GREENING THE

ENTERPRISE ECOSYSTEM,
DIFFERENTLY

Annual Report 2023-24 (Part-II)

INSIDE
Appendix I pg 01-44
Appendix II pg 45-92
 Appendix I
Standalone Balance Sheet
along with Profit and Loss Account and
Cash Flow Statement of SIDBI
Independent Auditors’ Report
The Board of Directors
Small Industries Development Bank of India

Report on the Audit of the Standalone Financial Statements for the Audit of the Standalone Financial Statements
Opinion section of our report. We are independent of the Bank in
accordance with the “Code of Ethics” issued by the ICAI
1. We have audited the accompanying Standalone Financial
and we have fulfilled our other ethical responsibilities
Statements of Small Industries Development Bank of
in accordance with these requirements and the Code
India (the Bank”), which comprise the Balance Sheet as at
of Ethics. We believe that the audit evidence we have
March 31, 2024, the Statement of Profit and Loss Account
obtained is sufficient and appropriate to provide a basis
and the Statement of Cash Flows for the year then
for our opinion on the Standalone Financial Statements.
ended, and Notes to the Financial Statements including
a summary of Significant Accounting Policies and other
Emphasis of Matter
explanatory information.
3. We invite attention to Note No. 26 to Schedule XVI of the
In our opinion and to the best of our information and Standalone financial statements regarding additional
according to explanations given to us, the aforesaid provision on standard advances at rates higher than
Standalone Financial Statements give the information minimum stipulated under IRAC norms, as per Board
required in accordance with Regulation 14(1) of the Small approved Accelerated Provisioning Policy.
Industries Development Bank of India General Regulations,
2000 in the manner so required and give a true and fair 4. We invite attention to Note No. 30 to Schedule XVI
view in conformity with the Accounting Standards notified of the Standalone financial statements regarding the
by the Institute of Chartered Accountants of India (“the contribution made to CGTMSE of ` 500 Cr.
ICAI”) and accounting principles generally accepted in
Our opinion is not modified in respect of this matter.
India, of the state of affairs of the Bank as at March 31,
2024 and its profit and its cash flows for the year ended
Key Audit Matters
on that date.
5. Key audit matters are those matters that, in our
Basis for Opinion professional judgment, were of most significance in
our audit of the standalone financial statements of the
2. We conducted our audit of the Standalone Financial
financial year ended March 31, 2024. These matters were
Statements in accordance with the Standards of Auditing
addressed in the context of our audit of the standalone
(“SAs”) issued by the Institute of Chartered Accountants of
financial statements as a whole, and in forming our
India (“the ICAI”). Our responsibility under those standards
opinion thereon, and we do not provide a separate opinion
are further described in the Auditors’ Responsibilities
on these matters.

Key Audit Matter How our audit addressed the Key Audit Matters
I. 
Classification of Advances, Identification of Non- Our audit approach / procedures towards
performing Advances, Income Recognition and Provision
of Advances (Refer Schedule VIII read with Note 6 of Classification of Advances, Identification of Non-performing
Schedule XV to the standalone financial statements) Advances, Income Recognition and Provision on Advances
Advances include Refinance loans to banks, Financial included the following:
Institutions, Micro Finance Institutions and NBFCs; and
Direct loans including Cash credits, Overdrafts, Loans - Understanding and considering the Bank’s accounting
repayable on demand and Term loans. policies for NPA identification and provisioning and
assessing compliance with the prudential norms prescribed
The Reserve Bank of India (‘RBI’) has prescribed the by the RBI (IRACP Norms), including the additional
‘Prudential Norms on Income Recognition, Asset provisions and asset classification benefit extended on
Classification and Provisioning’ in respect of advances for restructured advances.
banks (‘IRACP Norms’).
- Understanding the key controls (including system based
automated controls) for identification and provisioning of
impaired accounts based on the extant guidelines on IRACP
laid down by the RBI.

02 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Key Audit Matter How our audit addressed the Key Audit Matters
The identification of performing and non-performing advances - Performing other procedures including substantive audit
(including advances restructured under applicable IRACP procedures covering the identification of NPAs by the Bank.
Norms) involves establishment of proper mechanism and These procedures included:
the Bank is required to apply significant degree of judgement
to identify and determine the amount of provision required a) Considering testing of the exception reports generated
against each advance applying both quantitative as well as from the application systems where the advances have
qualitative factors prescribed by the regulations. been recorded.

Significant judgements and estimates for NPA identification b) Considering the accounts reported by the Bank and other
and provisioning could give rise to material misstatements on: banks as Special Mention Accounts (“SMA”) in RBI’s
central repository of information on large credits (CRILC)
- Completeness and timing of recognition of nonperforming to identify stress.
assets in accordance with criteria as per IRACP norms;
c) Reviewing account statements, drawing power calculation,
- Measurement of the provision for non-performing assets security and other related information of the borrowers
based on loan exposure, ageing and classification of the selected based on quantitative and qualitative risk factors
loan, realizable value of security;
d) Reading of minutes of credit and risk committee meetings
- Appropriate reversal of unrealized income on the NPAs. and performing inquiries with the Bank to ascertain if there
were indicators of stress or an occurrence of an event of
Since the classification of advances, identification of NPAs default in a loan account or any product.
and creation of provision on advances (including additional
provisions on restructured advances under applicable IRACP e) Considering key observations arising out of Internal Audits
Norms) and income recognition on advances: and Concurrent Audits conducted as per the policies and
procedures of the Bank.
- Requires proper control mechanism and significant level of
estimation by the Bank; f) Considering the RBI Financial Inspection report on the
Bank, the Bank’s response to the observations and other
- Has significant impact on the overall financial statements communication with RBI during the year
of the Bank; we have ascertained this area as a Key
Audit Matter g) Reviewing the report submitted by external expert appointed
by the Bank to verify compliance with the RBI circular on
Automation of IRACP processes through the Bank’s core
banking system.

h) Examination of advances including stressed/restructured

advances on a sample basis with respect to compliance
with the RBI Master Circulars / Guidelines.

i) Seeking independent confirmation of account balances for

sample borrowers.

j) Visits to branches/offices and examination of

documentation and other records relating to advances.
For Non- performing advances identified, we, based on factors
including stressed sectors and account materiality, tested
on a sample basis the asset classification dates, reversal of
unrealized interest, value of available security and provisioning
as per IRACP norms. We recomputed the provision for NPA
on such samples after considering the key input factors
and compared our measurement outcome to that prepared
by management.

Annual Report 2023-24 03

Key Audit Matter How our audit addressed the Key Audit Matters
II. Valuation of Investments, Identification of and Our audit approach/procedures towards Investments
provisioning for Non-Performing Investments (Schedule with reference to the RBI Circulars/directives included the
VII read with Note 3 of Schedule XV to the standalone understanding of internal controls and substantive audit
financial statements) procedures in relation to valuation, classification, identification
Investments are categorized under Treasury operations of non-performing investments (NPIs) and provisioning/
and Business Operations. Investments include investments depreciation related to Investments. In particular -
made by the Bank in Central and State Governments
Securities, Bonds, Debentures, Shares, Mutual Funds, VCFs - We evaluated and understood the Bank’s internal control
and other approved securities. RBI Circulars and directives, system to comply with relevant RBI guidelines regarding
inter-alia, cover valuation of investments, classification of valuation, classification, identification of NPIs, reversal
investments, identification of non-performing investments, of income on NPIs and provisioning/depreciation related
non-recognition of income and provisioning against non- to investments;
performing investments.
- We assessed and evaluated the process adopted for
The valuation of each category (type) of the aforesaid collection of information from various sources for
securities is to be done as per the method prescribed in determining market value of these investments;
circulars and directives issued by the RBI which involves
collection of data/information from various sources such - For the selected sample of investments in hand, we tested
as FBIL/FIMMDA rates, rates quoted on BSE/NSE, financial accuracy and compliance with the RBI Master Circulars and
statements of unlisted companies etc. directions by re-performing valuation for each category of
the security;
We identified valuation of investments and identification
of NPI as a Key Audit Matter because of the management - We carried out substantive audit procedures to recompute
judgement involved in determining the value of certain independently the provision to be maintained in accordance
investments (Bonds and Debentures, VCFs) based on with the circulars and directives of the RBI. Accordingly,
applicable Regulatory guidelines and the Bank’s policies, we selected samples from the investments of each
impairment assessment for HTM book based on category and tested for NPIs as per the RBI guidelines and
management judgement, the degree of regulatory focus recomputed the provision to be maintained and if accrual
and the overall significance to the financial results of of income is in accordance with the RBI Circular for those
the Bank. selected sample of NPIs.
III. Information Technology (IT) and controls impacting As a part of our audit procedures for review of the Bank’s IT
financial Reporting systems and related controls for financial reporting:
The Bank’s key financial accounting and reporting
processes are highly dependent on information systems - We tested the design and operating effectiveness of
including automated controls in systems, such that there the Bank’s IT systems and controls that are critical to
exists a risk that gaps in the IT control environment could financial reporting.
result in the financial accounting and reporting records
being materially misstated. - The Bank has a system in place for getting application
software audits for identified Application Systems at
Due to the pervasive nature and complexity of the IT reasonable intervals. Information System (IS) Audit is done
environment as well as its importance in relation to by Bank at reasonable intervals.
accurate and timely financial reporting, we have identified
this area as a Key Audit Matter. - We reviewed key observations arising out of audits
conducted on the Bank’s IT systems during the year.
IV. Assessment of Provisions and Contingent Liabilities Our audit approach / procedures involved:
(Note 10 and Note 12 of Schedule XV to the standalone
financial statements): - Understanding the current status of the litigations/
Assessment of Provisions and Contingent liabilities tax assessments;
in respect of certain litigations including Direct Taxes,
various claims filed by other parties not acknowledged as - Examining recent orders and/or communication received
debt (Schedule XI to the standalone financial statements) from various tax authorities/ judicial forums and follow up
and various employee benefits schemes (Schedule V to action thereon;
the standalone financial statements) was identified as a
- Evaluating the merit of the subject matters identified as
significant audit area.
significant, with reference to the grounds presented therein
and available independent legal / tax advice including
opinion of the Bank’s tax consultants;

04 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Key Audit Matter How our audit addressed the Key Audit Matters
There is high level of judgement involved in estimating the level - Review and evaluation of the contentions of the Bank
of provisioning required as well as in the disclosure of both through discussions, collection of details of the subject
Provisions and Contingent Liabilities in respect of tax matters matter under consideration, the likely outcome and
and other legal claims. The Bank’s assessment is supported by consequent potential outflows on those issues; and
the facts of matter, their own judgment, past experience, and
advice from legal and independent tax consultants wherever - Ensuring completeness and accuracy of the data, the
considered necessary. Accordingly, unexpected adverse measurement of the fair value of the schemes’ assets,
outcomes may significantly impact the Bank’s reported profit understanding the judgements made in determining the
and state of affairs presented in the Balance Sheet. assumptions used by management to value the employee
liabilities with specific schemes and market practice.
The valuations of the employee benefit liabilities are calculated
with reference to multiple actuarial assumptions and inputs - Our audit procedures included an assessment of some
including discount rate, rate of inflation and mortality rates. assumptions used by the actuary by comparing life
The valuation of funded assets in respect of the same is also expectancy assumptions with relevant mortality tables,
sensitive to changes in the assumptions. benchmarking inflation and discount rates against external
market data. We verified the value of plan assets to the
We determined the above area as a Key Audit Matter in view of statements provided by asset management companies
associated uncertainty relating to the outcome of the matters managing the plan assets.
which requires application of judgment in interpretation of law,
circumstances of each case and estimates involved. - Verification of disclosures related to significant litigations,
taxation matters and Employee benefits liabilities in the
standalone financial statements.

Information Other than the Standalone Financial accordance with the Small Industries Development
Statements and Auditors’ Report thereon Bank of India General Regulations, 2000 and accounting
6. The Bank’s Management is responsible for the other principles generally accepted in India including the
information. The other information comprises the applicable Accounting Standards issued by ICAI, and the
information incuded in the Annual Report, but does not circulars and guidelines issued by RBI from time to time.
include the Standalone Financial Statements and our This responsibility also includes maintenance of adequate
auditors’ report thereon. The Bank’s annual report is accounting records for safeguarding of the assets of the
expected to be made available to us after the date of this Bank and for preventing and detecting frauds and other
auditor’s report. irregularities; selection and application of appropriate
accounting policies; making judgements and estimate that
Our opinion on the standalone financial statements does are reasonable and prudent; and design, implementation
not cover the other information and we will not express and maintenance of adequate internal financial controls,
any form of assurance conclusion thereon. that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant
In connection with our audit of the standalone financial to the preparation and presentation of the Standalone
statements, our responsibility is to read the other financial statements that give true and fair view and are
information when it becomes available and, in doing free from material misstatement, whether due to fraud
so, consider whether the other information is materially or error.
inconsistent with the standalone financial statements
or our knowledge obtained in the audit or otherwise In preparing the standalone financial statements, the
appears to be materially misstated. When we read the Management is responsible for assessing the Bank’s
Bank’s annual report, if we conclude that there is a ability to continue as a going concern, disclosing, as
material misstatement of this other information, we are applicable, matters related to going concern and using the
required to communicate the matter to those charged going concern basis of accounting unless Management
with governance. either intends to liquidate the Bank or to cease operations,
or has no realistic alternative but to do so. The Bank’s
Responsibilities of Management and Those Charged Management are also responsible for overseeing the
with Governance for the Standalone Financial Bank’s financial reporting process.
Statements
Auditors’ Responsibilities for the Audit of the
7. The Bank’s Management is responsible with respect to
Standalone Financial Statements
the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position, 8. Our objectives are to obtain reasonable assurance
financial performance and cash flow of the Bank in about whether the standalone financial statements as

Annual Report 2023-24 05

a whole are free from material misstatement, whether  Evaluate the overall presentation, structure and
due to fraud or error, and to issue an auditor’s report that content of the standalone financial statements,
includes our opinion. Reasonable assurance is a high including the disclosures, and whether the
level of assurance, but is not a guarantee that an audit standalone financial statements represent the
conducted in accordance with SAs will always detect a underlying transactions and events in a manner that
material misstatement when it exists. Misstatements achieves fair presentation.
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could Materiality is the magnitude of the misstatements in
reasonably be expected to influence the economic the standalone financial statements that, individually or
decisions of users taken on the basis of these standalone aggregate, makes it probable that the economic decisions
financial statements. of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative
As part of an audit in accordance with SAs, we exercise materiality and qualitative factors in (i) planning of the
professional judgment and maintain professional scope of our audit work and evaluating the results of
scepticism throughout the audit. We also: our work; and (ii) to evaluate the effect of any identified
misstatement in the financial statements.
 Identify and assess the risks of material
misstatement of the standalone financial We communicate with those charged with governance
statements, whether due to fraud or error, design regarding, among other matters, the planned scope and
and perform audit procedures responsive to those timing of the audit and significant audit findings, including
risks, and obtain audit evidence that is sufficient any significant deficiencies in internal control that we
and appropriate to provide a basis for our opinion. identify during our audit.
The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting We also provide those charged with governance with
from error, as fraud may involve collusion, forgery, a statement that we have complied with relevant
intentional omissions, misrepresentations, or the ethical requirements regarding independence, and to
override of internal control. communicate with them all relationships and other
matters that may reasonably be thought to bear on our
 Obtain an understanding of internal control relevant independence, and where applicable, related safeguards.
to the audit in order to design audit procedures
that are appropriate in the circumstances, but From the matters communicated with those charged
not for the purpose of expressing an opinion on with governance, we determine those matters that
the effectiveness were of most significance in the audit of the standalone
financial statements for the financial year ended March
 Evaluate the appropriateness of accounting policies 31, 2024 and are therefore the key audit matters. We
used and the reasonableness of accounting describe these matters in our auditor’s report unless law
estimates and related disclosures in the standalone or regulation precludes public disclosure about the matter
financial statement made by management. or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report
 Conclude on the appropriateness of management’s because the adverse consequences of doing so would
use of the going concern basis of accounting and, reasonably be expected to outweigh the public interest
based on the audit evidence obtained, whether benefits of such communication.
a material uncertainty exists related to events or
conditions that may cast significant doubt on the 9. Other Matters
Bank’s ability to continue as a going concern. If we i. These Standalone Financial Results incorporate
conclude that a material uncertainty exists, we are the relevant returns of 23 Branches visited /audited
required to draw attention in our auditor’s report to by us including Head office by us which covers
the related disclosures in the standalone financial 96.45% of Advances, 98.51% of deposits, 100% of
statements or, if such disclosures are inadequate, Borrowings as on March 31, 2024 and 96.60% of
to modify our opinion. Our conclusions are based Interest income on advances, 97.35% of interest
on the audit evidence obtained up to the date of expense on deposits and 99.74% of interest
our auditor’s report. However, future events or expense on borrowings for the period 01.04.2023
conditions may cause the Bank to cease to continue to 31.03.2024. These branches have been selected
as a going concern. in consultation with the management of the bank.

06 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

In conduct our audit, we have relied upon various c) The returns received from the offices and branches
information and returns received from remaining of the Bank have been found adequate for the
branches of the bank not visited by us, generated purposes of our audit.
through centralised database at Head Office.
11. We further report that:
ii. The opening balances as of April 1 2023 has been a) In our opinion, proper books of account as required by law
taken based on the financial statements for the year have been kept by the Bank so far as it appears from our
ended March 31, 2023 audited by the predecessor examination of those books and proper returns adequate
independent auditor who vide their report dated May for the purposes of our audit have been received from
12, 2023 have expressed an unmodified opinion. branches not visited by us;

Our opinion is not modified in respect of above matters. b) The Balance Sheet and Profit and Loss account and Cash
flow statement dealt with by this report are in agreement
Report on other Legal and Regulatory Requirements with the books of account;
10. The standalone Balance Sheet and the standalone Profit
and Loss Account have been drawn up in accordance with c) In our opinion, the aforesaid standalone
the provisions of Regulation 14 (i) of the Small Industries financial statements comply with the applicable
Development Bank of India General Regulations, 2000. accounting standards.

We report that:
For J. Kala & Associates
a) We have sought and obtained all the information and Chartered Accountants
explanations which to the best of our knowledge and FRN: 118769W
belief, were necessary for the purposes of our audit
and have found them to be satisfactory; (Jayesh Kala)
Partner
b) The transactions of the Bank, which have come Date: May 29, 2024 M. No.: 101686
to our notice, have been within the powers of the Place : Mumbai UDIN:24101686BKAJVW8401
Bank and

Annual Report 2023-24 07

Standalone Balance Sheet
as at March 31, 2024

[` ]
March 31, 2024 March 31, 2023
Amount Amount
CAPITAL AND LIABILITIES SCHEDULES
Capital I 5,68,54,11,690 5,68,54,11,690
Reserves, Surplus and Funds II 3,11,47,97,41,280 2,72,40,69,75,549
Deposits III 20,63,84,20,90,591 16,50,36,14,64,621
Borrowings IV 27,05,45,48,39,639 20,06,57,92,03,549
Other Liabilities and Provisions V 1,38,74,75,34,843 88,79,41,95,410
Deferred Tax Liability - -
Total 52,25,20,96,18,043 40,23,82,72,50,819
ASSETS
Cash and Bank Balances VI 2,33,08,59,93,676 1,21,08,82,02,380
Investments VII 3,64,09,90,81,370 2,90,88,65,76,872
Loans & Advances VIII 45,60,15,07,04,381 35,64,39,06,80,346
Fixed Assets IX 2,86,18,84,189 2,96,39,45,951
Other Assets X 65,01,19,54,427 44,49,78,45,270
Total 52,25,20,96,18,043 40,23,82,72,50,819
Contingent Liabilities XI 37,97,40,02,169 45,13,44,11,010
Significant Accounting Policies XV
Notes to Accounts XVI
The Schedules referred to above form an integral part of the Balance Sheet.

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

08 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Standalone Profit & Loss Account

for the year ended March 31, 2024

[` ]
March 31, 2024 March 31, 2023
INCOME SCHEDULES Amount Amount
Interest and Discount XII 3,13,09,96,10,081 1,79,53,53,96,172
Other Income XIII 6,32,13,04,418 5,31,27,81,800
Total 3,19,42,09,14,499 1,84,84,81,77,972
EXPENDITURE
Interest & Financial charges 2,28,81,47,69,951 1,24,05,66,16,459
Operating Expenses XIV 18,65,06,99,392 8,23,53,29,635
Provisions & Contingencies 19,05,50,87,556 8,58,14,07,506
Total 2,66,52,05,56,899 1,40,87,33,53,600
Profit before Tax 52,90,03,57,600 43,97,48,24,372
Provision for Income Tax 17,72,36,61,000 12,39,91,57,313
Deferred Tax Adjustment [(Asset) / Liability] (5,08,63,10,000) (1,86,00,74,573)
Profit after Tax 40,26,30,06,600 33,43,57,41,632
Profit brought forward 66,87,00,000 40,00,00,000
Total Profit / (Loss) 40,93,17,06,600 33,83,57,41,632
Appropriations
Transfer to General Reserve 37,14,57,71,449 31,11,88,59,294
Transfer to Special reserve u/s 36(1)(viii) of The Income Tax Act, 1,65,00,00,000 80,00,00,000
1961
Others
Transfer to Investment Fluctuation Reserve 2,50,52,813 -
Transfer to Staff Welfare Fund 16,85,00,000 11,11,00,000
Dividend on Shares 1,13,70,82,338 1,13,70,82,338
Tax on Dividend - -
Surplus in Profit & Loss account carried forward 80,53,00,000 66,87,00,000
Total 40,93,17,06,600 33,83,57,41,632
Basic/Diluted Earning Per Share 70.82 58.81
Significant Accounting Policies XV
Notes to Accounts XVI
The Schedules referred to above form an integral part of the Profit & Loss Account.

