Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) December 31, 2020 Balance Sheet as at December 31, 2020 (Currency : Rs in lakhs) IND AS IND AS As at As at Note December 31, 2020 March 31, 2020 ASSETS 1 Non-current assets (a) Property, plant and equipment 3 2,557 3,372 (b) Right of use asset 3 4,271 5,071 (c) Intangible assets 3 10,27,695 10,25,760 (d) Intangible assets under development 3 1,553 2,802 (e) Financial assets: (i) Investments 4 8,19,393 6,58,625 (ii) Loans 5 19,62,071 23,76,445 (f) Other non-current assets 8 76,943 53,118 Total non-current assets 38,94,483 41,25,193 2 Current assets (a) Financial assets: (i) Investments 4 1,75,067 1,47,711 (ii) Cash and cash equivalents 9 1,71,294 3,86,460 (iii) Bank balances other than (ii) above 10 69,872 39,510 (iv) Loans 5 5,59,764 3,45,671 (v) Other financial assets 6 84,850 2,340 (b) Other current assets 8 36,683 31,885 Total current assets 10,97,531 9,53,577 Total Assets 49,92,013 50,78,770 EQUITY AND LIABILITIES Equity (a) Equity share capital 11 19,28,372 19,28,372 (b) Other equity 12 2,22,678 1,16,783 Total equity 21,51,050 20,45,154 Liabilities 1 Non-current liabilities (a) Financial liabilities: (i) Borrowings 13 20,96,354 16,74,502 (ii) Other financial liabilities 14 3,709 4,262 - - (b) Provisions 15 - 1,076 (c) Deferred tax liabilities 7 88,793 52,336 Total non-current liabilities 21,88,855 17,32,176 2 Current liabilities (a) Financial liabilities: (i) Borrowings 13 51,644 3,64,395 (ii) Trade payables 16 6,568 14,769 (iii) Other financial liabilities 14 5,82,174 9,03,538 (b) Other current liabilities 17 525 948 (c) Provisions 15 11,119 17,711 (d) Current tax liabilities 18 78 78 Total current liabilities 6,52,108 13,01,439 Total Equity and Liabilities 49,92,013 50,78,770 # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) December 31, 2020 for the period ended Statement of Profit and Loss for the period ended December 31, 2020 (Currency : Rs in lakhs) IND AS IND AS Note For the period ended For the year ended December 31, 2020 March 31, 2020 Revenue from operations 19 3,88,831 5,46,842 Other Income 20 3,288 10,316 Total Income 3,92,119 5,57,158 Expenses Employee benefits expense 21 9,507 20,892 Finance costs 22 2,25,623 3,32,849 Depreciation and amortisation expense 3 2,148 3,270 Other expenses 23 11,731 1,39,960 Total Expenses 2,49,009 4,96,972 Profit before tax 1,43,110 60,187 Less: Tax Expenses Current tax - - Prior year tax - 954 Tax effect- on account of new tax regime being opted - 37,286 Deferred tax 7 36,647 18,899 25.61% 36,647 57,139 Profit for the year 1,06,463 3,048 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurement of the defined benefit liability/(asset) 78 (5) Income tax relating to items that will not be reclassified to profit or loss (20) 1 Items that will be reclassified to profit or loss Remeasurement gain/(loss) on hedge accounting (836) (1,937) Income tax relating to items that may be reclassified to profit or loss 210 488 Net other comprehensive income (568) (1,453) Total comprehensive income for the year 1,05,895 1,594 Earnings per equity share (Basic and Diluted) (Rs.) 25 0.58 0.02 # Internal Use--Confidential Piramal Capital & Housing Finance Limited 441.01 (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) 1.74 14.29 2.14 3 Property, plant and equipment, Intangible Assets and Intangibles under development Opening Additions Deduction/ write offs As at Opening Charge Deduction/ write offs As at As at As at during the December 31, 2020 As at for the December 31, 2020 December 31, 2020 April 1, 2020 year (A) April 1, 2020 year (B) (A-B) Tangible Assets Land & Building 30 30 - - - 30 Office Equipment 679 1 680 225 102 - 327 353 Computer 711 4 714 399 141 - 540 174 Computer Server 371 371 112 49 - 161 210 