DEFINED BY THE - ELEMENTS Fast-growing - Axis Finance
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AXIS FINANCE Annual Report 2017-18
DE F I N E D BY T H E
Fast-growing Inclusive Value-driven Efficient
E L E ME N TS
CONTENTS
01-19
CORPORATE OVERVIEW
02 Axis Finance at a Glance
04 Five years of Robust Execution
06 Encouraging Milestone
07 Achievements in FY 2017-18 REVISITING
08
10
Chairman’s Message
Conversation with MD & CEO
2017-18
12 Product Offerings
14 Strategies to Shape our Future
15 Nurturing Talent
16 Board of Directors 46-88
18 Leadership Team
19 Corporate Information Total Assets under
Management
FINANCIAL STATEMENTS
50 Independent Auditor’s Report L6,624 CRORE
56 Balance Sheet
20-48 51% growth (y-o-y)
57 Statement of Profit and Loss
58 Cash Flow Statement
60 Notes
STATUTORY REPORTS
Net Interest Margin
20 Director’s Report Profit after Tax
42 Management Discussion
4.8%
and Analysis L209 CRORE
27% growth (y-o-y)
Present in
13 LOCATIONS
Explore online:
www.axisfinance.co.in Vis-à-vis 7 in the previous yearDEFINED BY THE FIVE ELEMENTS
Axis Finance Ltd. (AFL) has completed the first five years under the
Axis group in 2017-18 and now features among the top five players
in the Loan against Securities (LAS) and Event Based Funding (EBF) businesses.
Over the preceding five years, we have earned the trust of our customers and continue to improve customer
experiences by providing them innovative financial solutions. We have imbibed the following principles in our
operations and we continue to deliver stakeholder value by being:
FAST-GROWING INCLUSIVE VALUE-DRIVEN EFFICIENT
We are among India’s fastest growing We focus on lending to niche segments We adopt ethical practices and function Despite our high-growth performance,
Non-Banking Financial Companies such as LAS, EBF and Employee Stock in a manner that creates value for all we have maintained a rationalised cost
(NBFCs) and have grown our core loan Options (ESOPs) financing, besides our stakeholders. structure, reflected in our best-in-class
book at a compounded annual growth structured and mezzanine finance. We return ratios, high margins and zero
rate (CAGR) of 55% or nearly six times aim to foray into relatively unbanked delinquencies.
over the past five years. segments such as micro Loan against
Property (LAP) in future.Annual Report 2017 -18
AXIS FINANCE
AXIS FINANCE AT A GLANCE
Part of the renowned Axis Bank group, After laying a robust foundation, Our financial solutions cater to the unique needs
Axis Finance Ltd. (AFL) is an NBFC your Company is aspiring higher
that extends lending solutions to and we now aim to further diversify
of our corporate as well as retail customers.
wholesale and retail segments via our loan book in select areas. These include Sponsor financing, Special
a niche suite of products.
We have identified a few relatively
Situations Funding, Structured and Mezzanine
In a short five-year span, we have unbanked segments and are geared Financing, Real Estate Financing for Corporates,
established ourselves as a strong, up to venture in these segments in both
efficient and unique NBFC with our the retail and corporate verticals. We
Loan against Shares, Loan against Mutual
differentiated bouquet of offerings. are also expanding our footprint into Fund (MFs) and Bonds, Employee Stock Option
unexplored geographies and with tour
We have demonstrated a strong parent Company's continued support
Financing, LAP and Initial Public Offering (IPO)
execution track record with a and guidance, we are well on our Financing for Retail Borrowers.
commendable financial scorecard way towards becoming one of India’s
over these years. leading NBFCs.
VISION VALUES
To be the preferred financial solutions AFL is governed by its core values, which have
provider, excelling in customer delivery shaped its organisational culture:
through insight, empowered employees
and smart use of technology.
Integrity Customer- Transparency Empowerment Positive Growth
centricity
Adopting integrity and High standards Empowering our Growing profitably
honesty, while dealing Imbibing customer- of disclosures and employees to take and responsibly
with all stakeholders – centricity at openness with lead and make
customers, employees, all stages our all stakeholders decisions, thereby
governments, suppliers customer’s journey creating high-
and the society at large performance teams
2CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
CREDIT RATING
We are amongst the highest rated NBFCs
in the industry and also figure amongst
the industry’s lowest cost fund raiser.
Long Short
Term Term
CRISIL AAA A1+
India AAA A1+
Ratings Delhi
Jaipur
Ahmedabad
FOOTPRINT
We are present in 13 cities and
our offices are functioning as loan
Kolkata
origination centres, with centralised
Baroda
loan processing at Mumbai.
Bhubhaneshwar
Mumbai
Visakhapatnam
Pune Hyderabad
Chennai
Cochin
Bangalore
3Annual Report 2017 -18
AXIS FINANCE
FIVE YEARS OF ROBUST EXECUTION
Our robust financial scorecard is an outcome of our customer-centric approach
and an inspiring culture of integrity and value across our operations.
