market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value in use under Ind AS 36.
measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are as follows;
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the
indirectly; and
Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.
Fair value measurements under Ind AS are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value
measurement date.
Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or
Basis of measurement
c. Presentation of financial statements
2.2. Significant Accounting Policies
a. Property, plant and equipment and intangible assets
a
b.
generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP)
Disclosures as required in terms of Housing Finance Companies – Corporate Governance (National Housing Bank) Directions, 2016NHB(ND)/DRS/REG/MC-07/2019, July 01, 2019, have been prepared based on previous GAAP under the NHB circular no. NHB(ND)/DRS/Policy Circular No.89/2017-18 dated June 14, 2018, and have been presented solely based on the information compiled by the Management. Refer to note 45.
AS requires a change in the accounting policy hitherto in use.
Effective April 01, 2019, the Company has adopted Ind AS, and the adoption was carried out under Ind AS 101, First-time Adoption of
2010 as amended from time to time and various guidelines issued by NHB to the extent applicable, which was the previous Generally
The Standalone financial statements of the Company are prepared under the Indian Accounting Standards (Ind AS) and the relevant
Accepted Accounting Principles (GAAP).
(Indian Generally Accepted Accounting Principles), National Housing Bank Act, 1987, the Housing Finance Companies, (NHB) Directions,
The financial statements presented in Indian Rupees which is the functional and the presentation currency and all values rounded to the
Accounting policies have been consistently applied except where a newly-issued Ind AS is initially adopted or a revision to an existing Ind
provisions of the Companies Act, 2013 (the “Act”) (to the extent notified). Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 a.nd relevant amendment rules issued after that.
Indian Accounting Standards, with April 1, 2018, as the transition date. The transition was carried out from Indian Accounting Principles
nearest lakh, except when otherwise indicated.
that are measured at fair values at the end of each reporting period, as explained in the accounting policies below:
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
The financial statements have been prepared on accrual basis under the historical cost convention except for specific financial instruments
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in Schedule III to the Act. The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash Flows”.
I. Property, plant and equipment (PPE) are recognised when
it is probable that future economic benefits associated with the
item flows to the group Companies, and the cost of the item can
be measured reliably. The cost comprises of the purchase price,
and any attributable cost of bringing the asset to its working
condition for intended use net of tax/duty credits availed, less
accumulated depreciation and cumulative impairment if any.
Depreciation/amortization is recognized on a straight-line basis
over the lower of the estimated useful lives of respective assets
prescribed under the Schedule II to the Companies Act, 2013 or
as estimated by Management as under:
Premises
Furniture & Fixtures
Computer Hardware
Leasehold Improvements
Office Equipment
30 Years
10 Years
3 Years
3 Years
5 Years
Category of Assets Useful Life
Assets costing less than Rs 5,000 are fully depreciated in the year of capitalization.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect ofany changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Gain/loss arising on disposal/retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
ii. Intangible: Intangible assets are recognised when it is
probable that the future economic benefits that are attributable
to the asset flow to the enterprise, and the cost of the asset can
be measured reliably. Intangible assets are stated at original
cost net of tax/duty credits availed, if any, less accumulated
amortisation and cumulative impairment. Administrative and
other general overhead expenses that are individually
attributable to the acquisition of intangible assets are allocated
and capitalised as a part of the cost of the intangible assets.
Amortisation on impaired assets is provided by adjusting the
amortisation charge in the remaining periods to allocate the
asset’s revised carrying amount over its remaining useful life.
An intangible asset is derecognised on disposal, or when no
future economic benefits are expected from use or disposal.
Gains or losses arising from derecognition of an intangible
asset, measured as the difference between the net disposal
proceeds and the carrying amount of the asset, are recognised
in profit or loss when the asset is derecognised.
Intangible assets are amortised on a straight-line basis over the
estimated useful life of 3 years. The method of amortisation,
useful life are reviewed at end of accounting year with the effect
of changes in the estimate being accounted for on a prospective
basis.
Deemed cost on transition to Ind AS
For the transition to Ind AS, the company has elected to
continue with the carrying value of all of its property, plant and
equipment and intangible assets recognised as of April 1, 2018
(transition date) measured as per the previous GAAP and use
that carrying value as its deemed cost as of the transition date.
Impairment on non-financial assets
As at the end of each year, the Company reviews the carrying
amount of its non-financial assets that is PPE and intangible to
determine whether there is any indication that these assets
have suffered an impairment loss.
An asset is considered as impaired when on the balance sheet
date there are indications of impairment in the carrying amount
of the assets, or where applicable the cash-generating unit to
which the asset belongs, exceeds its recoverable amount (i.e.
the higher of the assets’ net selling price and value in use).
Carrying amount is reduced to the level of recoverable amount,
and the reduction is recognized as an impairment loss in the
Statement of Profit and Loss.
b.
When an impairment loss is subsequently reversed, the carrying amount of the asset (or the cash-generating unit) is increased to the revised estimate of its recoverable amount. But so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or the cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the statement of profit or loss.
The calculation takes into account all contractual terms of the
financial instrument (for example, prepayment options). It
includes all fees paid or received between parties to the
contract that are incremental and are directly attributable to the
specific lending arrangement, transaction costs, and all other
premiums or discounts. For financial assets at FVTPL (fair
value through profit & loss), transaction costs are recognised in
profit or loss at initial recognition.
ii. Fees and commission income Fee and commission income
include fees and commitment charges other than those that are
an integral part of EIR. The group Companies recognises the
other fee and commission income under the terms and
conditions of the relevant contract/agreement.
evenue is recognised to the extent that the economic benefits
probably flow to the Company, and the revenue can be reliably
measured, and there exists reasonable certainty of its recovery.
Overdue interest and other ancillary charges in respect of loans
are recognized upon realisation.
iii. Investment Income Gains/ losses on the sale of
investments are recognized in the Statement of Profit and Loss
on the trade date. Gain or loss on the sale o investments is
determined after consideration of cost on a first in first out
(FIFO) basis.
The EIR is the rate that exactly discounts estimated future cash
flows of the financial instrument through the expected life of the
financial instrument or, where appropriate, a shorter period, to
the net carrying amount of the financial instrument. The future
cash flows are estimated, taking into account all the contractual
terms of the instrument.
Revenue Recognition
I. Interest income Interest income on financial instruments at
amortised cost is recognised on a time proportion basis, taking
into account the amount outstanding and the effective interest
rate (EIR) applicable. Interest on financial instruments
measured as at fair value is included within the fair value
movement during the period.
The interest income is calculated by applying the EIR to the
gross carrying amount of non-credit impaired financial assets
(i.e. at the amortised cost of the financial asset before adjusting
for any expected credit loss allowance). For credit-impaired
financial assets, the interest income is calculated by applying
the EIR to the amortised cost of the credit-impaired financial
assets (i.e. the gross carrying amount less the allowance for
expected credit losses (ECLs). However, no interest has been
charged on credit impaired loans as a matter of prudence.
c.
iii. the Company has the right to direct the use of the asset.
i. the contract involves the use of an identified asset
iv Dividend Income Dividend income is recognized when the
Company’s right to receive the payment is established;
probably, the economic benefits associated with the dividend
flow to the entity and the amount of the dividend can be
measured reliably. Generally, when shareholders approve the
dividend.
Foreign currency
Transactions in foreign currencies are initially recorded by the
Company at their respective functional currency spot rates at
the date the transaction first qualifies for recognition. Income
and expenses in foreign currencies are initially recorded by the
Company at the exchange rates prevailing on the date of the
transaction.
Foreign currency denominated monetary assets and liabilities
are translated at the functional currency spot rates of exchange
at the reporting date, and exchange gains and losses arising on
settlement and restatement are recognized in the Statement of
profit and loss.
Lease
Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions.
The Company’s lease asset primarily consists of leases for
buildings. The Company assesses whether a contract contains
a lease, at the inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for a
consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the Company assesses
whether:
Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date
when the fair value is determined. The gain or loss arising on
translation of non-monetary items measured at fair value is
treated in line with the recognition of the gain or loss on the
change in fair value of the item (i.e., translation differences on
items whose fair value gain or loss is recognized in Other
Comprehensive Income ('OCI') or profit or loss are also
recognized in OCI or profit or loss, respectively).
ii. the Company has substantially all of the economic benefits from the use of the asset through the period of the lease and
At the date of commencement of the lease, the Company
recognizes a right-of-use asset (“ROU”) and a corresponding
lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of twelve months or less (short-
term leases) and low-value leases. For these short-term and
low-value leases, the Company recognizes the lease payments
as an operating expense.
d.
e.
Right of use assets is depreciated from the commencement
date on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset. Right of use assets is
evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be
recoverable. For impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and the value-in-
use) is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit (CGU) to which the
asset belongs.
The lease liability is initially measured at amortized cost at the
present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the
lease or, if not readily determinable, using the incremental
borrowing rates. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset if the
Company changes its assessment of whether it exercises an
extension or a termination option.
Lease liability and ROU asset have been separately presented
in the Balance Sheet, and lease payments have been classified
as financing cash flows.
The right-of-use assets initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
The stock options granted to employees under the group’s
stock options schemes are measured at the fair value of the
options at the grant date. The fair value of the options is treated
as a discount and accounted as employee compensation cost
over the vesting period on a straightline basis. Amount
recognised as an expense in each year is arrived at based on
the number of grants expected to vest. If a grant lapses after the
vesting period, the cumulative discount recognised as an
expense in respect of such grant is transferred to the general
reserve within other equity.
Borrowing costs
Employee Benefits
Share-based payment arrangements
Borrowing costs that are attributable to the acquisition,
construction or production of qualifying assets as defined in Ind
AS 23 are capitalized as a part of costs of such assets. A
qualifying asset is one that necessarily takes a substantial time
to get ready for its intended use.
Interest expenses are calculated using the effective interest
rate (EIR), and all other Borrowing costs are recognised in the
Statement of profit and loss in the period in which they are
incurred.
f.
g.
Retirement benefit costs and termination benefits
Retirement benefit in the form of provident fund is a defined
contribution scheme. The Company has no obligation, other than the
contribution payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as an employee
benefit expense when an employee renders the related service. If
the contribution payable to the scheme for service received before
the balance sheet date exceeds the contribution already paid, the
deficit payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution already
paid exceeds the contribution due for services received before the
balance sheet date, then the excess is recognized as an asset to the
extent that the pre-payment leads to, for example, a reduction in
future payment or a cash refund.
Remeasurement of the net defined benefit liability, which comprises
of actuarial gains and losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling (if any, excluding interest),
are recognised immediately in other comprehensive income (OCI).
Remeasurements are not reclassified to profit or loss in the
subsequent year. Net interest expense (income) on the net defined
liability (assets) is computed by applying the discount rate, used to
measure the net defined liability (asset), to the net defined liability
(asset) at the start of the financial year after taking into account any
changes as a result of contribution and benefit payments made
during the year. Net interest expense and other expenses related to
defined benefit plans are recognised in the statement of profit and
loss.
When the benefits of a plan are changed or when a plan is curtailed,
the resulting change in benefit that relates to past service or the gain
or loss on curtailment is recognised immediately in Statement of
profit and loss. The Company recognises gains and losses on the
settlement of a defined benefit plan when the settlement occurs.
The Company's Gratuity liability under the Payment of Gratuity
Act,1972 is determined based on an actuarial valuation made at the
end of each financial year using the projected unit credit method.
Defined contribution plan
The Company’s net obligation in respect of defined benefit plans is
calculated by estimating the amount of future benefit that employees
have earned in the current and prior periods, discounting that
amount and deducting the fair value of any plan assets. The
calculation of defined benefit obligations is performed annually by a
qualified actuary using the projected unit credit method. When the
calculation results in a potential asset for the Company, the
recognised asset is limited to the present value of economic benefits
available in the form of any future refunds from the plan or reductions
in future contributions to the plan.
Defined benefit obligation
Short-term employee benefits
Other Long-term employee benefits
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employee renders the service. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. These benefits include performance incentive etc. which are expected to occur within twelve months after the end of the period in which the employee renders the related service.
Income tax
Current tax
The tax currently payable is based on the taxable profit for the
year of the Company. Taxable profit differs from 'profit before
tax' as reported in the Statement of profit and loss because of
items of income or expense that are taxable or deductible in
other years and items that are never taxable or deductible. The
current tax is calculated using applicable tax rates that have
been enacted or substantively enacted by the end of the
reporting period.
The Income tax expense represents the sum of the current tax
and deferred tax. Current and deferred taxes are recognised in
the Statement of profit and loss, except when they relate to
items that are recognised in other comprehensive income or
directly in equity, in which case, the current and deferred tax are
also recognised in other comprehensive income or directly in
equity respectively.
Deferred tax
Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the Company’s
financial statements and the corresponding tax bases used in
the computation of taxable profit. Deferred tax assets are
generally recognised, for all temporary deductible differences,
to the extent that it is probable that taxable profits are available
against which those temporary deductible differences can be
utilised. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial
recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Also, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary
differences associated with investments in subsidiaries, except
where the Company is able to control the reversal of temporary
difference and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with
such investments and interests are only recognised to the
h.
extent that it is probable that there will be sufficient taxable profits against which it can utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits are available to allow all or part of the assets to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled, or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
Goods and Service tax input credit
Goods and Services tax input credit is accounted for in the
books for the period in which the supply of goods or service
received is accounted and when there is no uncertainty in
availing/utilising the credits.
Contingent assets are not recognized in the financial
statements. Contingent asset are disclosed where an inflow of
economic benefits is probable.
iii. a reliable estimate can be made of the amount of the
obligation.
I. a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle
the obligation; and
Contingent liability is disclosed in case of:
Provisions, contingent liabilities and contingent assets
ii. it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation; and
These are reviewed at each balance sheet date and adjusted to
reflect the current best estimates. Long term provisions are
determined by discounting the expected future cash flows
specific to the liability. The unwinding of the discount is
recognised as a finance cost. A provision for onerous contracts
is measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established,
the Company recognises any impairment loss on the assets
associated with that contract
Contingent assets:
Provisions are recognised when:
i. Company has a present obligation (legal or constructive)
as a result of a past event; and
ii. a present obligation arising from past events, when no
reliable estimate is possible. Contingent liabilities are
reviewed at each balance sheet date.
j.
Financial instruments comprise of financial assets and financial
liabilities. Financial assets and liabilities are recognized when
the company becomes the party to the contractual provisions of
the instruments. Financial assets primarily comprise of loans
and advances, deposits, trade receivables and cash and cash
equivalents. Financial liabilities primarily comprise of
borrowings and trade payables.
Statement of Cash Flows is prepared segregating the cash
flows into operating, investing and financing activities. Cash
flow from operating activities is reported using indirect method
adjusting the net profit for the effects of:
iii. All other items for which the cash effects are investing or
financing cash flows.
Financial Instruments
iii. Other non-cancellable commitments, if any, to the extent
they are considered material and relevant in the opinion of
management. Other commitments related to
sales/procurements made in the normal course of business are
not disclosed to avoid excessive details.
Cash and cash equivalents (including bank balances) shown in
the Statement of Cash Flows exclude items which are not
available for general use as on the date of Balance Sheet.
i. Estimated amount of contracts remaining to be executed on
capital account and not provided for;
Commitments are future liabilities for contractual expenditure,
classified and disclosed as follows:
ii. Uncalled liability on shares and other investments partly paid;
Statement of Cash Flows
i. Changes during the period in inventories and operating
receivables and payables transactions of a non-cash nature;
Commitments
ii. Non-cash items such as depreciation, provisions, deferred
taxes, unrealised foreign currency gains and losses, and;
Segments
The Company's primary business is financing by way of loans
for the purchase or construction of residential houses in India.
All other activities of the Company revolve around the main
business. In the context of Ind AS 108 – Operating Segments
reporting is considered to constitute as one reportable segment.
i. Recognition of financial instruments
ii. Initial measurement of financial instrumentsRecognised financial assets and financial liabilities are initially
measured at fair value. Transaction costs and revenues that are
directly attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and financial
liabilities at FVTPL) are added to or deducted from the fair value
of the financial assets or financial liabilities, as appropriate, on
initial recognition. Transaction costs and revenues directly
attributable to the acquisition of financial assets or financial
liabilities at FVTPL are recognised immediately in the statement
of profit or loss.
l.
m.
n.
i.
k.
If the transaction price differs from fair value at initial recognition, the
Company will account for such difference as follows:
After initial recognition, the deferred gain or loss is released to the
Statement of profit and loss on a rational basis, only to the extent that
it arises from a change in a factor (including time) that market
participants would take into account when pricing the asset or
liability.
Subsequent measurement of financial assets:
if fair value is evidenced by a quoted price in an active market for an
identical asset or liability or based on a valuation technique that uses
only data from observable markets, then the difference is recognised
in profit or loss on initial recognition (i.e. day 1 profit or loss);
in all other cases, the fair value will be adjusted to bring it in line with
the transaction price (i.e. day 1 profit or loss will be deferred by
including it in the initial carrying amount of the asset or liability).
iii. Financial Assets
All recognised financial assets that are within the scope of Ind
AS 109 are required to be subsequently measured at amortised
cost or fair value on the basis of the entity’s business model for
managing the financial assets and the contractual cash flow
characteristics of the financial assets.
Classification of Financial Assets:
Debt instruments that are held within a business model whose
objective is to collect the contractual cash flows, and that have
contractual cash flows that are solely payments of principal and
interest on the principal amount outstanding (SPPI), are
subsequently measured at amortised cost;
it is a derivative that is not designated and effective as a
hedging instrument or a financial guarantee.
it has been acquired principally for the purpose of selling it in
the near term; or
A. financial asset is held for trading if:
all other debt instruments (e.g. debt instruments managed on a
fair value basis, or held for sale) and equity investments are
subsequently measured at FVTPL
on initial recognition it is part of a portfolio of identified financial
instruments that the Company manages together and has a
recent actual pattern of short-term profit-taking; or
the Company may irrevocably designate a debt instrument that
meets the amortised cost or FVTOCI criteria as measured at
FVTPL if doing so eliminates or significantly reduces an
accounting mismatch (referred to as the fair value option).
However, the Company may make the following irrevocable
election / designation at initial recognition of a financial asset on
an asset-by-asset basis:
the Company may irrevocably elect to present subsequent
changes in fair value of an equity investment that is neither held
for trading nor contingent consideration recognised by an
acquirer in a business combination to which Ind AS 103 applies,
in OCI; and
The Company assesses the classification and measurement of
a financial asset based on the contractual cash flow
characteristics of the individual asset basis and the Company’s
business model for managing the asset.
.
When a debt instrument measured at FVTOCI is derecognised,
the cumulative gain/loss previously recognised in OCI is
reclassified from equity to profit or loss. In contrast, for an
equity investment designated as measured at FVTOCI, the
cumulative gain/loss previously recognised in OCI is not
subsequently reclassified to profit or loss but transferred within
equity.