Furniture 303 303 69 23 - 92 211 Motor Car 239 239 43 23 - 66 173 Leasehold Improvements 2,929 100 2,828 1,043 408 27 1,424 1,405 - - - - - Right to Use Assets 6,836 719 662 6,893 1,765 1,271 414 2,622 4,271 Total (I) 12,099 724 762 12,059 3,656 2,016 441 5,231 6,829 Intangible Asset Goodwill on amalgamation 10,25,681 - 10,25,681 - - - 10,25,681 Computer software 101 2,065 - 2,167 22 132 - 154 2,013 Total (II) 10,25,782 2,065 - 10,27,847 22 132 - 154 10,27,693 Intangibles under development (III) 2,803 814 2,064 1,553 - - - - 1,553 - Grand Total (I+II+III) 10,40,683 3,603 2,826 10,41,459 3,678 2,148 441 5,385 10,36,074 Opening Additions Deduction/ write offs As at Opening Charge Deduction/ write offs As at As at As at during the March 31, 2020 As at for the March 31, 2020 March 31, 2020 April 1, 2019 year (A) April 1, 2019 year (B) (A-B) Tangible Assets Land & Building 30 30 - - - 30 Office Equipment 512 168 - 679 98 127 - 225 455 Computer 571 157 16 711 171 237 9 399 312 Computer Server 298 73 - 371 52 60 - 112 259 Furniture 297 6 - 303 39 30 - 69 234 Motor Car 239 - 239 19 24 43 196 Leasehold Improvements 2,007 921 - 2,929 381 663 - 1,043 1,886 - - - Right to Use Assets - 8,562 1,726 6,836 - 2,115 349 1,765 5,071 Total (I) 3,956 9,887 1,742 12,099 760 3,255 358 3,656 8,443 Intangible Asset Goodwill on amalgamation 10,25,681 - 10,25,681 - - - - 10,25,681 Computer software 75 27 - 101 6 16 - 22 79 Total (II) 10,25,755 27 - 10,25,782 6 16 - 22 10,25,760 Intangibles under development (III) 2,330 873 400 2,803 - - - - 2,803 - Grand Total (I+II+III) 10,32,041 10,786 2,142 10,40,683 766 3,271 358 3,678 10,37,006 Particulars Cost Accumulated Depreciation / Amortisation Net Carrying Amount Particulars Cost Accumulated Depreciation / Amortisation Net Carrying Amount # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) 4 Investments Non-current Investments As at As at December 31, 2020 March 31, 2020 Measured at Amortised Cost Quoted Investments (at fully paid) Redeemable Non Convertible Debentures 59,889 53,481 Total 59,889 53,481 Measured at Amortised Cost Unquoted Investments (at fully paid) Redeemable Non Convertible Debentures 4,62,639 4,51,497 Total 4,62,639 4,51,497 Less: Allowance for doubtful debts (expected credit loss allowance) (49,268) (43,936) Total 4,73,260 4,61,042 Instruments at Fair Value through Profit & Loss Project Receivables 1,74,294 1,65,830 Investment in AIF 1,43,311 Redeemable Non Convertible Debentures 28,528 31,753 Total 3,46,133 1,97,583 Total 8,19,393 6,58,625 Current Investments Measured at Amortised Cost Unquoted Investments (at fully paid) Redeemable Non Convertible Debentures 78,562 1,54,602 Total 78,562 1,54,602 Less: Allowance for doubtful debts (expected credit loss allowance) (3,497) (6,891) Total 75,065 1,47,711 Instruments at Fair Value through Profit & Loss Investment in Mutual Funds 1,00,002 Total 1,75,067 1,47,711 # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) As at As at December 31, 2020 March 31, 2020 5 Loans Non-Current Loans Term loan to borrowers - at amortised cost - Secured, considered good 16,37,102 21,42,172 Less: Allowance for doubtful debts (expected credit loss allowance) (45,664) (60,666) Term loan to borrowers - at FVTPL - Secured, considered good 98,810 47,823 Total 16,90,248 21,29,329 Term loan to borrowers - at amortised cost to related party - Unsecured, considered good 1,40,562 1,39,500 Total 1,40,562 1,39,500 Term loan to borrowers - at amortised cost - Significant increase in Credit Risk 74,415 45,899 Less: Allowance for doubtful debts (expected credit loss allowance) (18,593) (11,692) Total 55,823 34,207 Term loan to borrowers - at amortised cost - Credit impaired 59,082 50,878 Less: Allowance for doubtful debts (expected credit loss