LOAN BOOK CORE RETAIL LOAN BOOK CORE WHOLESALE LOAN BOOK
(I in Crores) (I in Crores) (I in Crores)
17-18 6,624 17-18 1,224 17-18 5,400
16-17 4,392 16-17 748 16-17 3,644
15-16 3,322 15-16 477 15-16 2,845
14-15 2,246 14-15 279 14-15 1,967
13-14 1,155 13-14 65 13-14 1,090
5-year CAGR 55% 5-year CAGR 108% 5-year CAGR 49%
NET INTEREST INCOME TOTAL INCOME NET PROFIT
(I in Crores) (I in Crores) (I in Crores)
17-18 250 17-18 722 17-18 209
16-17 176 16-17 575 16-17 165
15-16 144 15-16 373 15-16 111
14-15 91 14-15 224 14-15 78
13-14 36 13-14 76 13-14 33
5-year CAGR 61% 5-year CAGR 76% 5-year CAGR 59%
4CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
NET WORTH NET INTEREST MARGIN
(I in Crores) (%)
17-18 1,065 17-18 4.8
16-17 876 16-17 5.57
15-16 725 15-16 5.73
14-15 590 14-15 6.83
13-14 412 13-14 5.57
5-year CAGR 27%
RETURN ON EQUITY (ROE) RETURN ON ASSETS (ROA)
(%) (%)
17-18 21.80 17-18 3.7
16-17 18.90 16-17 4.14
15-16 16.40 15-16 4.04
14-15 16.30 14-15 3.33
13-14 8.93 13-14 3.24
5Annual Report 2017 -18
AXIS FINANCE
ENCOURAGING MILESTONES
SETTING BENCHMARKS
Lowest OUR GROWTH
GROWING PROMINENCE Cost-to-income ratio in the Robust performance
industry at 7.61%
Among the top 5 Total income CAGR growth - 76%
Employee productivity
Players in LAS and EBF Net interest income CAGR growth - 61%
Finance business One of the best in the
industry Net profit CAGR growth - 59%
ENHANCING
EFFICIENCY INSTILLING PRUDENT
PRACTICES
Zero
Robust
Bad loans since inception
Risk-mitigation guardrails
Best-in-class
Real-time
Return ratios
ROE at 21.8% Risk monitoring in the loan
ROA at 3.7% against shares portfolio
6CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
ACHIEVEMENTS IN FY 2017-18
GROWTH
PERFORMANCE K RISING SHARE OF
RETAIL LOANS
otal Assets under
T et Interest
N ee
F
Management Income Income Loan Mix
17%
27%
L6,624 CRORE L250 CRORE L72 CRORE Retail
51% y-o-y growth 43% y-o-y growth 89% y-o-y growth 2016-17 2017-18
Wholesale
PROFITABILITY
PERFORMANCE 83% 73%
Profit after Tax Net Interest Margin
L209 CRORE 4.8%
27% y-o-y growth
ROBUST OPERATIONAL
AND FINANCIAL RATIOS
apital Adequacy
C ross
G ROE
Ratio Non-performing
Assets Ratio
23.8% Maintained at zero level
21.8%
Above the 15%
regulatory requirements
7Annual Report 2017 -18
AXIS FINANCE
MESSAGE FROM THE CHAIRMAN
Dear Shareholders, Our economy
demonstrated significant
FY 2017-18 saw the Indian economy resilience to the teething
grow at 6.7%. It demonstrated
significant resilience to the teething
issues caused by the
issues caused by the implementation implementation of reforms
of reforms such as demonetisation
and the Goods and Services Tax
such as demonetisation
(GST). These two reforms, coupled and the Goods and
with the rising adoption of digitisation,
could be instrumental in expediting
Services Tax (GST).
the process of formalisation of our
NBFCs now play a material role in
economy. Further, a stable monetary
driving credit growth in the economy,
policy and continued emphasis on
particularly in the relatively under-
reforms supported India’s economic
banked mass segments. Most NBFCs
growth in the year. During the year,
have established themselves in select
we also witnessed an upgrade in our
niche areas, thereby encouraging
sovereign rating and higher ranking in
broad-based growth across different
the charts in ease of doing business.
borrower categories and products.
These developments should bolster
Improving growth outlook, buoyant
foreign investments in the Indian
primary and secondary markets and
economy over the medium term and
increasing consumer demand will aid
provide the much needed growth
the prospects of your Company.
capital. As per the Reserve Bank
of India (RBI) estimates, the Indian
Reminiscing about the initial 5 years
economy is set to grow by 7.4% in
fills our hearts with a sense of pride
FY 2018-19 owing to the gradual
and accomplishment. Your Company,
easing-out of the after aftereffects of
with its niche positioning, has put up an
the GST implementation. However,
outstanding performance in this period
higher oil prices and consequently,
and has reached a significant size and
a weakening rupee have made the
scale. We have also delivered on the
current liquidity conditions tight
profitability parameters such as margins
and the macro economic scenario,
and Return on Equity (RoE) ratios
particularly the external sector,
and our asset quality is unblemished.
weaker. We believe this would
V. Srinivasan stabilise and the growth environment
Having carved a niche in the Loan
Chairman against Securities (LAS), real estate and
for FY 19 should stay buoyant.
corporate finance segments over these
8CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
years, we have differentiated ourselves app to source ESOP funding proposals of AFL who dedicate their best to the
by offering solutions that contribute to and have also invested in upgrading organisation–empowering it to broaden
customer value creation at all stages of our Loan Management System its horizons. Special thanks to everyone
the customer’s journey. (LMS) and Loan Origination System in the Axis Bank group who made this
(LOS) applications to increase the journey enriching and successful.
Your Company, with its overall turnaround time in processing
proposals. Your Company will soon I count on your unstinting support as we
niche positioning, has be having a digital offering of loan aspire to achieve profitable growth and
put up an outstanding against shares for clients having demat maximise value for all our stakeholders
accounts with Axis Bank. in a sustainable manner.
performance in the initial
5 years and has reached a Over the next 5 years, we expect Best Regards,
our existing businesses to grow at
significant size and scale. a compounded annual growth rate
in excess of 20%. We would ensure
Looking ahead, it is our endeavour to
that we maintain our track record of
further build and enhance our existing
impeccable asset quality and attractive
V. Srinivasan
businesses. We are well positioned to Chairman
shareholder returns in the ensuing
explore and further diversify our loan
years too. Our goal would be to be a
book to cater to the financial needs of
material player in each of the areas we
borrowers in the low-cost housing, micro
seek to play in and be the benchmark
LAP collateralised loans and consumer
for others in that space. This journey of
durables finance segments. We would
sustained growth and profitability will
be putting in place the necessary
help us make material contributions to
building blocks to build a robust and
the Axis Bank group and also make us
scalable business in these areas in the
one of the most valued NBFCs in the
coming year.
marketplace.
In today’s fast-evolving world, digital
initiatives enable companies to acquire, Our goal would be to be a
service and retain customers. Besides
driving cost efficiencies across our
material player in each of
operations, digitisation plays a crucial the areas we seek to play
role in elevating customer experience Over the next 5 years, we expect
at every step that they engage with
in and be the benchmark
our existing businesses to grow
us. In this scenario, your Company for others in that space.
will continue to invest in IT initiatives to at a compounded annual growth
ensure superior customer experience. Before closing, I want to extend my
We have deployed an Android/iOS heartfelt gratitude to all the stakeholders
rate in excess of 20%
9Annual Report 2017 -18
AXIS FINANCE
CONVERSATION WITH MD & CEO
As we complete 5 years under the Axis umbrella, Mr. Bipin Saraf
shares his insights on the Company’s journey so far and the road ahead.
