Statement Of Audited Financial Results For The Quarter And Year Ended March 31, 2019

Statement Of Audited Financial Results For The Quarter And Year Ended March 31, 2019 Prepared In Compliance With The Indian Accounting Standards (Ind-As) - Housing Finance Company India, Rural Housing Finance Company - India

( in crore except per equity share data)

Particulars
	Quarter ended Mar 31, 2019	Quarter ended Dec 31, 2018	Quarter ended Mar 31, 2018	Year ended Mar 31, 2019	Year ended Mar 31, 2018
	Reviewed			Audited
Revenue from Operations :
a) Interest Income	543.77	525.04	430.23	1,972.17	1,642.59
b) Fees Income	13.95	13.41	13.91	54.02	50.86
c) Others	0.05	0.35	0.01	0.46	0.29
Total Revenue from Operations	557.77	538.80	444.15	2,026.65	1,693.74
Expenses :
a) Finance Cost	374.09	373.09	252.95	1,301.20	984.80
b) Impairment on Financial Instruments	(26.13)	_	(22.92)	(16.63)	32.49
c) Employee Benefit Expenses	12.79	16.13	11.08	64.76	57.57
d) Depreciation and Amortisation	0.82	0.88	0.90	3.40	3.09
e) Establishment Expenses	3.10	3.29	2.51	13.06	11.44
f) Other Expenses	14.74	10.40	11.72	45.82	37.20
Total Expenses	379.41	403.79	256.24	1,411.61	1,126.59
Profit Before Tax	178.36	135.01	187.91	615.04	567.15
Tax Expense
– Current Tax	37.97	38.13	44.73	159.79	166.11
– Deferred Tax	10.74	(0.07)	15.08	8.05	(1.71)
Total Tax Expense	48.71	38.06	59.81	167.84	164.40
Profit for the period	129.65	96.95	128.10	447.20	402.75
Other Comprehensive Income
(A) Items that will not be reclassified to profit or loss
(i) Re-measurements of defined benefit plans	(0.33)	(0.23)	0.51	(0.82)	(0.30)
(ii) Income tax relating to items that will not be reclassified to profit or loss	0.12	0.08	(0.17)	0.29	0.11
Other Comprehensive Income	(0.21)	(0.15)	0.34	(0.53)	(0.19)
Total Comprehensive Income for the period	129.44	96.80	128.44	446.67	402.56
Earnings per Share (of 2 each)# – Basic ()	1.77	1.32	1.75	6.10	5.51
– Diluted ()	1.76	1.32	1.73	6.09	5.49
Paid-up Debt Capital	35.00	35.00	35.00	35.00	35.00
Paid-up Equity Share Capital (Face Value of 2 each)	146.74	146.55	73.14	146.74	73.14
Reserves excluding Revaluation Reserves as at March 31				1,744.70	1,482.10

# EPS is not annualized for the quarter ended March 31, 2019, December 31, 2018 and March 31, 2018. Earnings per Share for corresponding period in previous year have been adjusted to give impact of bonus shares issued during June’2018

NOTES :

The Company has adopted Indian Accounting Standards (Ind AS) from April 1, 2018 and the effective date of such transition is April 1, 2017. The comparative figures of corresponding period have been restated to make them comparable. The financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules there after.
Loan Assets have increased from 15,588 crore as on March 31, 2018 to 17,408 crore as on March 31, 2019 registering a growth of 12%.
The Company’s main business is to provide loans for purchase or construction of residential houses. All other activities of the Company revolve around the main business. As such, there are no separate reportable segments, as per the Ind AS 108 “Operating Segments” specified under section 133 of the Companies Act, 2013.
As required by paragraph 32 of Ind AS 101, net profit reconciliation between the figures reported, net of tax, under erstwhile Indian GAAP and Ind AS is given below:

( in crore)

Particulars	Quarter ended Mar 31, 2018	Year ended Mar 31, 2018
Net Profit reported as per previous Indian GAAP	130.51	362.68
Add / (Less) : Adjustments for GAAP Differences
Increase in Employee Benefit Expenses due to Fair Valuation of Employee Stock options	(0.35)	(3.36)
Increase in Interest Income pursuant to application of Effective Interest Rate (EIR) Method	(1.13)	11.56
Increase in Borrowing cost pursuant to application of Effective Interest Rate (EIR) Method	(1.58)	(3.43)
Reclassification of net Actuarial loss on Employee defined Benefit obligation to Other Comprehensive Income (OCI)	(0.34)	0.19
Provision for Expected Credit Loss	(14.84)	–
Deferred Tax	15.83	35.11
Net Profit Before Other Comprehensive Income as per Ind AS	128.10	402.75
Other Comprehensive Income after Tax	0.34	(0.19)
Total Comprehensive Income as per Ind AS	128.44	402.56