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

Annual Report 2023-24 09

Schedules to Standalone Balance Sheet
CAPITAL AND LIABILITIES
Schedule I: Capital
[` ]
March 31, 2024 March 31, 2023
(a) Authorized Capital 10,00,00,00,000 10,00,00,00,000
- Equity Share Capital (75,00,00,000 Equity Shares of `10/- each) 7,50,00,00,000 7,50,00,00,000
- Preference Share Capital (25,00,00,000 Redeemable Preference Shares of 2,50,00,00,000 2,50,00,00,000
`10/- each)
(b) Issued, Subscribed and Paid-up Capital : 5,68,54,11,690 5,68,54,11,690
- Equity Share Capital (56,85,41,169 Equity Shares of `10/- each) 5,68,54,11,690 5,68,54,11,690
- Preference Share Capital - -
Total 5,68,54,11,690 5,68,54,11,690

Schedule II: Reserves, Surplus and Funds

[` ]
March 31, 2024 March 31, 2023
A) Reserves
i) General Reserve
- Opening Balance 2,18,35,81,39,917 1,87,23,92,80,623
- Additions during the year 37,14,57,71,449 31,11,88,59,294
- Utilisations during the year - -
- Closing Balance 2,55,50,39,11,366 2,18,35,81,39,917
ii) Share Premium
- Opening Balance 30,54,25,88,310 30,54,25,88,310
- Additions during the year -
- Utilisations during the year - -
- Closing Balance 30,54,25,88,310 30,54,25,88,310
iii) Specific Reserves
a) Investment Reserve
- Opening Balance - -
- Additions during the year - -
- Utilisations during the year - -
- Closing Balance - -
b) Special Reserve created and maintained u/s 36 (1) (viii) of The Income Tax
Act, 1961
- Opening Balance 18,52,00,00,000 17,72,00,00,000
- Additions during the year 1,65,00,00,000 80,00,00,000
- Utilisations during the year - -
- Closing Balance 20,17,00,00,000 18,52,00,00,000
c) Other Reserves
i) Investment Fluctuation Reserve
- Opening Balance 1,25,89,52,956 1,25,89,52,956
- Additions during the year 2,50,52,813 -
- Utilisations during the year
- Closing Balance 1,28,40,05,769 1,25,89,52,956
B) Surplus in Profit and Loss account 80,53,00,000 66,87,00,000

10 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Schedules to Standalone Balance Sheet

Schedule II: Reserves, Surplus and Funds (Contd.)
[` ]
March 31, 2024 March 31, 2023
C) Funds
a) National Equity Fund
- Opening Balance 2,65,61,42,832 2,65,61,42,832
- Additions / Write back during the year - -
- Utilisations during the year - -
- Closing Balance 2,65,61,42,832 2,65,61,42,832
b) Staff Welfare Fund
- Opening Balance 40,24,51,534 32,83,53,383
- Additions during the year 16,85,00,000 11,11,00,000
- Utilisations during the year 5,31,58,531 3,70,01,849
- Closing Balance 51,77,93,003 40,24,51,534
c) Others - -
Total 3,11,47,97,41,280 2,72,40,69,75,549

Schedule III: Deposits

[` ]
March 31, 2024 March 31, 2023
A) Fixed Deposits 1,25,99,96,09,590 86,76,48,78,620
B) From Banks
a) Under MSME Refinance Fund 18,91,19,34,36,000 15,28,76,15,16,000
b) Under MSME Risk Capital Fund - -
c) Others -From Foreign & Private Sector Banks 31,65,49,75,000 19,84,10,00,000
d) Under MSME India Aspiration Fund 14,99,40,70,001 14,99,40,70,001
e) Under Fund for Venture Capital in MSME sector 2014-15 - -
Subtotal (B) 19,37,84,24,81,001 15,63,59,65,86,001
Total 20,63,84,20,90,591 16,50,36,14,64,621

Schedule IV: Borrowings

[` ]
March 31, 2024 March 31, 2023
I) Borrowings in India
1. From Reserve Bank of India - 1,59,00,00,00,000
2. From Government of India (including Bonds subscribed by GOI ) 4,36,28,02,083 5,17,27,06,344
3. Bonds & Debentures 8,11,80,29,00,000 4,67,55,00,00,000
4. From Other Sources
- Commercial Paper 2,25,24,00,00,000 3,94,25,00,00,000
- Certificate of Deposits 3,54,90,00,00,000 2,46,35,00,00,000
- Term Loans from Banks 10,88,19,00,00,000 5,86,43,95,28,678
- Term Money Borrowings - -
- Others 1,89,37,08,41,814 1,05,40,96,07,622
Subtotal (I) 26,73,86,65,43,897 19,64,17,18,42,644

Annual Report 2023-24 11

Schedules to Standalone Balance Sheet
Schedule IV: Borrowings (Contd.)
[` ]
March 31, 2024 March 31, 2023
II) Borrowings outside India
(a) KFW, Germany 1,38,94,71,253 3,70,76,76,702
(b) Japan International Cooperation Agency (JICA) 6,07,59,66,719 10,79,57,17,856
(c) IFAD, Rome 99,22,22,858 1,05,46,39,489
(d) World Bank 22,85,75,57,273 26,31,12,58,470
(e) Others 27,30,77,639 53,80,68,387
Subtotal (II) 31,58,82,95,742 42,40,73,60,905
Total (I & II) 27,05,45,48,39,639 20,06,57,92,03,549

Schedule V: Other Liabilities and Provisions:

[` ]
March 31, 2024 March 31, 2023
Interest Accrued 46,36,54,05,347 27,67,89,02,900
Provision for SIDBI Employees' Provident Fund 4,17,08,65,424 3,93,85,26,360
Provision for SIDBI Pension Fund 1,12,40,51,149 44,04,31,465
Provision for Employees’ Other Benefit 3,35,42,75,456 1,90,38,47,208
Provisions for Exchange Rate Fluctuation 1,53,73,62,766 1,53,73,62,766
Contingent provisions against standard assets 34,43,01,42,221 17,57,93,51,338
Proposed Dividend (including tax on dividend) 1,13,70,82,338 1,13,70,82,338
Funds viz. Aspire Fund, FoF for Startups, PRF, PRSF etc. 33,27,13,78,808 23,12,59,58,271
Floating provision 4,95,67,37,932 4,95,67,37,932
Others (including provisions) 8,40,02,33,402 6,49,59,94,832
Total 1,38,74,75,34,843 88,79,41,95,410

ASSETS
Schedule VI: Cash & Bank Balances
[` ]
March 31, 2024 March 31, 2023
1. Cash in Hand & Balances with Reserve Bank of India 5,93,895 6,02,342
2. Balances with other Banks
(a) In India
i) in current accounts 1,93,95,29,201 6,25,83,58,601
ii) in other deposit accounts 2,31,12,83,11,702 1,12,07,41,43,932
(b) Outside India
i) in current accounts 1,75,58,878 4,89,40,573
ii) in other deposit accounts - 2,70,61,56,932
Total 2,33,08,59,93,676 1,21,08,82,02,380

12 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Schedule VII: Investments [net of provisions]

[` ]
March 31, 2024 March 31, 2023
A) Treasury operations
1. Securities of Central and State Governments 2,69,04,48,00,772 1,48,12,97,19,214
2. Bonds & Debentures of Banks & Financial Institutions 19,53,22,74,081 21,81,08,38,302
3. Stocks, Shares, Bonds & Debentures of Industrial Concerns 51,56,74,010 84,44,58,856
4. Mutual Funds - -
5. Commercial Paper 17,96,12,57,158 26,05,26,90,303
6. Certificate of Deposit 15,55,01,34,525 62,98,61,30,050
7. Others 11,00,00,00,000 -
Subtotal (A) 3,33,60,41,40,546 2,59,82,38,36,725
B) Business Operations
1. Shares of Banks & Financial Institutions 1,61,51,09,902 1,61,51,09,702
2. Bonds & Debentures of Banks & Financial Institutions - -
3. Stocks, Shares, bonds & Debentures of Industrial Concerns 3,47,28,88,561 5,34,48,59,563
4. Investment in Subsidiaries 17,51,04,98,740 17,51,04,98,740
5. Investment in Venture Capital Fund - RCF 4,67,17,29,717 5,24,72,57,872
6. Others 3,22,47,13,904 1,34,50,14,270
Subtotal (B) 30,49,49,40,824 31,06,27,40,147
Total (A+B) 3,64,09,90,81,370 2,90,88,65,76,872

Schedule VIII: Loans & Advances [Net of Provisions]

[` ]
March 31, 2024 March 31, 2023
A) Refinance to
- Banks and Financial Institutions 36,31,01,26,04,304 29,81,73,24,72,128
- Micro Finance Institutions 87,71,32,31,093 48,99,64,96,339
- NBFC 5,52,05,42,45,997 3,34,14,66,70,997
- Bills Rediscounted - -
Subtotal (A) 42,70,78,00,81,394 33,64,87,56,39,464
B) Direct Loans
- Loans and Advances 2,75,09,88,63,090 1,93,97,14,30,050
- Receivable Finance Scheme - 9,23,64,439
- Bills Discounted 14,27,17,59,897 5,45,12,46,393
Subtotal (B) 2,89,37,06,22,987 1,99,51,50,40,882
Total (A+B) 45,60,15,07,04,381 35,64,39,06,80,346

Schedule IX: Fixed Assets [Net of Depreciation]

[` ]
March 31, 2024 March 31, 2023
1. Premises 2,81,35,50,735 2,92,87,49,254
2. Others 4,83,33,454 3,51,96,697
Total 2,86,18,84,189 2,96,39,45,951

Annual Report 2023-24 13

Schedules to Standalone Balance Sheet
Schedule X: Other Assets
[` ]
March 31, 2024 March 31, 2023
Accrued Interest 30,65,77,13,429 15,51,50,83,888
Advance Tax (Net of provision) 2,89,32,29,192 1,91,87,79,755
Staff Loans 2,23,69,85,494 1,95,26,21,807
Derivative Assets 4,56,03,84,977 5,41,20,83,018
Expenditure to the extent not written off 16,76,79,45,998 17,27,27,73,419
Others 7,89,56,95,337 2,42,65,03,383
Total 65,01,19,54,427 44,49,78,45,270

Schedule XI: CONTINGENT LIABILITIES

[` ]
March 31, 2024 March 31, 2023
i) Claims against the Bank not acknowledged as debts 9,89,43,47,386 9,64,85,12,907
ii) On account of Guarantees / Letters of Credit 67,38,62,553 42,97,75,967
iii) On account of Forward Contracts 72,24,92,243 16,78,26,751
iv) On account of Underwriting Commitments - -
v) On account of uncalled monies on partly paid shares, debentures & undrawn 97,00,54,081 1,27,42,87,728
commitment under VCF etc.
vi) On account of derivative contracts 25,71,32,45,906 33,61,40,07,657
vii) Other items for which the Bank is contingently liable - -
Total 37,97,40,02,169 45,13,44,11,010

14 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Schedules to Standalone Profit & Loss Account

Schedule XII: Interest and Discount
[` ]
March 31, 2024 March 31, 2023
1. Interest and Discount on Loans, Advances and Bills 2,71,81,93,58,227 1,51,72,88,51,545
2. Income on Investments / Bank balances 41,28,02,51,854 27,80,65,44,627
Total 3,13,09,96,10,081 1,79,53,53,96,172

Schedule XIII: Other Income

[` ]
March 31, 2024 March 31, 2023
1. Upfront and Processing Fees 1,16,43,48,452 78,08,41,042
2. Commission and Brokerage 2,02,56,743 1,09,30,972
3. Profit on sale of Investments 86,65,00,642 44,63,03,402
4. Income earned by way of dividends etc. from Subsidiaries / Associates 34,13,05,185 27,14,88,889
5. Provision of Earlier Years written Back - -
6. Recoveries out of Bad Debts 2,27,76,44,029 2,86,91,76,097
7. Reversal of Provisions/ERFF under FCL - -
8. Others 1,65,12,49,367 93,40,41,398
Total 6,32,13,04,418 5,31,27,81,800

Schedule XIV: Operating Expenses

[` ]
March 31, 2024 March 31, 2023
Payments to and provisions for employees 8,27,60,25,569 5,06,67,84,567
Rent, Taxes and Lighting 22,08,27,134 18,17,03,219
Printing & Stationery, Postage/Courier & Tele and Insurance 2,20,75,109 2,10,30,252
Advertisement and Publicity 27,63,00,600 11,47,42,304
Depreciation / Amortisation on Bank's Property 61,19,85,624 26,23,28,294
Directors’ fees, allowances and expenses 53,14,229 81,12,867
Auditor’s Fees 33,21,257 32,92,016
Law Charges 1,97,89,911 2,97,91,239
Repairs and maintenance 39,81,24,019 27,60,81,381
Issue Expenses 7,77,36,100 5,60,22,041
Capital Commitment, Management Fees etc. 13,37,33,616 19,79,10,602
Input Tax Credit not Available 31,67,48,282 19,19,22,592
Contribution to CGTMSE 5,00,00,00,000 -
Other Expenditure 3,28,87,17,942 1,82,56,08,261
Total 18,65,06,99,392 8,23,53,29,635

Annual Report 2023-24 15

SCHEDULE XV – SIGNIFICANT ACCOUNTING POLICIES (v) Dividend on shares held in industrial concerns
and financial institutions is recognized as
1. BASIS OF PREPARATION
income when the right to receive the dividend
The financial statements have been prepared to comply is established.
in all material respects with the Small Industries
Development Bank of India Act, 1989 and regulations (vi) Income from Venture Capital funds are
thereof, prudential norms prescribed by Reserve Bank accounted on realization basis. Redemption
of India, applicable Accounting Standards issued by of unit/shares in Venture Capital fund, while in
the Institute of Chartered Accountants of India and HTM category is not treated as a sale.
practices prevailing in the Banking Industry. The financial
statements have been prepared under the historical cost (vii) Recovery in non-performing assets (NPA) is to
convention on an accrual basis, unless otherwise stated. be appropriated in the following order:
Except otherwise mentioned, the accounting policies that
are applied by the Bank, are consistent with those used in a) overdue interest upto the date of NPA,
the previous year.
b) principal,
Use of Estimates: c) cost & charges,
The preparation of financial statements in conformity with d) interest and
Generally Accepted Accounting Principles (GAAP) requires
the management to make estimates and assumptions e) penal charges.
that affect the reported amounts of assets and liabilities
and the disclosure of contingent liabilities as of the date (viii) Gain/loss on sale of loans and advances
of the financial statements and the reported income and through direct assignment is recognized in line
expenses for the reporting period. Management believes with the extant RBI guidelines.
that these estimates and assumptions are reasonable
and prudent. However, actual results could differ from (ix) Amounts recovered against debts written-off
these estimates. Any revision to accounting estimates in earlier years are recognized as income in the
is recognized prospectively in current and future periods Profit and Loss account.
in accordance with the requirements of the respective
accounting standard. (x) Profit or loss on sale of investments in any
category is taken to profit & loss account.
2. REVENUE RECOGNITION However, in case of profit on sale of investments
under “Held to Maturity” category an equivalent
Revenue is recognized to the extent it is probable that the
amount net of applicable taxes is appropriated
economic benefits will flow to the Bank and the revenue
to Capital Reserves.
can be reliably measured.
(xi) Amount lying as unclaimed liabilities (other
A) INCOME:
than statutory liabilities) for a period of more
(i) Interest income including penal interest is than seven years are recognized as income.
accounted for on accrual basis, except in the
case of non-performing assets where it is (xii) The bank has accounted for interest on income
recognized upon realization. tax refunds upon receipt of such refund orders
/ Order giving effects issued by Income
(ii) Income in the Profit & Loss Account is Tax Department.
shown gross i.e. before provisions as per RBI
guidelines and other provisions as per Bank’s (xiii) Recoveries of CGTMSE fees, Valuation
internal policy. charges, Advocate fee, Insurance, Upfront
fee/ Processing fee etc. from Borrowers are
(iii) Discount received in respect of bills discounted accounted on cash basis.
/ rediscounted and on discounted instruments
is recognized over the period of usance of the (xiv) Commission on LC/ BG are recognized on
instruments on a constant yield basis. accrual basis proportionately over the period.

(iv) Commitment charges, service charges on B) EXPENDITURE:

seed capital / soft loan assistance and royalty
income are accounted for on accrual basis in (i) All expenditures are accounted for on accrual
respect of standard (performing) assets. basis except Development Expenditure which
is accounted for on cash basis.

16 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

(ii) Discount on Bonds and Commercial Papers this category is revalued and net depreciation
issued are amortized over the tenure of Bonds under any of the classification mentioned
and Commercial Paper. The expenses relating above is recognized in the profit & loss account.
to issue of Bonds are amortized over the tenure Net appreciation under any classification is
of the Bonds. ignored. The book value of individual scrip is
not changed after the revaluation.
3. INVESTMENTS:
(i) In terms of extant guidelines of the Reserve Bank of (ii) An investment is classified as ‘Held To Maturity’,
India on investment classification and valuation, the ‘Available For Sale’ or ‘Held For Trading’ at the time
entire investment portfolio is categorized as “Held to of its purchase and subsequent shifting amongst
Maturity”, “Available for Sale” and “Held for Trading”. categories and its valuation is done in conformity
Investments are valued in accordance with RBI with RBI guidelines.
guidelines. The investments under each category
(iii) Treasury Bills, Commercial Papers and Certificates
are further classified as
of Deposit being discounted instruments are valued
at carrying cost.
a) Government Securities,

b) Other approved securities, (iv) The quoted Government Securities are valued at
market prices and unquoted/non-traded government
c) Shares, securities are valued at prices declared by Financial
Benchmark India Pvt. Ltd. (FBIL).
d) Debentures & Bonds,
(v) Investments which are made out of the Corpus
e) Subsidiaries/ joint ventures and
or Funds provided by the Government of India
f) Others (Commercial Paper, Mutual Fund Units, and netted off from the related Fund balances are
Security Receipts, Certificate of Deposits etc.) carried at cost and not subjected to RBI guidelines
of valuation.
(a) Held to Maturity:
Investments acquired with the intention to (vi) Recording purchase and sale transactions
hold till maturity are categorized under Held in Investments is done following ‘Settlement
to Maturity. Such investments are carried at Date’ accounting.
acquisition cost unless it is more than the face
value, in which case the premium is amortized (vii) The debentures / bonds / shares deemed to be
over the period remaining to maturity. in the nature of advance, are subject to the usual
Investments in subsidiaries classified as Held prudential norms applicable to loans & advances.
To Maturity.
(viii) Cost of investments is determined on the weighted
Diminution, other than temporary, in the value average cost method.
of investments under this category is provided
(ix) Brokerage, commission, etc. paid at the time of
for each investment individually.
acquisition/ sale are recognized in the profit &
loss account.
(b) Held for Trading:
Investments acquired for resale within 90 (x) Broken period interest paid / received on debt
days with the intention to take advantage of investment is treated as interest expenses / income
the short-term price/interest rate movements and is excluded from cost / sale consideration.
are categorized under Held for Trading. The
investments in this category are revalued (xi) In respect of unquoted investments in industrial
scrip-wise and net appreciation /depreciation concerns under Seed Capital Scheme, full provision
is recognized in the profit & loss account, with has been made.
corresponding change in the book value of the (xii) Units of mutual fund are valued at repurchase price
individual scrips. as per relevant RBI guidelines.

In respect of traded/ quoted investments, the (xiii) The unquoted fixed income securities (other than
market price is taken from the trades/ quotes government securities) are valued on Yield to
available on the stock exchanges. Maturity (YTM) basis with appropriate mark-up over
the YTM rates for Central Government securities of
(c) Available for Sale: equivalent maturity. Such mark-up and YTM rates
Investments which do not fall within the applied are as per the relevant rates published
above two categories are categorized under by FBIL.
Available for Sale. The individual scrip under

Annual Report 2023-24 17

 (xiv) Unquoted Shares are valued at breakup value, if the 6. LOANS AND ADVANCES
latest Audited Financial Statements of the investee i. Assets representing loan and other assistance
companies are available, or at `1/- per Company as portfolios are classified as performing and non-
per RBI guidelines. performing based on the RBI guidelines. Provision
for non-performing assets is made in accordance
4. FOREIGN CURRENCY TRANSACTIONS
with the RBI guidelines.
Foreign currency transactions are recorded in the
books of account in respective foreign currencies at ii. Advances stated in the Balance Sheet are net of
the exchange rate prevailing on the date of transaction. provisions made for non-performing advances, and
Accounting for transactions involving foreign exchange restructured NPA assets.
is done in accordance with Accounting Standard (AS)-11
issued by Institute of Chartered Accountants of India, as iii. General provision on Standard Assets is made as per
per following provisions: RBI guidelines.

(i) Contingent liability in respect of outstanding forward iv. Floating provision is made and utilized as per RBI
exchange contracts, guarantees; acceptances, guidelines and Board approved policy.
endorsements and other obligations are calculated
at the closing exchange rates notified by Foreign 7. TAXATION
Exchange Dealers’ Association of India (‘FEDAI’).
(i) Tax expense comprises both current tax and
deferred taxes. Current income tax is measured at
(ii) Foreign currency Assets and Liabilities are translated
the amount expected to be paid to the tax authorities
at the closing exchange rates notified by FEDAI as at
in accordance with Income Tax Act,1961 and the
the Balance Sheet date
Income Computation and Disclosure Standards
(ICDS).
(iii) Foreign currency Income and Expenditure items
are translated at monthly intervals through actual
(ii) Deferred income taxes reflect the impact of the
sale/purchase and recognized in the profit & loss
current year timing differences between taxable
account accordingly.
income and accounting income for the year and
reversal of timing differences of earlier years.
(iv) The revaluation difference on foreign currency
Deferred tax is measured based on the tax rates and
LoC is adjusted and recorded in a special account
the tax laws enacted or substantively enacted at the
opened and maintained, in consultation with GOI for
balance sheet date.
managing exchange risk.
(iii) Deferred tax assets are recognized only to the extent
(v) The Bank follows hedge accounting in respect
that there is reasonable certainty that sufficient
of foreign exchange contracts and derivative
future taxable income will be available against
transactions as per RBI guidelines.
which such deferred tax assets can be realized.
Unrecognized deferred tax assets of earlier years
(vi) Exchange differences arising on the settlement
are re-assessed and recognized to the extent that it
of monetary items are recognized as income or
has become reasonably certain that future taxable
expense in the period in which they arise.
income will be available against which such deferred
(vii) Outstanding Forward Exchange Contracts which are tax assets can be realized.
not intended for trading are revalued at exchange
(iv) Disputed taxes not provided for including
rates notified by FEDAI.
departmental appeals are included under
5. DERIVATIVES Contingent Liabilities.

The Bank presently deals in currency derivatives viz., 8. SECURITISATION

Cross Currency Interest Rate Swaps for hedging its
i. The Bank purchases credit rated Micro, Small and
foreign currency liabilities. Based on RBI guidelines, the
Medium Enterprises Asset pools from Banks /
above derivatives undertaken for hedging purposes are
Non-Banking Finance Companies by way of pass-
accounted on an accrual basis. Contingent Liabilities
through certificates issued by the Special Purpose
on account of derivative contracts at contracted rupee
Vehicle. Such securitization transactions are
amount are reported on the Balance Sheet date.
classified as Investments under Held for Trading

18 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

/ Available for Sale category depending upon the iii. Actuarial gains or losses are recognized in
investment objective. the profit & loss account based on actuarial
valuations for the period in which they occur.
ii. The Bank purchases credit rated pool of Micro, Small
and Medium Enterprises assets under bilateral direct iv. New Pension Scheme is a defined contribution
assignment. Such direct assignment transactions scheme and is applicable to employees who
are accounted for as ‘advances’ by the Bank. have joined bank on or after December 01, 2011.
Bank pays fixed contribution at pre-determined
iii. The Bank enters into sale of Loans & Advances rate and the obligation of the Bank is limited
through direct assignment. In most of the cases, to such fixed contribution. The contribution is
the Bank continues to service the Loans & Advances charged to Profit & Loss Account.
sold under these transactions and is entitled to
the Residual interest on the Loans & Advances v. Payments made under the Voluntary
sold. Assets sold under direct assignment are Retirement Scheme are charged to the Profit &
derecognized in the books of the Bank based on the Loss account in the year of expenses incurred.
principle of surrender of control over the assets.
B] Benefits (Short – term) while in service
iv. The residual income on the Loans & Advances sold Liability on account of Short-term benefits are
is being recognized over the life of the underlying determined on an undiscounted basis and
Loans & Advances. recognized over the period of service, which entitles
the employees to such benefits.
v. Security Receipts issued by the asset reconstruction
companies are valued in accordance with the 11. FIXED ASSETS AND DEPRECIATION
guidelines applicable to such instruments,
i) Fixed Assets are stated at cost of acquisition less
prescribed by RBI from time to time.
accumulated depreciation and impairment losses,
if any.
9. 
S ALE OF FINANCIAL ASSETS TO ASSET
RECONSTRUCTION COMPANIES (ARCs) :
ii) Cost of asset includes purchase cost and all
i. The sale of NPA’s is on cash basis or investment expenditure incurred on the asset before put to
in Security Receipt (SR) basis. In case of sale on use. Subsequent expenditure incurred on assets
SR basis, the sale consideration or part thereof is put to use is capitalized only when it increases
treated as investment in the form of SRs. the future benefits from such assets or their
functioning capability.
ii. The assets if sold at a price below the Net Book
Value (NBV) (i.e. book value less provisions held), iii) Depreciation for the full year, irrespective of date of
the shortfall is debited to the Profit & Loss A/c. In capitalization, is provided on:
case the sale value is higher than NBV, the excess
provision held can be reversed to profit & loss (a) Furniture and fixture: For assets owned by Bank
account in the year the amounts are received. @ 100 percent
Reversal of excess provision is limited to the extent
to which cash received exceeds the NBV of the asset. (b) Computer and Computer Software @
100 percent
10. PROVISIONING FOR STAFF BENEFITS
A] Post retirement benefits: (c) Building @ 5 percent on WDV basis
i. Provident Fund is a defined contribution
(d) Electrical Installations: For assets owned by
scheme administered by the Bank and the
Bank @ 50 percent on WDV basis.
contributions are charged to the Profit &
Loss Account.
(e) Motor Car - Straight Line Method @ 50 percent.
ii. Gratuity liability and Pension liability are
iv) Depreciation on additions is provided for full year
defined benefit obligations and other long-
and no depreciation is provided in the year of sale/
term employee benefits like compensated
disposal.
absences, post-retirement medical benefits
etc. are provided based on the independent
v) Leasehold land is amortized over the period of lease.
actuarial valuation as at the Balance Sheet date
using the projected unit credit method as per
AS 15 (Revised 2005) - Employee Benefits.

Annual Report 2023-24 19

12. PROVISION FOR CONTINGENT LIABILITIES AND 15. IMPAIRMENT OF ASSETS
CONTINGENT ASSETS. The carrying amounts of assets are reviewed at each
In accordance with AS-29 Provisions, Contingent Balance Sheet date, if there is any indication of impairment
Liabilities and Contingent Assets, the Bank recognizes based on internal/external factors, to recognize,
provisions involving substantial degree of estimation in
measurement when it has a present obligation as a result a) the provision for impairment loss, if any required; or
of past event, it is probable that there will be an outflow
of resources and a reliable estimate can be made of the b) the reversal, if any, required for impairment loss
amount of the obligation. Contingent Assets are neither recognized in the previous periods.
recognized nor disclosed in the financial statements.
Contingent liabilities are not provided for and are Impairment loss is recognized when the carrying
disclosed in the balance sheet and details given by way amount of an asset exceeds recoverable amount.
of Schedule to the Balance Sheet. Provisions, contingent
liabilities and contingent assets are reviewed at each 16. CASH AND CASH EQUIVALENTS
Balance Sheet date. Cash and cash equivalents for the purpose of cash
flow statement include cash in hand, balances with RBI,
13. GRANTS AND SUBSIDIES balances with other banks, money at call and short notice
Grants and subsidies from the Government and other and investment in Mutual Fund with an original maturity
agencies are accounted as per the terms and conditions of three months or less.
of the agreement.

14. OPERATING LEASE

Lease rentals is recognized as an expense/income in the
Profit & Loss Account on a straight line basis over the
lease term in accordance with AS-19.

20 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

SCHEDULE XVI - NOTES TO ACCOUNTS

1 Implementation of Ind-AS :
As per RBI letter dated May 15, 2019 issued to the Bank, implementation of Ind-AS for AIFIs has been deferred till further
notice. Accordingly, financial statements of the Bank are continued to be prepared under IGAAP.

2.1 As per the Accounting Standard 22, Accounting for Taxes on Income, the Bank has reviewed Deferred Tax Assets /
Liabilities and recognized an amount of `5,08,63,10,000/- as Deferred Tax Assets (Previous year - Deferred Tax Assets was
`1,86,00,74,573) in the Profit & Loss Account for the year ended March 31, 2024.