Looking back at the What will be the Please tell us about FY18 witnessed the
preceding 5 years, what Company’s focus areas, your initiatives on implementation of
are the key learnings and going forward? the digital front? landmark reforms such as
achievements you want to the Goods and Services
There are a couple of priority areas India is rapidly moving towards a
emphasise upon? for us in the next few years. First is to digital-first economy and we are Tax (GST) and Real
diversify our loan book by foraying into strengthening our digital ecosystem to
Estate Regulation (and
We have laid a strong foundation for niche segments that offer high-growth enhance customer experience at every
our business in the past 5 years and potential. These include mass market step that they engage with us. Development) Act (RERA),
have established ourselves as a fast- products, where banks don’t have a
growing diversified NBFC with industry- significant presence, such as micro LAP, We are in the process of building
among others. How did
leading asset quality and presence in micro housing finance, lower-income automated systems and processes with these measures improve
niche segments. The outcome of these retail borrowers and consumer durable minimal human intervention. We are
efforts is reflected in our robust financial loans. We will also strengthen our steadily increasing our investments to
the overall business
performance. presence in collateralised loans to the strengthen our technology infrastructure environment?
High Net Worth Individual (HNI) retail and deepen and widen our digital
segment. outreach. The implementation of the GST will
benefit our country in the longer run,
Second, we want to expand our as it will accelerate the pace of the
"Our focus on agile geographic presence further into the tier formalisation of our economy. This,
learning and the fact 2 and tier 3 cities. Besides helping us "Our aim is to in turn, will aid the financial services
achieve a higher scale, these initiatives industry. There is no GST on real
that we kept fine- will help us touch each segment of the
emerge as a more estate projects that have received the
tuning our processes market, right from corporates to HNIs to diversified NBFC in occupancy certificate.
borrowers in the mass market. Overall,
enabled us to deliver our aim is to become a much more
the next few years." Besides, RERA implementation has
on our stakeholder diversified NBFC in the next few years. helped boost home buyers’ confidence
in builders, which, in turn, will drive
commitments." home demand.
10CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
New businesses are likely to account
To remain Fast-growing,
The combined impact of zero GST
on completed homes and RERA for one-fifth of our corporate pie, Inclusive, Value-driven
implementation will help improve going forward. On the retail side, we
the real estate sector. Most of our will continue to innovate and launch
and Efficient for the next 5
lending in the real estate segment new products and at the same time years and beyond.
is for projects that are nearing focus on our service excellence.
completion or have received the We will also have to put the
occupancy certificate. necessary infrastructure in place.
On the profitability front, our cost-to-
income ratio is one of the lowest in
the industry. This will help us sustain
our net interest margin between
"We are focusing
on lending to 4.75% and 5%
home buyers in the
At a time when the financial sector
affordable housing is grappling with stressed assets,
space, which is our zero delinquencies have led to
virtually no credit costs so far and
growing at a hane aided our overall profitability.
healthy pace."
Take us through the future
roadmap of Axis Finance.
We are confident of sustaining our pace
of growth in the current financial year,
as we did in FY 2017-18 and we will
continue to receive strong support from
our parent. On the corporate side, our
focus is three-pronged:
To deepen the existing relationships
To keep a firm eye on them to
maintain zero delinquencies
To scout for new businesses Mr. Bipin Saraf
Managing Director and Chief Executive Officer 11Annual Report 2017 -18
AXIS FINANCE
PRODUCT OFFERINGS
AFL’s offerings are broadly classified in the Wholesale Loan Products
and Retail Loan Products categories.
WHOLESALE LENDING SOLUTIONS
Sponsor Financing tructured and Mezzanine
S
Financing
We offer financing solutions catering
to the various requirements of Our product suite comprises secured
promoters of both large and mid– debt, discount or zero coupon bonds
sized Indian companies. By offering with various interest and ownership
loans against shares – both listed options in this segment. Given their
and unlisted, our solutions span from complex nature, such products
simple to complex structures and typically are priced at higher yields.
from short- to long-term tenures.
Special Situation Funding Real Estate Financing
We enjoy a prominent positioning in Our financing solutions to the real
special situation funding. We provide estate sector are highly differentiated
funding solutions for a host of purposes, than most of our peers. We provide
including acquisition financing, creeping critical lending to fund the early stage
acquisitions, family settlements, bridge or last mile of a real estate project.
financing and Private Equity (PE) Our offerings in this segment are
buyouts. Our underwriting practice customised to suit the stock liquidation
provides flexibility of asset and/or estimates of developers. Currently, we
cashflow-backed transactions structured offer these products in tier I and tier II
as short- to medium-term loan products. cities across India.
12CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
RETAIL LENDING SOLUTIONS
Loan Against Shares ESOP Financing IPO Financing
We provide loan against shares to By availing this facility, employees can We enable our customers to subscribe
retail borrowers for 12-36 months and unlock the value of their Employee Stock for IPOs by paying just the margin
leverage the operational synergies from Options or ESOPs by subscribing to amount upfront, with the balance
our group companies in the Broking, them. Under the vanilla ESOP funding application amount being financed
Banking and Advisory domains. option, AFL offers a loan product, by us. Our IPO Financing facility
Adopting prudent risk-management wherein the ESOP exercise price is offers clients an opportunity to invest
practices, we have capped the loan- funded against the prescribed margins, their funds in the primary markets
to-value ratio in this segment at 50%. which are collected upfront. and increase their allotment quantum
Depending on the scrip category, manifold.
we enable our clients to take
advantage of investment opportunities.
Loan Against MFs and Bonds Loan against Property
In this segment, our customers get These products offer our customers
the dual benefit of availing a loan higher liquidity without selling their
against MFs and bonds, even as they property. We offer funding against
continue to earn returns on them without residential and commercial properties
liquidating them. The ticket size of our for up to 60 months’ tenure. These loans
loans in this segment start from I25 are typically priced at higher yields
Lakhs with loan to value of up to 50% and are offered in the ticket sizes of
for equity MFs 70-95% for debt MFs I1 Crore to I100 Crore.
and 80-90% for tax-free bonds.
13Annual Report 2017 -18
AXIS FINANCE
STRATEGIES TO SHAPE OUR FUTURE
We will continue to implement the following strategies to foster robust
relationships with our clients and be a preferred financial solutions provider.
DEEPEN THE EXISTING DIVERSIFY OUR OFFERINGS DDRESS FUTURE CHALLENGES
A
CLIENT BASE OF SCALABILITY and STABLE BOOK
We are planning to foray into new
It is our endeavour to further strengthen segments and offer loans in the mass Our loan book has witnessed a high churn
our relationship with the existing clients market segments of micro V micro- in the past five years with an average
by offering them solutions to meet their housing finance and collateralised loans churning rate of 75%. We are planning
current and future funding requirements. to HNIs individuals. Higher granularity to reduce this rate by providing a vast
Our bid to drive customer centricity at of our loan book will enable us to bouquet of products that meet the
every stage of our client engagement sustain our growth momentum. requirements of our customers and drive
will enable us to retain the existing scalability in our overall loan book.
business and generate new business
from our existing customers.