Reconciliation of equity attributable to shareholders of the Company as on March 31, 2018

( in crore)

Equity under previous Indian GAAP	1,380.92
Impact on Loans and advances using effective rate of interest	(32.13)
Increase in employee benefit expenses due to fair valuation of employee stock option	(12.75)
Impact on borrowing using effective rate of interest	1.33
Effect of measuring Investment at fair value	(0.21)
Reclassification of net actuarial loss on employee defined benefit obligation to other comprehensive income	0.53
Tax on Ind AS adjustments	205.33
Reclassification of ESOP Reserves	12.75
Net Equity Reserve before Other Comprehensive Income as per Ind AS	1,555.77
Other Comprehensive Income after tax	(0.53)
Equity under Ind AS	1,555.24

During the year, the Company has allotted 22,47,490 ( previous year 11,55,527) Equity Shares pursuant to exercise of stock options by employees.
The Board of Directors of the Company, at its meeting held on January 7, 2019, approved a Scheme of Amalgamation, for the merger of GRUH Finance Limited with Bandhan Bank Limited with effect from proposed Appointed Date of January 1, 2019. In this regards, Competition Commission of India, BSE and NSE have approved proposed scheme of merger. The scheme remains subject to receipt of approvals of National Company Law Tribunal, Shareholders and creditors of the Company.
The financial results have been prepared based on the notified Schedule III for Non-Banking Financial Companies issued by the Ministry of Corporate Affairs on October 11, 2018.
Audited Statement of Assets and Liabilities prepared in compliance with the Indian Accounting Standards (Ind-AS) is as under :

( in crore)

Particulars	As At
Particulars	March 31, 2019	March 31, 2018
Assets
1 Financial Assets
a) Cash and Cash Equivalents
– Bank and Cash Balances	151.76	17.47
– Bank Deposits	901.08	0.00
b) Bank Balances other than above	85.28	59.38
c) Loans (net of impairment loss allowance)	17,288.28	15,451.57
d) Investments	148.27	157.94
e) Other Financial Assets	5.69	4.80

2 Non-Financial Assets
a) Current Tax Assets (Net)	28.14	30.40
b) Deferred Tax Assets (Net)	37.61	45.65
c) Property, Plant and Equipments	12.81	14.12
d) Intangible Assets	2.33	1.30
e) Other Non-Financial Assets	4.72	2.53

Total Assets	18,665.97	15,785.16
Liabilities and Equity
Liabilities
1 Financial Liabilities
a) Payables
i) Trade Payables
– total outstanding dues of Micro Enterprises and Small Enterprises	0.00	0.00
– total outstanding dues of creditors other than Micro Enterprises and Small Enterprises	2.83	2.87
ii) Other Payables
– total outstanding dues of Micro Enterprises and Small Enterprises	0.00	0.00
– total outstanding dues of creditors other than Micro Enterprises and Small Enterprises	0.00	0.00
b) Debt Securities	4,496.85	4,809.02
c) Borrowings (Other than Debt Securities)	10,481.20	7,685.69
d) Public Deposits	1,494.25	1,439.40
e) Subordinated Liabilities	34.85	34.82
f) Other Financial Liabilities	214.81	215.68

2 Non-Financial Liabilities
a) Provisions	7.80	6.53
b) Other Non-Financial Liabilities	41.94	35.91

3 Equity
a) Equity Share Capital	146.74	73.14
b) Other Equity	1,744.70	1,482.10

Total Liabilities and Equity	18,665.97	15,785.16

The Board of Directors have recommended a dividend of 2 per share on face value of 2 each for the financial year ended March 31, 2019. Considering that the Company declared a 1:1 bonus during the year, the effective dividend for the year is 4 per share (pre-bonus) as compared to 3.30 per share in the previous year.
The Statement includes the results for the quarter ended March 31, 2019 being the balancing figure between the audited figures in respect of the full financial year and the published year to date figures up to the nine months ended December 2018, which were subject to limited review by us.

The above results for the quarter and year ended March 31, 2019, which have been subjected to Audit by the Auditors of the Company, were reviewed and recommended by the Audit Committee of Directors and subsequently approved by the Board of Directors at its meeting held on April 30, 2019 in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors have expressed an unqualified audit opinion.