2.2 The Break up of Deferred Tax Asset/ (Liability) as on March 31, 2024 is as under :
`
Timing Difference March 31, 2024 March 31, 2023
Deferred Tax Deferred Tax
Asset/(Liability) Asset/(Liability)
a) Provision for Depreciation on fixed assets 9,90,90,331 2,96,73,234
b) Special Reserve u/s 36(1)(viii) of the Income Tax Act 1961 (4,47,95,70,414) (4,07,64,80,346)
c) Provision for Non performing assets 25,11,88,222 6,23,93,197
d) Provision for Restructuring of Accounts 0 60,105
e) Provision for Non Performing Investment 75,81,90,678 83,40,09,746
f) Provision for Standard Assets 8,66,53,78,194 4,42,43,69,221
g) Others 1,64,46,52,052 57,85,93,831
Net deferred tax Asset/(Liability) 6,93,89,29,063 1,85,26,18,988

3 Provision for Income Tax includes:

`
Sr. Particulars
March 31, 2024 March 31, 2023
No.
(i) Current Income Tax Provision 17,72,36,61,000 12,39,91,57,313
(ii) Short/(Excess) Income Tax Provision of Earlier Years - -

(The Tax Liability has been vetted by the Tax consultant.)

4 Contingent Liabilities referred to in Schedule XI

Contingent liabilities include “Claims against the Bank not acknowledged as debts” of ` 9,89,43,47,386 (Previous Year
`9,64,85,12,907). These represents claims filed against the Bank in the normal course of business relating to various legal
cases currently in progress and demands raised by income tax and other statutory authorities. These is being disputed by
the Bank and based on expert’s opinion, the provision is not considered necessary.

5 Bonds and Debentures’ under Borrowings in schedule IV includes the following :

`
March 31, 2024 March 31, 2023
a) Unsecured Bonds 8,11,80,29,00,000 4,67,55,00,00,000

6 Expenditure to the extent not written off under Other Assets in schedule X includes the following:
`
March 31, 2024 March 31, 2023
a) Interest Paid In Advance On Borrowings - -
b) Discount paid in Advance - Certificate of Deposit 14,47,55,57,816 11,22,78,31,482
c) Discount paid in Advance - Commercial Paper 2,25,45,45,806 6,02,69,13,232
d) Expenditure on Issuance of Unsecured Bonds 3,78,42,376 1,80,28,705
Total 16,76,79,45,998 17,27,27,73,419

Annual Report 2023-24 21

7 Interest and Financial Charges
`
March 31, 2024 March 31, 2023
a) Interest on Borrowings 1,41,98,14,76,356 68,47,97,90,498
b) Interest on Deposits 85,68,71,97,079 53,28,58,38,256
c) Financial Charges 1,14,60,96,516 2,29,09,87,705
Total 2,28,81,47,69,951 1,24,05,66,16,459

8 Estimated amount of contracts remaining to be executed on Capital Account - 73,41,057

not provided for (net of advance paid)

9 Premises in Schedule IX include advances towards acquisition of Premises Nil (Previous Year `11,06,68,896) since then
received & provision created in earlier year has been written back and Capital Work in Progress `60,85,989.66 (Previous Year
`1,63,402,411.58).

10 The borrowing of `NIL (Previous Year `43,60,88,890) from Govt. of India under the JICA IV loan is carried forward in the
‘Schedule IV - Borrowings’ to the Balance Sheet at its historic rupee value since SIDBI’s liability towards principal repayment
under the agreement, is not expected to exceed the aggregate of rupee borrowings and the balance in the ERFF maintained
for this loan. Applicable interest at 8% is credited to this ERFF account and interest payable in JPY (converted to equivalent
INR) is debited out of this account. The balance as on March 31, 2024 in ERFF maintained for this loan is (`27,76,93,498.71)
(Previous Year `12,80,09,250).

11 The Bank has contracted a line of credit for USD 300 million from World Bank for scaling up Sustainable and Responsible
Micro Finance Project including IDA portion aggregating SDR 65.9 million (equivalent of USD 100 million). Under IDA line,
Govt. of India is the borrower and rupee funds are lent to SIDBI by GOI though the exchange risk on the underlying is required
to be borne by SIDBI as per the terms of the agreement. Thus, though GOI released rupee funds to SIDBI, the same was
recorded as SDR liability in the books of SIDBI to depict correct position so that revaluation difference gets suitably reflected
in the year end figures. Accordingly, the drawl effected under the above line aggregating SDR 42.83 million (equivalent to
` 436.28 Crore) as on March 31, 2024 [Previous Year SDR 42.83 million (equivalent to `473.66 Crore)] from GOI is recorded
as SDR liability and the underlying liability has been hedged by way of Cross Currency Interest Rate Swaps. The same has
been grouped under Schedule IV - ‘Borrowings in India’.

12 (a) ASPIRE Fund is a `310 crore Fund of Funds, allocated by Ministry of Micro, Small & Medium Enterprises, Government
of India, to be managed by SIDBI. The Fund is being utilized to make investment in Venture Capital Funds targeting
Start Ups/ early stage enterprises promoting Innovation, Entrepreneurship, Forward Backward linkage with multiple
value chain of manufacturing and service delivery, accelerator support, etc. in the Agro based Industry and sectors to
galvanize the rural economy. The investments (out of ASPIRE fund) are held by SIDBI in fiduciary capacity. The balance
of ASPIRE Fund, net of investment is grouped under “Other Liabilities” in the Balance Sheet and all gains/losses/income/
expenditure are the part of the fund. The balance in the fund is `269,35,96,760 as on March 31, 2024 (Previous year
` 2,85,32,30,682).
b) Government of India has formulated a Scheme for Fund of Funds for Start-ups (FFS) with the principal objective of
enhancing the equity availability to Start-ups. Under the Scheme, an amount of `10,000 crore has been proposed as FFS
to be managed by SIDBI. The Government has since released an amount of `5686,29,44,000 and also permitted to take
further commitments under FFS. During the year, Government has advised SIDBI to continue to make commitment to
the Alternative Investment Fund (AIF). These investments (out of FFS) are held by SIDBI in fiduciary capacity. The fund
balance of FFS, net of investment is grouped under “Other Liabilities” in the Balance Sheet and all gains/losses/income/
expenditure are the part of the fund. The balance in the fund is `20,05,10,85,853 as on March 31, 2024 (Previous year
`11,50,51,12,191).
c) Under the UP IT & Start-Up Policy 2017, the Government of Uttar Pradesh shall establish an initial Corpus of INR 1,000
crore to promote start-ups to establish and flourish in the state. The fund shall be in the form of fund of funds. In this
model, the fund shall not be invested directly into start-up companies, rather it shall participate in SEBI approved funds.
The funds shall be professionally managed by SIDBI, the Fund Manager. The Government of Uttar Pradesh has since
release an amount of `225 crore. These investments (out of UP Startup Fund) are/shall be held by SIDBI in fiduciary
capacity. The fund balance of UP Startup Fund, net of investment is grouped under “Other Liabilities” in the Balance
Sheet and all gains/losses/income/expenditure are the part of the fund. The balance in the fund is `214,75,58,298 as
on March 31, 2024 (Previous year `1,19,10,28,364).

22 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

d) MSME Department of the Government of Odisha shall established an initial corpus of `100 crore for long-term support
for startups. The fund shall be in the form of fund of funds. In this model, the fund shall not be invested directly into start-
up companies, rather it shall participate in SEBI approved funds. The funds shall be professionally managed by SIDBI,
the fund manager. The Government of Odisha has since released an amount of `25 crore. These investments (out of
Odisha Startup Growth Fund) are held by SIDBI in fiduciary capacity. The fund balance of Odisha Startup Growth Fund,
net of investment is grouped under “Other Liabilities” in the Balance Sheet and all gains/losses/income/expenditure
are the part of the fund. The balance in the fund is `24,73,36,066 as on March 31, 2024 (Previous Year NIL).

13 The Bank has pledged Government Securities aggregating to face value ` 272,400,000,000 (book value ` 2,69,04,48,00,772.83
) [Previous Year `1,45,95,00,00,000 (book value ` 1,43,69,82,11,825 )] with Clearing Corporation of India Ltd. for Triparty Repo
Dealing and Settlement (TREPS).

14 IFAD had extended a foreign currency loan to SIDBI of SDR 16.35 million, vide loan agreement dated February 18, 2002. As per
the terms of loan agreement, IFAD had disbursed loan in USD and it is to be repaid in USD equivalent to SDR. The Bank has
accounted accordingly in the books of account. The balance as on March 31, 2024 for this loan is `99,22,22,858 (Previous
Year `1,05,46,39,489)

15 Employee Benefits
In accordance with the Accounting Standard on “Employee Benefits” (AS 15) (Revised 2005) issued by the Institute of
Chartered Accountants of India, the Bank has classified the various benefits provided to the employees as under:

(a) Defined contribution plan

The Bank has recognized the following amounts in Profit & Loss Account:
Particulars March 31, 2024 March 31, 2023
Employer’s contribution to Provident fund 12,15,49,983 9,18,53,963
Employer’s contribution to New Pension Scheme 12,81,87,062 8,95,82,393

(b) The Bank is having defined benefit Pension Plans and Gratuity Scheme which are managed by the Trust.
` Crore
Pension Gratuity
FY 2024 FY 2023 FY 2024 FY 2023
1. Assumptions
Discount Rate 7.20% 7.50% 7.20% 7.40%
Rate of Return on Plan Assets 7.20% 7.50% 7.20% 7.40%
Salary Escalation 5.50% 5.50% 5.50% 5.50%
Attrition rate 2.00% 2.00% 2.00% 2.00%
2. Table showing change in Benefit Obligation
Liability at the beginning of the year 679.80 576.93 107.40 108.95
Interest Cost 25.92 24.65 7.57 7.09
Current Service Cost 14.45 13.48 5.98 5.92
Past Service Cost (Non Vested Benefit) 0.00 0.00 0.00 0.00
Past Service Cost ( Vested Benefit) 0.00 0.00 0.00 0.00
Liability Transferred in 0.00 0.00 0.00 0.00
(Liability Transferred out) 0.00 0.00 0.00 0.00
(Benefit Paid) 0.00 0.00 (13.97) (12.44)
Actuarial (gain) / loss on obligations 47.53 64.74 4.90 (2.12)
Liability at the end of the year 767.70 679.80 111.88 107.40
3. Tables of Fair value of Plan Assets
Fair Value of Plan Assets at the beginning of the year 635.76 589.61 102.30 105.92
Expected Return on Plan Assets 47.68 42.75 7.41 7.08
Contributions 0.00 0.00 0.01 0.04
Transfer from other company 0.00 0.00 0.00 0.00
(Transfer to other company) 0.00 0.00 0.00 0.00
(Benefit Paid) 0.00 0.00 (13.97) (12.44)

Annual Report 2023-24 23

 ` Crore
Pension Gratuity
FY 2024 FY 2023 FY 2024 FY 2023
Actuarial gain / (loss) on Plan Assets (1.27) 3.40 (0.36) 1.70
Fair Value of Plan Assets at the end of the year 682.17 635.76 95.39 102.30
4. Table of Recognition of Actuarial Gains/ Losses
Actuarial (Gains)/ Losses on obligation for the period 47.53 64.74 4.90 (2.12)
Actuarial (Gains)/ Losses on asset for the period 1.27 (3.40) 0.36 (1.70)
Actuarial (Gains)/ Losses recognized in Income & 48.80 61.34 5.26 (3.82)
Expense Statement
5. Actual Return on Plan Assets
Expected Return on Plan Assets 47.68 42.75 7.41 7.08
Actuarial Gain / (Loss) on Plan Assets (1.27) 3.40 (0.36) 1.70
Actual Return on Plan Assets 46.41 46.15 7.05 8.78
6. Amount Recognised in the Balance Sheet
Liability at the end of the year (767.70) (679.80) (111.88) (107.40)
Fair Value of Plan Assets at the end of the year 682.17 635.76 95.39 102.30
Difference (85.53) (44.04) (16.49) (5.10)
Unrecognised Past Service Cost at the end of the year 0.00 0.00 0.00 0.00
Unrecognised Transitional Liability at the end of the year 0.00 0.00 0.00 0.00
Net Amount recognised in the Balance Sheet (85.53) (44.04) (16.49) (5.10)
7. Expenses Recognised in the Income Statement
Current Service Cost 14.46 13.48 5.98 5.92
Interest Cost 25.92 24.65 7.57 7.09
Expected Return on Plan Assets (47.68) (42.75) (7.41) (7.08)
Past Service Cost (Non Vested Benefit) recognised 0.00 0.00 0.00 0.00
during the year
Past Service Cost (Vested Benefit) recognised during 0.00 0.00 0.00 0.00
the year
Recognition of Transition Liability during the year 0.00 0.00 0.00 0.00
Actuarial (Gain) / Loss 48.80 61.34 5.26 (3.82)
Expense Recognised in Profit & Loss account 41.50 56.72 11.40 2.11
8. Balance Sheet Reconciliation
Opening Net Liability 44.04 (12.68) 5.10 3.03
Expense as above 41.50 56.72 11.40 2.11
Employers Contribution 0.00 0.00 (0.01) (0.04)
Amount recognised in the Balance Sheet 85.54 44.04 16.49 5.10

9. Other Details
Salary escalation is considered in line with the industry practice considering promotion, demand and supply of
the employees.

Pension Gratuity
FY 2024 FY 2023 FY 2024 FY 2023
10. Category of Assets 0.00 0.00 0.00 0.00
Government of India Assets 0.00 0.00 0.00 0.00
Corporate Bonds 0.00 0.00 0.00 0.00
Special Deposits Scheme 0.00 0.00 0.00 0.00
Equity Shares of Listed Companies 0.00 0.00 0.00 0.00
Property 0.00 0.00 0.00 0.00
Insurer Managed Funds 682.17 635.76 95.39 102.30
Other
Total 682.17 635.76 95.39 102.30

24 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

11. Experience Adjustment:

Particular Pension Gratuity
FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2024 FY 2023 FY 2022 FY 2021 FY 2020
On Plan Liability (Gain)/Loss 17.32 85.05 15.71 (1.14) 46.87 3.44 1.60 0.65 (0.43) 3.28
On Plan Asset (Loss)/Gain 1.27 3.40 53.76 (1.15) 25.17 (0.36) 1.70 (0.22) (0.13) 0.09

(c) The following are the amount charged to Profit & Loss Account relating to other long term benefits plan based on
the actuarial valuation provided by independent actuary.
Sr. Particulars
March 31, 2024 March 31, 2023
No
1 Ordinary Leave Encashment 31.61 40.97
2 Sick Leave -0.08 1.86
3 Resettlement Expenses 0.75 0.46
4 Post Retirement Medical Scheme Facilities 9.21 0.79

16 Earnings Per Share(EPS) (AS-20):

The Bank reports basic and diluted Earnings Per Share in accordance with AS 20. Basic Earnings per Share is computed
by dividing the net profit after tax by the weighted average number of equity shares outstanding at the year end.
Diluted Earnings per Share reflect the potential dilution that could occur if securities or other contracts to issue equity shares
were exercised or converted during the period. Diluted Earnings per Share is computed by dividing the net profit after tax by
the sum of the weighted average number of equity shares and dilutive potential equity shares outstanding at the year end.

March 31, 2024 March 31, 2023

Net Profit considered for EPS calculation (` ) 40,26,30,06,600 33,43,57,41,632
Weighted Average Number of equity shares of face value ` 10 each 56,85,41,169.00 56,85,41,169
Earning per share (`) 70.82 58.81
* Basic & Diluted EPS are same as there are no dilutive potential Equity Shares.

17 The proposed dividend, if any, is accounted as liability in the books of accounts under Schedule V.
18 In the opinion of the Management, there is no material impairment of the fixed assets of the Bank in terms of Accounting
Standard 28- Impairment of Assets.
19 Disclosures under Accounting Standard 29 for provisions in contingencies. The salary & allowances of the employees of the
Bank are reviewed every five years. Such review is due from November 01, 2022.
Particulars Wage Arrears / Incentive `
FY 2024 FY 2023
Opening Balance 23,64,78,635 1,39,13,00,000
Additions:
Arrears 1,17,22,22,552 65,69,31,704
Incentive
Utilisations: 1,71,67,511 1,81,17,53,069
Write back
Closing Balance 1,39,15,33,676 23,64,78,635

20 The Bank has put in place a mechanism to manage credit risk arising out of unhedged foreign currency exposures (UFCE)
of its borrowers. A review of the UFCE across its portfolio is undertaken by the Bank on periodic basis. In terms of RBI
circular DBOD No. BP.BC.85/21.06.200/2013-14 dated 15.01.2014 & subsequent clarification vide circular DBOD NO.BP.BC.
116/21.06.200/2013-14 dated 03.06.2014, based on available data, the provision for UFCE works out to `15.72 crore as on
March 31, 2024 (Previous year `9.48 crore) which has been included under provisions for standard assets under Schedule V.

21 As per the practice consistently followed, redemption in Venture Capital Funds is accounted as per the distribution letter
received from Venture Capital Funds, irrespective of the appropriation policy as specified in the contribution agreement.

Annual Report 2023-24 25

22 Investor’s Complaints:
As on 1st April, 2023 the Bank had “Nil” pending investor’s complaints for disposal. During the current financial year “18”
complaints were received from Investors and “18” complaints were disposed off during the year. Accordingly “Nil” complaint
was pending for disposal as on March 31, 2024.

23 Divergence in Asset Classification and Provisioning for NPAs

As per RBI circular No. DBR.BP.BC. No.32/21.04.018/2018-19 dated April 1, 2019, in case the additional provisioning for
NPAs assessed by RBI exceeds 10% of the reported profit before provisions and contingencies and/or additional Gross
NPAs identified by RBI exceeds 15% of published incremental Gross NPAs for the reference period then banks are required
to disclose divergences from prudential norms on income recognition, asset classification and provisioning. There is no
Divergence from prudential norms assessed by RBI for the year ended 31st March,2023.

24 Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances for MSME Borrowers registered under
Goods and Services Tax (GST):
As per RBI circular dated February 11, 2020 restructuring of advances was done for Micro, Small and Medium Enterprises
(MSME) Borrowers registered under Goods and Services Tax (GST). The RBI, vide its Circular dated August 06, 2020 on ‘Micro,
Small and Medium Enterprises (MSME) Sector - Restructuring of Advances’ extended the above scheme to support the viable
MSME entities on account of the fallout of Covid19. Further RBI vide circular RBI/2021-22/32 DOR.STR.REC.12/21.04.048/2021-
22 dated May 5, 2021 has advised Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium
Enterprises (MSMEs). The MSME accounts restructured under these guidelines are as under:

No. of accounts restructured Amount (` in Crore)

915 554.34

25 Disclosure relating to Resolution Plans implemented during the year in terms of RBI Circular DBR.No.BP.
BC.45/21.04.048/2018-19 dated June 7, 2019:
i) RPs Successfully implemented during the year ended March 31, 2024

"No. of cases Balance Outstanding Amount (` in Crore)

Nil Nil

ii) Details of Securities acquired due to conversion of debt to equity during a restructuring process:

Particulars No of Shares/units Face Value per share (in `) Book Value(in `)

Nil Nil Nil Nil

iii) Details of resolution plans implemented under the RBI Resolution Framework for COVID-19 related stress as per
RBI circular dated 6th August, 2020 (Resolution Framework 1.0) and 5th May 2021 (Resolution Framework 2.0) as
at March 31, 2024 are given below :

Type of borrower Exposure to accounts Exposure to accounts

classified as Standard Of (A), Of (A) Of (A) amount classified as Standard
consequent to aggregate debt amount paid by the consequent to
implementation of that slipped written off borrowers implementation of
resolution plan – Position into NPA during during the during the resolution plan –
as at the end of the the half-year half-year half-year $ Position as at the end
previous half-year (A) of this half-year
Personal Loans --- --- --- --- ---
Corporate persons 24.66 --- --- 15.54 9.12
Of which MSMEs 24.66 --- --- 15.54 9.12
Others --- --- --- --- ---
Total 24.66 --- --- 15.54 9.12

$ Represents net movement in balance outstanding.

26 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

iv) The number of borrower accounts where Resolution Plan is implemented in terms of RBI circular no. DOR.STR.
REC.11/21.04.048/2021-22 dated May 5, 2021 on Resolution Framework – 2.0: Resolution of COVID-19 related stress
of Individuals and Small Businesses is nil. Further no modifications were sanctioned and implemented in respect of
accounts which were implemented under Resolution Framework 1.0

26 During the year ended March 31,2024, the Bank has made an additional provision on standard advances at rates higher than
minimum stipulated under IRAC norms, as per Board approved Accelerated Provisioning Policy. Accordingly, the Bank holds
additional provision on standard advances (including restructured accounts) of `1,538.90 crore at March 31, 2024.

27 Details of loans transferred / acquired during the Year ended March 31, 2024 under the RBI Master Direction on Transfer of
Loan Exposures dated September 24, 2021 are given below:
i. Details of loans not in default acquired through assignment are given below:
Particulars 2023-24 2022-23
Aggregate amount of loans acquired (` in crore) 48.94 ---
Weighted average residual maturity (in months) 106.84 ---
Weighted average holding period by the originator (in months) 13.31 ---
Retention of beneficial economic interest by the originator 20% ---
Tangible security coverage 266.45% ---
rating-wise distribution of rated loans --- ---

ii. Details of non-performing assets (NPAs) transferred

` in crore
Particulars To permitted To other
To ARCs
transferees transferees
No. of accounts 2 --- ---
Aggregate principal outstanding of loans transferred 939 --- ---
Weighted average residual tenor of the loans transferred NA --- ---
Net book value of loans transferred (at the time of transfer) --- --- ---
Aggregate consideration 455 --- ---
Additional consideration realized in respect of accounts --- --- ---
transferred in earlier years
During the year ended March 31, 2024, investment made in Security Receipts (SRs) was `56.77 crore. The Security
Receipts are provided for and hence the net book value is nil. Excess provisions reversed to the profit and loss account
on account of sale of stressed loans was nil.
iii. the bank has not transferred any loan not in default / Special Mention Accounts (SMA).
iv. The Bank has not acquired any stressed loan.

28 In accordance with RBI Master Direction RBI/DOR/2021-22/85 DOR.STR.REC.53/21.04.177/2021-22 dated September 24,
2021 – (Securitisation of Standard Assets) Directions, 2021, the outstanding amount of securitised assets as per books of
the SPEs and total amount of exposures retained by the originator as on the date of balance sheet to comply with the MRR
is NIL for Year ended March 31, 2024.

29 In accordance with RBI Circular no. RBI/2023-24/90 DOR.STR.REC.58/21.04.048/2023-24 dated December 19, 2023-
Investments in Alternative Investment Funds (AIFs) and subsequent clarification vide circular no. RBI/2023-24/140 DOR.
STR.REC.85/21.04.048/2023-24 dated March 27, 2024, the Bank has made Provision of ` 110.64 Cr. for the Quarter and Year
ended March 31, 2024.
30 Schedule “XIV-Operating Expenses” includes the contribution of `500 crore made to CGTMSE by the Bank.
31 Regulation 14 of Small Industries Development Bank of India General Regulations, 2000 prescribes separate format for
presentation of accounts under Small Industries Development Assistance Fund(SIDAF) and General Fund. As no separate
SIDAF has been notified by the Central Government, the same is not being maintained by SIDBI.

32 Previous year’s figures have been re-grouped and re-classified wherever necessary to make them comparable with the current
year’s figures.

Annual Report 2023-24 27

Additional disclosures to Standalone Accounts
as per RBI guidelines

1. Capital adequacy (As per Basel I)

(` Crore)
Sr. Particulars
FY 2023-24 FY 2022-23
No.
i) Common Equity* Not Applicable Not Applicable
ii) Additional Tier 1 capital* Not Applicable Not Applicable
iii) Total Tier 1 capital 28,024.52 24,589.43
iv) Tier 2 capital 1027.03 623.95
v) Total Capital ( Tier 1+Tier 2) 29,051.55 25,213.38
vi) Total Risk Weighted Assets (RWAs) 1,82,277.73 1,30,691.61
vii) Common Equity Ratio ( Common Equity as a percentage of RWAs) * Not Applicable Not Applicable
viii) Tier 1 Ratio ( Tier 1 capital as a percentage of RWAs) 15.37% 18.81%
ix) Capital to Risk Weighted Assets Ratio (CRAR) (Total Capital as a 15.94% 19.29%
percentage of RWAs)
x) Percentage of the shareholding of the Government of India 20.85 20.85
xi) Amount of equity capital raised - -
xii) Amount of Additional Tier 1 capital raised; of which - -
a.) Perpetual Non-Cumulative Preference Shares (PNCPS): - -
b.) Perpetual Debt Instruments (PDI) - -
xiii) Amount of Tier 2 capital raised; of which - -
a.) Debt capital instruments: - -
b.) Perpetual Cumulative Preference Shares (PCPS) - -
c.) Redeemable Non-Cumulative Preference Shares (RNCPS) - -
d.) Redeemable Cumulative Preference Shares (RCPS) - -
* The figures are not being calculated at present, since BASEL-III is not applicable.