STRENGTHEN THE RISK-
MANAGEMENT FRAMEWORK STEP UP INVESTMENTS IN INCREASE THE OVERALL
IT SYSTEMS ASSETS YIELD
AFL has always focused on achieving a
fine balance between its high growth and We are investing in building future-ready We are looking to improve our overall
business risks. This is reflected in our asset IT systems and processes to facilitate our yield in two ways. One, by foraying
quality and high operational efficiencies. entry into the emerging retail segments. into high growth potential, high margin
Our endeavour is to maintain this balance The adoption of best-in-class IT systems loan segments and two, by churning.
by introducing an internal rating tool for will play a critical role in improving
our wholesale products, building robust customer experience and in driving
compliance and monitoring systems for our customer loyalty towards our Company.
retail products and sharpening focus on
managing operational and market risks.
14CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
NURTURING TALENT
At AFL, Employee Engagement is at the core of our
HR philosophy, we engage with our employees
continuously by conducting various training &
development programmes, town hall meetings, outdoor
workshops, etc. besides events to celebrate key
festivals at the office which enables us to foster team
spirit and make AFL a better place to work.
15Annual Report 2017 -18
AXIS FINANCE
BOARD OF DIRECTORS
1 Mr. V. Srinivasan organisation for primary dealers. He
Chairman joined Axis Bank as Executive Director
- Corporate Banking in 2009 and was
With nearly 3 decades of experience
promoted to Director on the Board of
in the banking and financial
Axis Bank in October 2012. Currently,
services industry, Mr. Srinivasan has
he is Deputy Managing Director of
spearheaded the growth of AFL and
Axis Bank. He is a qualified engineer
has provided able guidance to the AFL
from the College of Engineering, Anna
team. In 1990, he began his career in
University, Chennai, with a PGDBM
1 4 the financial services industry with the
from the Indian Institute of Management,
Merchant Banking Division of ICICI
Calcutta in 1990.
Ltd. He was a part of the start-up team
of ICICI Securities and Finance Co.
Ltd. (I-Sec), the joint venture between
ICICI and J.P. Morgan, and headed the 2 Mr. Bipin Saraf
Managing Director & Chief
Fixed Income business there. in 1999,
Executive Officer
he began working with J.P. Morgan,
India, and in his last assignment, he Mr. Saraf has more than 2 decades
was Managing Director and Head of of experience in the banking and
2 5 Markets. financial services sector. Before
He was the CEO of J.P. Morgan Chase joining Axis Bank Limited, he was with
Bank, Mumbai branch, as well as IFCI Limited from 1995 to 2003. He
Chairman, J.P. Morgan Securities (I) commenced his career with IFCI Limited
Pvt. Ltd. when he left the company. He and was responsible for handling
has served on various committees of the portfolio of large and medium
the Reserve Bank of India (RBI) such as corporates belonging to various sectors,
the Technical Advisory Committee of including Steel, Power, Textiles and
the RBI, Committee of Repos, Separate Petrochemicals, among others. He
Trading of Registered Interest and joined the Capital Markets Department
3 6 Principal of Securities (STRIPS) and of Axis Bank Limited in 2003. He was
others. in-charge of the Corporate & Financial
Advisory Portfolio in the Eastern Zone.
He has also served as Chairman of He had the primary responsibility
Fixed Income Money Market and of undertaking project advisory and
Derivatives Association of India appraisal assignments, corporate
(FIMMDA), the key self-regulatory restructuring and syndication of funds
body for bond and money markets for various corporate clients.
and Primary Dealers’ Association After that, he was responsible for the
of India (PDAI), the self-regulatory Structured Products business under
7
16CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
the Capital Markets Department of 4 Mr. Jairam Sridharan Ltd. She has also been instrumental Institute of Management, Ahmedabad.
Axis Bank Limited. During his previous Non-executive Director in setting up a dedicated centre for He is a graduate in Agriculture from
stint with Axis Bank, he was Head of financial analysis of companies rated AP Agricultural University, Hyderabad.
Mr. Jairam Sridharan has nearly 2
the Global Debt Syndication Business by CRISIL in her capacity as CEO He holds an MBA degree with
decades of experience in the banking
(International and Domestic). He has of Global Data Services of India, specialisation in Agriculture from
and financial services industry. He
been heading Axis Finance Ltd. as the erstwhile subsidiary of CRISIL. She is the Indian Institute of Management,
is currently the Group Executive and
MD & CEO for the last 5 years and an Economics graduate from Delhi Ahmedabad.
Chief Financial Officer at Axis Bank
has been instrumental in setting up University and a postgraduate in
and handles the Finance, Strategy
this wholly owned subsidiary NBFC Business Administration from Indian
and Business Intelligence functions. He
under Axis Bank. He is a rank holder Institute of Management, Ahmedabad. 7 Mr. K. N. Prithviraj
joined Axis Bank in June 2010 from
Chartered Accountant and Cost Independent Director
Capital One Financial, a consumer
Accountant with a graduate degree in
bank based in Richmond, VA (US) and
Commerce. 6 Mr. V. R. Kaundinya Mr. Prithviraj has more than 38 years of
has earlier worked with ICICI Bank in
Independent Director experience in the banking and financial
their initial foray into Retail Lending
services industry. He is the Chairman
businesses.
