Cholamandalam Financial : Business Responsibility and Sustainability Report 2022-2023

Annual Report 2022-23

Corporate Overview  Management ReportsFinancial Statements

ANNEXURE VI

Business Responsibility And Sustainability Report

SECTION A: GENERAL DISCLOSURES

1. Details of the listed entity

1.		Corporate Identity Number (CIN) of the Listed Entity	L65100TN1949PLC002905
2.		Name of the Listed Entity	Cholamandalam Financial Holdings Limited
3.		Year of incorporation	September 9, 1949
4.		Registered office address	'Dare House', No. 234, NSC Bose Road, Chennai - 600 001
5.		Corporate address	'Dare House', No. 234, NSC Bose Road, Chennai - 600 001
6.		E-mail	[e-mail]
7.		Telephone	044-42177770-5
8.		Website	www.cholafhl.com
9.		Financial year for which reporting is being done	April 1, 2022 to March 31, 2023
10.		Name of the Stock Exchange(s) where shares are	National Stock Exchange of India Limited and
		listed	BSE Limited
11.		Paid-up Capital	`18.78 Crore

12. Name and contact details (telephone, email address) Mr. Sridharan Rangarajan, Director of the person who may be contacted in case of any Phone : 044 - 2530 6204

queries on the BRSR report

E-mail : [e-mail]

13. Reporting boundary - Are the disclosures under This report is prepared on a consolidated basis including

this report made on a standalone basis (i.e. only for	the Company's subsidiaries viz., Cholamandalam
the entity) or on a consolidated basis (i.e. for the	Investment and Finance Company Limited ('CIFCL')
entity and all the entities which form a part of its	and Cholamandalam MS General Insurance Company
consolidated financial statements, taken together)	Limited ('CMSGICL') (Together the entities are referred to
	as 'group' in this Report)
II. Products/services

14. Details of business activities (accounting for 90% of the turnover):

SN.	Description of Main Activity	Description of Business Activity	% of Turnover
of the group
1.	Financial Services	Lending Business	70.20%
2.	General Insurance Business	29.06%

15. Products/Services sold by the entity (accounting for 90% of the entity's Turnover):

			% of total
SN.	Product/Service	NIC Code	Turnover
			contributed

1. Lending [Vehicle Finance, Loan Against Property, Home Loans,

	Secured Business and Personal Loans (SBPL), Consumer and Small	K649	70.20%
	Enterprise Loans (CSEL), Small and Medium Enterprise Loans (SME)]
2.	General Insurance	6512	29.06%

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Cholamandalam Financial Holdings LimitedAnnual Report 2022-23

III. Operations
16. Number of locations where plants and/or operations/offices	of the entity are situated as on March 31, 2023:
	Location	Number of plants		Number of offices	Total
	National	NA*		1343	1343
	International		Nil	Nil

• The entity is not engaged in manufacturing activities

17. Markets served by the entity:

1. Number of locations

Location	Number
National
Lending:	29 States, 5 Union Territories
General Insurance:	22 States, 4 Union Territories
International	Nil

1. What is the contribution of exports as a percentage of the total turnover of the entity? Nil
2. A brief on types of customers
   Lending Business: The company focuses on retail customers including first time borrowers (FTB) and new to credit customers (NTCC) ensuring financial inclusion. Following are the types of customers based on products:
3. 1. Vehicle Financing: Transport entrepreneurs, FTB and NTCC predominantly in geographies with limited presence of banks and organized financiers.
   2. Loan against Property: Focus on lending to small businesses against the collateral of self-occupied residential property.
   3. Affordable Housing: Underserved customers in tier III, IV, V, VI cities to enable them to achieve their dream of owning a home, customers from unorganised segments and women borrowers.
   4. SBPL: Underserved self-employednon-professional customers (eg: grocery shop, dairy owners, unskilled labourers, low salaried/cash salaried workers).
   5. SME Loans: Micro, Small and Medium Enterprises (MSME) and Inventory Funding products to support SME customers.
   6. CSEL: Unsecured lending to retail customers including NTCC through partnership business to support lower income segment people.