2. Free Reserves and Provisions

(a) Provision on Standard Assets
(` Crore)
Particulars FY 2023-24 FY 2022-23
Provisions towards Standard Assets (cumulative) 3,443.01 1757.94

(b) Floating Provisions

(` Crore)
Particulars FY 2023-24 FY 2022-23
Opening balance in the floating provisions account 495.67 495.67
The quantum of floating provisions made in the accounting year 0.00 0.00
Amount of draw down made during the accounting year* 0.00 0.00
Closing balance in the floating provisions account 495.67 495.67
* Amount utilised for making NPA provision in terms of RBI circular dated May 05, 2021 and as per Bank’s Board approved policy on
floating provision.

3. Asset Quality and specific provisions

(a) Non-Performing Advances
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Net NPAs to Net Advances (%) 0.00% 0.00%
(ii) Movement of NPAs (Gross)
(a) Opening balance 33.35 217.62
(b) Additions during the year 129.38 93.39
(c) Reductions during the year 62.91 277.66
(d) Closing balance 99.82 33.35

28 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

(` Crore)
Particulars FY 2023-24 FY 2022-23
(iii) Movement of Net NPAs *
(a) Opening balance 8.56 132.10
(b) Additions during the year (1.29) (82.66)
(c) Reductions during the year 7.27 40.88
(d) Closing balance (0.00) 8.56
(iv) Movement of provisions for NPAs (excluding provisions on
standard assets)
(a) Opening balance 24.79 85.52
(b) Provisions made during the year 130.66 176.05
(c) Write of / write back of excess provisions 55.63 236.78
(d) Closing balance 99.82 24.79
*The Net NPA will be NIL for the previous year, if the amount of floating provision is adjusted against the same.

(b) Non-Performing Investments

(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Net NPIs to Net Investments (%) 0.00% 0.00%
(ii) Movement of NPIs (Gross)
(a) Opening balance 331.38 350.16
(b) Additions during the year 350.31 0.00
(c) Reductions during the year 0.80 18.78
(d) Closing balance 680.89 331.38
(iii) Movement of Net NPIs
(a) Opening balance 0.00 0.00
(b) Additions during the year 0.00 0.00
(c) Reductions during the year 0.00 0.00
(d) Closing balance 0.00 0.00
(iv) Movement of provisions for NPIs (excluding provisions on
standard assets)
(a) Opening balance 331.38 350.16
(b) Provisions made during the year* 350.31 0.00
(c) Write of / write back of excess provisions 0.80 18.78
(d) Closing balance 680.89 331.38
*Includes Optionally Convertible Debentures of `297.76 crore, Security Receipt of `52.44 crore(initial investment of `56.77 crore) and
Equity Share of `0.01 crore acquired by way of conversion of debt, in line with extent RBI guidelines.

(c) Non-Performing Assets (a+b)

(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Net NPAs to Net Assets (Advanced + investments) (%) 0.00% 0.00%
(ii) Movement of NPAs (Gross Advances + Gross investments)
(a) Opening balance 364.74 567.79
(b) Additions during the year 479.69 93.39
(c) Reductions during the year 63.71 296.44
(d) Closing balance 780.72 364.74
(iii) Movement of Net NPAs
(a) Opening balance 8.56 132.10
(b) Additions during the year (1.29) (82.66)
(c) Reductions during the year 7.27 40.88
(d) Closing balance 0.00 8.56
(iv) Movement of provisions for NPAs (excluding provisions on
standard assets)
(a) Opening balance 356.18 435.69
(b) Provisions made during the year 480.98 176.05
(c) Write of / write back of excess provisions 56.44 255.56
(d) Closing balance 780.72 356.18

Annual Report 2023-24 29

 (d) Disclosure of Restructured Accounts
(` Crore)
Sl Type of Restructuring → Under SME Debt Restructuring Others Total

30
Mechanism
Asset Classification → Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total
Details ↓ Standard Standard Standard
1 Restructured Accounts as No. of Borrowers - - - - 8 0 0 - 8 8 0 0 - 8
on April 1 of the FY (opening
Amount outstanding - - - - 27.09 - 0.00 - 27.09 27.09 - 0.00 - 27.09
figures)*
Provision thereon - - - - 0.02 0.00 (0.00) - 0.02 0.02 0.00 (0.00) - 0.02
2 Fresh restructuring during the No. of Borrowers - - - - - 9 - - 9 - 9 - - 9
year
Amount outstanding - - - - - 24.35 - - 24.35 - 24.35 - - 24.35
Provision thereon - - - - - - - - - - - - - -
3 Upgradations to restructured No. of Borrowers - - - - - - - - - 0 - - - -
standard category during the FY
Amount outstanding - - - - - - - - - - - - - -
Provision thereon - - - - - - - - - - - - - -
4 Restructured standard advances No. of Borrowers - (5) (5) (5) (5.00)
which cease to attract higher
Amount outstanding - (7.13) (7.13) (7.13) (7.13)
provisioning and / or additional
risk weight at the end of the Provision thereon

Small Industries Development Bank of India

- (0.01) (0.01) (0.01) (0.01)
FY and hence need not be
shown as restructured standard
advances at the beginning of the
next FY
5 Downgradations of restructured No. of Borrowers - - - - - - - - - - - 0 - -
accounts during the FY
Amount outstanding - - - - - - - - - - - - - -
Provision thereon - - - - - - - - - - - - - -
6 Write-offs of restructured No. of Borrowers - - - - (1) (7) - - (8) (1) (7) - - (8)
accounts during the FY
Amount outstanding - - - - (3.37) (9.37) - (12.74) (3.37) (9.37) - - (12.74)
Provision thereon - - - - (0.01) - - (0.01) (0.01) - - - (0.01)
7 Restructured Accounts as on No. of Borrowers - - - - 2 2 - - 4 2 2 0 - 4
March 31 of the FY (closing
Amount outstanding - - - - 16.60 14.99 0.00 - 31.59 16.60 14.99 0.00 - 31.59
figures)*
Provision thereon - - - - (0.00) 0.00 (0.00) - (0.00) (0.00) 0.00 (0.00) - (0.00)
* Excluding the figures of Standard Restructured Advances which do not attract higher provisioning or risk weight (if applicable).
Note: Figures at Sr. No.6 includes increase in outstanding net of reduction / recovery of `3.25 crore in respect of existing restructured accounts.
 Corporate Overview Statutory Reports Financial Statements

(e) Movement of Non-performing assets

(` Crore)
Particulars FY 2023-24 FY 2022-23
Gross NPAs as on April 01 33.35 217.62
Additions (Fresh NPAs) during the year 129.38 93.39
Sub total (A) 162.73 311.01
Less :-
(i) Upgradations 6.72 35.01
(ii) Recoveries (excluding recoveries made from upgraded accounts) 1.84 23.84
(iii) Technical / Prudential Write offs 54.35 211.42
(iv) Write offs other than those under (iii) above - 7.39
Sub-total (B) 62.91 277.66
Gross NPAs as on March 31 (A-B) 99.82 33.35

(f) Write-offs and recoveries

(` Crore)
Particulars FY 2023-24 FY 2022-23
Opening balance of Technical / Prudential written off accounts as at 2,768.23 3,389.19
April 01
Add : Technical / Prudential write offs during the year 54.35 211.42
Sub total (A) 2,822.58 3,600.61
Less : Actual write off* 966.48 543.57
Less : Recoveries made from previously technical / prudential written 228.13 288.81
off accounts during the year
Sub total (B) 1,194.61 832.38
Closing balance as at March 31 (A-B) 1,627.97 2,768.23
*Includes Optionally Convertible Debentures of `297.76 crore, Security Receipt of `52.44 crore(initial investment of `56.77 crore) and
Equity Share of `0.01 crore acquired by way of conversion of debt in line with extent RBI guidelines.

(g) Overseas Assets, NPAs and Revenue

(` Crore)
Particulars FY 2023-24 FY 2022-23
Total Assets Nil Nil
Total NPAs Nil Nil
Total Revenue Nil Nil

(h) Depreciation and provisions on investments

(` Crore)
Particulars FY 2023-24 FY 2022-23
(1) Investments
(i) Gross Investments 37,118.30 29,450.89
(a) In India 37,118.30 29,450.89
(b) Outside India - -
(ii) Provisions for Depreciation 708.39 362.23
(a) In India 708.39 362.23
(b) Outside India - -
(iii) Net Investments 36,409.91 29,088.66
(a) In India 36,409.91 29,088.66
(b) Outside India - -

Annual Report 2023-24 31

 (` Crore)
Particulars FY 2023-24 FY 2022-23
(2) Movement of provisions held towards depreciation on
investments
(i) Opening balance 30.85 4.80
(ii) Add: Provisions made during the year - 26.05
(iii) Appropriation, if any, from Investment Fluctuation Reserve - -
Account during the year
(iv) Less: Write off / write back of excess provisions during the year* 3.35 -
(v) Less: Transfer, if any, to Investment Fluctuation Reserve Account - -
(vi) Closing balance 27.50 30.85
*The Bank has appropriated `2.51 crore (net of applicable taxes) to Investment Fluctuation Reserve Account in FY 2024.

(i) Provisions and Contingencies

(` Crore)
Break up of 'Provisions and Contingencies' shown under the head
FY 2023-24 FY 2022-23
Expenditure in Profit and Loss Account
Provisions for depreciation/NPI on Investment (8.38) 7.27
Provision towards NPA 129.23 @ 157.78 @
Provision made towards Income tax (Including Deferred Tax Assets/ 1263.74 1053.91
Liability)
Other Provision and Contingencies (with details) 1784.65 $ 693.09 $
@ net of restructuring provision
$ includes provision for standard asset.

(j) Provisioning Coverage Ratio (PCR)

(` Crore)
FY 2023-24 FY 2022-23
Provisioning Coverage Ratio (PCR)* 100.00% 99.69%
* Floating provision has not been considered while calculating PCR.

(k) Provisioning pertaining to Fraud Accounts

(` Crore)
FY 2023-24 FY 2022-23
No. of frauds reported during the year 2 8
Amount involved in fraud 17.33 32.54
Amount involved in fraud net of recoveries/write offs/unrealised interest 16.79 26.73
as at the end of the year
Provision made during the year 0.00 1.13
Provision held as at the end of the year for the above accounts 16.79 26.73
Amount of unamortised provision debited from “other reserves” as at - -
the end of the year

32 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

4. Investment portfolio: constitution and operations

(a) Repo Transactions
(` Crore)
Minimum Maximum Daily Average
Outstanding
outstanding outstanding outstanding
as on March
during the during the during the
31, 2024
year FY 2024 year FY 2024 year FY 2024
Securities sold under repo
i. Government securities - 23,510.00 7,494.65 18,985.00
ii. Corporate debt securities - - - -
Securities purchased under reverse repo
i. Government securities - 22,746.00 961.13 500.00
ii. Corporate debt securities - - - -

(` Crore)
Minimum Maximum Daily Average
Outstanding
outstanding outstanding outstanding
as on March
during the during the during the
31, 2023
year FY 2023 year FY 2023 year FY 2023
Securities sold under repo
i. Government securities - 13,673.20 2720.28 10543.96
ii. Corporate debt securities - - - -
Securities purchased under reverse repo
i. Government securities - 14,994.39 1,632.35 1,998.89
ii. Corporate debt securities - - - -

(b) Disclosure of Issuer Composition for Investment in Debt Securities

(` Crore)
Issuer Amount as on March 31, 2024
Investment Below Unrated Unlisted
Amount made through Investment securities securities
private Grade Securities held
placement Held
(1) (2) (3) (4) (5) (6)
(i) PSUs 49.56 - - - -
(ii) FIs 2,861.89 2,861.89 - 189.84 189.84
(iii) Banks 3,833.19 3,833.19 - 103.50 103.50
(iv) Private Corporates 754.61 754.61 - 754.61 746.57
(v) Subsidiaries/Joint ventures 1,751.05 1,751.05 - 1,751.05 1,751.05
(vi) Others 963.52 963.52 - 963.52 963.52
(vii) Provision held towards -708.39 - - - -
depreciation
Total 9,505.43 10,164.26 - 3,762.52 3,754.48

(c ) Sale & transfers of securities to /from HTM category:

During the FY2024, the Bank shifted investments in Venture Capital Funds from HTM to AFS category in accordance
with extant RBI guidelines. Except for the above, there was no shifting on investments to/from HTM category.

Annual Report 2023-24 33

5. Details of Financial Assets purchased/ sold
(a) Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction
(i) Details of Sales
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) No. of accounts 2 Nil
(ii) Aggregate value (net of provisions) of accounts sold to SC/RC 0.00 Nil
(iii) Aggregate consideration 455.30 Nil
(iv) Additional consideration realized in respect of accounts Nil Nil
transferred in earlier years
(v) Aggregate gain / loss over net book value Nil Nil

(ii) Details of Book Value of Investments in Security Receipts

(` Crore)
Particulars Book value of investments
in security receipts
FY 2023-24 FY 2022-23
(i) Backed by NPAs sold by the AIFI as underlying 52.71 0.27
(ii) Backed by NPAs sold by banks / other financial institutions / - -
non-banking financial companies as underlying
Total 52.71 0.27

(b) Details of Non Performing Financial Assets Purchased / Sold

(i) Details of non performing financial assets purchased:
(` Crore)
Particulars FY 2023-24 FY 2022-23
1. (a) No. of accounts purchased during the year Nil Nil
(b) Aggregate outstanding Nil Nil
2. (a) Of these, number of accounts restructured during the year Nil Nil
(b) Aggregate outstanding Nil Nil

(ii) Details of non performing financial assets sold:

(` Crore)
Particulars FY 2023-24 FY 2022-23
1. No. of accounts sold 2 Nil
2. Aggregate outstanding 939.14 Nil
3. Aggregate consideration received 455.30 Nil

6. Operating Results
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Interest income as a percentage to average working funds(%) 6.74 5.37
(ii) Non-interest income as a percentage to average working funds(%) 0.14 0.16
(iii) Operating profit as a percentage to average working funds (before 1.55 1.57
provisions)(%)
(iv) Return on average assets (before provisions for taxation)(%) 1.14 1.32
(v) Net Profit per employee (` crore) 3.72 3.22

34 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

7. Credit Concentration risk

(a) Capital market exposure
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) direct investment in equity shares, convertible bonds, convertible 585.32 320.03
debentures and units of equity oriented mutual funds the corpus of
which is not exclusively invested in corporate debt;
(ii) advances against shares / bonds / debentures or other securities or - -
on clean basis to individuals for investment in shares (including IPOs /
ESOPs), convertible bonds, convertible debentures, and units of equity
oriented mutual funds;
(iii) advances for any other purposes where shares or convertible bonds or - -
convertible debentures or units of equity oriented mutual funds are taken
as primary security;
(iv) advances for any other purposes to the extent secured by the collateral - -
security of shares or convertible bonds or convertible debentures or units
of equity oriented mutual funds i.e. where the primary security other than
shares / convertible bonds / convertible debentures / units of equity
oriented mutual funds `does not fully cover the advances;
(v) secured and unsecured advances to stockbrokers and guarantees issued - -
on behalf of stockbrokers and market makers;
(vi) loans sanctioned to corporates against the security of shares / bonds / - -
debentures or other securities or on clean basis for meeting promoter’s
contribution to the equity of new companies in anticipation of raising
resources;
(vii)bridge loans to companies against expected equity flows / issues; - -
(viii) underwriting commitments taken up by the banks in respect of primary - -
issue of shares or convertible bonds or convertible debentures or units of
equity oriented mutual funds;
(ix) financing to stockbrokers for margin trading; - -
(x) all exposures to Venture Capital Funds (both registered and unregistered) 1,060.53 1,173.59
Total Exposure to Capital Market 1,645.85 1,493.62

(b) Exposure to Country risk

(` Crore)
Risk Category FY 2023-24 FY 2022-23
Net Funded Provision Net Funded Provision
Exposure held Exposure held
Insignificant 17,782.87 43.80 10,902.69 26.40
Low 1,049.64 - 1,018.09 -
Moderate 30.90 - 15.90 -
High 5.96 - 5.64 -
Very High - - - -
Restricted - - - -
Off-credit - - - -
Total 18,869.37 43.80 11,942.32 26.40

Annual Report 2023-24 35

(c ) Prudential Exposure Limits - Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded.
(i) The number and amount of exposures in excess of the prudential exposure limits during the year.

Sl. PAN Number Borrower Industry Industry Amount Amount Non- Exposure as % to
Sector
No. Name Code Name Funded Funded capital Funds
1 Nil Nil Nil Nil Nil Nil Nil Nil

ii) Credit exposure as percentage to capital funds and as percentage to total assets, in respect of :

Sr. Particulars FY 2023-24 FY 2022-23

No. As % to Total As % to Capital As % to Total As % to Capital
Assets funds Assets funds
1 The largest single borrower 13.93% 250.51% 14.88% 237.41%
The largest borrower group As large borrowers are Primary lending Institutions, the concept of
borrower group is not applicable.
2 The 20 largest single borrowers 69.75% 1254.53% 70.68% 1127.93%
The 20 largest borrower group As large borrowers are Primary lending Institutions the concept of
borrower group is not applicable.

iii) Credit exposure to the five largest industrial sectors as percentage to total loan assets :
(` Crore)
Name of Industry FY 2023-24
Credit Exposure % to total loan assets
Textile products 4179.00 0.92
Auto ancillaries 3490.00 0.77
Metal products N.E.C. 2446.00 0.54
Plastic moulded goods 2155.00 0.47
Metal products parts except machinary 1649.00 0.36

(` Crore)
Name of Industry FY 2022-23
Credit Exposure
% to total loan assets

TEXTILE PRODUCTS 1373.15 0.39

AUTO ANCILLARIES 1303.56 0.37
METAL PRODUCTS N.E.C. 1298.56 0.36
PLASTIC MOULDED GOODS 707.12 0.20
METAL PRODUCTS PARTS EXCEPT MACHINARY 648.03 0.18

(iv) T
 otal amount of advances for which intangible securities such as charge over the rights, licenses, authority etc. has
been taken is ‘Nil’.

(v) The bank had taken factoring exposure amounting `1424.89 crore in FY 2024 and `545.12 crore in FY 2023 under TReDS.

(vi) The bank had not exceeded the Prudential Exposure Limits during the current year and previous year.

(d) Concentration of borrowings /lines of credit, credit exposures and NPAs

(i) Concentration of borrowings and lines of credit
(` Crore)
Particulars FY 2023-24 FY 2022-23
Total borrowings from twenty largest lenders 3,75,323.76 2,86,928.23
Percentage of borrowings from twenty largest lenders to total 78.70% 78.46%
borrowings

36 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

(ii) Concentration of Exposures

(` Crore)
Particulars FY 2023-24 FY 2022-23
Total advances to twenty largest borrowers 3,52,318.00 2,83,925.02
Percentage of advances to twenty largest borrowers to Total Advances 77.26% 79.65%
Total Exposure to twenty largest borrowers / customers 3,69,107.68 3,09,645.04
Percentage of exposures to twenty largest borrowers / customers to 71.33% 74.35%
Total Exposure

(iii) Sector-wise concentration of exposures and NPAs

(` Crore)
Sr. FY 2023-24 FY 2022-23
No. Percentage Percentage
of Gross of Gross
Outstanding Outstanding
Gross NPAs Gross NPAs
Total Total
NPAs to Total NPAs to Total
Advances Advances
Advances in Advances in
that sector that sector
I. Industrial sector 3,92,119.53 81.21 0.02% 3,18,130.93 14.74 0.00%
1 Central Government - - - - - -
2 Central PSUs - - - - - -
3 State Governments 2,111.20 - - 1,541.63 - -
4 State PSUs - - - - - -
5 Scheduled Commercial Banks 3,62,506.42 - - 2,97,468.25 - -
6 Regional Rural Banks 530.12 - - 605.00 - -
7 Co-operative banks 64.72 - - 100.00 - -
8 Private sector (excluding banks) 26,907.07 81.21 0.30% 18,416.05 14.74 0.08%
II. Micro-finance sector 8,789.94 18.61 0.21% 4,918.26 18.61 0.38%
III. Others* 55,205.42 - - 33,414.67 - -
Total (I+II+III) 4,56,114.89 99.82 0.02% 3,56,463.86 33.35 0.01%
* includes advances to NBFCs.

8. Derivatives
(a) Forward Rate Agreement / Interest Rate Swap
(` Crore)
Sr. Particulars
FY 2023-24 FY 2022-23
No
i) The notional principal of swap agreements Nil 123.72
ii) Losses which would be incurred if counterparties failed to fulfil their Nil (1.91)
obligations under the agreements
iii) Collateral required by the bank upon entering into swaps Nil Nil
iv) Concentration of credit risk arising from the swaps Nil 0.00
v) The fair value of the swap book Nil (1.91)

The nature and terms of the IRS as on March 31, 2024 are set out below:
Sl. no. Nature Nos. Notional Principal Benchmark Terms
1 Hedging NIL NIL NIL NIL

Annual Report 2023-24 37

 The nature and terms of the IRS as on March 31, 2023 are set out below
Sl. no. Nature Nos. Notional Principal Benchmark Terms
1 Hedging 1 INR 123,72,29,020.00 6 M USD LIBOR Fixed receivable V/s
floating payable

(b) Exchange Traded Interest Rate Derivatives

(` Crore)
Sr. Particulars
FY 2023-24 FY 2022-23
No
i) Notional principal amount of exchange traded interest rate derivatives NIL NIL
undertaken during the year (instrument - wise)
ii) Notional principal amount of exchange traded interest rate derivatives NIL NIL
outstanding as on March 31 (instrument - wise)
iii) Notional principal amount of exchange traded interest rate derivatives NIL NIL
outstanding and not "highly effective" (instrument - wise)
iv) Mark-to-market value of exchange traded interest rate derivatives NIL NIL
outstanding and not "highly effective" (instrument - wise)

(c ) Disclosures on risk exposure in derivatives

(i) Qualitative Disclosures
(1) The Bank uses Derivatives for hedging of interest rate and exchange risk arising out of mismatch in the assets and
liabilities. All derivatives undertaken by Bank are for hedging purposes with underlying as Foreign Currency borrowings,
which are not MTM, but only translated. The Bank does not undertake trading in Derivatives.
(2) Internal Control guidelines and accounting policies are framed and approved by the Board. The derivative structure is
undertaken only after approval of the competent authority. The particulars of derivative details undertaken are also
reported to ALCO/Board.
(3)  he Bank has put systems in place for mitigating the risk arising out of derivative deals. The Bank follows the accrual
T
method for accounting the transactions arising out of derivative deals.

(d ) Disclosure on Credit default swap - Bank has not undertaken any credit default swap during the year.
(ii) Quantitative Disclosures
(` Crore)
Sr. Particulars FY 2023-24 FY 2022-23
No. Currency Interest rate Currency Interest rate
Derivatives Derivatives Derivatives Derivatives
1 Derivatives ( Notional Principal Amount ) 2,571.32 - 3,361.40 123.72
(i) For hedging 2,571.32 - 3,361.40 123.72
(ii) For trading - - - -
2 Marked to Market Positions [1] 431.60 - 535.51 (1.91)
(i) Asset (+) 431.60 - 535.51
(ii) Liability (-) - - - 1.91
3 Credit Exposure [2] 544.66 - 730.12 -
4 Likely impact of one percentage change in interest 24.44 - 1,681.43 (0.72)
rate (100* PV01)
(i) On hedging derivatives 24.44 - 1,681.43 (0.72)
(ii) On trading derivatives - - - -
5 Maximum and Minimum of 100*PV01 observed
during the year
(i) On hedging 479.62/24.44 - 1912.87/0.56 (0.72)/(2.47)
(ii) On trading - - - -

38 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

9. Disclosure of Letters of Comfort (LoCs) issued

The particulars of Letters of Comfort (LoCs) issued during the year, assessed financial impact, and assessed cumulative
financial obligations under the LoCs issued in the past and outstanding is as under:
(` Crore)
LoCs outstanding as on LoC issued during LoCs redeemed during the LoCs outstanding as on
April 01, 2023 the year year March 31, 2024
No of LoC Amount No of LoC Amount No of LoC Amount No of LoC Amount
- - - - - - - -

10. Asset Liability Management

(` Crore)
Over 3 Over 6 Over 3
29 days Over 1 year
1 to 14 15 to 28 months month & years & Over 5
to 3 & up to 3 Total
days days & up to 6 up to 1 up to 5 years
months years
months year years
Deposits 76.99 40.44 495.63 11,872.74 40,440.86 1,46,694.30 3,935.01 2,828.24 2,06,384.21
Advances 6,871.41 1,596.48 34,500.10 70,603.42 77,188.75 2,43,482.65 19,390.78 2,381.51 4,56,015.10
Investments 6,216.61 5,971.86 17,640.19 20,619.02 3,072.63 893.60 1,500.00 3,110.49 59,024.40
Borrowings 21,336.08 12,250.00 77,852.82 26,885.08 56,073.23 50,431.07 25,348.64 368.57 2,70,545.49
Foreign Currency 5.03 8.45 1,453.75 73.32 1,482.21 490.20 303.82 0.92 3,817.70
Assets
Foreign Currency 1.06 7.47 1,099.64 66.81 408.60 880.64 602.93 259.50 3,326.65
Liabilities

11. Draw Down from Reserves

There is no draw down from Reserves during the current year and previous year.

12. Business Ratios

Particulars FY 2023-24 FY 2022-23
Return on average Equity (before provisions for taxation)(%) 17.96 16.98
Return on average assets (before provisions for taxation)(%) 1.14 1.32
Net Profit per employee (` crore) 3.72 3.22

13. Disclosure of Penalties imposed by RBI

RBI had not imposed any penalty on the Bank during the current year and previous year.