Financial assets at fair value through profit or loss (FVTPL)
Contractual cash flows that are SPPI are consistent with a basic
lending arrangement. Contractual terms that introduce
exposure to risks or volatility in the contractual cash flows that
are unrelated to a basic lending arrangement, such as exposure
to changes in equity prices or commodity prices, do not give
rise to contractual cash flows that are SPPI. An originated, or an
acquired financial asset can be a basic lending arrangement
irrespective of whether it is a loan in its legal form.
Debt instruments at amortised cost or at FVTOCI
For SPPI test, the principal is the fair value of the financial asset
at initial recognition. That principal amount may change over
the life of the financial asset (e.g. if there are repayments of
principal). Interest consists of consideration for the time value
of money, for the credit risk associated with the principal
amount outstanding during a particular time and for other
primary lending risks and costs, as well as a profit margin. The
SPPI assessment is made in the currency in which the financial
asset is denominated.
For an asset to be classified and measured at amortised cost or
at FVTOCI, its contractual terms should give rise to cash flows
that are meeting SPPI test.
An assessment of the business model for managing financial
assets is fundamental to the classification of a financial as
The Company determines the business model at a level that
reflects how financial assets are managed at an individual basis
and collectively to achieve a particular business objective.The
Company determines the business model at a level that reflects
how financial assets are managed at an individual basis and
collectively to achieve a particular business objective.
Debt instruments that are subsequently measured at amortised
cost or at FVTOCI are subject to impairment.
Debt instruments that do not meet the amortised cost criteria or
FVTOCI criteria are measured at FVTPL. In addition, debt
instruments that meet the amortised cost criteria or the FVTOCI
criteria but are designated as at FVTPL are measured at
FVTPL.
The Company measures the loss allowance for a financial
instrument at an amount equal to the lifetime expected credit
losses if the credit risk on that financial instrument has
increased significantly since initial recognition. If the credit risk
on a financial instrument has not increased significantly since
initial recognition, the Company measures the loss allowance
Financial assets at FVTPL are measured at fair value at the end of
each reporting period, with any gains or losses arising on
remeasurement recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any dividend or interest
earned on the financial asset. Dividend on financial assets at FVTPL
is recognised when the Company's right to receive the dividends is
established, and the economic benefits associated with the dividend
probably flow to the entity, the dividend does not represent a
recovery of a part of the cost of the investment, and the amount of
dividend can be measured reliably.
During the current financial year and previous accounting
period, there was no change in the business model under which
the Company holds financial assets, and therefore no
reclassifications were made. Changes in contractual cash flows
are considered under the accounting policy on Modification and
derecognition of financial assets described below.
A financial asset that meets the amortised cost criteria or debt
instruments that meet the FVTOCI criteria may be designated as
FVTPL upon initial recognition if such designation eliminates or
significantly reduces a measurement or recognition inconsistency
that would arise from measuring assets or liabilities or recognising
the gains and losses on them on different bases.
If the business model under which the Company holds financial
assets changes, the financial assets affected are reclassified.
The classification and measurement requirements related to the
new category apply prospectively from the first day of the first
reporting period following the change in the business model that
results in reclassifying the Company’s financial assets.
Impairment of financial assets
Overview of the Expected Credit Loss (ECL) principles:
The Company records allowance for expected credit losses for
all loans, other debt financial assets not held at FVTPL,
together with loan commitments and financial guarantee
contracts, in this section all referred to as ‘financial
instruments’. Equity instruments are not subject to impairment
under Ind AS 109.
Expected credit losses (ECL) are a probability-weighted
estimate of the present value of credit losses. Credit loss is the
difference between all contractual cash flows that are due to the
group Companies under the contract, and all the cash flows that
the group Companies expects to receive (i.e. net cash
shortfalls), discounted at the original effective interest rate (or
credit-adjusted effective interest rate for purchased or
originated credit-impaired financial assets). The group
Companies estimates cash flows by considering all contractual
terms of the financial instrument (for example, prepayment,
extension, call and similar options) through the expected life of
that financial instrument.
Reclassifications
Stage 1 - Performing assets (high quality assets) with zero to
thirty days past due (DPD). Stage 1 loans also include facilities
where the credit risk has improved and the loans has been
reclassified from Stage 2.
for that financial instrument at an amount equal to 12-month
expected credit losses. 12-month expected credit losses are a
portion of the lifetime expected credit losses and represent the
lifetime cash shortfalls that result if a default occurs within the 12
months after the reporting date and thus, are not cash shortfalls that
are predicted over the next 12 months.
A loss allowance for full lifetime ECL is required for a financial
instrument if the credit risk on that financial instrument has increased
significantly since initial recognition. For all other financial
instruments, ECLs are measured at an amount equal to the 12-
month ECL.
The Company measures ECL for stage 3 assets (as defined
below) on an individual basis. The measurement of the loss
allowance is based on the present value of the asset’s expected
cash flows using the asset’s original effective interest rate
(EIR).
Definition of Default
Impairment losses and releases are accounted for and
disclosed separately from modification losses or gains that are
accounted for as an adjustment of the financial asset’s gross
carrying value.
Stage 3 - Non-performing assets (credit impaired assets) with
overdue more than 90 DPD.
The Company has established a policy to perform an
assessment, at the end of each reporting period, whether a
financial instrument’s credit risk has increased significantly
since initial recognition, by considering the change in the risk of
a default occurring over the remaining life of the financial
instrument.
Based on the above process, the Company categorises its
loans into Stage 1, Stage 2 and Stage 3, as described below:
Stage 2 - Under-performing assets (assets for which there is
significant increase in credit risk) having 31 to 90 DPD. Stage 2
loans also include facilities, where the credit risk has improved
and the loan has been reclassified from Stage 3.
the borrower is unlikely to pay its credit obligations to the
Corporation in full.
the borrower is past due more than 90 days on any material
credit obligation to the Corporation; or
The Corporation considers the following as constituting an
event of default:
The definition of default is used in measuring the amount of ECL
and in the determination of whether the loss allowance is based
on 12- month or lifetime ECL.
The Financial assets for which the Company has no reasonable
expectations of recovering either the entire outstanding
amount, or a proportion thereof, the gross carrying amount of
the financial asset is reduced. This is considered a (partial)
derecognition of the financial asset.
For trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are
within the scope of Ind AS 18 and loans under short term
financing, the Company always measures the loss allowance at
an amount equal to lifetime expected credit losses. Further, to
measure lifetime expected credit loss allowance for trade
receivables, the Company has used a practical expedient as
permitted under Ind AS 109.
The impairment requirements for the recognition and
measurement of a loss allowance are equally applied to debt
instruments at FVTOCI except that the loss allowance is
recognised in other comprehensive income and is not reduced
from the carrying amount in the balance sheet.
Retains the contractual rights to receive the cash flows of the
financial assets, but assumes a contractual obligation to pay
the cash flows to one or more recipients.
This expected credit loss allowance is computed based on a
provision matrix which takes into account historical credit loss
experience and adjusted for forward-looking information.
A financial asset is derecognised only when :
Derecognition of financial assets
On derecognition of a financial asset under assignment
transaction, the difference between the carrying amount and
the consideration received shall be recognized in the statement
of Profit and Loss.
Collateral Valuation and Repossession
To mitigate the credit risk on financial assets, the Company
seeks to use collateral, where possible as per the powers
conferred on the Housing Finance Companies under the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Securities Interest Act, 2002 (“SARFAESI”).
The Company has transferred the rights to receive cash flows
from the financial assets or
Where the entity has transferred an asset, the Company
evaluates whether it has transferred all risks and rewards of
ownership of the financial assets substantially. In such cases,
the financial assets are derecognised. Where the entity has not
transferred all risks and rewards of ownership of the financial
asset substantially, the financial asset is not derecognised.
The Company provides fully secured, partially secured and
unsecured loans to individuals. In its ordinary course of
business, the Corporation does not physically repossess
properties or other assets in its retail portfolio, but engages with
the external agents to recover funds, generally at auction, to
settle outstanding debt.
Write-off
Loans and debt securities are written off when the Company
has no reasonable expectations of recovering the financial
asset (either in its entirety or a portion of it). In such cases, the
Company determines that the borrower does not have assets
or sources of income that could generate sufficient cash flows
to repay the amounts subject to the write-off. A write-off
constitutes a derecognition event. The Company may apply
enforcement activities to financial assets written off.
Recoveries resulting from the Company’s enforcement
activities result in impairment gains and are credited to
statement of profit and loss.
All financial liabilities are subsequently measured at amortised
cost using the effective interest method or at FVTPL.
A financial liability is a contractual obligation to deliver cash or
another financial asset or to exchange financial assets or
financial liabilities with another entity under conditions that are
potentially unfavourable to the Company or a contract that will
or may be settled in the Company’s equity instruments and is a
non-derivative contract for which the Company is or may be
obliged to deliver a variable number of its equity instruments, or
a derivative contract over own equity that will or may be settled
other than by the exchange of a fixed amount of cash (or
another financial asset) for a fixed number of the Company’s
equity instruments.
However, financial liabilities that arise when a transfer of a
financial asset does not qualify for derecognition or when the
continuing involvement approach applies, financial guarantee
contracts issued by the group Companies, and commitments
issued by the group Companies to provide a loan at below-
market interest rate are measured under the specific
accounting policies set out below.
Any surplus funds are returned to the customers/obligors. As a
result of this practice, the residential properties under legal
repossession processes are not recorded on the balance sheet
and not treated as non–current assets held for sale.
Financial liabilities are classified as at FVTPL when the
financial liability is either contingent consideration recognised
by the Company as an acquirer in a business combination to
which Ind AS 103 applies or is held for trading or it is
designated as at FVTPL.
it has been incurred principally for the purpose of repurchasing
it in the near term; or
Financial liabilities at FVTPL
Debt and equity instruments issued by a Company entity are
classified as either financial liabilities or as equity under the
substance of the contractual arrangements and the definitions
of a financial liability and an equity instrument.
Financial liabilities
Financial liabilities and equity instruments
A financial liability is classified as held for trading if:
Classification as debt or equityiv.
The Company derecognises financial liabilities when, and only
when, the Company’s obligations are discharged, cancelled or
have expired. An exchange between/with a lender of debt
instruments with substantially different terms is accounted for
as an extinguishment of the original financial liability and the
recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the
debtor) is accounted for as an extinguishment of the original
Financial liabilities that are not held-for-trading and are not
designated as at FVTPL are measured at amortized cost.
it is a derivative that is not designated and effective as a
hedging instrument.
on initial recognition it is part of a portfolio of identified financial
instruments that the Company manages together and has a
recent actual pattern of short-term profit-taking; or
Financial liabilities subsequently measured at amortized
cost
Derecognition of financial liabilities
The effective interest method is a method of calculating the
amortized cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the
financial liability, or (where appropriate) a shorter period, to the
net carrying amount on initial recognition.
financial liability and the recognition of a new financial liability.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable is
recognised in profit or loss.
Financial liabilities that are not held-for-trading and are not
designated as at FVTPL are measured at amortized cost at the
end of subsequent accounting periods. The carrying amounts of
financial liabilities that are subsequently measured at amortized
cost are determined based on the effective interest method.
Interest expense that is not capitalized as part of the costs of an
asset is included in the 'Finance costs' line item.
Cash and cash equivalent in the balance sheet comprise cash
at banks and on hand and short-term investments with an
original maturity of three months or less, which are subject to an
insignificant risk of changes in value. For the purpose of the
statement of cash flows, cash and cash equivalents consist of
cash and short term investments, as defined above.
Basic earnings per share are calculated by dividing the net
profit or loss (before Other Comprehensive Income) for the year
attributable to equity shareholders (after deducting attributable
taxes) by the weighted average number of equity shares
outstanding during the year.
Earnings per share
For calculating diluted earnings per share, the net profit or loss
(before Other Comprehensive Income) for the year attributable
to equity shareholders and the weighted average number of
Cash and cash equivalents
shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.
Assets held for sale
In the ordinary course of business, the Company does not
physically repossess properties or other assets in its retail
portfolio but generally engages external or internal agents to
recover funds generally at auctions to settle outstanding debt.
Any surplus funds are returned to the customers/obligors. As a
result of this practice, the residential properties under legal
repossession are not recorded on the balance sheet and are
treated as assets held for sale at (i) fair value less cost to sell or
(ii) principal outstanding, whichever is less, at the repossession
date.
Investments in Subsidiaries are measured at cost less
impairment loss (if any) as per Ind AS 27 – Separate Financial
Statements.
Investments in Subsidiaries, Joint Ventures and Associates
Use of Estimates
The preparation of financial statements in conformity with the
Ind AS requires the management to make judgments, estimates
and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the accompanying
disclosure and the disclosure of contingent liabilities, at the end
of the reporting year. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimates are
revised. Although these estimates are based on the
management’s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result
in the outcomes requiring a material adjustment to the carrying
amounts of assets or liabilities in future years.
(i) How the performance of the business model and the
financial assets held within that business model are
evaluated and reported to the entity’s key management
personnel.
whole and not an individual instrument performs; therefore the
business model is developed basis a higher level of
assessment at portfolio level rather than on granular
instrument-level information and is based on observable factors
such as :
The Company determines its business model at the level that
best reflects how it manages groups of financial assets to
achieve its business objective. The Company determines its
business model at a level that reflects how financial assets as a
In particular, information about significant areas of estimation,
uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts
recognized in the financial statements is included in the
following notes:
(iii) The expected frequency, value and timing of sales are also
essential aspects of the Company’s assessment
Business model assessment
(ii) The risks that affect the performance of the business model
and, in particular, the way those risks are managed.
i.
r.
3.
q.
o.
p.
(iv) How managers of the business are compensated (e.g.
whether the compensation is based on the fair value of the
assets managed or on the contractual cash flows
collected).
Based on this assessment and future business plans of the
Company, the management has measured its financial assets
at amortised cost as the asset is held within a business model
whose objective is to collect contractual cash flows, and the
contractual terms of the financial asset give rise to cash flows
that are solely payments of principal and interest.
Defined employee benefit assets and liabilities
which is dependent on the terms and conditions of the grant.
This estimate also requires determination of the most
appropriate inputs to the valuation model, including the
expected life of the share option, volatility and dividend yield
and making assumptions about them.
Share based payment
When the fair values of financial assets and financial liabilities
recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The inputs
Effective interest rate method
Estimating fair value for share-based payment transactions
requires determination of the most appropriate valuation model,
The Company’s EIR methodology recognises interest income
using a rate of return that represents the best estimate of a
constant rate of return over the expected behavioural life of
loans and recognises the effect of potentially different interest
rates charged at various stages and other characteristics of the
product life cycle (including prepayments and penalty interest
and charges). This estimation, by nature, requires an element
of judgement regarding the expected behaviour and life-cycle of
the instruments, as well expected changes to the Company’s
base rate and other fee income/expense that are integral parts
of the instrument.
Fair value measurement
At initial recognition of a financial asset, the Company
determines whether newly recognised financial assets are part
of an existing business model or whether they reflect a new
business model. The Company reassesses it’s business model
at each reporting period to determine whether the business
model has changed since the preceding period.
to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could
affect the reported fair value of financial instruments.
The cost of the defined benefit gratuity plan the present value of
the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the
future; these include the determination of the discount rate,
future salary increases and mortality rate. Due to the
complexities involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at the end of
each reporting date.
ii.
iii.
iv.
v.
Impairment losses on financial assets (ECL)
Excess interest spread on direct assignment
expected portfolio life, prepayment and foreclosures.
Inputs used and the process followed by the Company in
determining the increase in credit risk has been detailed in the
notes to accounts on Impairment. Estimation is also involved in
the selection of forward-looking macroeconomic scenarios and
their probability weightings, to derive the economic inputs into
the ECL models.
When determining whether the risk of default on a financial
instrument has increased significantly since initial recognition,
the Company considers reasonable and supportable
information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative
information and analysis, based on the Company’s historical
experience and credit assessment and including forward-
looking information. In some instances, the assessment based
on experience is required for future estimation of cash flows
which requires significant judgment.
The assessment of derecognition criteria being met involves
significant judgements. Furthermore, the measurement of the
related EIS receivable income, servicing asset and liability
requires significant estimates to be made for the discount rate,
Income tax
The Company’s tax jurisdiction is in India. Significant judgments
are involved in determining the provision for income tax,
including the amount expected to be paid/recovered for
uncertain tax positions.
Transition to Ind AS:
Overall principle
The accounting policies set out in note 2 have been applied in
preparing the financial statements for the year ended March 31,
2020, the comparative information presented in these financial
statements for the year ended March 31, 2019, and in the
preparation of an opening Ind AS transition balance sheet as at
April 1, 2018 (the Company's date of transition). In preparing it's
opening Ind AS balance sheet, the Company has adjusted the
amounts reported previously in financial statements prepared
under the accounting standards notified under Companies
(Accounting Standards) Rules, 2006 (as amended) and other
relevant provisions of the Act (previous GAAP or Indian GAAP).
An explanation of how the transition from previous Indian GAAP
to Ind AS has affected the Company's financial position,
financial performance and cash flows is set out in the following
tables and note 42.
Exemptions and exceptions availed:
We have set out below the applicable Ind AS 101 optional and
mandatory exceptions applied in the transition from previous
GAAP to Ind AS.
Ind AS exemptions:
Deemed cost for property, plant and equipment and other
intangible assets:
Ind AS 101 permits a first-time adopter to select to continue with
the carrying value for all of its property, plant and equipment as
recognised in the financial statements as at the date of
transition to Ind AS, measured as per the previous GAAP and
use that as its deemed cost as at the date of transition after
vii.
viii.
4.
vi.
Accordingly, the Company has elected to measure all of its
property, plant and equipment and intangible assets at its
previous GAAP carrying value.
Effective April 1, 2019, the Company adopted Ind AS 116
“Leases” and applied the standard to all lease contracts existing
on April 1, 2019, using the modified retrospective method and
has taken the cumulative adjustment to retained earnings, on
the date of initial application. Consequently, the Company
recorded the lease liability, of Rs. 297.60 lakh (PY Nil) as at
March 31, 2020, at the present value of the lease payments,
discounted at the incremental borrowing rate and the right of
use asset at its carrying amount, of Rs. 383.75 Lakh (PY Nil) as
at March 31, 2020, as if the standard had been applied since
the commencement date of the lease, but discounted at the
Company’s incremental borrowing rate at the date of initial
application. Comparatives as at and for the year ended March
31, 2019, have not been retrospectively adjusted and therefore
continues to be reported under the accounting policies included
as part of our Annual Report for the year ended March 31, 2019.
Impairment of financial assets
Classification and measurement of financial assets
The Company has applied the impairment requirements of Ind
AS 109 retrospectively; however, as permitted by Ind AS 101, it
has used reasonable and supportable information that is
available without undue cost or effort to determine the credit
risk at the date that financial instruments were initially
recognized to compare it with the credit risk at the transition
date.