3 Mr. Cyril Anand Mr. Kaundinya has worked of CanFin Homes Ltd. He is also the
Non-executive Director Mr. Sridharan holds a Bachelor of extensively in the areas of productivity Advisor of the Specified Undertaking of
Technology degree in Chemical enhancement of farmers and the Unit Trust of India (SUUTI). He has
Mr. Anand has over 25 years of
Engineering from IIT Delhi and is a Post improvement of their profitability held various positions, including that of
experience in the banking and financial
Graduate Diploma in Management from using high-quality inputs. He has also Chairman and MD, Oriental Bank of
services sector. He joined Axis Bank
IIM Calcutta. In 2015, Mr. Sridharan worked on the development of seed Commerce; Executive Director, United
in April 1995. In the last 20 years, he
was chosen by The Economic Times production areas and contract farming Bank of India; General Manager,
has held several positions in various
as a part of their '40 Under 40' list of systems in the seed/crop production Punjab National Bank Corporate Credit
departments of the Bank, such as
India’s hottest business leaders. areas in India and abroad. He was & Human Resource Department and
Branch banking and Corporate and
involved in a project that was aimed General Manager, Punjab National
International banking. His prior role
at the elimination of child labour in Bank - Western Zone. He was also
was that of CEO for Axis Bank UK
5 Ms. Madhu Dubhashi cotton seed farmers’ fields in Andhra a Government Nominee Director
Limited, an international subsidiary of
Independent Director Pradesh. Mr. Kaundinya was a member for Oriental Insurance Company for
Axis Bank. Currently, he is the Chief
of the Dr. Swaminathan Committee to 2 years. He is a postgraduate rank
Risk Officer at Axis Bank. He has a In a career spanning more than 40
develop the Biotech Policy in India. holder in Economics from Madras
graduate degree in Commerce and a years in the banking and financial
He held various leadership positions University and a Research Fellow,
postgraduate services industry, Ms. Dubhashi has
in industry associations such as the Department of Economics, Madras
degree in Business Administration. played multiple roles. She has managed
Indian Crop Protection Association, University.
IPOs and follow-on offerings during her
Association of Seed Industry and
tenure with Standard Chartered Bank,
Crop Biotech Association. He has
assessed the viability of projects at ICICI
developed case studies and taught
Ltd. and administered the Investment
Agricultural Marketing and Rural
Banking Division at J M Financial
Development classes at the Indian
& Investment Consultancy Services
17Annual Report 2017 -18
AXIS FINANCE
LEADERSHIP TEAM
Mr. Bipin Saraf Mr. Kishore Babu Mr. Vishal Sharan
Managing Director & Chief Chief Operating Officer Head – Business (wholesale)
Executive Officer
Sriram Vinjamuri Mr. Amith Iyer Ms. Deepti Dayal Mr. Rajneesh Kumar
Head – Business (Retail) Chief Finance Officer & Treasury Head Credit Head Head Compliance
& Company Secretary
18CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
AXIS FINANCE
CORPORATE INFORMATION
LEADERSHIP TEAM AUDITORS REGISTERED & CORPORATE OFFICE
Bipin Saraf M/s. S.R. Batliboi & Co. LLP Axis Finance Limited
Managing Director & CEO Chartered Accountants Axis House, C-2 Wadia International Centre,
P. B. Marg, Worli,
Kishore Babu Mumbai – 400 025, India
Chief Operating Officer SECRETARIAL AUDITORS Tel: +91-22-62260000
Fax: +91-22-43253085
Amith Iyer Ajay V. Mehta
CFO & Treasury Head Practicing Company Secretary
DEBENTURE TRUSTEE
Vishal Sharan
Head – Business (Wholesale) INTERNAL AUDITORS Catalyst Trusteeship Limited
(Formerly known as GDA
Sriram Vinjamuri M/s. ASJ & Co. LLP Trusteeship Limited)
Head - Business (Retail) Chartered Accountants Office No. 83-87, 8th Floor,
Mittal Tower, ‘B’ Wing,
Rajneesh Kumar BANKERS Nariman Point,
Head Compliance & Company Axis Bank Ltd. Mumbai – 400 021
Secretary Bank of Baroda Tel: +91-22-49220555
HDFC Bank Ltd. Fax: +91-22-49220505
Karnataka Bank Ltd.
ICICI Bank
Punjab & Sind Bank
State Bank of India
19Annual Report 2017 -18
AXIS FINANCE
DIRECTORS’ REPORT
To -
The total expenditure was ` 400.98 crores as
The Members of against ` 322.10 crores for FY March 31, 2017.
Axis Finance Limited (“Company”)
-
The net profit is ` 209.35 crores as against
Your Directors are pleased to present the 23rd Annual Report on the business, operations and state of affairs of ` 165.26 crores for FY March 31, 2017
the Company together with the audited financial statement of the Company Accounts for the financial year ended
March 31, 2018. As on March 31, 2018, the Company’s:
- Capital to Risk Asset Ratio (CRAR) was 23.76%
1. Financial Highlights of the Company as against 23.15% on March 31, 2017.
The summarized financial highlights of the Company for the year ended March 31, 2018 is presented below:
- The Net Owned Funds stood at ` 1052.39 crores
Amount In ` resulting in 21.24% increase over the previous
Current Financial Previous Financial year.
Particulars
Year 31.03.18 Year 31.03.17
Information on the operational and financial
Income from Operations 721,50,23,636 575,40,07,558 performance, among others, is given in the
Other Income - 32,571 Management Discussion and Analysis Report which
Total Revenue 721,50,23,636 575,40,40,129 is annexed to this Report.
Total Expenditure 400,98,31,652 322,09,86,291
Profit/(Loss) before Taxation 320,51,91,984 253,30,53,838 3. Dividend
Tax expenses / (Credit) 111,16,55,374 88,04,39,763 During the year under review, your Directors declared
Profit/(Loss) after Taxation 209,35,36,610 165,26,14,075 and paid an interim dividend on two occasions. The
Balance brought forward from previous year 152,65,77,593 134,72,72,119 details of the same are as under-
Profit available for appropriation 362,01,14,203 299,98,86,194
Less: Appropriations - ` 2.21/- per share (on the face value of ` 10
- Interim Equity Dividend 121,27,82,500 94,94,27,500
each) out of the profits of the Company for the
period ended December 15, 2017 aggregating to
- Tax on Equity Dividends 24,68,93,984 19,32,81,101
` 92,43,32,500/-; and
- Previous Year Tax on Equity Dividends - -
- General Reserve - -
- Re. 0.60/- per share (on the face value of ` 10
- Transfer to Statutory Reserve 41,88,00,000 33,06,00,000 each) out of the profits of the Company for the
Surplus carried to the Balance Sheet 174,16,37,719 152,65,77,593 period ended February 28, 2018 aggregating to
` 28,84,50,000/-.
2. Financial Performance of the Company
During the financial year un der review, the Company continued its focus on its lending activities which offered
Your directors are not recommending any additional
higher yields on senior secured basis.
dividend and accordingly the said interim dividend
may be treated and considered as the final dividend
For FY March 31, 2018 the Company’s:
for the financial year ended March 31, 2018.
- The total revenue was ` 721.50 crores as against ` 575.40 crores for FY March 31, 2017.
20CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
The Board of Directors of the Company have adopted to appointment of women director, non-executive -A
ppointment of Mr. Jairam Sridharan as Director of the
a Dividend Distribution Policy and the same is made director(s) and non-executive independent director(s). Company
available on the website of the Company viz. https:// During the year under review, Mr. Jairam Sridharan
Mr. Jairam Sridharan (DIN: 05165390), was
www.axisfinance.co.in/. was co-opted on the Board w.e.f October 13, 2017. appointed as an Additional Director of the Company
The composition of the Board and the details in w.e.f. October 13, 2017. In terms of Section 161 of the
4. Amount proposed to be carried to reserves this regard have been provided in the Corporate Companies Act, 2013 (as amended), Mr. Sridharan
The break-up of the amounts/profits proposed to be Governance Report furnished later in this Report. holds office upto the date of the forthcoming Annual
carried to reserves for FY 2017-18, is set out herein General Meeting. The Company has received a
below: - Policy On Appointment of Directors and Senior Notice from a member proposing candidature of Mr.
Amount in Crores Management Personnel Sridharan as Director of the Company. Accordingly,
Particulars FY 2017-18 FY 2016-17
In terms of Section 178 of the Companies Act, the approval of members for appointment of Mr.
2013 read with rules framed thereunder and the Sridharan as a Director liable to retire by rotation
Transfer to Capital NIL NIL RBI Master Directions, as amended, the Board has is being sought at the forthcoming Annual General
Redemption Reserve adopted, ‘Policy on “Fit & Proper” Person Criteria’ for Meeting.
Transfer to Reserve Fund 41.88 33.06 appointment of Directors and Senior Management
u/s 45-IC of the RBI
Personnel of the Company. The details of the - Key Managerial Personnel
Act,1934 (being 20% of
the net profits)
said policy have been provided in the Corporate
Mr. Bipin Saraf – Managing Director & Chief
Governance Report annexed to this Report. Executive Officer, Mr. Amith Iyer– Chief Financial
Balance in Profit and Loss 174.16 152.66
Account Officer and Mr. Rajneesh Kumar – Company
- Director(s) Disclosure Secretary & Compliance Officer are the Key
5. State of Company’s Affairs:
Based on the declarations and confirmations Managerial Personnel of the Company in terms of
a. Share Capital received in terms of the applicable provisions of the Section 203 of the Act.
During the year under review 6,25,00,000 equity Act, circulars, notifications and directions issued by
shares of ` 10 each for cash at a premium of ` 10 the Reserve Bank of India and other applicable laws, During the year under review, the composition of Key
per equity share were issued and allotted on a Rights none of the Directors of the Company are disqualified Managerial Personnel remains unchanged.
basis to Axis Bank Limited (Holding Company). from being appointed as Directors of the Company.
Consequently, as at March 31, 2018, the paid-up c. Board Evaluation
share capital of the Company stood at ` 480.75 The Company has received necessary declarations Pursuant to provisions of the Companies Act, 2013,
crores divided into 48,07,50,000 equity shares of from the Independent Directors, affirming compliance the Board has carried out an annual performance
` 10 each. There has been no change in the issued with the criteria of independence laid under the evaluation of its own performance, the Directors
and paid up capital after March 31, 2018 till the date provisions of Section 149(6) of the Act. individually as well as the evaluation of the working
of this report. Further, no reserves were transferred to of its Audit, Nomination & Remuneration and
the P&L Account during the year. - Director(s) retiring by rotation Compliance Committees.
In accordance with the provisions of the Companies
b. Directors & Key Managerial Personnel Act, 2013 read along with the applicable Companies A structured questionnaire was prepared after taking
The composition of the Board is in compliance with (Appointment and Qualification of Directors) Rules, into consideration inputs received from the Directors,
the applicable provisions of the Companies Act, 2014, Mr. Cyril Anand Madireddi, retires by rotation covering various aspects of the Board’s functioning
2013, (“Act”) and the rules framed thereunder, at the forthcoming Annual General Meeting and, such as adequacy of the composition of the Board
guideline(s) issued by the Reserve Bank of India being eligible, offers himself for re-appointment. and its Committees, Board culture, execution and
and other applicable laws inter alia with respect
21Annual Report 2017 -18
AXIS FINANCE
performance of specific duties, obligations and with the provisions of the Act, and hence, disclosure b. Credit Rating:
governance. regarding the same is not applicable. During the year under review, the Company retained
the following ratings from CRISIL & India Ratings for
A separate exercise was carried out to evaluate g. Transfer of Unclaimed Dividend etc to Investor the ongoing debt programme of the Company:
the performance of individual Directors including Education and Protection Fund (IEPF)
- Long Term Debt : AAA/Stable by CRISIL &
the Chairman of the Board, who were evaluated
Since there was no amount lying w.r.t unpaid/
Programme AAA by India Ratings
on parameters such as level of engagement unclaimed Dividend, the provisions of Section 125
-Short Term Debt : A1+ by CRISIL & India Rating
and contribution, independence of judgement, of the Companies Act, 2013 does not apply. Further,
Programme
safeguarding the interest of the Company and there was no amount due to be transferred to IEPF
its minority shareholders etc. The performance in respect to secured redeemable non-convertible
The credit ratings reflect the Company’s financial
evaluation of the Independent Directors was carried debentures and interest thereon by the Company. discipline and prudence.
out by the entire Board. The performance evaluation
of the Chairman and the Non-Independent Directors h. Implementation of Compliance Monitoring & 7. Particulars of Deposits:
was carried out by the Independent Directors who Reporting Tool The Company being a “Non-Deposit Accepting Non-
also reviewed the performance of the Secretarial
In terms of provisions of Section 134(5)(f) of the Banking Financial Company”, provisions of Section
Department. Act, the Company has put in place a Compliance 73 and Section 74 of the Act read with Rule 8(5)(v) &
Management System (ricago CMS) for effectively (vi) of the Companies (Accounts) Rules, 2014, are not
d.