allowance) (30,886) (18,578) Total 28,196 32,300 Loan to employee 411 2,245 Security deposits 46,832 38,864 Total 19,62,072 23,76,445 Current Loans Loans to others Term loan to borrowers- at amortised cost - Secured, considered good 5,42,204 3,03,745 Less: Allowance for doubtful debts (expected credit loss allowance) (18,551) (27,993) Term loan to borrowers - at FVTPL - Secured, considered good 1,812 11,602 Total 5,25,465 2,87,354 Term loan to borrowers- at amortised cost - Unsecured, considered good 19,679 52,834 Less: Allowance for doubtful debts (expected credit loss allowance) (913) (2,524) Total 18,766 50,310 Term loan to borrowers- at amortised cost - Significant increase in Credit Risk 17,239 11,768 Less: Allowance for doubtful debts (expected credit loss allowance) (2,025) (3,761) Total 15,214 8,007 Security deposits 319 - Total 5,59,764 3,45,671 6 Other financial assets Current other financial asset Interest receivable 507 542 Other receivable 6,388 - Forward Contract Receivable (refer note 36) - 1,785 To related parties Unsecured, considered good Piramal Securities Limited 7 - Piramal Enterprises Limited 77,257 - PHL Fininvest Private Limited 690 13 Total 84,850 2,340 Note: During the current and prior reporting periods, there was no change in the business model under which the Company holds financial assets and therefore no reclassifications were made. # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) As at As at December 31, 2020 March 31, 2020 7 Deferred tax Deferred tax liabilities (net) (88,793) (52,336) (88,793) (52,336) # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) December 31, 2020 Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) As at As at December 31, 2020 March 31, 2020 8 Other assets Advance Tax (net of Provision) Other non-current assets Capital advance 1 - Advance Tax (net of Provision of Rs.145,945/-, 31 March 2019 Rs. 94,531/-) 76,932 52,561 Advance processing fees paid 2 523 Prepaid expenses 8 34 Total 76,943 53,118 Other current assets Cenvat credit receivable 11,016 7,449 Prepaid expenses 1,972 299 Advance for expenses 6,986 3,297 Advance processing fees paid 16,710 20,840 Total 36,683 31,885 9 Cash and cash equivalents Cash in hand 0 1 Balances with banks on current accounts 1,51,294 1,24,582 Cheques, drafts on hand - 1,56,877 Fixed deposits (with maturity less than 3 months) 20,000 1,05,000 Total 1,71,294 3,86,460 10 Bank balances other than (ii) above Earmarked balances with banks* 69,872 39,510 Total 69,872 39,510 # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) As at As at December 31, 2020 March 31, 2020 11 Equity Share Capital Authorized share capital: Opening balance: 25,000,000,000 (31 March 2018: 300,000,000) equity shares of INR 10 each 25,00,000 25,00,000 Additions during the year - - Total 25,00,000 25,00,000 Issued, subscribed and paid up capital: Opening balance 19,28,372 18,04,452 Add: issued during the year - 1,23,920 Total 19,28,372 19,28,372 Particulars of shareholder holding more than 5% shares of a class of shares Name of the shareholder December 31, 2020 March 31, 2020 Piramal Enterprises Limited (100% holding company) 19,28,372 19,28,372 Rights, preferences and restrictions attached to shares Equity shares Note- The Company has increased its Authorised Share Capital to Rs. 19,99,800 lakhs w.e.f. May 02, 2018. Thus, w.e.f. the Effective Date, i.e. May 23, 2018, the Authorised Share Capital of the Company shall be Rs 2,500,000 lakhs. The Company has one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled for one vote per share. There are no restriction on payment of dividend to equity shareholders. Upon winding up of the company, the holders of equity share will be entitled to receive balance assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. (i) There