The Company classifies the financial assets under Ind AS 109
based on facts and circumstances that exist at the date of
transition to Ind AS.
Estimates:
making necessary adjustments for de-commissioning liabilities.
This exemption has also been used for intangible assets
covered by Ind AS 38 Intangible Assets.
An entity’s estimates under Ind AS at the date of transition to
Ind AS shall be consistent with estimates made for the same
date under previous GAAP (after adjustments to reflect any
difference in accounting policies), unless there is objective
evidence that those estimates were in error. Ind AS estimates
as at 1 April 2018 are consistent with the estimates as at the
same date made in conformity with previous GAAP. The
Company made estimates for following items under Ind AS at
the date of transition as these were not required under the
previous GAAP:
Lease
March 31, 2019 March 31, 2020 April 01,2018
- In cash credit accounts- In deposit accounts with original maturity less than 3 months or less
Total
Balances with banks:
- In current accounts
Cash in hand
5.1. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash
requirements of the Company, and earn interest at the respective short-term deposit rates.
30,522.0020,544.63
21.00
30,522.0020,544.63
21.00
Total
In deposits account with original maturity of more than 3 months to upto 12 months
(Rs. in Lakh)
As at As at
March 31, 2019 March 31, 2020
As at
April 01,2018Particulars
6. Bank balances other than cash and cash equivalents
6.1. Deposits are made for varying period and earn interest at the respective fixed rates
6.2. Includes deposit under lien aggregating to Rs.1,000 Lakh (as at March '31, 2019 is Nil and as at April 1, 2018 is Nil) towards guarantee
provided by the Company towards refinance facility provided by the National Housing Bank.
Particulars
At amortised costLoans given in India to other than public sector
Housing loans 107,792.42
49,075.49
Loans against properties 60,640.85
47,539.40
Interest accrued on loans 2,033.99
1,400.67
Total – Gross (A) 170,467.25
135,003.22
Less: Impairment loss allowance 1,010.60
668.01
Less: Umamortized processing fee 350.59
683.05
Total – Net (A) 169,106.07
133,652.17
(a) Secured by tangible assets 170,467.25
135,003.22
Total – Gross (B) 170,467.25
135,003.22
Less: Impairment loss allowance 1,012.35
668.01 Less: Umamortized processing fee 350.59
683.05
Total – Net (B) 169,106.07 133,652.17
(Rs. in Lakh)
As at As at
March 31, 2019 March 31, 2020
As at
April 01,2018
5. Cash and cash equivalents (Rs. in Lakh)
As at As at As at Particulars
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
12.33 8.87 8.34
703.07 1,671.96 745.68
24.51 13.79 16.83
5,000.00 11,100.00 19,751.00
5,739.92 12,794.62 20,521.85
86,063.1547,539.401,400.67
135,003.22
668.01
133,652.17
135,003.22
133,652.17
683.05
668.01
135,003.22
683.05
7. Loans
7.2 Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income for the Company.
The carrying value may be affected by changes in the credit risk of the counterparties.
b) Undertaking to create a security.
7.5 Includes loans under on going cheque handover post completion of disbursement process but under security creation.
a) Equitable / Registered Mortgage of Property.
7.3 Collateral and Other Credit Enhancements :
d) Assignment of insurance policies.
c) The personal guarantees of borrowers.
7.6 There were no loans given against the collateral of gold jewellery & hence the percentage of such loan to the total outstanding assets is Nil
(as at March '31, 2019 is Nil and as at April 1, 2018 is Nil).
Loans granted by the group Companies are secured by any or all of the following as applicable, based on their categorisation:
7.4 The group Companies monitors the value of collateral and will request additional collateral in accordance with the loan agreement.
7,625.18 --
Carrying amount of associated liabilities -
--
Fair value of assets of the assets that represent the entity’s continuing involvement
in the derecognised financial assets (representing 90% of the outstanding amount)
7,625.18
--
Fair value of associated liabilities
Net position at FV
-
--
7,625.18
--
-
Gain or loss recognised at the date of transfer of the assets (Refer Note 9 & 27) 1,901.86
--
Carrying amount of the assets that represent the entity’s continuing involvement in
the derecognised
Particulars
(Rs. in Lakh)
As at As at
March 31, 2020 March 31, 2020
As at
March 31, 2019
7.7 Housing Loan
An analysis of changes in the gross carrying amount and the corresponding Expected Credit Loss allowances in relation to lending is as follows;
(Rs. in Lakh)
Particulars Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Gross Carrying amount opening balance
New Asset Originated / purchased /
further increase in existing asset (net)
Assets derecognised or repaid
(excluding write offs)
Transfers to/(from) Stage 1
Transfers to/(from) Stage 2
Transfers to/(from) Stage 3
Amount Written off
Gross Carrying amount closing balance
For the year 31st March '20 For the period 31st March '19
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
7.1 Disclosure for transferred financial assets
The Company has derecognised certain financial assets on account of assignment without recourse. However, the Company has retained 10%
of the financial assets and below are the disclosures of assets and liabilities associated with the continuing involvement in the financial assets.
85,555.03 427.83 80.29 86,063.15 48,926.83 148.65 - 49,075.49
36,757.89 -
-
36,757.89
47,875.06
-
-
47,875.06
(14,505.48) (378.44) (144.56) (15,028.48) (10,711.47) (124.00) 0.33 (10,835.13)
(1,415.77) - - (1,415.77) (535.29) - - (535.29)
-
1,108.43
-
1,108.43
-
423.84
-
423.84
-
-
307.34
307.34
-
-
111.45
111.45
(0.14)
-
-
(0.14)
(0.11)
(20.66)
(31.49)
(52.26)
106,391.53 1,157.82
243.07
107,792.42
85,555.03
427.83
80.29
86,063.15
Particulars Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
For the year 31st March '20 For the period 31st March '19
Reconciliation of Expected Credit Loss allowances balance is given below :
ECL Allowance - opening balance
New Asset Originated / purchased /
further increase in existing asset (net)
Assets derecognised or repaid
(excluding write offs)
Transfers to/(from) Stage 1
Transfers to/(from) Stage 2
Transfers to/(from) Stage 3
Amount Written off
ECL Allowance closing balance
Stage 1 allowance includes excess provision of Rs. 409.51 Lakh as at March 31, 2020 (Rs. 349.91 Lakh as at March 31, 2019 and Rs. 218.71
Lakh as at April 1, 2018).
Particulars Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
For the year 31st March '20 For the period 31st March '19
7.8 Non Housing Loan
An analysis of changes in the gross carrying amount and the corresponding Expected credit loss allowances is as follows :
Gross Carrying amount opening balance
New Asset Originated / purchased / further increase in existing asset Assets derecognised or repaid
(excluding write offs) Transfers to/(from) Stage 1
Transfers to/(from) Stage 2
Transfers to/(from) Stage 3 Amount Written off
Gross Carrying amount closing balance
Particulars Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
For the year 31st March '20 For the period 31st March '19
Reconciliation of Expected credit loss allowances balance is given below :
ECL Allowance - opening balance
New Asset Originated / purchased /
further increase in existing asset
Assets derecognised or repaid
(excluding write offs)
Transfers to/(from) Stage 1
Transfers to/(from) Stage 2
Transfers to/(from) Stage 3
Amount Written off
ECL Allowance closing balance
Lakh as at April 1, 2018).
Stage 1 allowance includes excess provision of Rs. 166.74 Lakh as at March 31, 2020 (Rs. 183.72 Lakh as at March 31, 2019 and Rs. 107.34
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to consolidated financial statement for the year ended March 31, 2020
371.59 41.06 17.66 430.32 362.31 14.27 - 376.58
123.13 - - 123.13 12.13
-
-
12.13
(10.11)
(36.38)
(31.80)
(78.29)
(2.71)
(11.90)
0.07
(14.54)
(0.99)
-
-
(0.99)
(0.14)
-
-
(0.14)
-
104.97
-
104.97
-
40.68
-
40.68
-
-
67.62
67.62
-
-
24.52
24.52
(0.00)
-
-
(0.00)
(0.00)
(1.98)
(6.93)
(8.91)
483.63
109.65
53.47
646.75
371.59
41.06
17.66
430.32
47,151.10 349.93
38.38
47,539.40
25,184.93
134.14
-
25,319.07
29,570.92 -
-
29,570.92
28,220.82
-
-
28,220.82
(16,181.10) (208.76)
(79.51)
(16,469.38)
(5,956.42)
(35.55)
(7.02)
(5,998.98)
(1,105.77) -
-
(1,105.77)
(297.84)
-
-
(297.84)
-
733.30
-
733.30
-
251.55
-
251.55 -
-
372.47
372.47
-
-
46.29
46.29
-
(0.10)
-
(0.10)
(0.39)
(0.21)
(0.90)
(1.49)
59,435.14 874.37 331.33 60,640.85 47,151.10 349.93 38.38 47,539.40
195.67 33.58 8.44 237.70 190.10 12.87 - 202.98
24.52 - - 24.52 7.15 - - 7.15
(11.27) (20.21) (17.49) (48.98) (1.51) (3.41) (1.54) (6.47)
(0.77) - - (0.77) (0.08) - - (0.08)
- 69.45 - 69.45 - 24.14 - 24.14
- - 81.94 81.94 - - 10.18 10.18
- (0.01) - (0.01) (0.00) (0.02) (0.20) (0.22)
208.15
82.80
72.89
363.85
195.67
33.58
8.44
237.70
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
VA
ST
U H
OU
SIN
G F
INA
NC
E C
OR
PO
RA
TIO
N L
IMIT
ED
ST
AN
DA
LO
NE
ST
AT
EM
EN
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F C
HA
NG
ES
IN
EQ
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OR
TH
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ED
MA
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H 3
1, 2
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0
Part
icu
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Am
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co
st
Su
b-T
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the
rs*
Th
rou
gh
pro
fit
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los
s
De
sig
na
ted
at
fair
va
lue
th
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gh
pro
fit
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er
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mp
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en
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e
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om
e
At
Fa
ir V
alu
e
As
at
Ma
rch
31,2
020
Inv
es
tme
nt
in s
ub
sid
iary
(a
t co
st)
Va
stu
Fin
serv
e India
Pri
vate
Lim
ited
-
-
-
-
5,2
50.0
0
(5,2
5,0
0,0
00 E
q. share
s of R
s.1
0 e
ach fully
paid
)
(1,8
56,2
08
.79
un
its
of
ICIC
I O
vern
igh
t F
un
d D
P g
row
th)
-
-
-
2,0
08
.24
-
20,0
00
.00 -
-
-
-
-
20,0
00
.00
2,0
08.2
45
,25
0.0
0
Less:
Allo
wance for
impair
ment
loss (
C)
--
--
-
-
2,0
08.2
4 -
2,0
08.2
4 -
As
at
Ma
rch
31, 2019
Inv
es
tme
nt
in s
ub
sid
iary
Vastu
Fin
serv
e India
Pri
vate
Lim
ited
-
-
-
-
-
250
.00
(25,0
0,0
00 E
q. share
s o
f R
s. 10 e
ach fully
paid
)
-
-
8,0
38.2
0
8,0
38.2
0
-
63,6
80.8
0 u
nits o
f H
DF
C L
iquid
Fund -
Gro
wth
-
-
2,3
42.3
6
-
-
-
5,9
57,1
44
.13 u
nits o
f S
undara
m M
oney
Fund -
Gro
wth
-
-
2,3
47.8
0
-
-
-
(2)
(1)
(3)
(4)
(5)=
(2)+
(3)+
(4)
(6)
8. In
ve
stm
en
ts(R
s. in
La
kh)
To
tal
5
,25
0.0
0
Mu
tua
l fu
nd
s 2
,00
8.2
4
20
,00
0.0
0 -
27,2
58
.24 -
250
.00
Mu
tual fu
nd
s8
,03
8.2
0 - -
(7)=
(1)+
(5)+
(6)
-
-
-
-
20,0
00
.00
-
-
2
,00
8.2
4
5,2
50.0
0
-
2,0
08.2
42
7,2
58
.24
De
posits w
ith H
DF
C L
imited
Inve
stm
ent outs
ide India
To
tal (A
)
Inve
stm
ent in
India
-
-
20,0
00
.00
-
-
2
,00
8.2
4
5,2
50.0
0
2
,00
8.2
4T
ota
l (B
)2
7,2
58
.24
To
tal N
et
(D =
A -
C)
20,0
00
.00
-
-
2
,00
8.2
4
5,2
50.0
0
2
,00
8.2
4
2
7,2
58
.24
79,7
04.2
2 u
nits o
f T
ata
Liq
uid
Fund -
Gro
wth
--
2,3
46.8
4-
--
35,7
75.9
07 u
nits o
f F
rankl
in India
Liq
uid
Fund
--
1,0
01.2
0-
--
-
-
8,0
38.2
0
-
8,0
38.2
02
50
.00
Inve
stm
ent outs
ide India
-
-
-
-
-
-
-
-
8,0
38.2
0
-
8,0
38.2
02
50
.00
-
-
8,0
38.2
0
-
8,0
38.2
02
50
.00
- -
To
tal (A
)8
,28
8.2
0 -
Inve
stm
ent in
India
8,2
88.2
0
To
tal (B
)8
,28
8.2
0
--
--
--
--
8,0
38.2
0-
8,0
38.2
02
50
.00
-
8,2
88.2
0
Less:
Allo
wance for
Impair
ment
Loss (
C)
To
tal N
et
(D =
A -
C)
VA
ST
U H
OU
SIN
G F
INA
NC
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OR
PO
RA
TIO
N L
IMIT
ED
ST
AN
DA
LO
NE
ST
AT
EM
EN
T O
F C
HA
NG
ES
IN
EQ
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Y F
OR
TH
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EA
R E
ND
ED
MA
RC
H 3
1, 2
02
0
Am
ort
ised
co
st
Su
b-T
ota
lO
the
rsT
hro
ug
h
pro
fit
or
los
s
De
sig
na
ted
at
fair
va
lue
th
rou
gh
pro
fit
or
los
s
Th
rou
gh
Oth
er
Co
mp
reh
en
siv
e
Inc
om
e
At
Fa
ir V
alu
e
(2)
(1)
(3)
(4)
(5)=
(2)+
(3)+
(4)
(6)
Inve
stm
ent in
subsid
iary
--
--
--
--
--
--
--
--
--
Inve
stm
ent outs
ide India
--
--
--
-
-
-
-
-
-
--
--
--
Less:
Allo
wance for
Impair
ment
Loss (
C)
*Th
e C
om
pany
has a
ccounte
d f
or
its inve
stm
ents
in S
ubsid
iary
at co
st
less im
pa
irm
en
t lo
ss (
if a
ny)
.
As
at
Ap
ril 1, 2018
-
Mutu
al fu
nds
-
To
tal (A
)- -
Inve
stm
ent in
India
-
To
tal (B
)- -
Part
icu
lars
8. In
ve
stm
en
ts(R
s. in
La
kh)
To
tal
(7)=
(1)+
(5)+
(6)
--
--
--
To
tal N
et
(D =
A -
C)
--
--
--
-
9. Other financial assets (Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
As at
April 1, 2018
125.36
1,636.39
101.25
-
90.52
-
397.44 134.70 52.74
129.01 47.90 26.07
2,288.20 283.85 169.34
Other receivables - Unsecured; considered good
Total
Particulars
Interest only strip receivable*
Interest accrued but not due on deposits
Security Deposits
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
289.55
- 74.30
289.55
- 74.30
Total
Current Tax Asset (net)
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019 Particulars
10. Current tax assets (net)
Particulars
Impairment of financial instruments
Disallowances under section 43B of the Income Tax Act, 1961
Ind AS adjustment (effective interest rate on fee income and expense etc.)
Changes in Tax rate
Impact on assignment transaction on account of EIS
Difference between books and tax written down value of fixed assets
*Refer note 34
256.66
68.77
286.83
(19.99)
(419.33)
3.10
197.82
23.02
323.91
-
-
(3.78)
102.19
9.12
90.97
-
-
(14.90)
176.04 540.97 187.39
(Rs. in Lakh)
As at
March 31, 2020
As at As at
March 31, 2019 April 1, 2018
11. Deferred tax assets (net)*
*Under Ind AS, with respect to assignment deals, the Company has created an Interest only strip receivable amounting to Rs. 1,636.39 Lakh as
on March 31, 2020 (Nil as on Mar. 2019, April 01, 2018) with corresponding credit to Profit and loss for the year, which has been computed by
discounting Excess Interest Spread (EIS) to present value with necessary adjustment.
As at
April 1, 2018
Total
VA
ST
U H
OU
SIN
G F
INA
NC
E C
OR
PO
RA
TIO
N L
IMIT
ED
NO
TE
S T
O S
TA
ND
AL
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E F
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NC
IAL
STA
TE
ME
NT
FO
R T
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AR
EN
DE
D M
AR
CH
31
, 2
02
0
(I).
As
se
t fo
r o
wn
us
e
Furn
iture
and fitt
ings
Le
ase
hold
impro
vem
ents
*All
redeem
able
non-c
onve
rtib
le d
ebentu
res
are
secu
red o
n p
ari p
ass
u b
asi
s b
y a
first
ra
nki
ng
ch
arg
e b
y w
ay
of
leg
al m
ort
ga
ge
on th
e p
rem
ise
s si
tua
ted
at C
oim
ba
tore
in th
e s
tate
of T
am
il N
ad
u.
12. P
rop
ert
y, p
lan
t a
nd
eq
uip
men
t
12. O
the
r in
tan
gib
le a
ss
ets
12. P
rop
ert
y, p
lan
t a
nd
eq
uip
men
t
No
tes
to
th
e f
ina
nc
ial s
tate
me
nts
fo
r yea
r en
din
g 3
1s
t M
arc
h 2
01
9
As
at
Ap
ril
01
, 2
01
9
As
at
Ap
ril
01
, 2
01
9
As
at
Ap
ril
01
, 2
01
8
As
at
Ma
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31
, 2
02
0
As
at
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31
, 2
02
0
As
at
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31
, 2
01
9
As
at
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rch
31
, 2
02
0
As
at
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31
, 2
02
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As
at
Ma
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31
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9
Fo
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Fo
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e
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at
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01
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9
As
at
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, 2
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9
As
at
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8
As
at
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, 2
02
0
As
at
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31
, 2
02
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As
at
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31
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01
9
Dis
po
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Dis
po
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Dis
po
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Ad
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du
rin
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he
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Ad
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du
rin
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he
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Ad
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du
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Ne
t B
loc
k
Ne
t B
loc
k
Ne
t B
loc
k
De
pre
cia
tio
n
Am
ort
isa
tio
n
De
pre
cia
tio
n
Co
st
(Glo
ss
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ck
)
Co
st
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ss
Blo
ck
)
Gro
ss
Blo
ck
(a
t c
os
t)
Inta
ng
ible
as
sets
Ta
ng
ible
as
sets
10
.25
53
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53
.35
-
10
.31
10
.31
- - -
10
.25
63
.66
63
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1.9
0
38
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38
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0.2
8
10
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10
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- - -
2.1
7
48
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48
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8.0
8
14
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14
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22
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4.3
6-
26
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5.4
64
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0.1
31
6.7
6
23
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9.7
6
-
32
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9.1
4
2.1
4
-
11
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21
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8.3
40
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-
9.0
8
5.6
2
1.7
0
-
7.3
1
1.7
7
11
1.1
47
7.2
6
0.4
5
18
7.9
5
50
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39
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0.0
2
90
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97
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17
5.3
69
2.1
2
0.4
5
26
7.0
2
72
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48
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0.0
2
12
1.2
0
14
5.8
2
(i).