14. Customer Complaints

1. Complaints received by the bank from its customers
Particulars FY 2023-24 FY 2022-23
1 No. of complaints pending at the beginning of the year 1 1
2 No. of complaints received during the year 163 230
3 No. of complaints disposed during the year 161 230
3(i) Of which, number of complaints rejected by the Bank 48 83
4 No. of complaints pending at the end of the year 3 1

Annual Report 2023-24 39

2. Top five grounds of complaints received by the bank from customers
Grounds of complaints, (i.e. complaints % increase/
Number of Number of Number of Of 5, number
relating to) decrease in
complaints complaints complaints of complaints
the number
pending at the received pending at pending
of complaints
beginning of during the the end of beyond 30
received over the
the year year the year days
previous year
1 2 3 4 5 6
FY 2024
Loans and advances - 30 (14.29) - -
Levy of charges without prior notice/ excessive - 22 (37.14) - -
charges/ foreclosure charges
Other 1 46 (13.21) - -
FY2023
Loans and advances - 35 (18.60) - -
Levy of charges without prior notice/ excessive - 35 34.62 - -
charges/ foreclosure charges
Other 1 53 (67.88) 1 -
RBI vide their Circular CEPD.CO.PRD.Cir.No.01/13.01.013/2020-21 dated 27.01.2021 on Strengthening of Grievance Redress
Mechanism in Banks had categorized grievances under 16 categories and had advised Banks to make disclosures accordingly.

15. Off-Balance Sheet SPVs Sponsored

The Bank had no Off-balance sheet SPVs sponsored during the current year and previous year.

16. Disclosure as per specific accounting standards

(a) Accounting Standard 5 – Net Profit or Loss for the period, prior period items and changes in accounting policies
Income in schedule XIII - ‘other income’ includes Prior Period Income of `49,48,292 for FY 2023-24 [Previous Year
`10,08,72,058] and Other expenditure in schedule XIV - ‘Operating Expenses’ for FY 2023-24 includes Prior Period
Expenditure of `3,55,13,145 [Previous Year `1,22,71,798].

(b) Accounting Standard 17 – Segment Reporting

As required under RBI master directions and Accounting Standard-17 ‘Segment Reporting’ the Bank has disclosed
“Business segment” as the Primary Segment. Since the Bank operates in India, there are no reportable geographical
segments. Under Business Segment, the Bank has identified Whole Sale Operations (Direct Lending), Whole Sale
Operations (Refinance) and Treasury as its three reporting segments. These segments have been identified after
considering the nature and risk profile of the products and services, the organization structure and the internal
reporting system of the Bank. Previous year’s figures have been regrouped and reclassified to conform to the current
year’s methodology.

Part A: BUSINESS SEGMENTS

(` Crore)
Business Segments Wholesale Operations Wholesale Operations
Treasury Total
(Direct Lending) (Refinance)
Particulars FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023
1 Segment Revenue 2,314.39 1,554.09 25,392.62 14,088.67 4,235.10 2,842.05 31,942.11 18,484.81
Exceptional Items - -
Total 31,942.11 18,484.81
2 Segment Results 82.83 379.02 4,410.32 3,109.40 1,837.06 1,238.47 6,330.21 4,725.89
Exceptional Items (500.00) -
Total 5,830.21 4,725.89
Unallocable Expenses 540.17 328.41
Operating profit 5,290.04 4,397.48
Income Tax (Net of write back) 1,263.74 1,053.91
Net profit after Tax 4,026.30 3,343.57

40 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

(` Crore)
Business Segments Wholesale Operations Wholesale Operations
Treasury Total
(Direct Lending) (Refinance)
Particulars FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023
Other information
3 Segment Assets 29,089.78 20,055.91 4,29,333.11 3,37,995.11 60,374.84 41,111.89 5,18,797.73 3,99,162.91
Unallocated Assets 3,724.24 3,219.82
Total Assets 5,22,521.97 4,02,382.73
Segment Liabilities 24,107.47 15,883.66 4,04,860.85 3,16,857.75 58,030.68 39,112.64 4,86,999.00 3,71,854.05
Unallocated Liabilities 4,122.85 3,025.62
Total 4,91,121.85 3,74,879.67
Capital / Reserves 4,815.95 4,155.25 23,885.78 21,028.09 2,697.39 2,319.03 31,399.12 27,502.37
Total 31,399.12 27,502.37
Total Liabilities 5,22,521.97 4,02,382.73

Part B: GEOGRAPHIC SEGMENTS - The operations of the Bank is confined to India only, hence no reportable geographic
segments.
(c) Accounting Standard 18 – Related Party Disclosures
(i) Details of Related Parties
Name of the entity Nature of Relationship
SIDBI Venture Capital Ltd Subsidiary
SIDBI Trustee Company Ltd Subsidiary
Micro Units Development & Refinance Agency Ltd Subsidiary
India SME Technology Services Limited Associate
Acuite Ratings Pvt Ltd Associate
Receivables Exchange of India Limited Associate
India SME Asset Reconstruction Company Limited Associate
KITCO LIMITED Associate

(ii) Key management personnel

Shri Sivasubramanian Ramann Chairman & Managing Director
Shri Sudatta Mandal Deputy Managing Director
Shri Prakash Kumar Deputy Managing Director

(iii) Significant transactions with related parties

(` Crore)
Items / Related Party Associates/ Key Relatives of Key
Sub-
Joint Management Management Total
sidiaries
ventures Personnel @ Personnel
Borrowings# - - - - -
Outstanding at the year end - - - - -
Maximum during the year - - - - -
Deposit# - - - - -
Outstanding at the year end - 28.36 - - 28.36
Maximum during the year - 28.36 - - 28.36
Placement of deposits# - - - -
Outstanding at the year end - - - - -
Maximum during the year - - - - -
Advances# - - - - -
Outstanding at the year end - - - - -
Maximum during the year - - - - -

Annual Report 2023-24 41

 (` Crore)
Items / Related Party Associates/ Key Relatives of Key
Sub-
Joint Management Management Total
sidiaries
ventures Personnel @ Personnel
Investments# - - - - -
Outstanding at the year end 1,751.05 36.10 - - 1,787.15
Maximum during the year 1,751.05 36.10 - - 1,787.15
Non funded commitments# - - - - -
Outstanding at the year end - - - - -
Maximum during the year - - - - -
Leasing arrangements availed# - - - - -
Outstanding at the year end - - - - -
Maximum during the year - - - - -
Leasing arrangements provided# - - - - -
Outstanding at the year end - - - - -
Maximum during the year - - - - -
Purchase of fixed assets - - - - -
Sale of fixed assets - - - - -
Interest paid - 1.32 - - 1.32
Interest received - - - - -
Dividend received 33.52 0.61 - - 34.13
Dividend paid - - - - -
Rendering of services* 10.46 1.71 - - 12.17
Receiving of services* - 2.04 - - 2.04
Management contracts** 1.32 - 1.32
@Whole time directors of the Board
# The outstanding at the year end and the maximum during the year are to be disclosed
* Contract services etc. and not services like remittance facilities, locker facilities etc.
** Remuneration to Key Management Personnel.

17. Unamortised Pension and Gratuity Liabilities

The pension and gratuity liability are provided for on the basis of an actuarial valuation made at the end of each financial year based on the
projected unit credit method. The actuarial gains/ losses are taken to the profit & loss account and are not amortized.

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

42 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Standalone Cash Flow Statement

for the year ended March 31, 2024
(` Crore)
March 31, 2023 Particulars March 31, 2024 March 31, 2024
1. Cash Flow from Operating Activities
43,97,48,24,372 Net Profit before tax as per P & L Account 52,90,03,57,600
Adjustments for :
26,23,28,294 Depreciation 61,19,85,624
26,05,29,926 Provision for net depreciation in investments (5,02,33,594)
9,19,41,00,782 Provisions made (net of write back) 21,94,83,07,591
(44,63,03,402) Profit on sale of investments (net) (86,65,00,642)
(1,33,74,835) Profit on sale of fixed assets (35,10,094)
(32,37,39,322) Income Received on Investments (44,40,80,907) 21,19,59,67,978
52,90,83,65,815 Cash generated from operations 74,09,63,25,578
(Prior to changes in operating Assets and Liabilities)
Adjustments for net changes in :
(12,79,59,67,735) Current assets (14,45,33,49,720)
16,38,89,72,497 Current liabilities 32,21,40,51,206
(5,17,69,19,134) Bills of Exchange (8,82,05,13,503)
(15,36,08,86,06,820) Loans & Advances (9,87,68,98,47,680)
12,49,45,48,36,350 Net Proceeds of Bonds and Debentures & other 6,98,87,56,36,090
borrowings
2,41,57,71,89,722 Deposits received 4,13,48,06,25,970
(46,64,04,95,120) 1,33,60,66,02,363
6,26,78,70,695 2,07,70,29,27,941
(12,60,92,47,571) Payment of Tax (18,69,81,10,436) (18,69,81,10,436)
(6,34,13,76,876) Net Cash flow from operating Activities 1,89,00,48,17,505
2. Cash Flow from Investing Activities
(28,16,59,013) Net (Purchase)/Sale of fixed assets (50,64,13,769)
8,41,52,41,728 Net (Purchase)/sale/redemption of Investments (1,78,05,14,54,078)
32,37,39,323 Income Received on Investments 44,40,80,908
8,45,73,22,038 Net cash used in Investing Activities (1,78,11,37,86,939)
3. Cash flow from Financing Activities
- Proceeds from issuance of share capital & share -
premium
(79,81,84,026) Dividend on Equity Shares & tax on Dividend (1,13,70,82,338)
(79,81,84,026) Net cash used in Financing Activities (1,13,70,82,338)
1,31,77,61,136 4. Net increase/(decrease) in cash and cash 9,75,39,48,228
equivalents
25,06,42,84,308 5. Cash and Cash Equivalents at the beginning of the 26,38,20,45,444
period
26,38,20,45,444 6. Cash and Cash Equivalents at the end of the period 36,13,59,93,672

Annual Report 2023-24 43

Standalone Cash Flow Statement
for the year ended March 31, 2024
(` Crore)
March 31, 2023 Particulars March 31, 2024 March 31, 2024
7 Cash and cash equivalents at the end of the period
includes
6,02,342 Cash in Hand 5,93,895
6,30,72,99,170 Current account balance with Bank 1,95,70,88,075
- Mutual Funds 0
20,07,41,43,932 Deposits 34,17,83,11,702

Note : Cash Flow statement has been prepared as per the Indirect Method prescribed in AS-3 (Revised) ‘Cash Flow Statement’
issued by the Institute of Chartered Accountants of India (ICAI)

Significant Accounting Policies XV

Notes to Accounts XVI

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

44 Small Industries Development Bank of India

 Appendix II
Consolidated Balance Sheet
along with Profit and Loss Account and
Cash Flow Statement of SIDBI
Independent Auditors’ Report
The Board of Directors
Small Industries Development Bank of India

Report on the Audit of the Consolidated Financial Statements (SAs) issued by the Institute of Chartered Accountants
Opinion of India. Our responsibilities under those Standards are
further described in the ‘Auditor’s Responsibilities for the
1. We have audited the accompanying consolidated
Audit of the consolidated Financial Statements’ section
financial statements of Small Industries Development
of our report. We are independent of the Group and
Bank of India (hereinafter referred as the ‘the Bank’) and
its associates in accordance with the “Code of Ethics”
its subsidiaries (the Parent and its subsidiaries together
issued by the Institute of Chartered Accountants of India
referred to as ‘the Group’) and its associates which
and we have fulfilled our other ethical responsibilities in
comprise the consolidated Balance Sheet as at March
accordance with these requirements and the Code of
31, 2024, the consolidated Profit and Loss Account and
Ethics. We believe that the audit evidence we have obtained
the consolidated Cash Flow statement for the year then
is sufficient and appropriate to provide a basis for our
ended, and notes to the consolidated financial statements,
audit opinion on the consolidated financial statements.
including a summary of significant accounting policies
and other explanatory information (hereinafter referred
Emphasis of Matter
to as ‘the consolidated financial statements’).
3. We invite attention to the following:
In our opinion and to the best of our information and
according to the explanations given to us and based a) Note No. 14 to Annexure- I of the consolidated
on the consideration of reports of other auditors on financial statements regarding additional provision
separate audited and unaudited financial statements of on standard advances at rates higher than minimum
Subsidiaries, the unaudited financial statements and the stipulated under IRAC norms, as per Board approved
other financial information of the Associates as furnished Accelerated Provisioning Policy.
by the management, the aforesaid consolidated financial b) Note No 20. to Annexure-I of the consolidated
statements give the information required in accordance with financial statements regarding one time contribution
Regulation 14(1) of the Small Industries Development Bank made to CGTMSE of ` 500 crores.
of India General Regulations, 2000 and give a true and fair
view, in conformity with the Accounting Standards notified Our opinion on the consolidated financial statements is
by the Institute of Chartered Accountants of India (“the ICAI”) not modified in respect of above matters.
and accounting principles generally accepted in India, of the
state of affairs of the Group and its associates as at March
Key Audit Matters
31, 2024, of its consolidated profit and consolidated cash 4. Key audit matters are those matters that, in our professional
flows for the year ended on that date. judgment, were of most significance in our audit of the
consolidated financial statements for the financial year
Basis for Opinion ended March 31, 2024. These matters were addressed in the
2. We conducted our audit of the consolidated financial context of our audit of the consolidated financial statements
statements in accordance with the Standards on Auditing as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters

Key Audit Matter How our audit addressed the Key Audit Matters
I. Classification of Advances, Identification of non- Our audit approach / procedures towards Classification of
performing Advances , Income Recognition and Provision Advances, Identification of Non-performing Advances, Income
on Advances (Refer Schedule VIII read with Note 6 of Recognition and Provision on Advances included the following:
Schedule XV to the consolidated financial statements) - Understanding and considering the Bank’s accounting
Advances include Refinance loans to banks, Financial policies for NPA identification and provisioning and assessing
Institutions, Micro Finance Institutions and NBFCs; and compliance with the prudential norms prescribed by the RBI
Direct loans including Cash credits, Overdrafts, Loans (IRACP Norms), including the additional provisions and asset
repayable on demand and Term loans. classification benefit extended on restructured advances.
The Reserve Bank of India (‘RBI’) has prescribed the - Understanding the key controls (including system based
‘Prudential Norms on Income Recognition, Asset automated controls) for identification and provisioning of
Classification and Provisioning’ in respect of advances for impaired accounts based on the extant guidelines on IRACP
banks (‘IRACP Norms’). laid down by the RBI.

46 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Key Audit Matter How our audit addressed the Key Audit Matters
The identification of performing and non-performing - Performing other procedures including substantive audit
advances (including advances restructured under procedures covering the identification of NPAs by the Bank.
applicable IRACP Norms) involves establishment of proper These procedures included:
mechanism and the Bank is required to apply significant
a) Considering testing of the exception reports generated
degree of judgement to identify and determine the amount
from the application systems where the advances have
of provision required against each advance applying both
been recorded.
quantitative as wellas qualitative factors prescribed by
the regulations. b) Considering the accounts reported by the Bank and
other banks as Special Mention Accounts (“SMA”) in
Significant judgements and estimates for NPA
RBI’s central repository of information on large credits
identification and provisioning could give rise to material
(CRILC) to identify stress.
misstatements on:
c) Reviewing account statements, drawing power
- Completeness and timing of recognition of non-performing
calculation, security and other related information
assets in accordance with criteria as per IRACP norms;
of the borrowers selected based on quantitative and
- Measurement of the provision for non-performing assets qualitative risk factors
based on loan exposure, ageing and classification of the
d) Reading of minutes of credit and risk committee
loan, realizable value of security;
meetings and performing inquiries with the Bank
- Appropriate reversal of unrealized income on the NPAs. to ascertain if there were indicators of stress or an
occurrence of an event of default in a loan account or
Since the classification of advances, identification of NPAs
any product.
and creation of provision on advances (including additional
provisions on restructured advances under applicable e) Considering key observations arising out of Internal
IRACP Norms) and income recognition on advances: Audits and Concurrent Audits conducted as per the
policies and procedures of the Bank.
- Requires proper control mechanism and significant level
of estimation by the Bank; f) Considering the RBI Financial Inspection report on the
Bank, the Bank’s response to the observations and other
- Has significant impact on the overall financial statements
communication with RBI during the year
of the Bank;
g) Reviewing the report submitted by external expert
we have ascertained this area as a Key Audit Matter
appointed by the Bank to verify compliance with the RBI
circular on Automation of IRACP processes through the
Bank’s core banking system.
h) Examination of advances including stressed/
restructured advances on a sample basis with respect to
compliance with the RBI Master Circulars / Guidelines.
i) Seeking independent confirmation of account balances
for sample borrowers.
j) Visits to branches/offices and examination of
documentation and other records relating to advances.
For Non- performing advances identified, we, based on
factors including stressed sectors and account materiality,
tested on a sample basis the asset classification dates,
reversal of unrealized interest, value of available security
and provisioning as per IRACP norms. We recomputed the
provision for NPA on such samples after considering the key
input factors and compared our measurement outcome to
that prepared by management.
II. Valuation of Investments, Identification of and provisioning Our audit approach/procedures towards Investments
for Non-Performing Investments (Schedule VII read with with reference to the RBI Circulars/directives included the
Note 3 of Schedule XV to the consolidated financial understanding of internal controls and substantive audit
statements) procedures in relation to valuation, classification, identification
of non-performing investments (NPIs) and provisioning/
depreciation related to Investments. In particular -

Annual Report 2023-24 47

Key Audit Matter How our audit addressed the Key Audit Matters
Investments are categorized under Treasury operations - We evaluated and understood the Bank’s internal control
and Business Operations. Investments include investments system to comply with relevant RBI guidelines regarding
made by the Bank in Central and State Governments valuation, classification, identification of NPIs, reversal
Securities, Bonds, Debentures, Shares, Mutual Funds, VCFs of income on NPIs and provisioning/depreciation related
and other approved securities. RBI Circulars and directives, to investments;
inter-alia, cover valuation of investments, classification of
- We assessed and evaluated the process adopted for
investments, identification of non-performing investments,
collection of information from various sources for
non-recognition of income and provisioning against non-
determining market value of these investments;
performing investments.
- For the selected sample of investments in hand, we tested
The valuation of each category (type) of the aforesaid
accuracy and compliance with the RBI Master Circulars and
securities is to be done as per the method prescribed in
directions by re-performing valuation for each category of
circulars and directives issued by the RBI which involves
the security;
collection of data/information from various sources such
as FBIL/FIMMDA rates, rates quoted on BSE/NSE, financial - We carried out substantive audit procedures to recompute
statements of unlisted companies etc. independentlythe provision to be maintained in accordance
with the circulars and directives of the RBI. Accordingly,
We identified valuation of investments and identification
we selected samples from the investments of each
of NPI as a Key Audit Matter because of the management
category and tested for NPIs as per the RBI guidelines and
judgement involved in determining the value of certain
recomputed the provision to be maintained and if accrual
investments (Bonds and Debentures, VCFs) based on
of income is in accordance with the RBI Circular for those
applicable Regulatory guidelines and the Bank’s policies,
selected sample of NPIs.
impairment assessment for HTM book based on
management judgement, the degree of regulatory focus
and the overall significance to the financial results of
the Bank.
III. Information Technology (IT) and controls impacting As a part of our audit procedures for review of the Bank’s IT
financial Reporting systems and related controls for financial reporting:
The Bank’s key financial accounting and reporting - We tested the design and operating effectiveness of
processes are highly dependent on information systems the Bank’s IT systems and controls that are critical to
including automated controls in systems, such that there financial reporting.
exists a risk that gaps in the IT control environment could
result in the financial accounting and reporting records - The Bank has a system in place for getting application
being materially misstated. software audits for identified Application Systems at
reasonable intervals. Information System (IS) Audit is done
Due to the pervasive nature and complexity of the IT by Bank at reasonable intervals.
environment as well as its importance in relation to
accurate and timely financial reporting, we have identified - We reviewed key observations arising out of audits
this area as a Key AuditMatter. conducted on the Bank’s IT systems during the year.
IV. Assessment of Provisions and Contingent Liabilities Our audit approach / procedures involved:
(Note 10 and Note 12 of Schedule XV to the consolidated
- Understanding the current status of the litigations/
financial statements):
tax assessments;
Assessment of Provisions andContingent
- Examining recent orders and/or communication received
Liabilities in respect of certain litigations including from various tax authorities/ judicial forums and follow up
Direct Taxes, various claims filed by other parties not action thereon;
acknowledged as debt (Schedule XI to the consolidated
financial statements) and various employee benefits - Evaluating the merit of the subject matters identified as
schemes (Schedule V to the consolidated financial significant, with reference to the grounds presented therein
statements) was identified as a significant audit area. and available independent legal / tax advice including
opinion of the Bank’s tax consultants;

48 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Key Audit Matter How our audit addressed the Key Audit Matters
There is high level of judgement involved in estimating the - Review and evaluation of the contentions of the Bank
level of provisioning required as well as in the disclosure through discussions, collection of details of the subject
of both Provisions and Contingent Liabilities in respect of matter under consideration, the likely outcome and
tax matters and other legal claims. The Bank’s assessment consequent potential outflows on those issues; and
is supported by the facts of matter, their own judgment,
- Ensuring completeness and accuracy of the data, the
past experience, and advice from legal and independent tax
measurement of the fair value of the schemes’ assets,
consultants wherever considered necessary. Accordingly,
understanding the judgements made in determining the
unexpected adverse outcomes may significantly impact
assumptions used by management to value the employee
the Bank’s reported profit and state of affairs presented in
liabilities with specific schemes and market practice.
the Balance Sheet.
- Our audit procedures included an assessment of some
The valuations of the employee benefit liabilities are
assumptions used by the actuary by comparing life
calculated with reference to multiple actuarial assumptions
expectancy assumptions with relevant mortality tables,
and inputs including discount rate, rate of inflation and
benchmarking inflation and discount rates against external
mortality rates. The valuation of
market data. We verified the value of plan assets to the
funded assets in respect of the same is also sensitive to statements provided by asset management companies
changes in the assumptions. managing the plan assets.
We determined the above area as a Key Audit Matter in - Verification of disclosures related to significant litigations,
view of associated uncertainty relating to the outcome taxation matters and Employee benefits liabilities in the
of the matters which requires application of judgment consolidated financial statements.
in interpretation of law, circumstances of each case and
estimates involved.