is capital infusion by the holding company of Rs. 50,000 lakhs and Rs.90,000 lakhs on 29 July 2019 and 31 March 2020 respectively. The Company has issued 454,545,454 number of equity share of Rs.10 each at a premium of Rs.1 per share, issue price being Rs.11 per share on 29 July 2019. Further, the Company has issued 784,655,623 number of equity share of Rs.10 each at a premium of Rs.1.47 per share, issue price being Rs.11.47 per share on 31 March 2020 for consideration other than cash. (ii) 18,04,452 equity share of INR 10 each issued as fully paid for consideration other than cash on account of amalgamation. (refer note 39) # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) As at As at December 31, 2020 March 31, 2020 12 Other equity Statutory reserve fund (refer note 12.1) 29,461 29,461 Security Premium Reserve (refer note 12.2) 16,080 16,080 Equity share capital suspense (refer note 12.3) - - Capital Reserve (refer note 12.4) 3 3 Cash flow hedging reserve (refer note 12.5) (2,075) (1,449) Retained earnings (refer note 12.6) 1,79,209 72,688 Total 2,22,678 1,16,783 12.1 Statutory reserve fund Opening Balance 29,461 28,852 Addition during the year 0 609 Closing Balance 29,461 29,461 As at As at December 31, 2020 March 31, 2020 12.2 Security Premium Reserve Opening Balance 16,080 - Addition during the year - 16,080 Closing Balance 16,080 16,080 Reserve Fund is required to be maintained u/s 29C of the NHB Act, 1987 for Housing Finance Companies. During the year ended 31 March 2020, the Company has transferred an amount of Rs. 609 lakhs (31 March 2019 Rs. 28,852 lakhs), being 20% of profit after tax. # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) As at As at December 31, 2020 March 31, 2020 12.4 Capital reserve Opening balance (refer note 30) 3 3 Addition during the year - - Closing Balance 3 3 12.5 Cash flow hedging reserve Opening Balance (1,449) - Addition during the year (refer note 36) (626) (1,449) Closing Balance (2,075) (1,449) 12.6 Retained earnings Opening INDAS-Retained earnings Opening Balance 72,688 1,19,779 Add: Reversal of Lease equalisation balance 0 143 Net profit for the year 1,06,463 3,048 Other comprehensive income arising from remeasurement of defined benefit obligation net of income tax 58 (4) Less: Dividend paid (including DDT) - (49,668) Less: Transfer to statutory reserve fund - (609) Closing Balance 1,79,209 72,688 Retained earnings are the profits that the Company has earned till date, less any transfers to statutory reserve and dividends paid to investors. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in entirely. The Company uses hedging instruments as part of its management of foreign currency risk and interest rate risk associated with variable interest rate borrowings as described within note 14. For hedging foreign currency risk, the Company uses foreign currency forward contracts, which are designated as cash flow hedges. For hedging interest rate risk, the Company uses interest rate swaps which is also designated as cash flow hedges. To the extent these hedges are effective; the changes in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amount recognised in the cash flow hedging reserve is reclassified to profit or loss when the hedged item affects profit or loss (e.g. interest payments). # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) As at As at December 31, 2020 March 31, 2020 13 Borrowings Non-current borrowings Measured at amortised cost Term Loans (secured) -From banks Rupee Loans 15,17,354 15,41,212 Less: Current maturities of long term debt (included in note 14) (4,58,376) (6,35,167) 10,58,979 9,06,045 Foreign Currency Loans 54,390 56,794 -From others 1,38,154 2,04,525 Intercorporate deposit from related party (Unsecured) 