Asse
t fo
r o
wn
use
10
.25
--
10
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1.6
20
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-1
.90
8.3
5
12
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10
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-2
2.5
42
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3.3
4-
5.4
61
7.0
8
Fu
rnitu
re a
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fitt
ing
s1
8.4
74
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-2
3.0
88
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0.7
7-
9.1
41
3.9
5
Lease
hold
imp
rove
men
ts6
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1.7
8-
8.3
43
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2.3
4-
5.6
22
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10
7.2
24
0.0
73
6.1
51
11
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45
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25
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20
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50
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60
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15
4.7
35
6.7
83
6.1
51
75
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61
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14. Other non-financial assets (Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
As at
April 1, 2018
99.22
99.22
81.70
81.70
29.54
29.54
Total
Particulars
Prepaid expenses
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
Particulars
(I) The principal amount and the interest due thereon remaining unpaid to any supplier
at the end of each accounting year;
(ii) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small
and Medium Enterprises Development Act, 2006, along with the amount of the
payment made to the supplier beyond the appointed day during each accounting year
(iii) the amount of interest due and payable for the period of delay in making payment
(which has been paid but beyond the appointed day during the year) but without
adding the interest specified under the Micro, Small and Medium Enterprises
Development Act, 2006
(iv) the amount of interest accrued and remaining unpaid at the end of each
accounting year; and
(vi) the amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues above are actually paid to the small
enterprise, for the purpose of disallowance of a deductible expenditure under section
23 of the Micro, Small and Medium Enterprises Development Act, 2006.
4.15
-
0.11
0.11
-
-
-
-
-
-
-
-
-
-
-
(Rs. in Lakh)
As at
March 31, 2020
As at As at
March 31, 2019 April 1, 2018
Disclosure pertaining to Micro and Small Enterprises as at March 31,2020 are as under :
15. Assets held for sale
16. Trade payables
(Rs. in Lakh)
(Rs. in Lakh)
As at
As at
March 31, 2020
March 31, 2020
As at
As at
March 31, 2019
March 31, 2019
As at
April 1, 2018
As at
April 1, 2018
664.68
4.15
(12.46)
141.20
652.22
145.35
49.76
-
81.70
88.43
49.76
88.43
-
-
-
65.39
-
65.39
Total
Total
Particulars
Particulars
Properties obtained by taking possession of collateral (refer note below)
Total outstanding dues of micro and small enterprises
Note: Assets held for sale represents loan value or market value of property whichever is lower of properties acquired by taking possession of
collateral held as security against loans and advances and held at the year end. The company's policy is to realize collaterals on a timely basis.
The amounts due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, has been
determined to the extent of information available and compiled by the Company. This has been relied upon by the auditors.
Assets held for sale includes Rs. 652.22 Lakhs (Previous Year Rs. 49.76 Lakhs) in respect of properties held for disposal under Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Less: Provision for diminution in value of property
Total outstanding dues to creditors other than micro and small enterprises
17. Debt securities
17.2 Non-Convertible Debentures (NCD) at Face Value repayable at par;
18. Borrowings (other than debt securities)
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
As at
As at
As at
March 31, 2020
March 31, 2020
March 31, 2020
Maturity date
As at
As at
As at
March 31, 2019
March 31, 2019
March 31, 2019
As at
April 1, 2018
As at
April 1, 2018
As at
April 1, 2018
Total
Total
Total
Particulars
Instrument No. - fixed / variable - rate of interest
Particulars
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
17.1 Non-convertible debentures are secured by a first ranking exclusive and continuing charge on the hypothecated receivables in favour of the
debenture trustee and first ranking pari passu basis charge over the immovable property (on the premises situated at Coimbatore in the state
of Tamil Nadu) created by way of a mortgage (without possession) under the debenture trust deed in favour of the debenture trustee.
At amortised cost (within India)
Secured
Non Convertible Debentures 36,153.85 41,923.08 12,500.00
Less: Unamortised borrowing cost (24.85) (31.78) -
36,129.00 41,891.30 12,500.00
INE459T07017 - variable - SBI MCLR + spread 2.4% 22/May/21 1,153.85 1,923.08 2,500.00
INE459T07025 - fixed 9.95% 27/Feb/25 5,000.00 5,000.00 5,000.00
INE459T07033 - fixed 9.95% 27/Feb/25 5,000.00 5,000.00 5,000.00
INE459T07041 - fixed 9.95% 27/Feb/25 4,000.00 5,000.00 -
INE459T07058 - fixed 9.95% 27/Feb/25 6,000.00 5,000.00 -
INE459T07066 - variable - SBI MCLR + spread 3.50% 25/Aug/23 5,000.00 5,000.00 -
INE459T07074 - variable - SBI MCLR + spread 3.75% * 25/Aug/23 - 5,000.00 -
INE459T07082 - fixed 10.40% 27/Nov/25 5,000.00 5,000.00 -
INE459T07090 - fixed 10.40%
*Early redemption during the year.
18.1 Nature of security
27/Nov/25 5,000.00 5,000.00 -
36,153.85 41,923.08 12,500.00
22,594.65 4,383.90
1,500.00
48,672.69 32,564.11 15,227.20
19,963.83 20,149.90 18,300.89
Cash credit from banks (refer note 18.4)
Term loan and cash credit from banks, term loan from NHB and other parties are secured by way of exclusive first charge and hypothecation
of specific loan receivables.
1,998.64 - 17.15
Total borrowings (other than debt securities) (A) 93,229.81 57,097.91 35,045.25
Less: Unamortised borrowing cost (177.81) (146.19) (96.13)
93,052.01 56,951.73 34,949.12
Term loans from banks (refer note 18.1, 18.2 & 18.3)
At amortised cost (within India)
Secured
Term loans from NHB (refer note 18.1 & 18.2)
Term loans from other parties (refer note 18.1, 18.2 & 18.3)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
18.2 Terms of repayment & rate of interest in case of Borrowings (Other than Debt Securities) (Rs. in Lakh)
1-3 years Up to one year 3-5 years
As at 31.03.2020
5 years & aboveResidual maturities
Term loan from NHB - Quarterly
Variable Rate 7.40% - 8.15% 2,693.18 7,118.08 6,018.08 6,765.31
Term loan from banks & other parties - half yearly
Variable Rate 9.55% 450.00
945.00 - -
Term loan from banks & other parties - quarterly
Fixed Rate 9.63% - 11.00% 1,160.00
9,199.58 6,166.67 -
Variable 9.40% - 10.57% 10,573.13 15,906.52 2,979.17 -
Term loan from banks & other parties - monthly
Fixed Rate 9.5% - 9.85% 2,666.21
4,965.25 62.16 -
Variable 9.4% - 11.05% 3,690.21 7,138.46 2,734.18 -
21,232.73
45,272.89
17,960.25
6,765.31
Total
(Rs. in Lakh)
(Rs. in Lakh)
1-3 years
1-3 years
Up to one year
Up to one year
3-5 years
3-5 years
As at 31.03.2019
As at 01.04.2018
5 years & above
5 years & above
Residual maturities
Residual maturities
Term loan from NHB - Quarterly
Variable Rate 9.05% - 10.50 % 254.98
611.68
611.68
2,905.56
Term loan from banks & other parties - half yearly
Variable Rate 10% 270.00
1,080.00
315.00
-
Term loan from banks & other parties - quarterly-
Fixed Rate 9.63 - 10.95 % -
1,160.00
4,017.92
3,583.33
Variable 9.5 - 10.84 % 5,807.15
11,331.35
2,737.50
-
Term loan from banks & other parties - monthly
Fixed Rate 9.5 - 9.85 % 2,419.46
5,652.76
2,040.86
-
Variable 9.95 - 11.30 % 3,603.64
5,667.17
3,027.88
-
13,515.23 28,360.87 12,316.26 2,905.56Total
Term loan from NHB - Quarterly
Variable Rate 8.4% - 8.95% 116.10
204.80
204.80
974.30
Term loan from banks & other parties - half yearly
Variable Rate 9.40% -
540.00
1,260.00
-
Term loan from banks & other parties - quarterly
Fixed Rate 9.38% - 10.95 % 910.00
2,470.00
1,366.25
-
Variable 9.4 - 10 % 1,711.26 5,954.40 2,548.63 -
Term loan from banks & other parties - monthly
Fixed Rate 9.5% - 9.8 % 1,878.07 4,343.69 4,025.47 -
Variable 9.6% - 10.75 % 1,841.25 2,958.48 1,720.60 -
6,456.68 16,471.37 11,125.75 974.30 Total
18.3 For variable interest rate borrowings, rate of interest is linked to the MCLR/base rates of the banks and is subject to change from time to time.
The above categorisation of loans has been based on the interest rates, prevalent as on the respective reporting dates.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
18.4. The rate of interest for the cash credit from bank, repayable on demand, ranges from 10.00% to 12.00%
18.5. There has been no default in repayment of principal and/or interest for borrowing as per the repayment schedules during the year. Further,
the Company is compliant of the covenants mentioned in the respective borrowing's deeds.
19. Other financial liabilities (Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
As at
April 1, 2018
Total
Particulars
5,774.26
9,548.61
9,378.00
475.52
204.46
147.22
10.02 11.99 18.18
297.60 - -
1,671.60 1,328.37 1,141.03
8,229.01 11,093.43 10,684.43
Interest accrued but not due on borrowings
and debt securities
Employee benefits payable
Other financial liabilities
The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2020 on an undiscounted basis:
Book overdraft
Lease rental liability
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
As at
As at
March 31, 2020
March 31, 2020
As at
As at
March 31, 2019
March 31, 2019
As at
April 1, 2018
As at
April 1, 2018
Total
Total
Particulars
Particulars
Total
Total
As at
As at
March 31, 2020
March 31, 2020
As at
As at
March 31, 2019
March 31, 2019
Particulars
Particulars
20. Current tax liabilities (net)
21. Provisions
22. Other non-financial liabilities
As at
April 1, 2018
As at
April 1, 2018
Less than one year 126.54 - -
One to three years 133.96 - -
More than three years 37.10 - -
297.60 - -
-
143.68
-
- 143.68 -
Current tax liability (net)
159.26
79.05
33.10
159.26 79.05 33.10
Provision for employee benefits - gratuity (refer note 39)
158.81 54.77 395.73
130.90
272.31
130.54
1.51
4.84
20.52
291.23
331.92
546.79
Other non-current financial liabilities
Instalments received in advance
Statutory dues
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
As at
March 31, 2020
As at
March 31, 2019 Particulars
23. Equity share capital
As at
April 1, 2018
100,000.00 100,000.00 60,000.00
100,000.00 100,000.00 60,000.00
Issued, subscribed and paid up
5,18,45,527 Equity Shares of ₹ 100 each 51,845.53 35,382.18 35,382.18
(FY 2019 and FY 2018 - 3,53,82,180 Equity Shares of ₹ 100 each)
Authorised
10,00,00,000 Equity Shares of ₹ 100 each
(FY 2019 10,00,00,000 FY 2018 6,00,00,000, Equity Shares of ₹ 100 each)
51,845.53 35,382.18 35,382.18
23.2. During the period, the company has issued equity shares at a premium of Rs.130 (face value Rs.100) aggregating to Rs.37,750.70 Lakh
(face value Rs.16,413.35 Lakh) through right issue
The stock option granted to eligible employees operate under the employee stock option plan: Employees Stock Options Plan 2018 Scheme I
and Employees Stock Options Plan 2018 Scheme II. (Refer Note 40)
During the year 2018-19, the Company had introduced 2 ESOP schemes. The primary objective of the ESOP 2018 Scheme I & II is to reward
the key employees for their association, dedication and contribution to the goals of the Company. The Company intends to use this ESOP 2018
- Scheme I & II to attract, retain and motivate critical talents working with the Company, by way of rewarding their high performance and
motivate them to contribute to the overall corporate growth and profitability. The Company views employee stock options as long-term incentive
tools that would enable the employees not only to become shareholders but also to create potential wealth out of such shareholding in future.
23.1. (c) List of shares held by Holding Company
23.1. (d) List of shareholders holding more than 5% shares
23.3. Equity shares reserved for issue under stock options
23.1. (a) Reconciliation of number of shares outstanding at the beginning and at the end of the reporting period:
23.1. (b) Rights, Preferences and Restrictions
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
Particulars
Particulars
Particulars
35,382,180
35,273,730
35,273,730
9,663,707
3,864,856
35,382,18
68.04%
68.04%
18.64%
7.45%
35,382,180
27,290,421
27,290,421
-
3,045,664
35,382,18
77.13%
77.13%
0.00%
8.61%
12,882,180
27,290,421
27,290,421
-
3,045,664
12,882.18
77.13%
77.13%
0.00%
8.61%
50,000 50,00 - - - -
51,845,527 51,845,53 35,382,180 35,382,18 35,382,180 35,382.18
16,413,347 16,413,35 - - 22,500,000 22,500.00
Shares outstanding at the beginning of the year
Plenty Private Equity Fund I Limited
Plenty Private Equity Fund I Limited
Plenty CI Fund I Limited
Multiples Private Equity Fund II LLP
The Company has only one class of equity shares, having a par value of Rs.100 per share. Each shareholder of equity shares is eligible for one
vote per share. The dividend, if any, proposed by the Board of Directors, is subject to the approval of the shareholders at the ensuing Annual
General Meeting except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares shall be eligible to
receive the remaining assets of the Company, after distribution of all preferential amounts, in the proportion of their shareholding.
Shares issued under right issue
Shares issued under ESOP
Shares outstanding at the end of the year
As at April 1, 2018
As at April 1, 2018As at April 1, 2018
As at March 31, 2019
As at March 31, 2019
As at March 31, 2020
As at March 31, 2020
Number Amount Number Amount Number Amount
Number % Number % Number %
Number % Number %
As at April 1, 2018As at March 31, 2019
Number %
As at March 31, 2020
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
24. Other equity(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
As at
April 1, 2018
Total
Particulars
-
34,363.59
-
3,704.28
1,752.65
627.65
Securities premium 21,376.71
-
-
111.99
111.99
111.99
Share option outstanding account 1,335.01
1,074.41
-
10,319.03
3,066.03
591.64
36,847.02 40,368.67 1,331.28
Share application money pending allotment
Retained earnings
General reserve
Statutory / Special Reserve (under Section 29 C of the National Housing BankAct, 1987 )
25. Interest income
27. Net gain on derecognition of financial instruments
26. Fees and commission income
Securities premium account is used to record the premium on issue of shares.
The general reserve created from time to time by transferring profits from retained earnings for appropriation purpose.
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, statutory reserve, dividends or
other distributions paid to shareholders.
This Reserve relates to stock options granted by the Company to employees under various ESOP schemes. This Reserve is transferred to
securities premium account on exercise of vested options.
Loan origination income included in interest income on loan is disclosed net of the direct incremental costs of Rs. 686.45 lakh for year ended
March 31, 2020 (P.Y. Rs 386.97 lakh) associated with the origination of the underlying loans.
The statutory reserve is the reserve created by transferring a sum not less than twenty per cent of the Company's net profit after tax every year in
terms of Section 29 C of the National Housing Bank Act, 1987. For this purpose any special reserve created by Company under section 36(1)(viii)
of the Income Tax Act, 1961 is considered to be an eligible transfer. Further, the Company doesn't anticipate any withdrawal from the statutory
reserve in the foreseeable future.
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
For the year ended
For the year ended
For the year ended
March 31, 2020
March 31, 2020
March 31, 2020
For the year ended
For the year ended
For the year ended
March 31, 2019
March 31, 2019
March 31, 2019
Total
Total
Total
Particulars
Particulars
Particulars
22,875.40
1,636.39
297.55
15,035.11
-
371.31
22,875.40
1,636.39
297.55
15,035.11
-
371.31
On financial assets measured at amortised cost
On financial assets measured at amortised cost
- Interest on loans
On assignment of portfolio
Login fee and other charges
Note: For additions and deductions under each of the above heads, refer statement of changes in equity
Securities premium
General reserve
Retained earnings:
Share option outstanding account
Statutory reserve:
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
28 Other operating income(Rs. in Lakh)
For the year ended
March 31, 2020
For the year ended
March 31, 2019
Total
Particulars
238.06 95.65
238.06 95.65
Other charges (cersai, cancellation, cheque bouncing charges, etc.)