Information Other than the Consolidated Financial including its associates in accordance with, Small
Statements and Auditors’ Report thereon Industries Development Bank of India General Regulations,
5. The Bank’s Management is responsible for the other 2000 and accounting principles generally accepted in
information. The other information comprises the India including the applicable Accounting Standards
information included in the Annual Report, but does not issued by ICAI and the circulars and guidelines issued
include the consolidated Financial Statements and our by RBI from time to time. The respective Management
auditors’ report thereon. The Bank’s annual report is of the entities included in the Group and of its associates
expected to be made available to us after the date of this are responsible for maintenance of adequate accounting
auditor’s report. records for safeguarding of the assets of the Group and for
preventing and detecting frauds and other irregularities;
Our opinion on the consolidated financial statements selection and application of appropriate accounting
does not cover the other information and we will not policies; making judgements and estimate that are
express any form of assurance conclusion thereon. reasonable and prudent; and design, implementation
In connection with our audit of the consolidated financial and maintenance of adequate internal financial controls,
statements, our responsibility is to read the other that were operating effectively for ensuring the accuracy
information when it becomes available and, in doing and completeness of the accounting records, relevant
so, consider whether the other information is materially to the preparation and presentation of the consolidated
inconsistent with the consolidated financial statements financial statements that give true and fair view and are
or our knowledge obtained in the audit or otherwise free from material misstatement, whether due to fraud
appears to be materially misstated. When we read the or error.
Bank’s annual report, if we conclude that there is a In preparing the consolidated financial statements,
material misstatement of this other information, we are the respective Management of the entities included
required to communicate the matter to those charged in the Group and of its associates are responsible for
with governance. assessing the ability of the Group and of its associates
to continue as a going concern, disclosing, as applicable,
Responsibilities of Management and Those Charged matters related to going concern and using the going
with Governance for the Consolidated Financial concern basis of accounting unless Management either
Statements intends to liquidate the group or to cease operations, or
6. The Bank’s Management is responsible with respect to has no realistic alternative but to do so. The respective
the preparation and presentation of these consolidated Management of the entities included in the Group and
Financial Statements that give a true and fair view of the of its associates are also responsible for overseeing the
consolidated financial position, consolidated financial financial reporting process of Group and of its associates.
performance and consolidated cash flows of the Group

Annual Report 2023-24 49

Auditors’ Responsibilities for the Audit of the  Evaluate the overall presentation, structure and
consolidated Financial Statements content of the consolidated financial statements,
7. Our objectives are to obtain reasonable assurance about including the disclosures, and whether the
whether the consolidated financial statements as a financial statements represent the underlying
whole are free from material misstatement, whether due transactions and events in a manner that achieves
to fraud fair presentation.

or error, and to issue an auditor’s report that includes  Obtain sufficient appropriate audit evidence
our opinion. Reasonable assurance is a high level of regarding the financial information of the entities
assurance, but is not a guarantee that an audit conducted within the Group and its associates to express an
in accordance with SAs will always detect a material opinion on the consolidated financial statements.
misstatement when it exists. Misstatements can arise We are responsible for the direction, supervision and
from fraud or error and are considered material if, performance of the audit of financial information
individually or in the aggregate, they could reasonably of the Bank included in consolidated financial
be expected to influence the economic decisions statements of which we are the independent
of users taken on the basis of these consolidated auditors. For the other entities included in the
financial statements. consolidated financial statements, which have
been audited by other auditors, such other auditors
As part of an audit in accordance with SAs, we exercise remain responsible for the direction, supervision and
professional judgment and maintain professional performance of the audits carried out by them. We
scepticism throughout the audit. We also: remain solely responsible for our audit opinion. Our
 Identify and assess the risks of material responsibilities in this regard are further described
misstatement of the consolidated financial under ‘Other Matters’ in this audit report.
statements, whether due to fraud or error, design Materiality is the magnitude of the misstatements in the
and perform audit procedures responsive to those consolidated financial statements that, individually or
risks, and obtain audit evidence that is sufficient aggregate, makes it probable that the economic decisions
and appropriate to provide a basis for our opinion. of a reasonably knowledgeable user of the financial
The risk of not detecting a material misstatement statements may be influenced. We consider quantitative
resulting from fraud is higher than for one resulting materiality and qualitative factors in (i) planning of the
from error, as fraud may involve collusion, forgery, scope of our audit work and evaluating the results of
intentional omissions, misrepresentations, or the our work; and (ii) to evaluate the effect of any identified
override of internal control. misstatement in the financial statements.
 Obtain an understanding of internal control relevant We communicate with those charged with governance
to the audit in order to design audit procedures regarding, among other matters, the planned scope and
that are appropriate in the circumstances, but not timing of the audit and significant audit findings, including
for the purpose of expressing an opinion on the any significant deficiencies in internal control that we
effectiveness of the Banks Internal Control. identify during our audit.
 Evaluate the appropriateness of accounting policies We also provide those charged with governance with
used and the reasonableness of accounting a statement that we have complied with relevant
estimates and related disclosures made ethical requirements regarding independence, and to
by management. communicate with them all relationships and other
 Conclude on the appropriateness of management’s matters that may reasonably be thought to bear on our
use of the going concern basis of accounting and, independence, and where applicable, related safeguards.
based on the audit evidence obtained, whether From the matters communicated with those charged
a material uncertainty exists related to events or with governance, we determine those matters that were
conditions that may cast significant doubt on the of most significance in the audit of the consolidated
Bank’s ability to continue as a going concern. If we financial statements of the current period and are
conclude that a material uncertainty exists, we are therefore the key audit matters. We describe these
required to draw attention in our auditor’s report to matters in our auditor’s report unless law or regulation
the related disclosures in the consolidated financial precludes public disclosure about the matter or when, in
statements or, if such disclosures are inadequate, extremely rare circumstances, we determine that a matter
to modify our opinion. Our conclusions are based should not be communicated in our report because the
on the audit evidence obtained up to the date of our adverse consequences of doing so would reasonably
auditor’s report. However, future events or conditions be expected to outweigh the public interest benefits of
may cause the Group and its associates to cease to such communication.
continue as a going concern.

50 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

8. Other Matters Further, associates that are non-performing have not

These consolidated Financial Results incorporate been included in the consolidation. Additionally, one
the relevant returns of 23 Branches visited /audited associate that has been excluded from consolidation as
by us including Head Office, which covers 96.45% of it is planned for divestment as informed by the Bank.
Advances, 98.51% of deposits, 100% of Borrowings The opening balances of April 1, 2023 has been taken
as on March 31, 2024 and 96.60% of Interest income based on the consolidated financial statements for the
on advances, 97.35% of interest expense on deposits year ended March 31, 2023 audited by the predecessor
and 99.74% of interest expense on borrowings for the independent auditor who vide their report dated May 12,
period 01.04.2023 to 31.03.2024. These branches have 2023 have expressed an unmodified opinion.
been selected in consultation with the management of
the bank. In conduct of our audit, we have relied upon Our opinion on the consolidated financial statements and
various information and returns received from remaining our Report on Other Legal and Regulatory Requirements
branches of the bank not visited by us, generated below is not modified in respect of the above matters
through centralised database at Head Office. and with respect to our reliance on the work done and the
reports of the other auditors and the financial statements/
The consolidated Financial Results include the audited financial information certified by the Management.
Financial Results of One Subsidiary, whose financial
statements/financial results/financial information Report on other Legal and Regulatory Requirements
reflect total assets of ` 39,681 Crores as at 31st March
9. The consolidated financial statements have been
2024, total revenues of ` 2,318 Crores and total net profit
prepared by the Bank’s Management in accordance
after tax of ` 815 Crores for the year ended 31st March
with the requirements of Accounting Standard (AS)
2024 and net cash inflow amounting to ` 1,196 Crores
21, “Consolidated Financial Statements”, Accounting
for the year ended on that date, as considered in the
Standard (AS) 23, “Accounting for Investments in
consolidated financial statements, which have been
Associates in Consolidated Financial Statements” issued
audited by other independent auditor, whose reports
by the Institute of Chartered Accountants of India.
have been furnished to us by the Management. Our
opinion on the consolidated financial statement, in so We report that:
far as it relates to the amounts and disclosures included a) We have sought and obtained all the information and
in respect of these subsidiaries, and our report is based explanations which to the best of our knowledge and
solely on the report of the other auditors. belief, were necessary for the purposes of our audit
The consolidated Financial Statements include the and have found them to be satisfactory;
unaudited financial results of 2 subsidiaries whose b) In our opinion, proper books of account as required
Financial Statements/Financial Results/ financial by law relating to preparation of the aforesaid
information reflect total assets of ` 69 Crores as at consolidated financial statements have been kept by
31st March, 2024, total revenue of ` 14 Crores, total net the Bank so far as it appears from our examination
profit after tax of ` 5 Crores for the year ended on 31st of those books and the reports of the other auditors;
March, 2024 and net cash outflow amounting to ` 0.17
Crores for the year ended on that date and 5 associates c) The consolidated Balance Sheet, the consolidated
whose Financial Statements/Financial Results/ financial Profit and Loss Account, the consolidated Cash Flow
information reflect the Group’s share of net profit of Statement dealt with by this report are in agreement
` 9.61 Crores for the year ended 31st March, 2024, as with the relevant books of account maintained for
considered in the consolidated Financial Results, have the purpose of preparation of the consolidated
not been audited by us. These unaudited Financial financial statements;
Statements / financial results/ financial information d) In our opinion, the aforesaid consolidated
have been furnished to us by the Bank’s Management financial statements comply with the applicable
and our opinion on the consolidated Financial statement, Accounting Standards.
in so far as it relates to the amounts and disclosures
included in respect of these subsidiaries and associates For J. Kala & Associates
is based solely on such unaudited Financial Statements/ Chartered Accountants
financial results/financial information. We have relied on FRN: 118769W
the management’s written representation to us that the
effect of the changes / adjustments, if any, required to (Jayesh Kala)
be made to the reported numbers of these subsidiaries Partner
and associates consequent to their audit would not be Date: May 29, 2024 M. No.: 101686
material for the Group. Place : Mumbai UDIN:24101686BKAJVW8401

Annual Report 2023-24 51

Consolidated Balance Sheet
as at March 31, 2024

[` ]
March 31, 2024 March 31, 2023
Amount Amount
CAPITAL AND LIABILITIES SCHEDULES
Capital I 5,68,54,11,689 5,68,54,11,689
Reserves, Surplus and Funds II 3,35,78,09,65,126 2,88,76,87,36,216
Deposits III 24,14,15,79,65,591 19,99,45,59,64,621
Borrowings IV 27,05,45,48,39,639 20,06,57,92,03,549
Other Liabilities and Provisions V 1,44,78,11,73,660 92,03,25,03,830
Deferred Tax Liability - -
Total 56,05,86,03,55,705 43,92,52,18,19,905
ASSETS
Cash and Bank Balances VI 3,35,43,55,85,397 2,86,03,90,96,059
Investments VII 3,47,52,87,63,365 2,74,13,43,84,869
Loans & Advances VIII 48,49,33,05,27,317 37,79,95,53,86,671
Fixed Assets IX 2,86,90,71,156 2,97,51,82,162
Other Assets X 70,69,64,08,470 49,41,77,70,144
Total 56,05,86,03,55,705 43,92,52,18,19,905
Contingent Liabilities XI 37,97,40,02,169 45,13,44,11,010
Consolidated Significant Accounting Policies (Schedule XV)and Notes to Accounts (Annexure I)
The Schedules referred to above form an integral part of the Balance Sheet.

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

52 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Consolidated Profit & Loss Account

for the year ended March 31,2024

[` ]
March 31, 2024 March 31, 2023
INCOME SCHEDULES
Interest and Discount XII 3,36,09,94,87,811 1,94,82,44,81,207
Other Income XIII 6,21,82,95,820 5,18,98,24,336
Total 3,42,31,77,83,631 2,00,01,43,05,543
EXPENDITURE
Interest & Financial charges 2,39,00,18,67,673 1,31,56,49,02,718
Operating Expenses XIV 18,88,84,43,685 8,41,66,47,379
Provisions & Contingencies 20,87,69,45,401 8,54,07,24,817
Total 2,78,76,72,56,759 1,48,52,22,74,914
Profit before Tax 63,55,05,26,872 51,49,20,30,629
Provision for Income Tax 20,96,84,14,972 14,24,27,84,676
Deferred Tax Adjustment [(Asset) / Liability] (5,54,52,09,931) (1,72,73,59,844)
Share of (earning)/loss in associates (9,60,75,879) (33,81,07,081)
Profit after Tax 48,22,33,97,710 39,31,47,12,878
Profit brought forward 9,44,60,87,264 4,44,99,11,872
Total Profit / (Loss) 57,66,94,84,974 43,76,46,24,750
Appropriations
Transfer to General Reserve 37,14,57,71,448 31,11,88,59,294
Transfer to Special reserve u/s 36(1)(viii) of The Income Tax Act, 1,65,00,00,000 80,00,00,000
1961
Transfer to Statutory Reserve u/s 45-IC of RBI Act, 1934 1,62,93,94,375 1,15,14,95,854
Others
Transfer to Investment Fluctuation Reserve 2,50,52,813 -
Transfer to Staff Welfare Fund 16,85,00,000 11,11,00,000
Development Fund - -
Dividend on Shares 1,13,70,82,338 1,13,70,82,338
Tax on Dividend - -
Surplus in Profit & Loss account carried forward 15,91,36,84,000 9,44,60,87,264
Total 57,66,94,84,974 43,76,46,24,750
Basic/Diluted Earning Per Share 84.82 69.15
Consolidated Significant Accounting Policies (Schedule XV) and Notes to Accounts (Annexure I)
The Schedules referred to above form an integral part of the Profit & Loss Account.

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

Annual Report 2023-24 53

Schedules to Consolidated Balance Sheet
CAPITAL AND LIABILITIES
Schedule I: Capital
[` ]
March 31, 2024 March 31, 2023
(a) Authorized Capital
- Equity Share Capital (75,00,00,000 Equity Shares of ` 10/- each) 7,50,00,00,000 7,50,00,00,000
- Preference Share Capital (25,00,00,000 Redeemable Preference Shares of 2,50,00,00,000 2,50,00,00,000
` 10/- each)
(b) Issued, Subscribed and Paid-up Capital :
- Equity Share Capital (56,85,41,169 Equity Shares of ` 10/- each) 5,68,54,11,689 5,68,54,11,689
- Preference Share Capital - -
Total 5,68,54,11,689 5,68,54,11,689

Schedule II: Reserves, Surplus and Funds

[` ]
March 31, 2024 March 31, 2023
A) Reserves
i) General Reserve
- Opening Balance 2,22,62,88,82,397 1,91,50,74,63,293
- Additions during the year 37,12,48,43,518 31,12,14,19,104
- Utilisations during the year - -
- Closing Balance 2,59,75,37,25,915 2,22,62,88,82,397
ii) Share Premium
- Opening Balance 30,54,25,88,310 30,54,25,88,310
- Additions during the year - -
- Utilisations during the year - -
- Closing Balance 30,54,25,88,310 30,54,25,88,310
iii) Specific Reserves
a) Investment Reserve
- Opening Balance - -
- Additions during the year - -
- Utilisations during the year - -
- Closing Balance - -
b) Special Reserve created and maintained u/s 36 (1) (viii) of The Income Tax
Act, 1961
- Opening Balance 18,52,00,00,000 17,72,00,00,000
- Additions during the year 1,65,00,00,000 80,00,00,000
- Utilisations during the year - -
- Closing Balance 20,17,00,00,000 18,52,00,00,000
c) Statutory Reserve created u/s 45-IC of Reserve Bank of India Act.
- Opening Balance 3,29,59,67,359 2,14,44,71,505
- Additions during the year 1,62,70,57,940 1,14,91,59,419
- Utilisations during the year
- Closing Balance 4,92,30,25,299 3,29,36,30,924
d) Other Reserves
i) Investment Fluctuation Reserve
- Opening Balance 1,25,89,52,955 1,25,89,52,955
- Additions during the year 2,50,52,813 -
- Utilisations during the year
- Closing Balance 1,28,40,05,768 1,25,89,52,955

54 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Schedules to Consolidated Balance Sheet

[` ]
March 31, 2024 March 31, 2023
B) Surplus in Profit and Loss account 15,91,36,84,000 9,44,60,87,264
C) Funds
a) National Equity Fund
- Opening Balance 2,65,61,42,832 2,65,61,42,832
- Additions / Write back during the year - -
- Utilisations during the year - -
- Closing Balance 2,65,61,42,832 2,65,61,42,832
b) Staff Welfare Fund
- Opening Balance 40,24,51,534 32,83,53,383
- Additions during the year 16,85,00,000 11,11,00,000
- Utilisations during the year 5,31,58,531 3,70,01,849
- Closing Balance 51,77,93,003 40,24,51,534
c) Others 2,00,00,000 2,00,00,000
Total 3,35,78,09,65,126 2,88,76,87,36,216

Schedule III: Deposits

[` ]
March 31, 2024 March 31, 2023
A) Fixed Deposits 1,25,99,96,09,590 86,76,48,78,620
B) From Banks
a) Under MSME Refinance Fund 18,91,19,34,36,000 15,28,76,15,16,000
b) Under MSME Risk Capital Fund - -
c) Others -From Foreign & Private Sector Banks 31,65,49,75,000 19,84,10,00,000
d) Under MSME India Aspiration Fund 14,99,40,70,001 14,99,40,70,001
e) Under Fund for Venture Capital in MSME sector 2014-15 - -
f) Under Priority Sector Shortfall 3,50,31,58,75,000 3,49,09,45,00,000
Subtotal (B) 22,88,15,83,56,001 19,12,69,10,86,001
Total 24,14,15,79,65,591 19,99,45,59,64,621

Schedule IV: Borrowings

[` ]
March 31, 2024 March 31, 2023
I) Borrowings in India
1. From Reserve Bank of India - 1,59,00,00,00,000
2. From Government of India (including Bonds subscribed by GOI ) 4,36,28,02,083 5,17,27,06,344
3. Bonds & Debentures 8,11,80,29,00,000 4,67,55,00,00,000
4. From Other Sources
- Commercial Paper 2,25,24,00,00,000 3,94,25,00,00,000
- Certificate of Deposits 3,54,90,00,00,000 2,46,35,00,00,000
- Term Loans from Banks 10,88,19,00,00,000 5,86,43,95,28,678
- Term Money Borrowings - -
- Others 1,89,37,08,41,814 1,05,40,96,07,622
Subtotal (I) 26,73,86,65,43,897 19,64,17,18,42,644

Annual Report 2023-24 55

Schedules to Consolidated Balance Sheet
Schedule IV: Borrowings (Contd.)
[` ]
March 31, 2024 March 31, 2023
II) Borrowings outside India
(a) KFW, Germany 1,38,94,71,253 3,70,76,76,702
(b) Japan International Cooperation Agency (JICA) 6,07,59,66,719 10,79,57,17,856
(c) IFAD, Rome 99,22,22,858 1,05,46,39,489
(d) World Bank 22,85,75,57,273 26,31,12,58,470
(e) Others 27,30,77,639 53,80,68,388
Subtotal (II) 31,58,82,95,742 42,40,73,60,905
Total (I & II) 27,05,45,48,39,639 20,06,57,92,03,549

Schedule V: Other Liabilities and Provisions

[` ]
March 31, 2024 March 31, 2023
Interest Accrued 49,41,12,91,618 29,94,99,68,457
Provision for SIDBI Employees' Provident Fund 4,17,08,65,424 3,93,85,26,360
Provision for SIDBI Pension Fund 1,12,40,51,149 44,04,31,465
Provision for Employees’ Other Benefit 3,36,22,20,869 1,93,80,18,213
Provisions for Exchange Rate Fluctuation 1,53,73,62,767 1,53,73,62,767
Contingent provisions against standard assets 37,32,89,29,259 18,44,16,10,163
Proposed Dividend (including tax on dividend) 1,13,70,82,338 1,13,70,82,338
Funds viz. Aspire Fund, FoF for Startups, PRF, PRSF etc. 33,27,13,78,808 23,12,59,58,271
Floating provision 4,95,67,37,932 4,95,67,37,932
Others (including provisions) 8,48,12,53,496 6,56,68,07,864
Total 1,44,78,11,73,660 92,03,25,03,830

ASSETS
Schedule VI: Cash & Bank Balances
[` ]
March 31, 2024 March 31, 2023
1. Cash in Hand & Balances with Reserve Bank of India 6,08,479 6,14,370
2. Balances with other Banks
(a) In India
i) in current accounts 1,93,97,47,338 6,25,86,02,252
ii) in other deposit accounts 3,33,47,76,70,702 2,77,02,47,81,932
(b) Outside India
i) in current accounts 1,75,58,878 4,89,40,573
ii) in other deposit accounts - 2,70,61,56,932
Total 3,35,43,55,85,397 2,86,03,90,96,059

56 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Schedules to Consolidated Balance Sheet

Schedule VII: Investments [net of provisions]

[` ]
March 31, 2024 March 31, 2023
A) Treasury operations
1. Securities of Central and State Governments 2,69,04,48,00,772 1,48,12,97,19,214
2. Bonds & Debentures of Banks & Financial Institutions 19,53,22,74,081 21,81,08,38,302
3. Stocks, Shares, bonds & Debentures of Industrial Concerns 51,56,74,010 84,44,58,856
4. Mutual Funds - -
5. Commercial Paper 17,96,12,57,158 26,05,26,90,303
6. Certificate of Deposit 15,55,01,34,525 62,98,61,30,050
7. Others 11,00,00,00,000 -
Subtotal (A) 3,33,60,41,40,546 2,59,82,38,36,725
B) Business Operations
1. Shares of Banks & Financial Institutions 1,61,51,09,902 1,61,51,09,702
2. Bonds & Debentures of Banks & Financial Institutions 30,06,000 5,65,33,000
3. Stocks, Shares, bonds & Debentures of Industrial Concerns 3,48,01,67,561 5,45,48,59,563
4. Investment in Subsidiaries 11,00,00,000 -
5. Investment in Venture Capital Fund - RCF 4,67,17,29,716 5,24,72,57,872
6. Others 4,04,46,09,640 1,93,67,88,007
Subtotal (B) 13,92,46,22,819 14,31,05,48,144
Total (A+B) 3,47,52,87,63,365 2,74,13,43,84,869

Schedule VIII: Loans & Advances [Net of Provisions]

[` ]
March 31, 2024 March 31, 2023
A) Refinance to
- Banks and Financial Institutions 38,70,61,09,04,304 31,54.51,92,29,538
- Micro Finance Institutions 1,10,09,89,88,118 65,35,57,66,859
- NBFC 5,72,99,80,45,997 3,57,13,84,30,997
- Bills Rediscounted - -
- Others (Subscription to Pass Through Certificate (PTC)) 6,25,19,65,911 3,42,69,18,395
Subtotal (A) 45,59,95,99,04,330 35,80,44,03,45,789
B) Direct Loans
- Loans and Advances 2,75,09,88,63,090 1,93,97,14,30,050
- Receivable Finance Scheme - 9,23,64,439
- Bills Discounted 14,27,17,59,897 5,45,12,46,393
Subtotal (B) 2,89,37,06,22,987 1,99,51,50,40,882
Total (A+B) 48,49,33,05,27,317 37,79,95,53,86,671

Schedule IX: Fixed Assets [Net of Depreciation]

[` ]
March 31, 2024 March 31, 2023
1. Premises 2,81,35,50,735 2,92,87,49,254
2. Others 5,55,20,421 4,64,32,908
Total 2,86,90,71,156 2,97,51,82,162

Annual Report 2023-24 57

Schedules to Consolidated Balance Sheet
Schedule X: Other Assets
[` ]
March 31, 2024 March 31, 2023
Accrued Interest 35,23,30,06,025 20,06,49,05,484
Advance Tax (Net of provision) 2,91,21,99,953 1,94,01,91,139
Staff Loans 2,23,69,85,494 1,95,26,21,807
Derivative Assets 4,56,03,84,977 5,41,20,83,018
Expenditure to the extent not written off 16,76,79,45,998 17,27,27,73,418
Others 8,98,58,86,023 2,77,51,95,278
Total 70,69,64,08,470 49,41,77,70,144

Schedule XI: CONTINGENT LIABILITIES

[` ]
March 31, 2024 March 31, 2023
i) Claims against the Bank not acknowledged as debts 9,89,43,47,386 9,64,85,12,907
ii) On account of Guarantees / Letters of Credit 67,38,62,553 42,97,75,967
iii) On account of Forward Contracts 72,24,92,243 16,78,26,751
iv) On account of Underwriting Commitments - -
v) On account of uncalled monies on partly paid shares, debentures & undrawn 97,00,54,081 1,27,42,87,728
commitment under VCF etc.
vi) On account of derivative contracts 25,71,32,45,906 33,61,40,07,657
vii) Other items for which the Bank is contingently liable - -
Total 37,97,40,02,169 45,13,44,11,010

Schedule XII: Interest and Discount

[` ]
March 31, 2024 March 31, 2023
1. Interest and Discount on Loans, Advances and Bills 2,84,85,05,93,418 1,59,18,31,07,149
2. Income on Investments / Bank balances 51,24,88,94,393 35,64,13,74,058
Total 3,36,09,94,87,811 1,94,82,44,81,207

Schedule XIII: Other Income

[` ]
March 31, 2024 March 31, 2023
1. Upfront and Processing Fees 1,37,32,98,452 89,51,11,922
2. Commission and Brokerage 2,02,56,743 1,09,30,972
3. Profit on sale of Investments 86,71,24,405 46,10,52,617
4. Income earned by way of dividends etc. from Subsidiaries / Associates 61,19,996 51,00,000
5. Provision of Earlier Years written Back - -
6. Recoveries out of Bad Debts 2,27,76,44,029 2,86,91,76,097
7. Reversal of Provisions/ERFF under FCL - -
8. Others 1,67,38,52,195 94,84,52,728
Total 6,21,82,95,820 5,18,98,24,336

58 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Schedules to Consolidated Profit & Loss Account

Schedule XIV: Operating Expenses
[` ]
March 31, 2024 March 31, 2023
Payments to and provisions for employees 8,34,28,60,344 5,12,63,88,812
Rent, Taxes and Lighting 21,93,44,266 18,07,59,949
Printing & Stationery, Postage/Courier & Tele and Insurance 2,30,92,315 2,26,92,930
Advertisement and Publicity 29,63,67,789 11,70,55,493
Depreciation / Amortisation on Bank's Property 61,89,71,613 26,67,08,148
Directors’ fees, allowances and expenses 78,59,229 1,01,32,867
Auditor’s Fees 46,35,257 44,86,516
Law Charges 2,54,79,948 3,57,41,963
Repairs and maintenance 41,67,10,875 28,98,84,437
Issue Expenses 7,77,36,100 5,60,22,041
Capital Commitment, Management Fees etc. 13,37,33,616 19,79,10,602
Input Tax Credit not Available 31,67,48,282 19,19,22,592
Other Expenditure 8,40,49,04,051 1,91,69,41,029
Total 18,88,84,43,685 8,41,66,47,379

Annual Report 2023-24 59

SCHEDULE XV – CONSOLIDATED SIGNIFICANT ACCOUNTING 5) KITCO Limited
POLICIES
Consolidated financial statements of the Group
1. BASIS OF PREPARATION
(comprising of 3 subsidiaries, 5 associates as per details
The consolidated financial statements (CFS) have been given above) have been prepared on the basis of:
prepared to comply in all material respects with the
Small Industries Development Bank of India Act, 1989 a. Accounts of SIDBI (Parent).
(Parent) and regulations thereof, applicable prudential
norms prescribed by Reserve Bank of India, applicable b. Line by line aggregation of each item of asset/
provisions of the Companies Act, 2013, applicable liability/income/expense of 3 subsidiaries with the
Accounting Standards issued by the Institute of Chartered respective item of the Parent and after eliminating
Accountants of India and practices prevailing in the all material intra-group balances / transactions,
Banking Industry. The consolidated financial statements unrealised profit/loss as per AS 21 (Consolidated
have been prepared under the historical cost convention Financial Statements) issued by the Institute of
on an accrual basis, unless otherwise stated. Except Chartered Accountants of India (ICAI).
otherwise mentioned, the accounting policies that are
applied by the Small Industries Development Bank of c. Investments in Associates are accounted for under
India (“the Bank” or “SIDBI”), are consistent with those the Equity Method as per AS 23 (Accounting for
used in the previous year. Investments in Associates in Consolidated Financial
Statements) issued by ICAI based on the audited
Use of Estimates: Financial Statements of the associates.
The preparation of consolidated financial statements
in conformity with Generally Accepted Accounting d. In case of difference in Accounting Policies, the
Principles (GAAP) requires the management to make Financial Statements of Subsidiaries are adjusted,
estimates and assumptions that affect the reported wherever necessary and practicable, to conform
amounts of assets and liabilities and the disclosure of to the Accounting Policies of the Parent. In case
contingent liabilities as on the date of the consolidated of difference in Accounting Policies, the Financial
financial statements and the reported income and Statements of associates, adjustments have not
expenses for the reporting period. Management believes been made as in the opinion of Management of the
that these estimates and assumptions are reasonable Bank the same are not material.
and prudent. However, actual results could differ from
these estimates. Any revision to accounting estimates 2. REVENUE RECOGNITION
is recognized prospectively in current and future periods Revenue is recognized to the extent it is probable that the
in accordance with the requirements of the respective economic benefits will flow to the Bank and the revenue
accounting standard. can be reliably measured.