Change in shareholding pattern material tracking and managing critical action items related applicable to the Company.
changes in the financial position of the company to regulatory and internal compliance requirements.
and commitments from the previous financial
During the year under review, the Company had
year till the current year i. Updates on Amalgamation neither accepted nor held any deposits from the
The Company continues to remain the wholly owned
The Company is in the process of amalgamating public and shall not accept any deposits from the
subsidiary of Axis Bank Limited, there is therefore no Axis Private Equity Limited (a group company) with public without obtaining prior approval from the
change in the shareholding pattern of the Company itself and in this regard, the Company has filed Reserve Bank of India.
during the year under review. an application before the National Company Law
Tribunal, Mumbai with respect to the Scheme of 8. Extracts of the Annual Return:
e. Human Resource Amalgamation between Axis Private Equity Limited
In accordance with the provisions of Section 92
During the year, the Company has successfully (being the Transferor Company) with the Company of the Companies Act, 2013 and the Rules framed
inducted significant talent at senior and mid-level (being the Transferee Company). The said scheme thereunder, the extract of the Annual Return in Form
into the Company and was successful in retaining was approved by the Board of Directors of the MGT-9 is annexed herewith. (Annexure I)
and developing the existing human resources. Company vide resolution passed on July 13, 2017.
The Company has developed a robust learning & 9. Particulars of contracts or arrangements
development calendar in line with the training needs 6. Finance & Credit Ratings: with related parties and policy on related
identified for its employees. As on March 31, 2018 a. Finance: party transactions:
the Company had 84 employees on its payroll. Your
During the year under review, the Company
All the Related Party Transactions entered by the
Directors place on record the appreciation of effort raised funds from various public/private sector Company are on arm’s length basis and in the
and dedication of the employees in achieving good banks, mutual funds and financial institutions. The ordinary course of business. The disclosure in this
results during the year under review. Company continued to borrow funds inter alia by regard forming part of this report is provided in the
issue of Commercial Papers and Non-Convertible financial statement. All the Related Party Transactions
f. Subsidiaries / Joint Venture / Associate Debentures, term loan(s) from banks/financial as required under AS-18 are reported in the Notes to
Companies institutions etc. Details in this regard are stated and the financial statement.
The Company does not have any Subsidiary, Joint more particularly mentioned in the Audited Financial
Venture or Associate Companies in accordance Statements.
22CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
Relevant Form (AOC-2) for disclosure of particulars of evaluates the efficacy and adequacy of internal
Provide an overview of the principles of risk
contracts/arrangements entered into by the company control system in the Company, its compliance with management
with related parties referred to in sub-section (1) of operating systems, accounting procedures and
section 188 of the Companies Act, 2013 is given as policies at all locations of the Company. Based on Explain approach adopted by the Company for
Annexure II to this Report. the report of internal audit function, process owners risk management
undertake corrective action in their respective areas
During the year, the Company has not entered into and thereby strengthen the controls. Significant audit Define the organizational structure for effective
any contract/arrangement/transaction with related observations and corrective actions thereon are risk management
parties which may have a potential conflict with the presented to the Audit Committee of the Board.
interest of the Company at large.
Develop a “risk” culture that encourages all
During the year under review, such controls were employees to identify risks and associated
Prior omnibus approval of the Audit Committee tested by the Internal Audit Department of the opportunities and to respond to them with
is obtained for the transactions which are of a Company and no material weaknesses in the design effective actions.
foreseen and repetitive nature. The transactions or operations were observed. The Statutory Auditors
entered into pursuant to the omnibus approval so have reviewed the said test results and found them to Identify, access and manage existing and new
granted are audited and a statement giving details be effective. risks in a planned and coordinated manner
of all related party transactions is placed before the with minimum disruption and cost, to protect
Audit Committee for their review on a periodic basis. 12. C
onservation of energy, technology and preserve Company’s human, physical and
None of the Directors has any pecuniary relationship absorption, foreign exchange earnings financial assets.
or transactions with the Company. The policy on and outgo:
Related Party Transactions is placed on the website The particulars regarding foreign exchange earnings 14. T
he remuneration policy, disclosure of
of the Company viz. https://www.axisfinance.co.in/. and outgo appear as separate item in the notes to remuneration & particulars of employees:
the Financial Statements. Since the Company does
In terms of Section 178 of the Companies Act,
10. P
articulars of loans, guarantees and not carry any manufacturing activities, particulars to 2013, your Board have adopted a ‘Nomination and
investments: be disclosed with respect to conservation of energy Remuneration Policy’ inter-alia setting out the criteria
During the year under review, the Company had and technology absorption under section 134(3) (m) for deciding remuneration of Executive Directors,
not made any investments in terms of provisions of of the Companies Act, 2013 read with Companies Non-Executive Directors, Senior Management
Section 186(1) of the Act. The provisions of Section Accounts Rules, 2014 are not applicable. The Personnel and other Employees of the Company.
186 of the Act pertaining to granting of loans to any Company is however, constantly pursuing its goal The said Policy is available on the website of the
persons or body corporate and giving of guarantees of technological up-gradation in a cost effective Company viz. https://www.axisfinance.co.in/.
or providing security in connection with the loan manner for delivering quality customer service.
to any other body corporate or persons are not In terms of Section 197 of the Companies Act, 2013
applicable to the Company, since the Company is 13. Risk Management: read with Rule 5 of the Companies (Appointment and
a Non-Banking Financial Company, registered with Periodic assessments to identify the risk areas are Remuneration of Managerial Personnel) Rules, 2014,
Reserve Bank of India. carried out and management is briefed on the risks in the disclosures with respect to the remuneration of
advance to enable the company to control risk through Directors, Key Managerial Personnel and Employees of
11. Internal financial control systems: a properly defined plan. The risks are classified as the Company have been provided at Annexure III
The Company has an Internal Control System, financial risks, operational risks and market risks. to this Report.