29. Other income
30. Finance costs
31 Impairment on financial instruments
32. Employee benefits expense
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
For the year ended
For the year ended
For the year ended
For the year ended
March 31, 2020
March 31, 2020
March 31, 2020
March 31, 2020
For the year ended
For the year ended
For the year ended
For the year ended
March 31, 2019
March 31, 2019
March 31, 2019
March 31, 2019
Total
Total
Total
Total
Particulars
Particulars
Particulars
Particulars
342.59 296.03
75.38 60.72
12.46 -
4,182.44
11,050.55
430.43
4,616.54
356.76
4,476.46
2,114.34
6,928.05
On financial assets measured at amortised cost
Provision for expected credit loss
Bad debt written off (net)
Diminution in value of properties (unrealized)
Net gain/loss on fair value changes (realised) 346.02
189.20
Net gain/loss on fair value changes (unrealised) 8.24
8.20
Interest income on fixed deposit 2,695.23
879.95
Discount on buyback of debenture 60.32
-
Income from display of advertisement 939.86
826.95
Training development and consultancy charges 131.30
199.05
Profit on sale of property, plant & equipment 0.02
10.50
Other misc. income 1.45
0.48
6,648.46 3,889.03
4,273.90 2,933.46
27.35 -
Interest Expense on lease liabilities 29.96 -
70.87 105.56
On financial liabilities measured at amortised cost
Interest on borrowings (other than debt securities)
Interest on debt securities
Interest on overdraft facility
Other interest expense
3,986.51 3,190.84
214.59 149.69
62.51 32.28
299.95 1,074.41
52.98 29.25
Salaries, bonus and other allowances
Contribution to provident fund and other funds
Staff welfare and training expenses
Employee stock option scheme (refer note 40)
Gratuity (refer note 39)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
33. Other expenses
Payment to Auditors
34. 1 Reconciliation of total tax charge
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
For the year ended
For the year ended
For the year ended
March 31, 2020
March 31, 2020
March 31, 2020
For the year ended
For the year ended
For the year ended
March 31, 2019
March 31, 2019
March 31, 2019
Total
Total
Particulars
Particulars
Particulars
1,059.96
62.40 29.75
868.92
Rent, taxes and energy costs 126.56 245.40
Communication costs 199.16 120.51
Advertisement and publicity 18.72 3.72
Printing and stationery 62.55 84.49
Repairs and maintenance 55.12 52.51
Insurance 85.19 38.60
Auditor’s fees and expenses (refer details below) 62.40 29.75
Legal & professional charges 273.80 196.10
Corporate social responsibility (Refer Note 38) 73.78 -
Travelling and conveyance 27.49
36.31
ROC fees and stamp duty 1.27
0.60
Other expense (indirect tax reversal, admin exp. etc.) 70.45
55.64
Director’s fees, allowances, and expenses 3.48
5.30
a) For audit (incluing limited review) 36.00 23.00
b) For taxation audit 2.50 2.00
23.90 4.75c) For other services (certifications, GST audit, report on IFCoFS etc. )
Current tax 2,329.44
1,528.88
Deferred tax 371.65
(349.80)
Total income tax expenses recognised in the current year 2,701.09
1,179.09
Income tax expense recognised in other comprehensive income (8.60)
(3.79)
Profit before tax 11,939.66
4,942.15
Income tax rate 25.63% 27.82%
Income tax expense 3,059.61
1,374.91
Tax effect of:
Effect of Ind AS adjustments (net) (520.99) -
Provision for special reserve u/s 29C of the NHB Act (237.28) -
Others (including tax adjustment for earlier years) 28.10 153.97
Income tax expense recognised in profit and loss 2,329.44
1,528.88
Income tax expense for the year reconciled to the accounting profit:
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
34. 2 The following table shows deferred tax recorded in the balance sheet and changes recorded in the Income tax expense:
a. For the year ended March 31, 2020
b. For the year ended March 31, 2019
(Rs. in Lakh)
(Rs. in Lakh)
Recognised inother comprehensive
income
Recognised inother comprehensive
income
Opening balances
as on 01.04.2019
Opening balances
as on 01.04.2018
Closingbalances as on
31.03.2020
Closingbalances as on
31.03.2019
Recognised in profitor loss (Expense) /
Income
Recognised in profitor loss (Expense) /
Income
Total
Total
Deferred tax asset / (liability)
Deferred tax asset / (liability)
8.60
3.79
540.97
187.39
176.04
540.97
(371.65)
349.80
Impairment of financial instruments 197.82 58.84 - 256.66
Ind AS adjustment (effective interest rate on
fee income and exp, EIS on assignment)
323.91 (37.08) - 286.83
Changes in the Tax Rate - (19.99) - (19.99)
Disallowances under section 43B of the
Income Tax Act, 1961
23.02 37.15 8.60 68.77
Impact on assignment transaction on
account of EIS
- (419.33) - (419.33)
Difference between books and tax written
down value of fixed assets
(3.78) 6.88 - 3.10
Impairment of financial instruments 102.19 95.63 - 197.82
Ind AS adjustment (effective interest rate on
fee income and exp, EIS on assignment)
90.97 232.94 323.91
Disallowances under section 43B of the
Income Tax Act, 1961
9.12 10.11 3.79 23.02
Difference between books and tax written
down value of fixed assets
(14.90) 11.12 - (3.78)
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
As at
April 1, 2018 Particulars
Contingent liabilities* 1,000.00
-
-
Capital commitments:
Undisbursed commitments 6,837.58 4,706.72 4,054.32
Estimated amount of contracts remaining to be executed on capital account
and not provided for
*Bank guarantee aggregating to Rs 1,000 Lakhs to National Housing Bank against refinance assistance.
- - -
Contingent Liabilities and commitments35.
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
(Rs. in Lakh)
(Rs. in Lakh)
For the Year Ended
March 31,2020
For the Year Ended
March 31,2020
For the Year Ended
March 31,2019
For the Year Ended
March 31,2019
Particulars
36. Earning per equity share
Particulars
Profit attributable to equity share holders (Rs. in Lakh) 9,224.81
3,609.34
50,687,921
35,382,180
Dilutive effect of stock option (Nos.) 667,551 313,283
51,355,472 35,695,463
Basic earnings per share (Rs.) 18.20
10.20
Diluted earnings per share (Rs.) 17.96
10.11
Nominal value per share (Rs.)
The Company operates in a single reportable operating segment of providing loans. Accordingly, there are no separate reportable segments, as
per the Accounting Standard on 'Operating Segments' (Ind AS 108) prescribed under section 133 of the Companies Act, 2013.
The Company has its operation within India, and all revenues generated within India.
a. Gross amount required to be spent by the Company during the year – Rs. 56.26 lakhs (Previous Year, Rs. 17.52 lakhs) aggregating to
Rs. 73.38 Lakhs.
The Company operates a defined contribution plan (Provident fund & ESIC) for all qualifying employees of the Company. The employees of the
Company are members of a retirement contribution plan & ESIC operated by the government. The Company is required to contribute a specified
percentage of payroll cost to the retirement contribution scheme & ESIC to fund the benefits. The only obligation of the Company for the plan is to
make the specified contributions.
The liability under the Payment of Gratuity Act,1972 is determined based on the actuarial valuation made at the end of each financial year using
the projected unit credit method. The plan is of a final salary defined benefit in nature which is sponsored by the Company, and hence it
underwrites all the risks of the plan. The actuarial risks associated are:
b. The details of amount spent in respective year towards CSR as follows;
37. Segment reporting
38. Expenditure towards corporate social responsibility as per Section 135 of the Companies Act, 2013 (read with schedule VII thereof)
39. Employee benefit
Defined contribution plan
Defined benefit obligation plan
100.00
100.00
Weighted average number of equity shares outstanding during the year for calculating basic
earnings per share (Nos.)
Weighted average number of equity shares outstanding during the year for calculating for diluted earnings per share (Nos.)
1. Construction / acquisition of asset
Amount spent - -
Amount unpaid / provision - -
2. On purposes other than above
Amount spent 41.50
-
Amount unpaid / provision 32.28
-
73.78 -Total
(Rs. in Lakh)
March 31, 2020 March 31, 2019 April 1, 2018 Particulars
Employers Contribution to Provident Fund, ESIS 214.59 149.69 107.28
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
a. The assumptions used for the purposes of the actuarial valuations were as follows;
b. Amount recognised in the balance sheet
c. Expenses recognized in the statement of profit and loss
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
March 31, 2020
March 31, 2020
March 31, 2020
March 31, 2019
March 31, 2019
March 31, 2019
April 1, 2018
April 1, 2018
April 1, 2018
Particulars
Particulars
Particulars
Significant assumption
Closing present value of obligations
Discount rate
Closing fair value of plan assets
Salary escalation rate
Liability recognised in the balance sheet
Mortality rate table
Other assumption
6.35%
159.26
-
12.00%
159.26
IALM 2012 - 14
7.10%
79.05
-
12.00%
79.05
IALM 2012 - 14
7.80%
33.04
-
12.00%
33.04
IALM 2006 - 08
Investment / interest rate risk:
Longevity risks:
Salary risks:
The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the discount rate used to arrive at the present
value of the benefit.
The Company is unexposed to the risk of employees living longer since benefit under the scheme ceases on the employee separating from the
employer for any reason.
The gratuity benefits under the plan are related to the employee’s last drawn salary. Consequently, any unusual rise in future salary of the
employee raises the quantum of benefit payable by the company, which results in a higher liability for the company and is, therefore, a plan risk
for the company.
The following table summarises the component of net benefit expense recognised in the Statement of profit and loss and amounts recognised in
the balance sheet for the individual plans based on actuarial report and relied upon by auditors.
Current service cost 40.84 26.46 20.40
Past service cost -
0.89
-
Interest cost 5.80
4.92
2.58
Expected return on plan assets -
-
-
Losses / (gains) on “Curtailments and Settlements” -
-
-
Total expenses to be recognized in the statement of profit and loss
Remeasurements on the net defined benefit liability :
46.64
32.27
22.98
Actuarial losses / (gain) 33.57
13.74
(4.72)
Total expenses to be recognized in the other comprehensive income 33.57
13.74
(4.72)
Total 80.21
46.01
18.26
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
d. Change in in the present value of the defined benefit obligation are as follows:
e. Changes in the fair value of plan assets are as follows:
g.. Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase. The
sensitivity analysis below have been determined based on reasonable possible changes of the assumptions occurring at the end of the reporting
period, while holding all other assumptions constant. The results of sensitivity analysis are as follows :
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
March 31, 2020
March 31, 2020
March 31, 2019
March 31, 2019
April 1, 2018
April 1, 2018
2015 - 162016 - 172018 - 19 2017 - 182019 - 20
Particulars
Particulars
f. Particulars
Opening present value of obligation 79.05
33.04
14.77
Current service cost 40.84
26.46
20.40
Interest on defined benefit obligation 5.80
4.92
2.58
Remeasurements (gains) / losses:
- Actuarial gain from change in
Benefits paid -
-
-
Past service cost -
0.89
0.00
Liabilities assumed on acquisition / (settled on divestiture) -
-
-
Closing present value of obligations 159.26 79.05 33.04
13.74
33.57
-4.72
- Actuarial loss from change in financial
- Actuarial gain from change in experience adjustments
Opening fair value of plan assets - - -
Expected return on plan assets - - -
Actuarial gains / (losses) - - -
Contributions by employer -
-
-
Benefits paid -
-
-
Closing fair value of plan assets -
-
-
Defined benefit obligation 159.26 79.05 33.04 14.77 2.25
Plan asset -
- - - -
Surplus / (deficit) (159.26) (79.05) (33.04) (14.77) (2.25)
Experience adj. on plan liabilities 23.79
9.48 7.54 2.76 -
Experience adj. on plan asset -
- - - -
Expected contribution next year 12.28
0.16 0.09 0.03 -
(Rs. in Lakh)
Particulars Discount rate Discount rate Discount rateSalary
Escalation RateSalary
Escalation RateSalary
Escalation Rate
April 1, 2018March 31, 2019March 31, 2020
Defined benefit obligation on increase
in 50 bps 153.67 164.87 78.68 84.40 35.13 37.85
Impact of increase in 50 bps on DBO
Impact of increase in 50 bps on DBO
-3.51% 3.52% -3.76% 3.24% -4.11% 3.32%
Defined benefit obligation ondecrease in 50 bps
165.21 153.92 85.02 79.23 38.23 35.47
3.73% -3.35% 3.99% -3.08% 4.37% -3.18%
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
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.
There is no change in the method of valuation for the prior periods in preparing the sensitivity analysis. For change in assumptions refer to note
(a) above
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. It's applied in calculating the defined benefit obligation asset recognised in the
balance sheet.
h. Projected benefits payable:
The weighted average duration to the payment of these cash flows is 7.31 years (FY2018-19 : 7.75 years, FY 2017- 18 : 8.47 years)
40. Employee stock option plan
Employees stock options plan 2018 - Scheme I
Employees stock options plan 2018 - Scheme II
The Board of Directors took the decision to introduce Vastu Employees Stock Option Scheme, 2018 (hereinafter called “Employees Stock
Options Plan 2018 – Scheme I” or referred as “The Scheme”) at the meeting held on 21st July 2017. The shareholders approved it at the Annual
General Meeting held on 23rd March 2018. The plan provides for the issuance of stock options to eligible employees based on the ESOP
committee’s recommendations. Under the plan, the options vest not later than the maximum period of 10 (Ten) years from the date of the Grant
The Board of Directors took the decision to introduce Vastu Employees Stock Option Scheme, 2018 (hereinafter called “Employees Stock
Options Plan 2018 – Scheme II” or referred as “The Scheme”) at the meeting held on 8th August 2018. The shareholders approved it at the
Annual General Meeting held on 21st August 2018. The plan provides for the issuance of stock options to eligible employees based on the ESOP
committee’s recommendations. Under the plan, the options vest not later than the maximum period of 10 (Ten) years from the date of the Grant
(Rs. in Lakh)
As at
March 31, 2020
As at
March 31, 2019
As at
April 1, 2018
Scheme IIScheme I
Particulars
Particulars
Pursuant to Rule 12(9) of Companies (Share Capital and Debentures) Rules, 2014, the details of the Vastu Employees Stock Option Scheme,
Expected benefits for year 1 12.28 0.16 0.09
Expected benefits for year 2 19.30 7.66 0.09
Expected benefits for year 3 21.64 11.72 4.14
Expected benefits for year 4 20.02 13.36 6.12
Expected benefits for year 5 17.60 12.06 6.72
Expected benefits for year 6 to 9 50.01 28.62 16.41
Expected benefits for year 10 years and above 133.94 83.24 46.16
Scheme Name Employees Stock
Options Plan 2018
Employees Stock
Options Plan 2018
Options approved to be issued as ESOPs 2,000,000 500,000
Date of Grant 22nd Apr. 2018 2nd Nov. 2018
Options granted 1,841,400 462,500
Method of Settlement Equity Equity
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
a. Reconciliation of options
b. Balance outstanding at the end of the year are as follows
Particulars
Particulars
Shares arisingfrom Option
Nos.
Shares arisingfrom Option
Nos.
Wt. avg.exercise price
Exercise price
Wt. avg.exercise price
Exercise price
As at 31st March '19
As at 31st March '19
As at 31st March '20
As at 31st March '20
Scheme IOutstanding at the beginning of the year 1,841,400
100
-
-
Granted -
-
1,841,400
100
Exercised 50,000
100
-
-
Reinstated -
-
-
-
Lapsed -
-
-
-
Forfeited -
-
-
-
Outstanding at the end of the year 1,791,400
100
1,841,400
100
Scheme IIOutstanding at the beginning of the year 462,500
100
-
-
Granted -
-
462,500
100
Exercised -
100
-
-
Reinstated -
-
-
-
Lapsed -
-
-
-
Forfeited -
-
-
-
462,500
100
462,500
100
Outstanding at the end of the year
Vested Options
Scheme I 1,301,810 100 973,548 100
Scheme II 277,500 100 185,000 100
Un-Vested Options
d. Following amount has been recognized as an expense and included in 'Note 32 - Employee benefit expenses' and total carrying
amount at the end of the period.
Scheme I 489,590
185,000
100 867,852
277,500
100
Scheme II 100 100
2018 - 19
2018 - 19
2019 - 20
2019 - 20
c. Weighted average remaining life of the of the ESOP outstanding
Particulars
Scheme I
Expense arising from equity settled share-based payment transaction
1.34
299.95
2.33
1,074.41
Scheme II
Carrying amount at the end of the period
2.00
1,335.01
3.00
1,074.41
(no of years)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
e. Fair value of the options granted;
b. Disclosure of related party transactions:
Scheme II
31-Mar-19
Scheme I
31-Mar-20
Particulars
Nature of transactions
The Black Scholes Model has been used for computing the weighted average fair value considering the following
Note : The remuneration to the key managerial personnel does not include the provisions made for gratuity benefits, as
they are determined on an actuarial basis for the Company as a whole.
The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns
that may occur. The expected volatility reflects the assumption that the historical volatility over a year similar to the life of the options is indicative
of future trends, which may not necessarily be the actual outcome.
41 Related party disclosures
a. List of related parties:
I. Holding Company
Plenty Private Equity Fund I Limited
Share price as on the date of grant (INR) 130 130
Exercise price (INR) 100 100
Expected volatility (%) 12.25% 12.25%
Life of the options granted (years) 9.07 9.60
Risk free interest rate (%) 7.35% 7.35%
Expected dividend rate (%) Nil Nil
Fair value of options as per Black Scholes (INR) 178.71 180.67
ii. Subsidiary Company
iii. Key Managerial Personnel (KMP)
iv. Other Related Company
Vastu Finserve India Private Limited
Sandeep Menon - Managing Director
Sujay Patil - Chief Financial Officer
Pallavi Bhambere - Company Secretary
People Strong Technologies Private Limited
- having common director (related party by virtue of sec2(76)(iv))
Investment in equity shares
Vastu Finserve India Private Limited 5,000.00 250.00
Managerial remunerations (included in employee benefit expenses)
Sandeep Menon - Managing Director 362.25
300.00
Sujay Patil - Chief Financial Officer 168.50
145.00
Pallavi Bhambere - Company Secretary 7.71
5.61
Reimbursement of expenses
Vastu Finserve India Private Limited -
4.02
People Strong Technologies Private Limited
Software License 3.35
-
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
c. Amount due to / from related parties:
1-Apr-1831-Mar-1931-Mar-20Nature of transactions
42. First-time Ind AS adoption reconciliations
42.1 Reconciliation of total equity as at April 01, 2018 and March 31, 2019 and profit or loss for the year ended March 31, 2019:
Note: Related party relationship is as identified by the company and relied upon by the auditors. The transactions with related parties are
disclosed only till the relationship exists
Subsidiaries (Payable) / Receivable (Net)
Vastu Finserve India Private Limited 4.02- -
People Strong Technologies Private Limited -- -
d. There are no transaction other than sitting fees paid to Non-Executive director details are as under:
31-Mar-1931-Mar-20Nature of transactions
Sitting Fees
Puranam Hayagreeva Ravikumar 1.75 3.50
Girija Shankar Nayak 1.65 1.80
(Rs. in Lakh)
ParticularsNote No.
As atApril 01, 2018
As atMarch 31, 2019
Year ended March 31, 2019
Equity Reconciliation Net profit Reconciliation
Net profit / equity as per previous GAAP 3,765.33 39,853.17 1,317.25
Ind AS Adjustments:
Provision for Expected Credit Loss e 142.83 253.66 110.83
Effective interest rate for financial assets and liabilities at amortised cost
Reclassification of actuarial gains and losses on employee benefit
plans to other comprehensive income
g (178.12) -505.28 (327.16)
j 9.95 8.86 -1.10
Fair value of financial assets c & f 8.20
8.20
-
Fair value of employee stock option i (667.41)
-
-
Rent equalization and interest free deposit c & f (2.09)
(4.81)
(2.71)
Reversal of deferred tax liability on special reserve h 337.44
510.37
172.93
Deferred tax impact on above 193.21
253.35
60.14
Total (155.99)
524.36
12.93
Net profit / equity for the year as per Ind AS 3,609.34 40,377.53
1,330.18
Other comprehensive income (net of tax) (9.95) (8.86)
1.10
Total comprehensive income / equity as per Ind AS
42.2 Effect of Ind AS adoption on the statement of cash flows for the year ended March 31, 2019:
3,599.39 40,368.67 1,331.28
(Rs. in Lakh)
As per Previous
GAAP Effect of ransition
to Ind AS As per Ind ASBalance sheetParticulars
Net cash flow from operating activities (55,768.62) (1,301.87) (54,466.75)
Net cash flow (used in) investing activities (35,275.58) 3,742.40 (39,017.98)
Net cash flow (used in) financing activities
The cash flow adjustments are primarily on account of Ind AS reclassification.