General Insurance Business:

Provides wide range of products and services to both commercial and retail customers. The customer base includes corporates, small, micro, medium enterprises and individuals. The vehicle insurance business provides insurance coverage for two wheelers, four wheelers, commercial vehicles and tractors. The property and casualty insurance business comprises the marine, fire, engineering, commercial, SME and bancassurance services. The business also provides health, accident and travel insurance.

IV. Employees

18. Details as at March 31, 2023:

1. Employees and workers (including differently abled):

SN.	Particulars	Total (A)		Male		Female
	No. (B)		% (B/A)	No. (C)	% (C/A)
			EMPLOYEES
1.	Permanent (D)	14417		13888		96%	529	4%
2.	Other than Permanent (E)	11		8		73%	3	27%
3.	Total employees (D + E)	14428		13896		96%	532	4%

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Annual Report 2022-23

Corporate Overview  Management ReportsFinancial Statements

1. Differently Abled Employees:

SN.	Particulars	Total (A)		Male		Female
No. (B)		% (B/A)	No. (C)		% (C/A)

DIFFERENTLY ABLED EMPLOYEES

1.	Permanent (D)	50	50	100%	-
2.	Other than permanent (E)	-	-	-	-
3.	Differently Abled employees	50	50	100%	-
	(D + E)

-

-

-

19. Participation/Inclusion/Representation of women - as on March 31, 2023:

Particulars	Total (A)	No. and percentage of Females
No. (B)	% (B/A)
Board of Directors	6	1	16.6%
Key Management Personnel	2	1	50%

20. Turnover rate for permanent employees and workers:

Particulars		FY 23			FY 22			FY 21
Male	Female	Total	Male	Female	Total	Male	Female	Total
Permanent Employees	19%	19%	19%	16%	22%	16%	13%	12%	13%

1. Holding, Subsidiary and Associate Companies (including joint ventures)
   21. Name of holding/subsidiary/associate companies/joint ventures:

				Indicate whether		Does the entity indicated
	Name of the holding/subsidiary/	holding/	% of shares	at column A, participate in
SN.	associate companies/	Subsidiary/	held by	the Business Responsibility
	joint ventures (A)		Associate/	listed entity	initiatives of the listed
				Joint Venture		entity? (Yes/No)
1.	Cholamandalam	Investment and	Subsidiary*	45.36%	Yes
	Finance Company Limited
2.	Cholamandalam	MS	General	Subsidiary	60.00%	Yes
	Insurance Company Limited
3.	Cholamandalam	MS Risk	Services	Joint Venture	49.99%	No
	Limited

* Under Ind-AS.

VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013? (Yes/No)

Yes. The Company on a standalone basis does not have CSR obligation for the reporting financial year. Details on a consolidated basis are furnished below:

1. Turnover (in `): 18,376.03 Crore
2. Net worth (in `): 16,258.02 Crore

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Cholamandalam Financial Holdings Limited

Annual Report 2022-23

VII. Transparency and Disclosures Compliances

23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct (NGRBC):

					FY 23			FY 22
Stakeholder		Grievance Redressal Mechanism in		Number of			Number of
	Number of	complaints		Number of	complaints
group from whom		Place (Yes/No)
	complaints	pending		complaints	pending
complaint is		(If Yes, then provide web-link for	Remarks	Remarks
received		grievance redress policy)*	filed during	resolution		filed during	resolution
	the year	at close of		the year	at close of
					the year			the year
Communities		http://www.cholafhl.com/docs/CFHL-Business-Resposibility-Policy.pdf		-	-	-	-	-	-
Investors (other		http://www.cholafhl.com/docs/CFHL-Whistle-Blower-Policies.pdf	-	-	-	-	-	-
than shareholders)
Shareholders		http://www.cholafhl.com/docs/CFHL-Business-Resposibility-Policy.pdf		10	-	-	2	-	-
Employees		http://www.cholafhl.com/docs/CFHL-Whistle-Blower-Policies.pdf	2	-	-	1	-	-
Customers*	2108	-	-	2191	-	-
Value Chain				1	-	-	-	-	-
Partners	http://www.cholafhl.com/docs/CFHL-Business-Resposibility-Policy.pdf
Others - Society				-	-	-	2	-	-