Consolidation Procedures: A) INCOME:

Subsidiaries included in consolidated financial statements i. Interest income is accounted for on accrual
for FY 2023-24 are: basis, except in the case of non-performing
assets where it is recognized upon realization.
1) Micro Units Development & Refinance Agency
(MUDRA) ii. Income in the Profit & Loss Account is
shown gross i.e. before provisions as per RBI
2) SIDBI Venture Capital Limited (SVCL). guidelines and other provisions as per Bank’s
internal policy.
3) SIDBI Trustee Company Limited (STCL).
iii. Discount received in respect of bills discounted
 ssociates included in consolidated financial statements
A / rediscounted and on discounted instruments
for FY 2023-24 are: is recognised over the period of usance of the
instruments on a constant yield basis.
1) Acuite Ratings Pvt Ltd (Erstwhile SMERA)
iv. Commitment charges, service charges on
2) India SME Asset Reconstruction Company Limited seed capital / soft loan assistance and royalty
(ISARC) income are accounted for on accrual basis in
respect of standard (performing) assets.
3) Delhi Financial Corporation (DFC)
v. Dividend on shares held in industrial concerns
4) Receivables Exchange of India Limited (RXIL) and financial institutions is recognized as

60 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

income when the right to receive the dividend funds / alternative investments funds are not
is established. received as there is no certainty that economic
benefits will flow to the Company and in such
vi. Income from Venture Capital funds are cases it will be accounted on receipt basis as
accounted on realization basis. Redemption and when received.
of unit/shares in Venture Capital fund, while in
HTM category is not treated as a sale. The Company accrues income by way of
management fee on a quarterly basis / annual
vii. Recovery in non-performing assets (NPA) is to basis (as stipulated in the respective funds
be appropriated in the following order: documents) from the Venture Capital Funds /
Alternative Investments Funds managed by it.
a) overdue interest upto the date of NPA,
The Company recognizes income @ 5% of the
b) principal,
net profits received from sale of investments
c) cost & charges, assigned by IIBI
d) interest and
xvii. STCL - Revenue is recognized to the extent that
e) penal charges. it is probable that the economic benefits will
flow to the Company and the revenue can be
viii. Gain/loss on sale of loans and advances reliably measured.
through direct assignment is recognized in line
with the extant RBI guidelines. The Company accrues income by way of
trusteeship fee on a quarterly basis / annual
ix. Amounts recovered against debts written-off basis (as stipulated in the agreements with
in earlier years are recognized as income in the respective funds) from the venture capital
Profit & Loss account. funds / alternative investments funds managed
by it.
x. Profit or loss on sale of investments in any
category is taken to profit & loss account. B) EXPENDITURE:
However, in case of profit on sale of investments
i. All expenditures are accounted for on accrual
under “Held to Maturity” category an equivalent
basis except Development Expenditure which
amount net of applicable taxes is appropriated
is accounted for on cash basis.
to Capital Reserves.
ii. Discount on Bonds and Commercial papers
xi. Amount lying as unclaimed liabilities (other
issued are amortized over the tenure of Bonds
than statutory liabilities) for a period of more
and Commercial Paper. The expenses relating
than seven years are recognized as income.
to issue of Bonds are amortized over the tenure
of the Bonds.
xii. The bank has accounted for interest on income
tax refunds upon receipt of such refund orders
3. INVESTMENTS:
/ Order giving effects issued by Income
Tax Department. (i) In terms of extant guidelines of the Reserve Bank of
India on investment classification and valuation, the
xiii. Recoveries of CGTMSE fees, Valuation entire investment portfolio is categorized as “Held to
charges, Advocate fee, Insurance, Upfront Maturity”, “Available for Sale” and “Held for Trading”.
fee/ Processing fee etc. from Borrowers are Investments are valued in accordance with RBI
accounted on cash basis. guidelines. The investments under each category
are further classified as:
xiv. Commission on LC/ BG are recognized on
accrual basis proportionately over the period. a) Government Securities,

b) Other approved securities,

xv. Income from units of mutual funds shall be
recognized on cash basis. c) Shares,

d) Debentures & Bonds,

xvi. SVCL - Revenue is recognized to the extent that
it is probable that the economic benefits will e) Subsidiaries/ joint ventures and
flow to the Company and the revenue can be
reliably measured. Revenue is not recognized f) Others (Commercial Paper, Mutual Fund Units,
where drawdowns in respective venture capital Security Receipts, Certificate of Deposits etc.)

Annual Report 2023-24 61

 (a) Held to Maturity: (vi) Recording purchase and sale transactions
Investments acquired with the intention to in Investments is done following ‘Settlement
hold till maturity are categorized under Held Date’ accounting.
to Maturity. Such investments are carried at
acquisition cost unless it is more than the face (vii) The debentures / bonds / shares deemed to be
value, in which case the premium is amortized in the nature of advance, are subject to the usual
over the period remaining to maturity. prudential norms applicable to loans & advances.
Investments in subsidiaries are classified
as Held To Maturity. Diminution, other than (viii) Cost of investments is determined on the weighted
temporary, in the value of investments average cost method.
under this category is provided for each
(ix) Brokerage, commission, etc. paid at the time of
investment individually.
acquisition/ sale are recognized in the profit &
(b) Held for Trading: loss account.

Investments acquired for resale within 90 (x) Broken period interest paid / received on debt
days with the intention to take advantage of investment is treated as interest expenses / income
the short-term price/interest rate movements and is excluded from cost / sale consideration. In
are categorized under Held for Trading. The respect of investments in government securities the
investments in this category are revalued broken period interest paid to the seller as part of
scrip-wise and net appreciation /depreciation cost is not capitalized and treated it as an item of
is recognized in the profit & loss account, expenditure under Profit & Loss Account.
with corresponding change in the book value
of the individual scrips. In respect of traded/ (xi) In respect of unquoted investments in industrial
quoted investments, the market price is taken concerns under Seed Capital Scheme, full provision
from the trades/ quotes available on the has been made.
stock exchanges.
(xii) Units of mutual fund are valued at repurchase price
(c) Available for Sale: as per relevant RBI guidelines.
Investments which do not fall within the
above two categories are categorized under (xiii) The unquoted fixed income securities (other than
Available for Sale. The individual scrip under government securities) are valued on Yield to
this category is revalued and net depreciation Maturity (YTM) basis with appropriate mark-up over
under any of the classification mentioned the YTM rates for Central Government securities of
above is recognized in the profit & loss account. equivalent maturity. Such mark-up and YTM rates
Net appreciation under any classification is applied are as per the relevant rates published
ignored. The book value of individual scrip is by FBIL.
not changed after the revaluation.
(xiv) Unquoted Shares are valued at breakup value, if the
(ii) An investment is classified as Held To Maturity, latest Audited Financial Statements of the investee
Available For Sale or Held For Trading at the time companies are available, or at `1/- per Company as
of its purchase and subsequent shifting amongst per RBI guidelines.
categories and its valuation is done in conformity
with RBI guidelines. 4. FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded in the
(iii) Treasury Bills, Commercial Papers and Certificates books of account in respective foreign currencies at
of Deposit, being discounted instruments, are valued the exchange rate prevailing on the date of transaction.
at carrying cost. Accounting for transactions involving foreign exchange
is done in accordance with Accounting Standard (AS)-11
(iv) The quoted Government Securities are valued at issued by Institute of Chartered Accountants of India, as
market prices and unquoted/non-traded government per following provisions:
securities are valued at prices declared by Financial
Benchmark India Pvt. Ltd.(FBIL). i. Contingent liability in respect of outstanding forward
exchange contracts, guarantees, acceptances,
(v) Investments which are made out of the Corpus or endorsements and other obligations are calculated
Funds provided by the Government of India (GOI) at the closing exchange rates notified by Foreign
and netted off from the related Fund balances are Exchange Dealers’ Association of India (‘FEDAI’).
carried at cost and not subject to RBI guidelines
of valuation.

62 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

ii. Foreign currency Assets and Liabilities are translated and are shown in the Balance Sheet on gross basis,
at the closing exchange rates notified by FEDAI as at which at are Book value and provisions are shown
the Balance sheet date. separately. However, provision on Standard Assets
are made as per RBI guidelines.
iii. Foreign currency Income and Expenditure items
are translated at monthly intervals through actual 7. TAXATION
sale/purchase and recognized in the profit & loss (i) Tax expense comprises both current tax and
account accordingly. deferred taxes. Current income tax is measured at
the amount expected to be paid to the tax authorities
iv. The revaluation difference on foreign currency in accordance with Income Tax Act,1961 and the
LoC is adjusted and recorded in a special account Income Computation and Disclosure Standards
opened and maintained, in consultation with GOI for (ICDS).
managing exchange risk.
(ii) Deferred income taxes reflects the impact of the
v. The Bank follows hedge accounting in respect current year timing differences between taxable
of foreign exchange contracts and derivative income and accounting income for the year and
transactions as per RBI guidelines. reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and
vi. Exchange differences arising on the settlement the tax laws enacted or substantively enacted at the
of monetary items are recognized as income or balance sheet date.
expense in the period in which they arise.
(iii) Deferred tax assets are recognized only to the extent
vii. Outstanding Forward Exchange Contracts which are that there is reasonable certainty that sufficient
not intended for trading are revalued at exchange future taxable income will be available against
rates notified by FEDAI. which such deferred tax assets can be realized.
Unrecognized deferred tax assets of earlier years
5. DERIVATIVES are re-assessed and recognized to the extent that it
The Bank presently deals in currency derivatives viz., has become reasonably certain that future taxable
Cross Currency Interest Rate swaps for hedging its income will be available against which such deferred
foreign currency liabilities. Based on RBI guidelines, the tax assets can be realized.
above derivatives undertaken for hedging purposes are
accounted on an accrual basis. Contingent Liabilities (iv) Disputed taxes not provided for including
on account of derivative contracts at contracted rupee departmental appeals are included under
amount are reported on the Balance Sheet date. Contingent Liabilities.

6. LOANS AND ADVANCES 8. SECURITISATION

i. Assets representing loan and other assistance (i) The Bank purchases credit rated Micro, Small and
portfolios are classified as performing and non- Medium Enterprises Asset pools from Banks /
performing based on the RBI guidelines. Provision Non-Banking Finance Companies by way of pass-
for non-performing assets is made in accordance through certificates issued by the Special Purpose
with the RBI guidelines. Vehicle. Such securitisation transactions are
classified as investments under Held for Trading
ii. Advances stated in the Balance Sheet are net of / Available for Sale category depending upon the
provisions made for non-performing advances and investment objective.
restructured NPA assets.
(ii) The Bank purchases credit rated pool of Micro, Small
iii. General provision on Standard Assets is made as per and Medium Enterprises assets under bilateral direct
RBI guidelines. assignment. Such direct assignment transactions
are accounted for as ‘advances’ by the Bank.
iv. Floating provision is made and utilized as per RBI
guidelines and Board approved policy. (iii) The Bank enters into sale of Loans & Advances
through direct assignment. In most of the cases,
v. MUDRA: MUDRA has been subscribing to Pass the Bank continues to service the Loans & Advances
Through Certificates backed by loans receivables sold under these transactions and is entitled to
originated by various MFIs / Banks / Non- the Residual interest on the Loans & Advances
Banking Finance Companies. Such securitization sold. Assets sold under direct assignment are
transactions are classified as Loans and Advances derecognized in the books of the Bank based on the
principle of surrender of control over the assets.

Annual Report 2023-24 63

 (iv) The residual income on the Loans & Advances sold B] Benefits (Short – term) while in service
is being recognised over the life of the underlying Liability on account of Short term benefits are
Loans & Advances. determined on an undiscounted basis and
recognised over the period of service, which entitles
(v) Security Receipts issued by the asset reconstruction the employees to such benefits.
companies are valued in accordance with the
guidelines applicable to such instruments, SVCL:
prescribed by RBI from time to time.
Employee Benefits
9. 
S ALE OF FINANCIAL ASSETS TO ASSET Defined Contribution Schemes:
RECONSTRUCTION COMPANIES (ARCs): Company’s Contribution to Provident Fund, etc. is
(i) The sale of NPA’s is on cash basis or investment charged to the Statement of Profit and Loss as and
in Security Receipt (SR) basis. In case of sale on when incurred.
SR basis, the sale consideration or part thereof is
treated as investment in the form of SRs. Defined Benefit Plans:
The Company also provides for retirement benefits
(ii) The assets if sold at a price below the Net Book in the form of gratuity. Such benefits are provided
Value (NBV) (i.e. book value less provisions held), for based on valuation, as at the balance sheet
the shortfall is debited to the Profit & Loss A/c. In date, made by an independent actuary. Incremental
case the sale value is higher than NBV, the excess liability based on actuarial valuation as per the
provision held can be reversed to profit & loss projected unit credit method as at the reporting date
account in the year the amounts are received. is charged as expense to the Statement of Profit and
Reversal of excess provision is limited to the extent loss. The company has taken a group gratuity policy
to which cash received exceeds the NBV of the asset. with Life Insurance Corporation of India (“LIC”) and
is funded.
10. PROVISIONING FOR STAFF BENEFITS:
A] Post retirement benefits: Performance Pay:
(i) Provident Fund is a defined contribution Performance Pay is an annual incentive to employees
scheme administered by the Bank and the based on the Company’s financial performance and
contributions are charged to the Profit & employee’s performance.
Loss Account.
Exit Incentive:
(ii) Gratuity liability and Pension liability are Exit Incentive is incentive to employees for effecting
defined benefit obligations and other long- accelerated exits from the Funds under management
term employee benefits like compensated of the Company.
absences, post-retirement medical benefits
etc. are provided based on the independent Leave Encashment:
actuarial valuation as at the Balance Sheet date The Company provides for retirement benefits in
using the projected unit credit method as per the form of leave encashment. Such benefits are
AS 15 (Revised 2005) - Employee Benefits provided for based on valuation, as at the balance
sheet date, made by an independent actuary. The
(iii) Actuarial gains or losses are recognized in short term and long term leave have been valued
the profit & loss account based on actuarial on actuarial basis as per the projected unit credit
valuations for the period in which they occur. method. Further, employees can also encash 15
days of their accumulated leave every financial year.
(iv) New Pension Scheme is a defined contribution
scheme and is applicable to employees who 11. FIXED ASSETS AND DEPRECIATION
have joined bank on or after December 01, 2011.
i) Fixed Assets are stated at cost of acquisition less
Bank pays fixed contribution at pre-determined
accumulated depreciation and impairment losses,
rate and the obligation of the Bank is limited
if any.
to such fixed contribution. The contribution is
charged to Profit & Loss Account.
ii) Cost of asset includes purchase cost and all
expenditure incurred on the asset before put to
(v) Payments made under the Voluntary
use. Subsequent expenditure incurred on assets
Retirement Scheme are charged to the Profit &
put to use is capitalized only when it increases
Loss account in the year of expenses incurred.
the future benefits from such assets or their
functioning capability.

64 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

iii) Depreciation for the full year, irrespective of date of the rates and in the manner prescribed in Schedule
capitalization, is provided on: II to the Companies Act, 2013. Cost of mobile /
telephone instruments / tablet devices purchased
a) Furniture and fixture: For assets owned by Bank are capitalized and being highly technologically
@ 100 percent obsolete, charged to 100% depreciation, in the year
of purchase, subject to invoice is in the name of the
b) Computer and Computer Software @ Company. In case, the invoice is not in the name of
100 percent the Company, same is being charged to Revenue
Expenditure. Depreciation on assets whose actual
c) Building @ 5 percent on WDV basis cost is not more than five thousand rupees has been
provided at the rate of 100%.
d) Electrical Installations: For assets owned by
Bank @ 50 percent on WDV basis. 12. PROVISION FOR CONTINGENT LIABILITIES AND
CONTINGENT ASSETS.
e) Motor Car - Straight Line Method @ 50 percent.
In accordance with AS-29 Provisions, Contingent
Liabilities and Contingent Assets, the Bank recognizes
iv) Depreciation on additions is provided for full year
provisions involving substantial degree of estimation in
and no depreciation is provided in the year of sale/
measurement when it has a present obligation as a result
disposal.
of past event, it is probable that there will be an outflow
of resources and a reliable estimate can be made of the
v) Leasehold land is amortised over the period of lease.
amount of the obligation. Contingent Assets are neither
recognized nor disclosed in the consolidated financial
MUDRA
statements. Contingent liabilities are not provided for
Fixed assets are stated at cost of acquisition
and are disclosed in the balance sheet and details given
including incidental expenses. All costs directly
by way of Schedule to the Balance Sheet. Provisions,
attributable to bringing the asset to the working
contingent liabilities and contingent assets are reviewed
condition for its intended use including financing
at each Balance Sheet date.
costs are also capitalized. Depreciation is provided
on Straight Line Method on the basis of useful life 13. GRANTS AND SUBSIDIES
under Schedule II to the Companies Act, 2013 which
Grants and subsidies from the Government and other
as under:
agencies are accounted as per the terms and conditions
a) Office Equipment’s -5 years of the agreement.

b) Computer and hardware – 3 years 14. OPERATING LEASE

Lease rentals is recognized as an expense/income in the
c) Electrical installation -10 years Profit & Loss Account on a straight line basis over the
lease term in accordance with AS-19.
The useful life of Servers and networks are taken at
3 years as per Management estimates. In respect 15. IMPAIRMENT OF ASSETS
of Computer Software, the cost is amortized based The carrying amounts of assets are reviewed at each
on accounting standard 26 issued by ICAI which are Balance Sheet date, if there is any indication of impairment
as under: based on internal/external factors, to recognize,

a) Computer software - 3 years. a) the provision for impairment loss, if any required; or

b)  omputer License – 1 – 3 years as per tenure

C b) the reversal, if any, required for impairment loss
of license recognized in the previous periods.

Assets costing `5,000/- or less have been Impairment loss is recognized when the carrying amount
depreciated over a period of one year. of an asset exceeds recoverable amount.

SVCL 16. CASH AND CASH EQUIVALENTS

Fixed Assets are stated at cost of acquisition Cash and cash equivalents for the purpose of cash
less accumulated depreciation. The Company flow statement include cash in hand, balances with RBI,
capitalises all costs relating to the acquisition and balances with other banks, money at call and short notice
installation of fixed assets. Depreciation on Fixed and investment in Mutual Fund with an original maturity
Assets is provided on Written down Value Method at of three months or less.

Annual Report 2023-24 65

Additional Notes to Consolidated Accounts
Annexure - I
1 Details of Subsidiaries included in consolidated financial statements are:
[` ]
Sr. Name of the subsidiary Country of Proportion of Profit/Loss for the year ended
No. Incorporation ownership* 31-Mar-24 31-Mar-23
1 SIDBI Venture Capital Ltd.(SVCL) India 100% 4,58,51,288 4,43,09,242
2 SIDBI Trustee Company Ltd.(STCL) India 100% 66,77,258 54,64,545
3 Micro Units Development & Refinance India 100% 8,14,69,71,873 5,75,74,79,271
Agency Ltd (Mudra Ltd)
Total 8,19,95,00,419 5,80,72,53,058
Financial statements of MUDRA is audited for the FY 2024 and with repsect to SVCL and STCL, financials are unaudited for FY 2024.
*As all shares of the subsidiaries are owned by SIDBI directly or indirectly, no separate disclosure relating to minority interest is reflected.
Note: As SIDBI Swavalamban Foundation (SSF) is a Not-for-Profit Company [incorporated under section 8 of Companies Act, 2013],
SSF is not being considered for consolidation in preparation of Consolidated Financial statements as per Accounting Standard 21.

2. A Details of Associates included in consolidated financial statements in current and previous year are as follows :
[` ]
(%) Holding Investment Investment Share of Profit/(loss) for Share in reserves as at [1]
Sr. Name of the the year ended [1]
Description (Face
No. Associate
31-Mar-24 31-Mar-23 Value) 31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23
1 Acuite Ratings 35.73 35.73 Credit Rating 5,10,00,000 5,10,00,000 5,10,00,000 4,14,13,214 5,72,58,397 25,25,03,553 21,10,90,339
Pvt Ltd Agency for
(Erstwhile SME's
SMERA) [2]
2 India SME Asset 26.00 [3] 26.00 Asset 15,00,00,000 15,00,00,000 15,00,00,000 2,44,67,393 27,93,50,516 33,71,75,280 31,27,07,888
Recons-truction Recons-
Company truction
Limited [3] Company
3 Delhi Finance 23.76 23.76 State 6,27,75,000 3,13,87,500 3,13,87,500 - (89,47,164) (5,23,15,435) (3,13,87,500)
Corporation [4] Financial
Corporation
4 Receivables 30.00 30.00 Online 15,00,00,000 15,00,00,000 15,00,00,000 8,48,67,000 2,62,95,270 3,28,99,800 (5,19,67,200)
Exchange of platform for
India Limited [5] factoring /
discounting
of Trade
Receivables
(TReDS)
5 KITCO LIMITED 49.77 49.77 Technical 4,90,00,000 24,95,296 24,95,296 (5,46,71,728) (1,58,49,938) 9,66,59,610 15,13,31,338
[5] consultancy
Organisation
Total 38,48,82,796 38,48,82,796 9,60,75,879 33,81,07,081 66,69,22,807 59,17,74,865

1 (i) Share of Profit/(loss) of `9,60,75,879/- (Previous Year `33,81,07,081/-) is credited to Consolidated Profit & Loss statement
under the head “”Share of (earning)/loss in associates”” for year ending March 2024.
(ii) Share in Reserves of Associates of `66,69,22,807/- (Previous Year ` 59,17,74,865/-) is Included in Schedule II - Reserve,
Surplus and Funds of the Consolidated Balance Sheet for year ending March 2024.
2. Acuite Ratings Pvt. Ltd figures are based on unaudited financial statements for year ending March 2024.
3. India SME Asset Reconstruction Company Limited’s figures are based on audited financial statements for year ending March
2024. Includes 11% holding by SVCL (100% subsidiary of SIDBI).
4. Delhi Finance Corporation figures are based on audited financial statements for the year ending March 31, 2023.
# Share of loss of to the extent of book value of investment is restricted for consolidation in the associate.

5. Receivables Exchange of India Limited’s figures are based on audited financial statements as per IND AS for the year ending
March 2024 and KITCO Ltd. Financials figures are based on provisional as on March 31, 2024.

66 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

6. One of the associate viz. ISTSL is under liquidation and therefore, not being considered for consolidation in preparation
of Consolidated Financial Statements as per Accounting Standard 21. SIDBI has made full provision on investment in this
associate in its financial statements for year ending March 2021.

B. The results of the following associates are not included in the consolidated financial statements. However, full provision
has been made in the financial statements for diminution in value of investment.
[` ]
Diminution in value of
Sr. (%) Holding
Name of the Associate Description Investment Investment
No.
31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23
1 BSFC 48.43 48.43 State Financial Corporation 12,01,25,000 (12,01,25,000) (12,01,25,000)
2 GSFC 28.41 28.41 State Financial Corporation 12,66,00,000 (12,66,00,000) (12,66,00,000)
3 MSFC 39.99 39.99 State Financial Corporation 12,52,41,750 (12,52,41,750) (12,52,41,750)
4 PFC 25.92 25.92 State Financial Corporation 5,23,51,850 (5,23,51,850) (5,23,51,850)
5 UPSFC 24.18 24.18 State Financial Corporation 17,27,50,000 (17,27,50,000) (17,27,50,000)
Total 59,70,68,600 (59,70,68,600) (59,70,68,600)

The figures for GSFC are based on audited results for the year ended March 31,2023. Regarding PFC, BSFC, MSFC and
UPSFC figures are based on audited results for the year ended March 31, 2020, March 31, 2019, March 31, 2016 and March
31, 2014 respectively.