85,856.50 99.00 85,757.50
Net (decrease) / increase in cash and cash equivalents (5,187.70) 2,539.52 (7,727.22)
Cash and cash equivalents at the beginning of the year 20503.33 (18.52) 20,521.85
Cash and cash equivalents at the end of the year 15,315.63 2,521.00 12,794.63
(Rs. in Lakh)
(Rs. in Lakh)
VASTU HOUSING FINANCE CORPORATION LIMITED
Notes to standalone financial statement for the year ended March 31, 2020
For the periods up to and including the year ended March 31, 2019, the Company prepared its financial statements under the accounting
standards notified under Section 133 of the Companies Act, 2013, read together with the Companies (Accounting Standards) Rules, 2006, as
amended (Previous GAAP). Accordingly, the Company has prepared its first financial statements to comply with Ind AS for the year ending March
31, 2020, together with comparative information as at and for the year ended March 31, 2019. In preparing these financial statements, the Company
prepared its opening Balance Sheet as of April 1, 2018, i.e. the transition date to Ind AS for the Company. Previous GAAP financial statements as
on April 1, 2018, being transition date and for the previous year ended March 31, 2019, have been restated as per Ind AS.
Exemption availed
Notes :
a. Deemed cost for property, plant and equipment and intangible assets :
b. Classification and measurement of financial assets :
c. Fair value of financials assets and liabilities :
d. Impairment of financial assets
e. Expected credit loss on financial assets
f. Investments
h. Deferred tax on special reserve :
i. Share - based payments :
j. Defined benefit obligation :
g. Effective interest rate (EIR) :
The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognised as of
April 1, 2018 (the transition date), measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date
under Ind AS.
The Company has classified the financial assets under Ind AS 109 based on facts and circumstances that exist at the date of transition to Ind AS.
As per Ind AS exemption, the Company has not fair valued the financial assets and liabilities retrospectively and has measured the same
prospectively.
The Company has applied the exception related impairment of financial assets given in Ind AS 101. It has used reasonable and supportable
information that is available without undue cost or effort to determine the credit risk at the date that financial assets were initially recognized and
compared that to the credit risk as at April 1, 2018.
Under Indian GAAP, the Company has created provision for loans and advances based on the Guidelines on prudential norms issued by National
Housing Bank. Under Ind AS, impairment allowance has been determined based on the Expected Loss model (ECL). However, as the Company
have little historical information about its own credit loss experience, the expected credit loss has been calculated based on self-experience, peer
group experience for comparable financial instruments as allowed as per Ind AS 109.
Under Previous GAAP, Investments in Mutual Funds are valued at Lower of Cost or Net Assets Value. Under Ind AS the same has been classified
as FVTPL and gain/loss on change in Net Assets Value are recognised in profit and loss.
Under previous GAAP, as per NHB guidelines, the deferred tax liability is required to be created on special reserve. Creation of deferred tax liability
on account of the special reserve is not required under IND AS and the same is reversed.
Under previous GAAP, the cost of equity-settled employee share-based payments was recognised using the intrinsic value method. Under
Ind AS, the cost of equity-settled employee share-based payments is recognised based on the fair value of the options as on the grant date. The
change does not affect total equity, but there is a decrease in profit.
Both under previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis.
Under Previous GAAP, the entire cost, including actuarial gain and losses, are charged to profit or loss. Under Ind AS, remeasurements comprising
of actuarial gains and losses are recognised in other comprehensive income (OCI).
The application of Ind AS 12 approach has resulted in the various transitional adjustments being temporary differences. Accordingly, the
Company has accounted for such differences. Adjustments recognised in correlation to the underlying transaction either in retained earnings,
OCI or profit and loss, respectively.
Under previous GAAP, transaction costs incurred on borrowings was charged to statement of profit and loss while under Ind AS, such costs are
included in the initial recognition amount of financial liabilities and recognised as interest expense using the effective interest method.
Under previous GAAP, transaction costs (processing fee) charged to customers was recognised upfront while under Ind AS, such costs are
included in the initial recognition amount of financial asset and recognised as interest income using the effective interest method. Similarly, Under
Indian GAAP, transaction costs incurred in connection with loans and advances are amortised upfront and charge to profit and loss for the year.
Under Ind AS, transactions cost are included in the initial recognition amount of financial assets measured at amortised cost and charged to profit
and loss using the effective interest method.
VA
ST
U H
OU
SIN
G F
INA
NC
E C
OR
PO
RA
TIO
N L
IMIT
ED
NO
TE
S T
O S
TA
ND
AL
ON
E F
INA
NC
IAL
STA
TE
ME
NT
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31
, 2
02
0
43. M
atu
rity
An
aly
sis
of
As
sets
an
d L
iab
ilit
ies
22
,46
8.2
85
4,5
57
.12
73
,02
4.0
21
31
,77
3.2
61
86
,33
0.3
955,0
28.0
91
71
,67
0.3
12
26
,69
8.4
0
Wit
hin
12
mo
nth
s
Wit
hin
12
mo
nth
s
Aft
er
12
mo
nth
s
Aft
er
12
mo
nth
s
1s
t A
pri
l '1
83
1s
t M
arc
h '1
9
To
tal
Wit
hin
12
mo
nth
s
Aft
er
12
mo
nth
s
31
st
Ma
rch
'2
0
To
tal
l. F
ina
nc
ial
as
sets
a. C
ash
and c
ash e
quiv
ale
nts
5,7
39.9
2-
5,7
39
.92
12
,79
4.6
2-
12
,79
4.6
22
0,5
21
.85
-
b. B
ank b
ala
nces o
ther
than (
a)
above
19,5
44.6
31
,00
0.0
02
0,5
44
.63
30
,52
2.0
0-
30
,52
2.0
02
1.0
0-
6,4
29.7
81
62
,67
6.2
91
69
,10
6.0
72
,93
8.0
01
30
,71
4.1
71
33
,65
2.1
71
,81
7.0
77
2,5
56
.08
22,0
08.2
45
,25
0.0
02
7,2
58
.24
8,0
38
.20
25
0.0
08
,28
8.2
0-
-
e. O
ther
financia
l assets
975.4
61
,31
2.7
42
,28
8.2
01
82
.60
10
1.2
52
83
.85
78
.81
90
.53
54,6
98.0
31
70
,23
9.0
32
24
,93
7.0
65
4,4
75
.42
13
1,0
65
.42
18
5,5
40
.84
22
,43
8.7
37
2,6
46
.61
II. N
on
-fin
an
cia
l a
ss
ets
a. C
urr
ent
tax
assets
(net)
-2
89
.55
28
9.5
5-
--
-7
4.3
0
b. D
efe
rred t
ax
assets
(net)
-1
76
.04
17
6.0
4-
54
0.9
75
40
.97
-1
87
.39
c. P
ropert
y,
pla
nt
and e
qu
ipm
ent
-1
45
.82
14
5.8
2
-
10
2.5
2
10
2.5
2
-
93
.48
d. O
ther
inta
ngib
le a
ssets
-1
4.7
41
4.7
4
-
14
.60
14
.60
-
22
.24
e. R
ight
of use a
sset
230.8
41
52
.91
38
3.7
5-
-
-
-
-
f. O
ther
non-f
inancia
l assets
99.2
2-
99
.22
81
.70
-
81
.70
29
.54
-
330.0
67
79
.06
1,1
09
.12
81
.70
65
8.0
9
73
9.7
9
29
.54
37
7.4
1
III. A
sse
t held
for
sale
-6
52
.22
65
2.2
2-
49
.76
49
.76
-
-
To
tal
Pa
rtic
ula
rs
95
,49
2.2
9
To
tal
(Rs. in
La
kh)
A. A
ss
ets
20
,52
1.8
5
21
.00
c. Loans
74
,37
3.1
5
d. I
nve
stm
ents
-
16
9.3
4
95
,08
5.3
4
74
.30
18
7.3
9
93
.48
22
.24 -
29
.54
40
6.9
5 -
VA
ST
U H
OU
SIN
G F
INA
NC
E C
OR
PO
RA
TIO
N L
IMIT
ED
NO
TE
S T
O S
TA
ND
AL
ON
E F
INA
NC
IAL
STA
TE
ME
NT
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31
, 2
02
0
43. M
atu
rity
An
aly
sis
of
As
sets
an
d L
iab
ilit
ies
(c
on
tin
ue
)
To
tal
Pa
rtic
ula
rs
B. L
iab
ilit
ies
I. F
ina
nc
ial
lia
bil
itie
s
a. T
rade p
ayable
s145.3
5-
14
5.3
58
8.4
3-
88
.43
65
.39
-6
5.3
9
b. D
ebt
securities
5,7
62.3
03
0,3
66
.70
36
,12
9.0
07
68
.68
41
,12
2.6
24
1,8
91
.30
57
6.9
211
,92
3.0
81
2,5
00
.00
c. B
orr
ow
ings (
oth
er
than d
ebt
secu
rities)
23,1
73.6
06
9,8
78
.41
93
,05
2.0
11
3,5
15
.23
43
,43
6.5
05
6,9
51
.73
6,4
73
.83
28
,47
5.2
83
4,9
49
.12
d. O
ther
financia
l lia
bili
tie
s8,0
57.9
41
71
.06
8,2
29
.00
11,0
93
.43
-11
,09
3.4
31
0,6
84
.43
-1
0,6
84
.43
37,1
39.1
81
00
,41
6.1
71
37
,55
5.3
52
5,4
65
.77
84
,55
9.1
211
0,0
24
.89
17
,80
0.5
84
0,3
98
.36
58
,19
8.9
4
II. N
on
-Fin
an
cia
l L
iab
ilit
ies
a. C
urr
ent
tax
liabili
ties (
net)
--
-1
43
.68
-1
43
.68
--
-
b. P
rovi
sio
ns
-1
59
.26
15
9.2
67
9.0
5-
79
.05
-3
3.1
03
3.1
0
c. D
efe
rred t
ax
liabili
ties
--
--
--
--
-
d. O
ther
non-f
inancia
l lia
bili
ties
291.2
3-
29
1.2
33
31
.92
-3
31
.92
54
6.7
9-
54
6.7
9
291.2
31
59
.26
45
0.4
95
54
.66
-5
54
.66
54
6.7
93
3.1
05
79
.90
37,4
30.4
01
00
,57
5.4
31
38
,00
5.8
42
6,0
20
.42
84
,55
9.1
211
0,5
79
.54
18
,34
7.3
74
0,4
31
.46
58
,77
8.8
3
Wit
hin
12
mo
nth
s
Wit
hin
12
mo
nth
s
Aft
er
12
mo
nth
s
Aft
er
12
mo
nth
s
1s
t A
pri
l '1
83
1s
t M
arc
h '1
9
To
tal
Wit
hin
12
mo
nth
s
Aft
er
12
mo
nth
s
31
st
Ma
rch
'2
0
To
tal
To
tal
(Rs. in
La
kh)
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
As at March 31, 2020 As at March 31, 2019 As at April 1, 2018
Debt to Equity Ratio (in times)
129,181.01
88,692.55
1.46
98,843.03
75,750.85
1.30
The following table combines comparable information about:
- fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those with
carrying amounts that are reasonable approximations of fair values:
- classes of financial instruments based on their nature and characteristics
- the carrying amounts of financial instruments
- fair values of financial instruments (except financial instruments when carrying amount approximates their fair value); and
(Rs. in Lakh)
Particulars
Debt
Total Equity
47,449.12
36,713.46
1.29
Total
To achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in financial covenants would permit the
lender to call loans and borrowings immediately. Under the terms of the significant borrowing facilities, the Company has complied with the
covenants throughout the reporting period.
As at March 31, 2020
Accounting classifications and fair values
Cash and cash equivalents
Other bank balances
Other financial assets
Assets Held for Sale
Financial liabilities
Borrowings (other than debt securities)
Other financial liabilities
The company manages its capital to ensure that the company would be able to continue as going concern while maximizing the return to
stakeholders through the optimization of the debt and equity balance
For the purpose of the company's capital management, capital includes issued capital and other equity reserves.
Financial assets
Loans
Investments
Total
Trade payables
Debt securities
Level 2Amortised Cost Level 3Total
Fair ValueCarrying Value
Level 1FVTPL Total
(Rs. in Lakh)
44.2. Fair Value
44. Financial instruments
44.1. 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 National Housing Bank (NHB). The adequacy of the Company’s capital is monitored using, among other measures, the
regulations issued by NHB. The Company has complied with the applicable capital requirements over the reported period.
- 5,739.92
5,739.92
-
-
- 20,544.63
20,544.63
-
-
- 169,106.07
169,106.07
-
-
2,008.24 25,250.00 27,258.24 2,008.24 -
- 141.20 141.20 - - -
- 36,129.00 36,129.00 - - -
- 93,052.01
93,052.01
-
-
-
- 8,229.00
8,229.00
-
-
-
- 137,551.20
137,551.20
-
-
-
- 2,288.20
2,288.20
-
-
2,008.24 222,928.82 224,937.06 2,008.24 -
-
2,008.24
652.22 - 652.22 - 652.22 -
-
-
-2,008.24
652.22
-
-
-
-
-
-
-
-
-
-
-
Total
Cash and cash equivalents
Other bank balances
Other financial assets
Assets Held for Sale
Financial liabilities
Borrowings (other than debt securities)
Other financial liabilities
Financial assets
Loans
Investments
Total
Trade payables
Debt securities
Level 2Amortised Cost Level 3Total
Fair ValueCarrying Value
Level 1FVTPL Total
(Rs. in Lakh)
- 12,794.62 12,794.62 - - -
- 30,522.00 30,522.00 - - -
- 133,652.17 133,652.17 - - -
8,038.20 250.00
8,288.20
8,038.20
-
-
8,038.20
- 283.85
283.85
-
-
-
- 88.43
88.43
-
-
-
- 41,891.30 41,891.30 - - -
- 56,951.73 56,951.73 - - -
- 11,093.43 11,093.43 - - -
- 110,024.89 110,024.89 - - -
8,038.20 177,502.64 185,540.84 8,038.20 - - 8,038.20
49.76 - 49.76 - 49.76 - 49.76
As at March 31, 2019
Total
Cash and cash equivalents
Other bank balances
Other financial assets
Assets Held for Sale
Financial liabilities
Borrowings (other than debt securities)
Other financial liabilities
Financial assets
Loans
Investments
Total
Trade payables
Debt securities
Level 2Amortised Cost Level 3Total
Fair ValueCarrying Value
Level 1FVTPL Total
(Rs. in Lakh)
As at April 1, 2018
- 20,521.85 20,521.85 - - - -
- 21.00
21.00
-
-
-
-
- 74,373.15 74,373.15
-
-
-
-
- -
-
-
-
-
-
- 169.34 169.34 - - - -
- 95,085.34 95,085.34 - - - -
- 65.39 65.39 - - - -
- 12,500.00 12,500.00 - - - -
- 34,949.12 34,949.12
- - - -
- 10,684.43 10,684.43
-
-
-
-
- 58,198.94 58,198.94
-
-
-
-
-
-
-
-
-
-
-
-
-
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
44.3 Financial risk management
Risk management framework
a. All loans are floating interest bearing thus, amortised costs equals their fair value
The Company has exposure to the following risks arising from financial instruments:
Credit risk ;
Operational risk ;
Liquidity risk ; and
Market risk (including interest rate risk)
Risk Management is an integral part of the Company's business strategy with a focus on building risk management culture across the
organization. The Risk Management oversight structure includes Committees of the Board and Senior Management Committees. Risk
Management Framework which lays down guidelines for Risk identification, assessment and monitoring as an on-going process that is supported
by a robust risk reporting framework. It entails the establishment of robust systems and processes within the Risk Management Framework to
mitigate risks effectively. Risk Management at the Company covers Credit Risk, Market Risk, Operational Risk, Fraud Risk and other risks, such
as compliance risk, reputation risk and other risks.
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board of
Directors has constituted several committees, including the Audit Committee, the Asset Liability Management Committee, Risk Management
Committee and defined their role for monitoring the risk management policies of the Company.
Risk Management systems have been evaluated in detail and are discussed at every Board meeting by the Risk Committee outside of Board
meeting. Detail review of Risk MIS, Portfolio quality reports, collection MIS, Data analytics report and various other analytics and risk matrix are
the cornerstones of Vastu's Risk Management which has been certified as best in class and indicated by performance.
The Risk management framework adopted is enabled by the risk-oriented Company level culture characterized by:
1. The rigour and discipline required in managing the portfolio and transactional risk are embedded in the Vastu culture with a consensus that risk
management is everyone’s responsibility.
2. Staff members across all verticals appreciate it and actively partake in ensuring that risk management remains strong, even as the Company
makes incremental strides in its business growth.
3. An iterative process of identifying and evaluating risks, setting risk strategies, and monitoring results are within the oversight by Senior
Management & Board of Directors, via Risk Management Committee.
c. Asset held for sale - Real estate properties are valued on the basis of a well progressed sale process with price quotes from real estate valuers.
Note: Fair value is determined by discounting the contractual cashflows using weighted average rate of variable rate borrowing.
b. For financial assets and liabilities measured at amortised cost other than as mentioned in (a) above, the Company considers that the carrying
amounts recognised in the financial statements approximate their fair values except as under:
(Rs. in Lakh)
Fixed rate debt securities March 31, 2019March 31, 2020 March 31, 2019 April 1, 2018April 1, 2018 March 31,2020
Fair ValueCarrying Value
Debt securities & borrowings 48,874.32 54,219.87 25,068.48 55,492.70 48,819.20 25,218.26
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
i) Credit risk
Credit Approval Authority
Credit Risk Assessment methodology for retail Loans
As a part of the risk management framework, the Company has well-defined metrics for delegation of authorities for standard approvals and
deviation approvals. The sanctioning authorities delegated to individual staff members, based on defined norms of the Company on the staff
members' experience, position and knowledge of the business.
The Company follows a bureau led approach besides of right customers, the launch of new markets with high delinquencies. The Company
has a dedicated team to develop a robust technology platform to digitize processes, risk management and analytics. It enables the sales
officer to input customer records online, digitize customer documents, record customer discussions, and check the credit score real-time. The
system backed by data science, analytics along with a physical on-ground model where every customer met by a Vastu employee and
personal credit decision done has enabled the team to pursue leads with a higher probability of sanctions while rejecting weak applications
upfront and reducing incidents of frauds and misrepresentations.