2,66,600 1,59,654 Intercorporate deposit from related party (Secured) - - Redeemable Non Convertible Debentures (secured) 6,43,003 5,59,476 Less: Current maturities of long term debt (included in note 14) (1,17,817) (2,61,391) 9,84,330 7,19,058 Redeemable Non Convertible Debentures (unsecured) 53,046 49,399 53,046 49,399 Total non-current borrowings 20,96,354 16,74,502 Current borrowings Working capital demand loan/short term borrowing (secured) Measured at amortised cost Rupee Loans -From banks 50,160 2,44,395 -From others - 1,20,000 Others Measured at amortised cost Commercial Paper (unsecured) 1,483 - Total current borrowings 51,644 3,64,395 # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) as at December 31, 2020 (Currency : Rs in lakhs) 14 Other financial liabilities As at As at December 31, 2020 March 31, 2020 Non-current other financial liabilities Lease Liability 3,709 4,262 Total other non-current financial liabilities 3,709 4,262 Current other financial liabilities Current maturities of long term debt (refer note 13) 5,76,193 8,96,558 Advance received 287 2 Payable to employees 4,107 5,801 Lease Liability 1,228 1,176 Derivative designated as hedges Forward Contract Payable (refer note 36) 359 - Total other current financial liabilities 5,82,174 9,03,538 15 Provisions Provision for Employee Benefits Gratuity (refer Note 32) 94 1,158 Compensated absence 903 801 Allowance for impairment on commitments (refer note 28(b) and 35.3(b)) 10,122 16,828 Total provisions 11,119 18,787 Current 11,119 17,711 Non-current - 1,076 Total 11,119 18,787 16 Trade payables Trade payables 6,357 10,940 Trade payables to related parties (refer note 31) 211 3,829 Total 6,568 14,769 17 Other current liabilities Statutory dues payable 525 948 Total 525 948 18 Current tax liabilities Provision for tax (net of advance tax) Net provision for tax (net of advance tax of Rs. 3,484/-, 31 March 2019 Rs.3,484/-) 78 78 Total 78 78 # Internal Use--Confidential Piramal Capital & Housing Finance Limited (formerly known as Piramal Housing Finance Limited) Notes to the Financial Statements (Continued) for the period ended December 31, 2020 (Currency : Rs in lakhs) For the period ended For the year ended December 31, 2020 March 31, 2020 19 Revenue from operations Interest income measured at amortised cost: - on investments 71,119 1,15,080 - on loans and advances 2,88,529 4,15,225 Income on investments measured at FVTPL 28,976 14,411 Other financial services: - processing / arranger fees 207 2,126 3,88,832 5,46,842 20 Other income Short term capital gain on mutual fund 280 1,153 Other non-operating income 3,008 9,163 3,288 10,316 21 Employee benefits expense Salaries and wages 8,560 19,197 Contribution to provident and other fund 436 716 Provision for leave encashment 206 197 Staff welfare expenses 70 485 Provision for gratuity 235 297 9,507 20,892 22 Finance costs Interest expense measured at amortised cost 2,17,581 3,15,006 Other borrowing cost 8,042 17,843 2,25,623 3,32,849 23 Other expenses Corporate social responsibility expenses (refer note 39) 1,455 4,600 Contribution to electoral trust - 1,000 Rent (refer note 26) 334 441 Travelling and conveyance 20 793 Legal and professional fees 6,422 8,100 Royalty 3,245 2,285 Electricity expense 117 276 Repairs and maintenance 524 1,180 Business promotion and advertisement expenses 1,592 1,261 Postage and communication 108 229 Printing and stationery 29 99 Other expenses 2,278 1,818 Payments to auditors - as auditor 38 57 - for Certificates services 53 47 - for reimbursement of expenses 2 7 Impairment of financial assets: Loss on derecognition of financial assets 8,868 198 Allowance for expected credit loss on loans and loan commitments (13,352) 1,17,569 11,731 1,39,960 # Internal Use--Confidential