commensurate with the size, scale and complexity The risks are taken into account while preparing the
of its operations. To maintain its objectivity and annual business plan for the year. The Board is also In terms of Section 197 of the Companies Act, 2013
independence, the Internal Audit function reports periodically informed of the business risks and the read with Rule 5(2) and Rule 5(3) of the Companies
to the Chairman of the Audit Committee of the actions taken to manage them. The Company has (Appointment and Remuneration of Managerial
Board. The Internal Audit Department monitors and formulated a policy for Risk management with the Personnel) Rules, 2014, the statement relating to
following objectives:
23Annual Report 2017 -18
AXIS FINANCE
particulars of employees of the Company is available 18. CORPORATE GOVERNANCE - Composition of the Board of the Company:
for inspection by the Members at the Registered
The Company recognizes its role as a corporate Name of the Director(s) Category
Office of the Company during business hours on citizen and endeavours to adopt the best practices Mr. Srinivasan Varadarajan Chairman (Non- Executive)
working days. A copy of this statement may be and the highest standards of Corporate Governance Mr. Bipin Kumar Saraf Managing Director & Chief
obtained by the Members by writing to the Company through its transparent practices and processes. The Executive Officer
Secretary of the Company. The Board hereby confirm Company is accountable to its customers, government, Mr. Jairam Sridharan Additional Director (Non-
that the remuneration paid to the Directors is as per regulatory authorities and other stakeholders of the Executive)
the Remuneration Policy of the Company. Company. The Company’s activities are carried out Mr. V.R. Kaundinya Independent Director (Non-
in accordance with good corporate governance Executive)
15. Corporate Social Responsibilty (CSR) practices and is constantly striving to improve them by Mrs. Madhu Dubhashi Independent Director (Non-
In accordance with the provisions of Section 135 adopting the best practices. The Company believes Executive)
of the Act and the CSR Policy, the Company has that good Corporate Governance practices enables Mr. K N Prithviraj Independent Director (Non-
contributed ` 3,60,39,735/- (Three Crores Sixty the Board and the Management to direct and control Executive)
Lakhs Thirty Nine Thousand Seven Hundred and the affairs of the Company in an efficient manner Mr. Cyril Anand Madireddi Director (Non- Executive)
Thirty Five Only) (being 2 percent of the average thereby helping the Company to achieve its goal and
net profit of the Company in the immediately three benefit the interest of all its stakeholders. - Meetings of the Board of Directors:
preceding financial years calculated as per Section The Board meets at least once in a quarter to consider
198 of the Act) towards CSR expenditure in various a) Board of Directors: among other businesses, quarterly performance of
projects stipulated under Schedule VII of the Act. The The Board of Directors, along with its Committees the Company and financial results. To enable the
details of the same is enclosed as Annexure IV to provide leadership and guidance to the Company’s Board to discharge its responsibilities effectively and
this Report as mandated under the said Rules. The Management and directs, supervises and controls take informed decisions, necessary information is
Policy adopted by the Company on Corporate Social the activities of the Company. The size of the Board made available to the Board including circulation of
Responsibility (CSR) is placed on the website of the of the Company commensurate with the its size and agenda and notes thereof as well as presentations
Company viz. https://www.axisfinance.co.in/. business operations. In addition to the governance on financials and other critical areas of operations
practices, the Board lays strong emphasis on of the company. The Board is also kept informed of
16. Whistle Blower / Vigil Mechanism: transparency, accountability and integrity. At present, major events/items and approvals are being taken
The Company as part of the ‘vigil mechanism’ has in the Board strength is 7 (seven) Directors comprising wherever necessary. The Managing Director & CEO,
place a ‘Whistle Blower Policy’ to deal with instances of 1 (one) Executive Director, 3 (three) Non-Executive at the Board Meetings keeps the Board apprised
of fraud and mismanagement, if any. The Whistle Directors, representing shareholders and 3 (three) of the overall performance of the Company at such
Blower Policy has been placed on the website of the Independent Non-Executive Directors. meetings. The Board also takes decisions by circular
Company viz. https://www.axisfinance.co.in/. This resolutions which are noted by the Board at the
vigil mechanism of the Company is overseen by the subsequent meeting.
Audit Committee and provides adequate safeguard
against victimization of employees and also provide
During the financial year 2017-18, the Company
direct access to the Chairperson of the Audit held 6 (six) meetings of the Board of Directors as
Committee in exceptional circumstances. During the per Section 173 of Companies Act, 2013. These
year under review, the Company has not received were held on April 11, 2017, July 13, 2017, October
any complaint. 13, 2017, December 18, 2017, January 16, 2018 &
March 07, 2018. The provisions of Companies Act,
17. Management Discussions and Analysis 2013 and the Listing Regulations were adhered to
The Management Discussion and Analysis is annexed while considering the time gap between any two
herewith as Annexure V to this Report. meetings.
24CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
Attendance of the directors during FY2018 is as under:
Attendance at Dates of Board meetings and attendance of the directors
the last AGM
Name of the Director Category of Director April 11, July 13, Oct 13, Dec 18, Jan 16, Mar 07,
held on July
13, 2017 2017 2017 2017 2017 2018 2018
Mr. Srinivasan Varadarajan Chairman (Non- Executive) YES YES YES YES NO YES YES
Mr. Bipin Kumar Saraf MD & CEO (Executive) YES YES YES YES YES YES YES
Mr. Jairam Sridharan (1) & (2) Additional Director (Non- Executive) NA NA NA No YES YES YES
Mr. V.R Kaundinya Independent Director (Non- Executive) YES YES YES YES NO YES YES
Mrs. Madhu Dubhashi Independent Director (Non- Executive) YES YES YES YES YES YES YES
Mr. K N Prithviraj Independent Director (Non- Executive) YES YES YES YES YES YES YES
Mr. Cyril Anand Madireddi Director (Non- Executive) YES YES NO YES YES YES YES
Notes-
(1) Appointed w.e.f. October 13, 2017
(2) Attended as Special Invitee
- Meeting of Independent Directors:
A separate meeting of Independent Directors of the Company was held on 7th March, 2018 without the presence of the Whole time Directors, the Non-Executive Non-
Independent Directors, or any other Management Personnel to evaluate the performance of the non-independent Directors, Board and that of the Chairman.
b) Committees
In accordance with the applicable provisions of the Act, the circular(s), notification(s) and directions issued by the Reserve Bank of India and the Company’s internal
corporate governance requirements, the Board has constituted various Committees with specific terms of reference to focus on specific issues and ensure expedient resolution
on diverse matters.
These include the Audit Committee, Nomination & Remuneration Committee, Committee of Directors, Corporate Social Responsibility Committee, Asset Liability Committee,
Risk Management Committee, Grievance Redressal Committee and IT Strategy Committee. The matters pertaining to financial results and auditors report are taken care of
by the Audit Committee and those pertaining to nomination / remuneration of Key Executives and Directors are within the realms of, Nomination & Remuneration Committee.
The term of reference of Committee of Directors is as per the Credit Policy duly approved by the Board. The Corporate Social Responsibility (CSR) Committee focuses on
compliance of CSR policy and framework by the Company and monitors the expenditure to be incurred by the Company. The Risk Management Committee manages the
integrated risk and further oversee the Risk Management function of the Company. The IT Strategy Committee looks after the IT related issues and decision making w.r.t. IT.
The Company Secretary acts as the Secretary for all the aforementioned Committees. The minutes of the meetings of all Committees along with summary of key decision/
discussion taken at each Committee, is placed before the Board for discussion / noting /approval.
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