Credit risk refers to the risk of the inability of the borrower to repay the loan availed due to any circumstance. In any lending operation, credit
risk remains on the top of all risks to be managed well. Therefore, managing credit risk in the business has remained a priority. The credit risk
management framework that hasbeen put together by Vastu constitutes a robust alignment of the following:
Well-constructed detailed manuals guiding the teams on the company policies and processes which are approved by the Board backed by
technology, analytics and decision science. The documents articulate in detail the various products and programs that can be offered to the
customers, with clearly defined norms for all the credit parameters across all product variants and programs.
State-of-the-art technology platform built In-house to support the capture of data, information and other details required for decision making.
The technology application is available to the users on their mobile phones for use. Every staff member, when they meet a customer for
collection of any data, information or document, the mobile application facilitates the capture of the same. Vastu is the first Company to
implement an entirely paperless loan approval and disbursal process.
Structured and standardized credit approving process, which includes a well-established procedure of comprehensive credit appraisal
across all the markets Company operates.
Data science know-how supporting the underwriting process, wherein a well-curated data scoring model, produces an application-level
score, defining the probability of default for each loan at the time of approval. This score supports the credit decision process at each loan
level, even as the qualitative factors of each loan are appraised in detail by the team.
The Company measures, monitors, and manages credit risk at an individual borrower level and at the group exposure level for other
borrowers. Actual creditexposures, credit limits and asset quality are regularly monitored and analyzed at various levels.
The carrying amount of financial assets represents the maximum credit exposure. The group’s concentrations of risk are managed based
on Loan to value (LTV) segregation as well as geographical spread. LTV calculated by the gross amount of the loan to the value of the
collateral at origination. Average Loan to Value for Vastu is at 38%, and only 13% of the portfolio has LTV > 70%. Vastu has a well-balanced
portfolio across all operating states and does not contribute to > 16- 17% in any of the states. Vastu portfolio is highly granular, with
majority business categories contributing less than 3%, representing diverse elements in the supply chain that deal in goods which are
domestic consumption-led, focus on daily needs, are standalone businesses that are mostly B2B models, have a loyalcustomer base, and
have a resilient business.
Exposure to Credit Risk and Concentration
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
The Company caters to primarily from low, middle and high income - salaried and self-employed - individuals in Tier 2/ 3/ 4 markets. The
founder team, the Board, management has focused on prudent underwriting practices, 100% in-house fulfilment, 100% retail book, Stable
higher credit-rated customer (>63% of customers with a CIBIL score of more than 700 and good Bureau vintage), a higher proportion of
self-constructed properties to manage asset quality and local economy focussed business lines. Along with the intense focus on Self
Occupied Self construction and resale properties (77% of the book) ensures Vastu not exposed to the risk of financing under construction
apartment by Tier II, III builders.
The Company's credit officers evaluate credit proposals based on active credit policies as on the date of approval. A structured and
standardized credit approval process includes customer selection criteria, comprehensive credit risk assessment and cash flow analysis,
which encompasses an analysis of relevant quantitative and qualitative information to ascertain the creditworthiness of a potential
customer. The criteria also 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 are approved at the designated levels. The various
process controls such as KYC checks, credit bureau report analysis are undertaken. Company's staff performs comprehensive due
diligence process, including visits to customer's business and residence premises. The completeness of customer documentation, loan
documentation, creation of security and compliance with regulatory guidelines are reviewed. The retail loans are fully secured with
immovable properties and have full recourse against the borrower. The Company has an equitable mortgage over the collateral
immovable properties and works in compliance with the individual State laws.
The Company has a comprehensive portfolio monitoring process under which there is a monthly review of portfolio asset quality and
efficiency of its collection processes. The portfolio monitoring process engages all the members of senior leadership in studying the
behaviour of various portfolio segments. These reviews are done in the monthly Risk Management Committee meetings. Based on these
reviews, well-informed, data-driven decision are taken in giving the future direction to the policies of the Company. The collection
efficiency review focusses on formulating and implementing location-based collection strategies. In this manner, 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.
As a part of the RMC meetings, the Company also reviews various other process adherences for retail borrowers, to ensure that the terms
of sanctions and disbursements have been met. The technology platform of the Company has appropriate mechanisms to carve out and
publish exception at granular, segmental levels that help in ensuring a well-structured watch on process adherence.
The Company has a central monitoring unit that on an on-going basis, conducts a thorough review and audit of the quality of the credit
appraisal and documentation that has been done by the different teams across locations. This process ensures that any gaps noticed in
the location level processing of the loans are immediately identified, and corrective action is taken. There is also an internal auditor who
independently reviews adherence to policies and processes, carries out an internal audit and briefs the Audit Committee and the Board
periodically
The Company’s current credit risk grading framework comprises the following categories:
Risk Management and Portfolio Review
Basis for recognising expected credit lossesCategory
Stage 1
Stage 2
Stage 3
Outstanding between 0 to 30 days
Outstanding between 31 to 90 days
Outstanding for more than 90 days
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
Category
Stage 1 – High quality assets Loan 165,826.67 691.78 165,134.89
Loan 2,032.19 192.45 1,839.74
Loan 574.40 126.37 448.03
Stage 2 – Assets for which there is significant increase in
credit risk
Stage 3 - Credit impaired assets
(Rs. in Lakh)
As at March 31, 2020
Net Carrying
Amount
Expected
Credit Loss
Gross Carrying
Amount
Assets category
168,433.26 1,010.60 167,422.66Total
Category
Category
Stage 1 – High quality assets
Stage 1 – High quality assets
Loan
Loan
132,706.13
74,111.76
567.26
552.41
132,138.86
73,559.35
Loan
Loan
777.76
282.79
74.64
27.14
703.12
255.65
Loan
Loan
118.67
-
26.11
-
92.56
-
Stage 2 – Assets for which there is significant increase in
credit risk
Stage 2 – Assets for which there is significant increase in
credit risk
Stage 3 - Credit impaired assets
Stage 3 - Credit impaired assets
(Rs. in Lakh)
(Rs. in Lakh)
As at March 31, 2019
As at April 1, 2018
Net Carrying
Amount
Net Carrying
Amount
Expected
Credit Loss
Expected
Credit Loss
Gross Carrying
Amount
Gross Carrying
Amount
Assets category
Assets category
133,602.56
74,394.55
668.01
579.55
132,934.54
73,815.00
Total
Total
The key elements in calculation of ECL are as follows:
PD - The Probability of Default is an estimate of the likelihood of default over a given time horizon. A default may only happen at a specific time
over the assessed period if the facility has not been previously derecognised and is still in the portfolio. The PD has been determined
based on the historical behaviour of the book & roll rates for retail and comparative financial instruments of peer group companies.
EAD – The estimated credit exposure at point of default
The table below shows the credit quality and the exposure to credit risk based on the year-end stage classification. The amounts presented are
gross of impairment allowances.
LGD -The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference
between the contractual cash flows due and those that the lender would expect to receive, including from the realisation of any
collateral. It is usually expressed as a percentage of the EAD. The LGD is determined based on valuation of collaterals and other
relevant factors
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
(Rs. in Lakh)
Stage 2
Stage 2
Stage 2
Stage 2
Stage 1
Stage 1
Stage 1
Stage 1
Stage 3
Stage 3
Stage 3
Stage 3
Total
Total
Total
Total
FY 2019-20
FY 2018-19
FY 2019-20
FY 2018-19
Gross carrying amount opening balance 132,706.13 777.76 118.67 133,602.56
New assets originated or purchased 66,328.81 - - 66,328.81
Assets derecognised or repaid (excluding write offs) (30,686.58) (587.20) (224.08) (31,497.86)
Transfers to Stage 1 (2,521.54) - - (2,521.54)
Transfers to Stage 2 -
1,841.73
-
1,841.73
Transfers to Stage 3 -
-
679.81
679.81
-
-
-
-
Amounts written off (0.14)
(0.10)
-
(0.24)
Gross carrying amount closing balance 165,826.67 2,032.19 574.40 168,433.26
Changes to contractual cash flows due to modifications not
resulting in derecognition
Gross carrying amount opening balance 74,111.76 282.79 - 74,394.55
New assets originated or purchased 76,095.87 - - 76,095.87
Assets derecognised or repaid (excluding write offs) (16,667.88) (159.55) (6.69) (16,834.12)
Transfers to Stage 1 (833.13)
-
-
(833.13)
Transfers to Stage 2 -
675.38
-
675.38
Transfers to Stage 3 -
-
157.74
157.74
-
-
-
-
Amounts written off (0.50)
(20.86)
(32.39)
(53.75)
Gross carrying amount closing balance 132,706.13 777.76 118.67 133,602.56
Changes to contractual cash flows due to modifications not resulting in derecognition
567.26
552.41
74.64
27.14
26.11
-
668.01
579.55
New assets originated or purchased
New assets originated or purchased
147.65
19.28
-
-
-
-
147.65
19.28
Assets derecognised or repaid (excluding write offs)
Assets derecognised or repaid (excluding write offs)
(21.38)
(4.22)
(56.60)
(15.31)
(49.30)
(1.47)
(127.27)
(21.01)
Transfers to Stage 1
Transfers to Stage 1
(1.76)
(0.21)
-
-
-
-
(1.76)
(0.21)
Transfers to Stage 2
Transfers to Stage 2
-
-
174.42
64.82
-
-
174.42
64.82
Transfers to Stage 3
Transfers to Stage 3
-
-
-
-
149.56
34.70
149.56
34.70
Amounts written off
Amounts written off
(0.00)
(0.00)
(0.01)
(2.00)
-
(7.13)
(0.01)
(9.13)
691.78
567.26
192.45
74.64
126.37
26.11
1,010.60
668.01
ECL allowance - closing balance
ECL allowance - closing balance
ECL allowance - opening balances
ECL allowance - opening balances
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to loans:
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
Significant estimates and judgements related to Impairment of financial assets
The impairment provisions for financial assets disclosed above are based on assumptions about the risk of default and expected loss rates. The
Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s history,
existing market conditions as well as forward-looking estimates at the end of each reporting period.
The Company’s first year full year of operation was FY 2016-17 and accordingly up to date of transition very little historical information about its own
experience of impairment is available. As on 31.03.2018, no account was above 90 days past dues, whereas as on 31.03.2019 only 9 such
accounts were there.
In such scenarios, peer group experience for the comparable financial instrument (or groups of financial instruments) used as prescribed in Ind AS.
The Company has a sound operational process framework and infrastructure, which governs and mitigates the operational risks that arise in the
business. Operational risks refer to risk of loss arising from failure of any of the internal processes, people frauds, vendor frauds, system alfunctions
or from any external events. The operations risk management framework for the Company consists of the following components:
- A sound network of professional vendors across the country to support the Company in its process of collateral evaluation. This network consists
of lawyers and valuation agencies which operate under the close supervision of the local and Head Office teams of the Company. Every security
that comes to Vastu as a part of its loan is evaluated thoroughly by the lawyers for a clear title and inspected by a valuer for determination of the
market value. These processes ensure that there is adequate security cover available to Vastu during the process of lending. The title certification
as a clear and marketable property is necessary for the Company to respond in default situations where actions under SARFAESI or any other laws
may be required.
- A comprehensive system of internal controls, wherein the performance of each unit/branch is monitored against defined thresholds. Thresholds are
defined for various operational risk areas. These thresholds are monitored regularly, which helps in identification and assessment of various
operational risks, managing and responding to specific operational incidents and mitigation through appropriate process and control enhancements.
- Fully technology-enabled to process pre and post disbursal processes and account maintenance. The home-grown mobile application used by the
front-end teams to collect data and sanction the loans is seamlessly integrated with the back-end system to provide automated feeds, effecting
smooth processing of loans with all checks and controls in place.
ii) Operational risk
Liquidity risk is the current and prospective risk arising out of an inability to meet financial commitments as they fall due, through available cash
flows or the sale of assets at fair market value. It includes both the risk of unexpected increases in the cost of funding an asset portfolio at
appropriate maturities and the risk of being unable to liquidate a position on time at a reasonable price.
The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate
amount of committed credit lines. Given the need to fund various products, the Company maintains flexibility in funding by maintaining availability
under committed credit lines to meet obligations when due. Management regularly monitors the position of cash and cash equivalents vis-à-vis
projections. Assessment of maturity profiles of financial assets and financial liabilities, including debt financing plans and maintenance of Balance
Sheet liquidity ratios considered while reviewing the liquidity position.
The Company manages liquidity risk under our asset-liability management policy. This policy is framed as per the current regulatory guidelines and
approved by the Board of Directors. The asset-liability management policy reviewed periodically to incorporate changes as required by regulatory
stipulation or to realign the policy with changes in the economic landscape. The asset-liability committee (ALCO) of the Company formulates and
reviews strategies and provides guidance for management of liquidity risk within the framework laid out in the asset-liability management policy.
The Company has undrawn lines of credit of Rs. 51,000 lakhs, Rs. 18,800 lakhs and Rs.4,300 lakhs as of March 31, 2020, March 31, 2019 and
April 1, 2018 respectively, from its bankers for working capital requirements.
The Company has the right to draw upon these lines of credit based on its requirement and terms of draw down.
iii) Liquidity risk
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
(Rs. in Lakh)
(Rs. in Lakh)
1 - 3 years
1 - 3 years
0 - 1 year
0 - 1 year
Carrying amount
Carrying amount
3 - 5 years
3 - 5 years
Contractual cash flows
Contractual cash flows
More than 5 years
More than 5 years
March 31, 2020
March 31, 2019
The following are the details of Company’s remaining contractual maturities of financial liabilities and assets at the reporting date. The amounts
are gross and undiscounted.
Exposure to liquidity risk
I. Financial liabilities
a. Trade payables 145.35
145.35
-
-
-
b. Debt securities 36,129.00
5,762.30
372.01
19,994.69
10,000.00
c. Borrowings (other than debt securities) 93,052.01
23,173.60
45,177.47
17,935.63
6,765.31
d. Other financial liabilities 8,229.00
8,057.94
133.96
37.10
-
Total 137,555.35
37,139.18
45,683.43
37,967.43
16,765.31
II. Financial Assets
a. Cash and cash equivalents 5,739.92
5,739.92
-
-
-
b. Bank balances other than (a) 20,544.63
19,544.63
1,000.00
-
-
c. Loans 169,106.07
6,429.78
10,997.30
14,518.31
137,160.69
d. Investments 27,258.24
22,008.24
-
-
5,250.00
e. Other financial assets 2,288.20
975.46
628.83
483.71
200.20
Total 224,937.06 54,698.03 12,626.13 15,002.02 142,610.88
I. Financial liabilities
a. Trade payables 88.43
88.43
-
-
-
b. Debt securities 41,891.30
768.68
1,152.97
9,992.41
29,977.24
c. Borrowings (other than debt securities) 56,951.73
13,515.23
28,360.87
12,316.26
2,759.37
d. Other financial liabilities 11,093.43
11,093.43
-
-
-
Total 110,024.89
25,465.77
29,513.84
22,308.67
32,736.61
II. Financial Assets
a. Cash and cash equivalents 12,794.62
12,794.62
-
-
-
b. Bank balances other than (a) 30,522.00
30,522.00
-
-
-
133,652.17
2,938.00
7,412.95
9,922.60
113,378.62
d. Investments 8,288.20
8,038.20
-
-
250.00
e. Other financial assets 283.85
182.60
-
101.25
-
Total 185,540.84
54,475.42
7,412.95
10,023.85
113,628.62
c. Loans
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
(Rs. in Lakh)
1 - 3 years0 - 1 yearCarrying amount 3 - 5 years
Contractual cash flows
More than 5 yearsApril 1, 2018
I. Financial liabilities
a. Trade payables
b. Debt securities
c. Borrowings (other than debt securities)
d. Other financial liabilities
Total
II. Financial Assets
a. Cash and cash equivalents
b. Bank balances other than (a)
c. Loans
d. Investments
e. Other financial assets
Total
65.39 65.39 - - -
12,500.00 576.92 1,538.46 384.62 10,000.00
34,949.12 6,473.83 16,471.67 11,125.95 877.66
10,684.43 10,684.43 - - -
58,198.94 17,800.58 18,010.13 11,510.57 10,877.66
20,521.85
20,521.85
-
-
-
21.00
21.00
-
-
-
74,373.15
1,817.07
4,912.89
6,537.28
61,105.91
-
-
-
-
-
169.34
78.82
-
90.52
-
95,085.34
22,438.74
4,912.89
6,627.80
61,105.91
The gross inflows disclosed in the above table represent the contractual undiscounted cash flows relating to financial liabilities held for
risk management purposes and which are not usually closed out before contractual maturity.
The Company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section
of this note.
Exposure to interest rate risk
The Company is exposed to interest rate risk as it has assets and liabilities based on floating interest rates as well. The Company has an
approved Asset and Liability Management Policy which empowers the Asset and Liability Management Committee (ALCO) to assess the
interest rate risk run by it and provide appropriate guidelines to the Treasury to manage the risk. The ALCO reviews the interest rate risk
periodically and decides on the asset profile and the appropriate funding mix. The ALCO reviews the interest rate gap statement and the
interest rate sensitivity analysis.
iv) Market risk (interest risk)
(Rs. in Lakh)
March 31, 2020 March 31, 2019 April 1, 2018
Fair value sensitivity analysis for floating-rate instruments
The sensitivity analysis below have been determined based on exposure to the interest rates for financial instruments at the end of the reporting
period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of
instruments that have floating rates.