*Group entities have grievance redressal mechanism in place which are available in their respective websites https://www.cholamandalam.com/and https://www.cholainsurance.com/.

24. Overview of the entity's material responsible business conduct issues:

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format:

											Financial
		Indicate									implications
	Material issue	whether	Rationale for identifying	In case of risk, approach to	of the risk or
SN.	risk or	opportunity
identified	the risk/opportunity		adapt or mitigate
	opportunity			(Indicate positive
		(R/O)									or negative
											implications)
1.	Regulatory	Risk	The businesses shall comply with	Systems are in place to track	Negative
	changes		regulatory norms at all times.	regulatory	changes.	Risk	implication
			Non-compliance with regulatory	assessments are carried out to
			requirements	may	result in	identify	potential	compliance
			regulatory action and damage the	related risks.
			entity's reputation.
2.	Data Privacy	Risk	Improper use or data leakage may	The group has policies in place to	Negative
	and security		lead to impairment of stakeholders'	monitor and ensure data privacy	implication
			confidence and	disrupt	business	& security. Internal and IT audit is
			operations.			conducted to check implementation
						of the policies and procedures. Non
						disclosure agreements are entered
						with service	providers/vendors to
						ensure data privacy.

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Annual Report 2022-23 Corporate Overview  Management ReportsFinancial Statements

Financial

Indicate

implications

Material issue

whether

Rationale for identifying

In case of risk, approach to

of the risk or

SN.

risk or

opportunity

identified

the risk/opportunity

adapt or mitigate

opportunity

(Indicate positive

(R/O)

or negative

implications)

3.

Employee

Opportunity

Skilled employees are considered

Positive implication

growth and

the most valuable resources in

development

financial services sector. Focus on

employee growth and development

helps in talent retention, enhance

productivity and foster innovation

which enables business to tackle

market challenges.

4.

Technology

Opportunity

Technology

advancements

Positive implication

(Innovation and

has made it possible to enter

Digitalisation)

previously hard-to-access markets

at lower cost and value creation for

customers and other stakeholders.

5.

Financial

Opportunity

Enhancing quality of life for

Positive implication

Inclusion

customers,

particularly

those

residing in semi-urban

and

rural areas of India, where the

availability

of financial

products

and services is limited.

6.

Corporate

Opportunity

Corporate

governance

is

Positive implication

Governance

a

fundamental

element

of

(Transparency

sustainable

business

operations.

and

Ethical governance will help in

Disclosures)

enhancing stakeholders' trust and

strengthen brand value.

7.

Customer

Opportunity

Strong

relationships

enhances

Positive implication

Support and

loyalty and retention.

Satisfaction

8.

Branding and

Opportunity

Enhances

credibility

and

trust

Positive implication

Reputation

among

diverse

stakeholders

and

emphasises

the

company's

reputation as an ethically managed

business.

9.

Human Rights

Opportunity

Respect and promotion of human

Positive implication

rights

improves

talent

retention

and business reputation.

10.

Climate

Risk

Has

implications

for

managing

The group will ensure its offices are

Negative

Change

impact on the climate changes.

operating in LEED certified green

implication

(emissions,

buildings.

renewables/

energy

efficiency)

11.

Diversity and

Opportunity

Reiterates

the

company's

Positive implication

Inclusiveness

commitment to

social

inclusion

and merit-based engagement of

employees, customers, suppliers,

etc.

12.

CSR

Opportunity

The group's brand is leveraged

Positive implication

as a force for good to support

community development.

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