If interest rates had been 100 basis points higher or lower and all other variables were constant, the Company's profit before tax would have
changed by the following:
45,544.63 41,622.00
19,772.00
168,433.26 135,003.22
75,168.26
213,977.89 176,625.22 94,940.26
54,219.87 48,874.32 25,068.48
75,163.79 50,146.67 22,538.07
Financial assets
Fixed-rate instruments
Floating-rate instruments
Total
Financial liabilities
Fixed-rate instruments
Floating-rate instruments
129,383.66 99,020.99 47,606.55Total
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
a. Capital
45. Additional information required in terms of Housing Finance Companies – Corporate Governance (National Housing Bank) Directions, 2018
(Rs. in Lakh)
Particulars 100 bps higher 100 bps lower 100 bps higher 100 bps lower 100 bps higher 100 bps lower
April 1, 2018March 31, 2019March 31, 2020
(Rs. in Lakh)
Mar-20 Mar-19Particulars
Floating rate loans 1,684.33 (1,684.33) 1,350.03 (1,350.03) 751.68 (751.68)
Floating rate borrowings (1,293.84) 1,293.84 (990.21) 990.21 (476.07) 476.07
390.50 (390.50) 359.82 (359.82) 275.62 (275.62)
65.10% 83.28%
64.21% 82.29%
0.89% 0.99%
- -
- -Amount raised by issue of perpetual debt instruments
CRAR (%)
CRAR – Tier I Capital (%)
CRAR – Tier II Capital (%)
Amount of subordinated debt raised as Tier- II Capital
b. Reserve fund under Section 29C of the NHB Act, 1987 (Rs. in Lakh)
Mar-20 Mar-19Particulars
1,752.65 627.65
1,752.65 627.65
1,951.63 1,125.00
3,704.28 1,752.65
3,704.28 1,752.65
Balance at the beginning of the year
a) Statutory Reserve u/s 29C of the National Housing Bank Act, 1987
b) Amount of special reserve u/s 36(1)(viii)of Income Tax Act, 1961 taken into account for the purposes
of Statutory Reserve under Section 29C of the NHB Act, 1987
c) Total
Less
b) Amount withdrawn from the Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 which has been
taken into account for the purpose of provision u/s 29C of the NHB Act, 1987
a) Amount appropriated from the Statutory Reserve u/s 29C of the NHB Act, 1987
Balance at the end of the year
- -
Addition / Appropriation / Withdrawal during the year
a) Amount transferred u/s 29C of the NHB Act, 1987
b) Amount of special reserve u/s 36(1)(vii) of Income Tax Act, 1961 taken into account for the purposes
of Statutory Reserve under Section 29C of the NHB Act, 1987
- -
Add
a) Statutory Reserve u/s 29C of the National Housing Bank Act, 1987
b) Amount of special reserve u/s 36(1)(viii)of Income Tax Act, 1961 taken into account for the purposes
of Statutory Reserve under Section 29C of the NHB Act, 1987
The special reserve created as per Section 29 C of the NHB Act, 1987, qualifies for deduction as specified u/s 36 (1) (viii) of the Income Tax
Act, 1961 and accordingly Company has been availing tax benefits for such transfers.
c) Total
- -
- -
- -
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
c. Investments (Rs. in Lakh)
Mar-20 Mar-19Particulars
27,250.00 8,280.00
27,250.00 8,280.00
1. Value of investments
(i) Gross value of investments
(ii) Add: Provisions made during the year
(iii) Less: Write-off / Written-bank of excess provisions during the year
(iv) Closing balance
The Company has no transactions/exposure in derivatives in the current and previous year.
The Company has no transactions/exposure in securitization by way of SPV in the current and previous year.
The Company has not sold any financial asset to securitisation / reconstruction Company for asset reconstruction in the current and previous year.
The Company has not purchased / sold non performing financial asset in the current and previous year.
d. Derivatives
e. Securitisation
1. Securitisation by way of SPV
2. Details of financial assets sold to securitisation / reconstruction Company for asset reconstruction
4. Details of non-performing financial assets purchased / sold
3. Details of assignment transactions undertaken by HFCs
(iii) Net value of investments
(a) In India
(b) Outside India
(i) Opening balance
(a) In India
(b) Outside India
(ii) Provisions for depreciation
(a) In India
(b) Outside India
2. Movement of provisions held towards depreciation on investments
(Rs. in Lakh)
Mar-20 Mar-19Particulars
823.00
1,636.39
-
-
8,738.44 -
8,738.44 -
- -(iv) Additional consideration realized in respect of accounts transferred in earlier years
(v) Aggregate gain / loss over net book value
(I) No.of accounts
(ii) Aggregate value (net of provisions) of accounts assigned
(iii) Aggregate consideration
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
Year ending March'20*
Year ending March '19 *
g. Exposure
1. Exposure to real estate sector
Category
(Rs. in Lakh)
(Rs. in Lakh)
Particulars
Particulars
Market Borrowings - CPNCD ICD
Market Borrowings - CP NCD ICD
Borrowings from banks& Others
Borrowings from banks
Advances
Advances
Investments
Investments
Assets
Assets
Liabilities
Liabilities
1 month 2,831.31 5,000.00 331.08 22,000.00
Over 1 month to 2 months 1,106.31 192.31 332.17 -
Over 2 months to 3 months 2,791.03 - 356.90 -
Over 3 months to 6 months 5,388.93 192.31 1,096.03 -
Over 6 months to 1 year 11,113.87 384.62 2,315.37 -
Over 1 year to 3 years 45,272.89 384.62 11,063.68 652.22
Over 3 years to 5 years 17,960.25 20,000.00 14,605.94 -
Over 5 years to 7 years 2,672.24 10,000.00 19,176.93 -
Over 7 years to 10 years 3,729.91 - 38,572.14 -
Over 10 years 363.16 - 80,583.01 5,250.00
Total 93,229.89 36,153.85 168,433.26 27,902.22
1 month 489.36 - 212.91 8,030.00
Over 1 month to 2 months 1,013.10 192.31 232.82 -
Over 2 months to 3 months 1,661.67 - 234.81 -
Over 3 months to 6 months 3,332.66 10,192.31 723.10 -
Over 6 months to 1 year 7,018.43 384.62 1,534.36 -
Over 1 year to 3 years 28,360.87 31,153.85 7,412.95 49.76
Over 3 years to 5 years 12,316.26 - 9,922.60 -
Over 5 years to 7 years 611.68 - 13,158.70 -
Over 7 years to 10 years 917.52 - 27,574.79 -
Over 10 years
*In computing the above information, certain estimates, assumption and adjustments have been made by the management.
1,376.36 - 72,595.54 250.00
Total 57,097.91 41,923.08 133,602.57 8,329.76
(Rs. in Lakh)
Mar-20 Mar-19
63,115.44 49,616.44
43,882.00
Nil
Nil
Nil
Nil
35,657.45
Nil
Nil
Nil
Nil
61,435.82 48,328.66
a. Direct exposure
(I) Residential Mortgages -
(ii) Commercial Real Estate
Lending fully secured by mortgages on residential property that is or will be occupied by the borroweror that is rented;
(iii) Investments in Mortgaged Backed Securities (MBS) and other securitised exposures -
a. Residential
b. Commercial Real Estate
Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing FinanceCompanies (HFCs)
b. Indirect exposure
Lending secured by mortgages on commercial real estates (office buildings, retail space, multipurposecommercial Premises, multi-family residential buildings, multi-tenanted Commercial premises, industrialor warehouse space, hotels, land acquisition, development and construction etc.) Exposurewould also include non-fund based (NFB) limits.
- Individual housing loans up to Rs.15 lakh
- Individual housing loans above Rs.15 lakh
- Other loans
Maturity pattern of certain items of assets and liabilitiesf. Asset liability management
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
No Remuneration paid to Non Executive directors.
There are no material prior period items. There has been no change in accounting policies followed other than those disclosed in the financial
statement. However, Company has adopted Ind AS with transition date being April 1, 2018
Revenue is recognised in line with the policy adopted by the Company.
5. Remuneration of directors
i. Additional disclosure
1. Provisions & contingencies
6. Net Profit or Loss for the period, prior period items and changes in accounting policies
7. Revenue recognition
(Rs. in Lakh)
(Rs. in Lakh)
RatingCurrent Year
Mar-20
AgencyRating
Previous Year
Mar-19
Instrument Type
Break up of 'Provisions and contingencies' shown under the head expenditure in statementof profit and loss
CRISIL A/StableCRISIL A- Stable
IND A/StableIndia Ratings A- Stable
BWR A/PositiveBrickworks BWR A Stable
[ICRA]A/StableICRA A StableLong term Bank Loans
NCD and Bank Loans
Bank Loans
NCD and Bank Loans
In computing the above information, certain estimates, assumption and adjustments have been made by the management.
The Company has no exposure to capital market directly or indirectly in the current and previous year.
There is no financing of parent company products.
The Company has not exceeded the single borrower limit and group borrower limit as prescribed by NHB.
The Company has not financed any unsecured advances against intangible securities such as rights, licenses, authority etc as collateral security.
The Company has not obtained registration from other financial sector regulators
Refer Note 41
A penalty of Rs. Nil (PY Rs. 5,000/-) was levied by National Housing Bank ("NHB") for Non compliance with the provisions of Housing Finance
Companies - Corporate Governance Direction, 2016.
2. Exposure to capital market
3. Details of financing of parent company products
4. Details of single borrower limit (SGL) / group borrower limit (GBL) exceeded by the HFC
5. Unsecured advances
1. Registration obtained from other financial sector regulators
3. Related party transactions
4. Rating assigned by credit rating agencies and migration of rating during the year
2. Disclosure of penalties imposed by NHB and other regulators
h. Miscellaneous
- -
2,343.20 1,682.61
76.05 19.65
296.52 419.18
1,000.00 -
1. Provisions for depreciation on Investment
2. Provision made towards Income tax
3. Provision towards NPA
4. Provision for Standard Assets
5. Other Provision and Contingencies (with details)
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
There has been no draw down from reserves during the year ended March 31, 2020 (P.Y. Nil)
*The total outstanding amount mean principal + accrued interest + other charges pertaining to loans without netting off.
2. Draw down from reserves
3. Concentration of public deposits, advances, exposures and NPAs
a. Concentration of public deposits - Not applicable
b. Concentration of loans & advances
c. Concentration of all exposure (including off-balance sheet exposure)
(Rs. in Lakh)
(Rs. in Lakh)
Mar-20
Mar-20
Mar-19
Mar-19
Particulars
Particulars
1,378.82
1,393.07
1,295.48
1,295.48
0.82%
0.73%
0.97%
0.97%
Total loans & advances to twenty largest borrowers
Total exposure to twenty largest borrowers / customers
Percentage of loans & advances to twenty largest borrowers to total advances of the HFC
Percentage of exposures to twenty largest borrowers / customers to total exposure of the HFC on
borrowers / customers
(Rs. in Lakh)
Break up of Loan & Advances and Provisions thereon
Previous YearCurrent Year Current Year Previous Year
Non housingHousing
Total
Standard Assets
a) Total Outstanding Amount 108,812.57 91,045.65 61,073.59 43,841.79
b) Provisions made 308.46 574.45 215.04 327.54
Sub-Standard Assets
a) Total Outstanding Amount 245.73 82.46 335.36 37.47
b) Provisions made 41.71 13.55 53.99 6.10
Doubtful Assets – Category-I
a) Total Outstanding Amount - - - -
b) Provisions made - - - -
Doubtful Assets – Category-II
a) Total Outstanding Amount - - - -
b) Provisions made - - - -
Doubtful Assets – Category-III
a) Total Outstanding Amount - - - -
b) Provisions made - - - -
Loss Assets
a) Total Outstanding Amount - - - -
b) Provisions made - - - -
a) Total Outstanding Amount 109,058.30 91,128.11 61,408.95 43,879.26
b) Provisions made 350.17 588.00 269.03 333.64
d. Concentration of NPAs (Rs. in Lakh)
Mar-20 Mar-19Particulars
254.16 118.67 Total Exposure to top ten NPA accounts
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
4. Movement of NPAs
5. Overseas asset
6. Off - balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms)
j. Disclosure of Complaints
1. Customers Complaints
(Rs. in Lakh)
Mar-20 Mar-19Particulars
(Rs. in Lakh)
SectorPercentage of NPAs to Total
Advances in that sector
e. Sector Wise NPA
A. Housing loans:
1. Individuals
2. Builders / project loans
3. Corporates
4. Others (specify)
B. Non - housing loans:
2. Builders / project loans
3. Corporates
4. Others (specify)
1. Individuals
-
-
-
-
-
-
0.23%
0.54%
0.29% 0.07%
118.67 -
1,649.31 402.36
1,193.58 283.69
574.40 118.67
99.02 -
1,376.10 310.40
996.42 211.38
478.70 99.02
19.65 -
273.21 91.96
197.15 72.32
95.70 19.65
(I) Net NPAs to Net Advances (%)
(II) Movement of NPAs (Gross)
a) Opening balance
b) Additions during the year
c) Reductions during the year
d) Closing balance
(III) Movement of Net NPAs
a) Opening balance
b) Additions during the year
c) Reductions during the year
d) Closing balance
(IV) Movement of provisions for NPAs (excluding provisions on standard assets)
a) Opening balance
b) Provisions made during the year
c) Write-off/write-back of excess provisions
d) Closing balance
The Company does not have any overseas assets as at year ended March 31, 2020 and March 31, 2019.
The Company does not have any off balance sheet Special Purpose Vehicle (SPV) which are required to be consolidated as per accounting norms.
(Rs. in Lakh)
Current Year Previous YearParticulars
1 -
128 70
129 69
- 1
a) No. of complaints pending at the beginning of the year
b) No. of complaints received during the year
c) No. of complaints redressed during the year
d) No. of complaints pending at the end of the year
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
(Rs. in Lakh)
(Rs. in Lakh)
Asset Classificationas per RBI Norms
Asset Classificationas per RBI Norms
Assetclassification asper Ind AS 109
Assetclassification asper Ind AS 109
Gross CarryingAmount as per
Ind AS
Gross CarryingAmount as per
Ind AS
Loss Allowances(Provisions) as
required under IndAS 109
Loss Allowances(Provisions) as
required under IndAS 109
Net CarryingAmount
Net CarryingAmount
Provisionsrequired as perIRACP norms
Provisionsrequired as perIRACP norms
Difference betweenInd AS 109
provisions andIRACP norms
Difference betweenInd AS 109
provisions andIRACP norms
46. a. Disclosure in line with RBI's circular DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 for the
year ended March 31, 2020.
Disclosure in line with RBI's circular DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 for the year ended
March 31, 2019.
(1)
(1)
(2)
(2)
(3)
(3)
(4)
(4)
(5)=(3)-(4)
(5)=(3)-(4)
(6)
(6)
(7) = (4)-(6)
(7) = (4)-(6)
Performing Assets
Stage 1 165,826.67
691.78
165,134.89
519.87
Stage 2 2,032.19
192.45
1,839.74
3.64
Subtotal 167,858.86
884.23
166,974.63
523.50
Non-Performing
Assets (NPA)
Substandard Stage 3 574.40
126.37
448.03
95.70
Doubtful -up to 1 year Stage 3 -
-
-
-
1 to 3 years Stage 3 -
-
-
-
More than 3 years Stage 3 -
-
-
-
Subtotal for doubtful -
-
-
-
Loss Asset Stage 3 -
-
-
-
Subtotal for NPA 574.40
126.37
448.03
95.70
Stage 1 165,826.67
691.78
165,134.89
519.87
Stage 2 2,032.19
192.45
1,839.74
3.64
Stage 3 574.40 126.37 448.03 95.70
Total 168,433.26
1,010.60
167,422.66
619.20
Standard
Total
171.91
188.82
360.73
30.67
-
-
-
-
-
30.67
171.91
188.82
30.67
391.40
Performing Assets
Stage 1 132,706.13 567.26 132,138.86 424.20
Stage 2 777.76 74.64 703.12 2.78
Subtotal 133,483.89 641.91 132,841.98 426.98
Non-Performing
Assets (NPA)
Substandard Stage 3 118.67 26.11 92.56 19.65
Doubtful - up to 1 year Stage 3 - - - -
1 to 3 years Stage 3 - - - -
More than 3 years Stage 3 - - - -
Subtotal for doubtful - - - -
Loss Asset Stage 3 -
-
-
-
Subtotal for NPA 118.67
26.11
92.56
19.65
Stage 1 132,706.13
567.26
132,138.86
424.20
Stage 2 777.76
74.64
703.12
2.78
Stage 3 118.67
26.11
92.56
19.65
Total 133,602.56
668.01
132,934.54
446.63
Total
Standard143.06
71.86
214.92
6.46
-
-
-
-
-
6.46
143.06
71.86
6.46
221.38
VASTU HOUSING FINANCE CORPORATION LIMITED
NOTES TO STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020
(Rs in Lakh)
Mar-20 Mar-19
- -
Particulars
Expenditure in Foreign Currency
(Rs. in Lakh)
Particulars Amount
b. Disclosure in line with RBI's circular DOR DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020 for the year ended
March 31, 2020.
I. Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended, in terms of
paragraph 2 and 3;
ii. Respective amount where asset classification benefits is extended.
iii. Provisions made during the Q4FY2020 and Q1FY2021 in terms of paragraph 5;
iv. Provisions adjusted during the respective accounting periods against slippages and the residual provisions in
terms of paragraph 6.
The Company holds provisions as of March 31, 2020, against the potential impact of COVID-19 based on the information available at this
point. The provisions held by the Company are more than the RBI prescribed norms.
In accordance to guidelines on COVID 19 - regulatory package issued by RBI dated March 27, 2020, and April 17, 2020, the Company may
grant a moratorium of three months. Payment of all instalments as applicable, falling due between March 1, 2020, and May 31, 2020, to all
eligible borrowers classified as Standard, even if overdue, as on February 29, 2020. For all such accounts where the moratorium is granted,
the asset classification shall remain standstill during the moratorium period (i.e. the number of days past-due shall exclude the moratorium
period for asset classification).
47. The spread of COVID-19 across the globe and India has contributed to a significant decline and volatility in economic activity and financial
markets. The outbreak of the virus has already been declared a global pandemic by the World Health Organization (WHO) on March 11,
2020. On March 24, 2020, the Indian government announced a strict 21-day lockdown which extended by 19 days. The extent to which the
COVID-19 pandemic impacts the Company’s results depends on future developments. The developments are highly uncertain, including,
among other things, any new information concerning the severity of the said pandemic and any action to contain its spread or mitigate its
impact whether government-mandated or elected by the Company.
2,059.30
260.23
103.28
-
48. Expenditure in foreign currency
49. Balance grouped under loans and advances in certain cases are subject to confirmation and reconciliation. Impact of the same, if any, shall
be accounted as and when determined, which are not expected to be material.
In the opinion of the management, the loans and advances are approximately of the value stated, if realized, paid in ordinary course of
business. The provision for all known liabilities are adequate and are not in excess of amount considered reasonably necessary.
50. There is no amount due and payable to micro and small suppliers registered under the Micro, Small and Medium Enterprises Development
Act, 2006 at the end of the year other than as disclosed. No interest has been paid/ is payable by the Company during/for the year to these
‘Suppliers’ other than as disclosed. The above information takes into account only those suppliers who have submitted their registration details
or has responded to the inquiries made by the Company for this purpose.
51. Previous year figures have been re-grouped / re-arranged and re-classified wherever necessary, to conform to current year's classification.
Renuka Ramnath Natrajh Ramakrishna Sandeep Menon
Chairperson Director Managing Director
(DIN00147182) (DIN06597041) (DIN02032154 )
Sujay Patil Pallavi Bhambere
Chief Financial Officer Company Secretary
sd/-
For M/s T R Chadha & Co LLP
Firm Registration No.: 06711N/N500028
Vikas Kumar
Partner
Membership No. 075363
Date : April 29, 2020
Place : Mumbai
Chartered Accountants For and on behalf of the Board of Directors of
Vastu Housing Finance Corporation Limited
sd/- sd/- sd/-
sd/- sd/-
In terms of our report attached
Registered & Corporate Office
Unit 203 & 204, 2nd Floor, A Wing, Navbharat Estate,
Zakaria Bunder Road, Sewri (West), Mumbai - 400 015
1800220001 www.vastuhfc.com
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