C. In case of following entities, though the bank holds more than 20% of voting power, they are not treated as investment
in associate under AS 23 ‘Accounting for Investment in Associates in Consolidated Financial Statements’, as they are
classified as NPI and accordingly book value of investment is taken at `1/- each.
[` ]
Sr. (%) Holding Investment
Name of the Associate Description
No. 31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23
1 Bihar Industrial and Technical Consultancy 49.25 49.25 Technical Consultancy 1 1
Organisation Ltd. Organisation

3 There are no significant transactions with Associates during the current year and previous year.

4 As against depreciation policy of SIDBI whereby assets are depreciated on SLM / WDV at pre-determined rates, the
subsidiaries and associates compute depreciation on SLM/ WDV basis as per Schedule II of the Companies Act, 2013. Thus,
out of the total depreciation of `61,89,71,613/- (Previous Year `26,67,08,148/-) included in Consolidated Financial Statements,
`69,85,989/- being 1.13% (Previous Year `43,79,854/- being 1.64%) of the amount is determined based on Depreciation
provided as per the Companies Act, 2013.

5 Employee Benefits
(i) SIDBI
In accordance with the Accounting Standard on “Employee Benefits” (AS 15) (Revised 2005) issued by the Institute of
Chartered Accountants of India, the Bank has classified the various benefits provided to the employees as under:

(a) Defined contribution plan

The Bank has recognized the following amounts in Profit & Loss Account:
[` ]
Particulars 31-Mar-24 31-Mar-23
Employer’s contribution to Provident fund 12,15,49,983 9,18,53,963
Employer’s contribution to New Pension Scheme 12,81,87,062 8,95,82,393

Annual Report 2023-24 67

 (b) The Bank is having defined benefit Pension Plans and Gratuity Scheme which are managed by the Trust.
` Crore
Pension Gratuity
FY 2024 FY 2023 FY 2024 FY 2023
1. Assumptions
Discount Rate 7.20% 7.50% 7.20% 7.40%
Rate of Return on Plan Assets 7.20% 7.50% 7.20% 7.40%
Salary Escalation 5.50% 5.50% 5.50% 5.50%
Attrition rate 2.00% 2.00% 2.00% 2.00%
2. Table showing change in Benefit Obligation
Liability at the beginning of the year 679.80 576.93 107.40 108.95
Interest Cost 25.92 24.65 7.57 7.09
Current Service Cost 14.45 13.48 5.98 5.92
Past Service Cost (Non Vested Benefit) 0.00 0.00 0.00 0.00
Past Service Cost ( Vested Benefit) 0.00 0.00 0.00 0.00
Liability Transferred in 0.00 0.00 0.00 0.00
(Liability Transferred out) 0.00 0.00 0.00 0.00
(Benefit Paid) 0.00 0.00 (13.97) (12.44)
Actuarial (gain) / loss on obligations 47.53 64.74 4.90 (2.12)
Liability at the end of the year 767.70 679.80 111.88 107.40
3. Tables of Fair value of Plan Assets
Fair Value of Plan Assets at the beginning of the year 635.76 589.61 102.30 105.92
Expected Return on Plan Assets 47.68 42.75 7.41 7.08
Contributions 0.00 0.00 0.01 0.04
Transfer from other company 0.00 0.00 0.00 0.00
(Transfer to other company) 0.00 0.00 0.00 0.00
(Benefit Paid) 0.00 0.00 (13.97) (12.44)
Actuarial gain / (loss) on Plan Assets (1.27) 3.40 (0.36) 1.70
Fair Value of Plan Assets at the end of the year 682.17 635.76 95.39 102.30
4. Table of Recognition of Actuarial Gains/ Losses
Actuarial (Gains)/ Losses on obligation for the period 47.53 64.74 4.90 (2.12)
Actuarial (Gains)/ Losses on asset for the period 1.27 (3.40) 0.36 (1.70)
Actuarial (Gains)/ Losses recognized in Income & 48.80 61.34 5.26 (3.82)
Expense Statement
5. Actual Return on Plan Assets
Expected Return on Plan Assets 47.68 42.75 7.41 7.08
Actuarial Gain / (Loss) on Plan Assets (1.27) 3.40 (0.36) 1.70
Actual Return on Plan Assets 46.41 46.15 7.05 8.78
6. Amount Recognised in the Balance Sheet
Liability at the end of the year (767.70) (679.80) (111.88) (107.40)
Fair Value of Plan Assets at the end of the year 682.17 635.76 95.39 102.30
Difference (85.53) (44.04) (16.49) (5.10)
Unrecognised Past Service Cost at the end of the 0.00 0.00 0.00 0.00
year
Unrecognised Transitional Liability at the end of the 0.00 0.00 0.00 0.00
year
Net Amount recognised in the Balance Sheet (85.53) (44.04) (16.49) (5.10)

68 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

` Crore
Pension Gratuity
FY 2024 FY 2023 FY 2024 FY 2023
7. Expenses Recognised in the Income Statement
Current Service Cost 14.46 13.48 5.98 5.92
Interest Cost 25.92 24.65 7.57 7.09
Expected Return on Plan Assets (47.68) (42.75) (7.41) (7.08)
Past Service Cost (Non Vested Benefit) recognised 0.00 0.00 0.00 0.00
during the year
Past Service Cost (Vested Benefit) recognised during 0.00 0.00 0.00 0.00
the year
Recognition of Transition Liability during the year 0.00 0.00 0.00 0.00
Actuarial (Gain) / Loss 48.80 61.34 5.26 (3.82)
Expense Recognised in Profit & Loss account 41.50 56.72 11.40 2.11
8. Balance Sheet Reconciliation
Opening Net Liability 44.04 (12.68) 5.10 3.03
Expense as above 41.50 56.72 11.40 2.11
Employers Contribution - 0.00 (0.01) (0.04)
Amount recognised in the Balance Sheet 85.54 44.04 16.49 5.10

9. Other Details
Salary escalation is considered in line with the industry practice considering promotion, demand and
supply of the employees.
` Crore
Pension Gratuity
FY 2024 FY 2023 FY 2024 FY 2023
10. Category of Assets
Government of India Assets 0.00 0.00 0.00 0.00
Corporate Bonds 0.00 0.00 0.00 0.00
Special Deposits Scheme 0.00 0.00 0.00 0.00
Equity Shares of Listed Companies 0.00 0.00 0.00 0.00
Property 0.00 0.00 0.00 0.00
Insurer Managed Funds 682.17 635.76 95.39 102.30
Other 0.00 0.00 0.00 0.00
Total 682.17 635.76 95.39 102.30

11. Experience Adjustment:

Particular Pension Gratuity
FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2024 FY 2023 FY 2022 FY 2021 FY 2020
On Plan Liability (Gain)/ 17.32 85.05 15.71 (1.14) 46.87 3.44 1.60 0.65 (0.43) 3.28
Loss
On Plan Asset (Loss)/ 1.27 3.40 53.76 (1.15) 25.17 (0.36) 1.70 (0.22) (0.13) 0.09
Gain

Annual Report 2023-24 69

 (c) The following are the amount charged to Profit & Loss Account relating to other long term benefits plan based
on the actuarial valuation provided by independent actuary.
` Crore
Sr. No Particulars As on As on
March 31, 2024 March 31, 2023
1 Ordinary Leave Encashment 31.61 40.97
2 Sick Leave -0.08 1.86
3 Resettlement Expenses 0.75 0.46
4 Post Retirement Medical Scheme Facilities 9.21 0.79

(ii) SVCL
During the period, the Company has contributed a sum of `6,57,640/- (previous year – `3,47,753/-) to the SIDBI Venture
Capital Limited Employees’ Group Gratuity Assurance Scheme (Trust) for its employees comprising `52/- (previous
year - `2,26,660/-) for old employees and `6,57,588/- (previous year – `1,21,093/-) for new employees.
Details Post Employment Benefits
FY 2024 FY 2023
Nature of benefit Gratuity Gratuity
Assets & liabilities recognized in balance sheet
Present value of unfunded defined benefit obligations Nil Nil
Present value of funded or partly funded defined benefit obligations ` 60,55,243 ` 67,94,806
Fair value of plan assets ` 62,54,710 ` 71,60,191
Past service cost not recognized in balance sheet Nil Nil
Any amount nor recognized as asset Nil Nil
Fair value of any reimbursement rights recognized as asset Nil Nil
Other amounts, if any, recognized in balance sheet Nil Nil
Amounts included in fair value of plan assets:
Own financial instruments Nil Nil
Property or other assets used Nil Nil
Insurer managed funds ` 62,54,710 ` 71,60,191
Movement in net liability:
Opening net liability (`3,65,385) (`1,53,674)
Expenses ` 8,23,558 ` 1,36,063
Contribution (` 6,57,640) (`3,47,774)
Closing net liability -` 1,99,467 (`3,65,385)
Expenses recognized in statement of profit & loss
Current service cost ` 3,66,611 ` 1,45,246
Interest cost ` 5,09,610 ` 4,49,011
Expected return on plan assets (` 5,37,014) (`4,59,691)
Expected return on reimbursement rights N.A. N.A.
Actuarial gains / (losses) ` 4,84,351 ` 1,497
Total expenses recognized in statement of profit & loss ` 8,23,558 ` 1,36,063
Past service cost Nil Nil
Effect of curtailment / settlement Nil Nil
Effect of limit in para 59(b) N.A. N.A.

70 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Details Post Employment Benefits

FY 2024 FY 2023
Actual return of plan assets and on reimbursement rights recognized 657640 Nil
as asset
Actuarial Assumptions
Discount rates 7.50% 6.95%
Expected rate of returns on plan assets 7.50% 6.95%
Expected rate of returns on reimbursement rights Nil Nil
Expected rate of salary increase 5.00% 5.00%
Medical cost trends N.A. N.A.
Mortality Indian Assured Lives Indian Assured Lives
Mortality (2012-14) Mortality (2012-14)
(Urban) (Urban)
Disability Nil Nil
Attrition 3.00% 3.00%
Retirement age 60 Years 60 Years

(iii) MUDRA
(a) For the employees who are on deputation from Small Industrial Development Bank of India (SIDBI), Gratuity,
Leave Encashment and Arrears of Salary are taken care by the employer, who have deputed the employees to this
company. Further, MUDRA has provided an amount of `28.97 lakh (March 2023: `30.32 lakh) to P&L A/c during the
current FY. The same would be paid to SIDBI, when such costs are demanded by SIDBI. With respect to contract
employees there is no post employment benefits which are applicable.
(b) Therefore no disclosures are required under ‘Revised AS 15- Employees Benefit’ issued under Companies
Accounting Standard Rules, 2006’

6 Earning Per Share (EPS)*:

March 31, 2024 (`) March 31, 2023 (`)
Net Profit considered for EPS calculation 48,22,33,97,709 39,31,47,12,878
Weighted Average Number of equity shares of face value `10 each 56,85,41,169 56,85,41,169
Earning per share 84.82 69.15
*Basic & Diluted EPS are same as there are no dilutive potential Equity Shares.

7 As per the Accounting Standard 22, Accounting for Taxes on Income, the Bank has reviewed Deferred Tax Assets /
Liabilities and recognized an amount of `5,54,52,09,931/- as Deferred Tax Liablity (Previous year - Deferred Tax Asset was
`172,73,59,844/-) in the Profit & Loss Account for the year ended March 31, 2024.
The Break up of Deferred Tax Asset/ (Liability) as on March 31, 2024 is as under :
Sr. Timing Difference Deferred Tax Asset/(Liability)
No. FY 2023-24 (`) FY 2022-23 (`)
1 Provision for Depreciation on fixed assets 9,96,08,023 2,99,66,550
2 Special Reserve u/s 36(1)(viii) of the Income Tax Act 1961 (4,47,95,70,413) (4,07,64,80,346)
3 Provision for Non performing assets 25,11,88,222 11,70,13,876
4 Provision for Restructuring of Accounts (0) 60,105
5 Provision for Non Performing Investment 81,27,67,668 83,40,09,746
6 Provision for Standard Assets 9,34,03,67,925 4,64,13,82,523
7 Others 1,65,24,58,516 58,56,57,558
Net deferred tax Asset/(Liability) 7,67,68,19,942 2,13,16,10,013

8 Estimated amount of contracts remaining to be executed on Capital - 73,41,057

Account not provided for (net of advance paid)

Annual Report 2023-24 71

9 Disclosure relating to Resolution Plans implemented during the year in terms of RBI Circular DBR.No.BP.
BC.45/21.04.048/2018-19 dated June 7, 2019:
i) RPs Successfully implemented during the year ended March 31, 2024
No. of cases Balance Outstanding*
Nil Nil

ii) Details of Securities acquired due to conversion of debt to equity during a restructuring process:
Particulars No of Shares/units Face Value per share (in `) Book Value(in `)
Nil Nil Nil Nil

iii) Details of resolution plans implemented under the RBI Resolution Framework for COVID-19 related stress as per RBI
circular dated 6th August, 2020 (Resolution Framework 1.0) and 5th May 2021 (Resolution Framework 2.0) as at March
31, 2024 are given below :
Type of borrower Exposure to accounts classified Of (A), Of (A) Of (A) amount Exposure to accounts
as Standard consequent to aggregate debt amount paid by the classified as Standard
implementation of resolution that slipped written off borrowers consequent to implementation
plan – Position as at the end of into NPA during during the during the of resolution plan – Position
the previous half-year (A) the half-year half-year half-year $ as at the end of this half-year
Personal Loans --- --- --- --- ---
Corporate persons 24.66 --- --- 15.54 9.12
Of which MSMEs 24.66 --- --- 15.54 9.12
Others --- --- --- --- ---
Total 24.66 --- --- 15.54 9.12

$ Represents net movement in balance outstanding.

iv) The number of borrower accounts where Resolution Plan is implemented in terms of RBI circular no. DOR.STR.
REC.11/21.04.048/2021-22 dated May 5, 2021 on Resolution Framework – 2.0: Resolution of COVID-19 related stress of
Individuals and Small Businesses is nil. Further no modifications were sanctioned and implemented in respect of accounts
which were implemented under Resolution Framework 1.0

10 Contingent Liabilities referred to in Schedule XI

Contingent liabilities include “Claims against the Bank not acknowledged as debts” of ` 9,89,43,47,386 (Previous Year
`9,64,85,12,907). These represents claims filed against the Bank in the normal course of business relating to various legal
cases currently in progress and demands raised by income tax and other statutory authorities. These is being disputed by
the Bank and based on expert’s opinion, the provision is not considered necessary.

11 In the opinion of the Management, there is no material impairment of the fixed assets of the Bank in terms of Accounting
Standard 28- Impairment of Assets.

12 Disclosures under Accounting Standard 29 for provisions in contingencies. The salary & allowances of the employees of the
Bank are reviewed every five years. Such review is due from November 01, 2022.
Particulars Wage Arrears / Incentive `
FY 2024 FY 2023
Opening Balance 23,64,78,635 1,39,13,00,000
Additions: -
Arrears 1,17,22,22,552 65,69,31,704
Incentive - -
Utilisations: 1,71,67,511 1,81,17,53,069
Write back - -
Closing Balance 1,39,15,33,676 23,64,78,635

72 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

13 Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances for MSME Borrowers registered under
Goods and Services Tax (GST):
As per RBI circular dated February 11, 2020 restructuring of advances was done for Micro, Small and Medium Enterprises
(MSME) Borrowers registered under Goods and Services Tax (GST). The RBI, vide its Circular dated August 06, 2020
on ‘Micro, Small and Medium Enterprises (MSME) Sector - Restructuring of Advances’ extended the above scheme to
support the viable MSME entities on account of the fallout of Covid19. Further RBI vide circular RBI/2021-22/32 DOR.STR.
REC.12/21.04.048/2021-22 dated May 5, 2021 has advised Resolution Framework 2.0 – Resolution of Covid-19 related stress
of Micro, Small and Medium Enterprises (MSMEs). The MSME accounts restructured under these guidelines are as under:
No. of accounts restructured Amount (` in Crore)
915 554.34

14 During the year ended March 31,2024, the Bank has made an additional provision on standard advances at rates higher than
minimum stipulated under IRAC norms, as per Board approved Accelerated Provisioning Policy. Accordingly, the Bank holds
additional provision on standard advances (including restructured accounts) of `1,538.90 crore at March 31, 2024.

15 Details of loans transferred / acquired during the Year ended March 31, 2024 under the RBI Master Direction on Transfer of
Loan Exposures dated September 24, 2021 are given below:

i. Details of loans not in default acquired through assignment are given below:
Particulars 2023-24 2022-23
Aggregate amount of loans acquired (` in crore) 48.94 ---
Weighted average residual maturity (in months) 106.84 ---
Weighted average holding period by the originator (in months) 13.31 ---
Retention of beneficial economic interest by the originator 20% ---
Tangible security coverage 266.45% ---
Rating-wise distribution of rated loans --- ---

ii. Details of non-performing assets (NPAs) transferred

` in crore
Particulars To permitted To other
To ARCs
transferees transferees
No. of accounts 2 --- ---
Aggregate principal outstanding of loans transferred 939 --- ---
Weighted average residual tenor of the loans NA --- ---
transferred
Net book value of loans transferred (at the time of --- --- ---
transfer)
Aggregate consideration 455 --- ---
Additional consideration realized in respect of --- --- ---
accounts transferred in earlier years
During the year ended March 31, 2024, investment made in Security Receipts (SRs) was `56.77 crore. The Security
Receipts are provided for and hence the net book value is nil. Excess provisions reversed to the profit and loss account
on account of sale of stressed loans was nil.
iii. the bank has not transferred any loan not in default / Special Mention Accounts (SMA).
iv. The Bank has not acquired any stressed loan.

Annual Report 2023-24 73

16 In accordance with RBI Master Direction RBI/DOR/2021-22/85 DOR.STR.REC.53/21.04.177/2021-22 dated September 24,
2021 – (Securitisation of Standard Assets) Directions, 2021, the outstanding amount of securitised assets as per books of
the SPEs and total amount of exposures retained by the originator as on the date of balance sheet to comply with the MRR
is NIL for Year ended March 31, 2024.
17 Additional statutory information disclosed in separate financial statements of the parent and the subsidiaries have no bearing
on the true and fair view of the Consolidated Financial Statments and also the information pertaining to the items which are
not material have not been disclosed in the Consolidated Financial Statements in view of the general clarification issued by
the Institute of Chartered Accountants of India (ICAI).

18 Implementation of Ind-AS :
As per RBI letter dated May 15, 2019 issued to the Bank, implementation of Ind-AS for AIFIs has been deferred till further
notice. Accordingly, financial statements of the Bank are continued to be prepared under IGAAP.
19 In accordance with RBI Circular no. RBI/2023-24/90 DOR.STR.REC.58/21.04.048/2023-24 dated December 19, 2023-
Investments in Alternative Investment Funds (AIFs) and subsequent clarification vide circular no. RBI/2023-24/140 DOR.
STR.REC.85/21.04.048/2023-24 dated March 27, 2024, the Bank has made Provision of ` 110.64 Cr. for the Quarter and Year
ended March 31, 2024.
20 Schedule “XIV-Operating Expenses” includes the contribution of `500 crore made to CGTMSE by the Bank.
21 Regulation 14 of Small Industries Development Bank of India General Regulations, 2000 prescribes separate format for
presentation of accounts under Small Industries Development Assistance Fund(SIDAF) and General Fund. As no separate
SIDAF has been notified by the Central Government, the same is not being maintained by SIDBI.
22 Previous year’s figures have been re-grouped and re-classified wherever necessary to make them comparable with the current
year’s figures.

74 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Additional consolidated disclosures

as per RBI guidelines

1. Capital adequacy (As per Basel I)

(` Crore)
Sr. Particulars
FY 2023-24 FY 2022-23
No.
i) Common Equity* Not Applicable Not Applicable
ii) Additional Tier 1 capital* Not Applicable Not Applicable
(iii) Total Tier 1 capital 31260.02 26956.57
(iv) Tier 2 capital 2192.44 1585.69
v) Total Capital ( Tier 1+Tier 2) 33452.46 28542.26
vi) Total Risk Weighted Assets (RWAs) 187300.47 135214.71
vii) Common Equity Ratio ( Common Equity as a percentage of RWAs) * Not Applicable Not Applicable
viii) Tier 1 Ratio ( Tier 1 capital as a percentage of RWAs) 16.69% 19.94%
ix) Capital to Risk Weighted Assets Ratio (CRAR) (Total Capital as a 17.86% 21.11%
percentage of RWAs)
x) Percentage of the shareholding of the Government of India 20.85 20.85
xi) Amount of equity capital raised - -
xii) Amount of Additional Tier 1 capital raised; of which - -
a.) Perpetual Non-Cumulative Preference Shares (PNCPS): - -
b.) Perpetual Debt Instruments (PDI) - -
xiii) Amount of Tier 2 capital raised; of which - -
a.) Debt capital instruments: - -
b.) Perpetual Cumulative Preference Shares (PCPS) - -
c.) Redeemable Non-Cumulative Preference Shares (RNCPS) - -
d.) Redeemable Cumulative Preference Shares (RCPS) - -
* The figures are not being calculated at present, since BASEL-III is not applicable.
2. Free Reserves and Provisions
(a) Provision on Standard Assets
(` Crore)
Particulars FY 2023-24 FY 2022-23
Provisions towards Standard Assets (cumulative) 3711.20 1844.17

(b) Floating Provisions

(` Crore)
Particulars FY 2023-24 FY 2022-23
Opening balance in the floating provisions account 495.67 495.67
The quantum of floating provisions made in the accounting year 0.00 0.00
Amount of draw down made during the accounting year * 0.00 0.00
Closing balance in the floating provisions account 495.67 495.67
* Amount utilised for making NPA provision in terms of RBI circular dated May 05, 2021 and as per Bank’s Board approved policy on
floating provision.

Annual Report 2023-24 75

3. Asset Quality and specific provisions
(a) Non-Performing Advances
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Net NPAs to Net Advances (%) 0.00% 0.00%
(ii) Movement of NPAs (Gross)
(a) Opening balance 55.05 299.60
(b) Additions during the year 129.38 93.39
(c) Reductions during the year 62.93 337.94
(d) Closing balance 121.50 55.05
(iii) Movement of Net NPAs *
(a) Opening balance 8.56 132.10
(b) Additions during the year (1.29) (82.66)
(c) Reductions during the year 7.26 40.88
(d) Closing balance 0.00 8.56
(iv)  Movement of provisions for NPAs
(excluding provisions on standard assets)
(a) Opening balance 46.49 167.50
(b) Provisions made during the year 130.66 176.05
(c) Write of / write back of excess provisions 55.65 297.06
(d) Closing balance 121.50 46.49
*The Net NPA will be NIL for the previous year, if the amount of floating provision is adjusted against the same.
(b) Non-Performing Investments
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Net NPIs to Net Investments (%) 0.00% 0.00%
(ii) Movement of NPIs (Gross)
(a) Opening balance 331.38 350.16
(b) Additions during the year 350.31 -
(c) Reductions during the year 0.80 18.78
(d) Closing balance 680.89 331.38
(iii) Movement of Net NPAs
(a) Opening balance 0.00 0.00
(b) Additions during the year 0.00 0.00
(c) Reductions during the year 0.00 0.00
(d) Closing balance 0.00 0.00
(iv)  Movement of provisions for NPAs
(excluding provisions on standard assets)
(a) Opening balance 331.38 350.16
(b) Provisions made during the year 350.31 0.00
(c) Write of / write back of excess provisions 0.80 18.78
(d) Closing balance 680.89 331.38
*Includes Optionally Convertible Debentures of `297.76 crore, Security Receipt of `52.44 crore (initial investment of `56.77 crore) and
Equity Share of `0.01 crore acquired by way of conversion of debt, in line with extent RBI guidelines.

76 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

(C) Non-Performing Assets (a+b)

(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Net NPAs to Net Assets (Advanced + investments) (%) 0.00% 0.00%
(ii) Movement of NPAs (Gross Advances + Gross investments)
(a) Opening balance 386.43 649.76
(b) Additions during the year 479.69 93.39
(c) Reductions during the year 63.73 356.72
(d) Closing balance 802.38 386.43
(iii) Movement of Net NPAs
(a) Opening balance 8.56 132.10
(b) Additions during the year (1.29) (82.66)
(c) Reductions during the year 7.27 40.88
(d) Closing balance 0.00 8.56
(iv) Movement of provisions for NPAs
(excluding provisions on standard assets)
(a) Opening balance 377.87 517.66
(b) Provisions made during the year 480.98 176.05
(c) Write of / write back of excess provisions 56.46 315.84
(d) Closing balance 802.38 377.87

Annual Report 2023-24 77

 3 (d) Accounts Restructured
[` in crore]
Disclosure of Restructured Accounts

78
Sl Type of Restructuring  Under CDR Mechanism Under SME Debt Restructuring Mechanism Others Total
Asset Classification  Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total
Standard Standard Standard Standard
Details 
1 Restructured No. of Borrowers 0 0 - - - - - - - - 8.00 - - - 8.00 8.00 - - - 8.00
Accounts as on Amount - - - - - - - - - - 27.09 - 0.00 - 27.09 27.09 - 0.00 - 27.09
April 1 of the FY outstanding
(opening figures)*
Provision thereon - - - - - - - - - - 0.02 0.00 (0.00) - 0.02 0.02 0.00 (0.00) - 0.02
2 Fresh restructuring No. of Borrowers - - - - - - - - - - - 9.00 - - 9.00 - 9.00 - - 9.00
during the year Amount - - - - - - - - - - - 24.35 - - 24.35 - 24.35 - - 24.35
outstanding
Provision thereon - - - - - - - - - - - - - - - - - - - -
3 Upgradations No. of Borrowers - - - - - - - - - - - - - - - - - - - -
to restructured Amount - - - - - - - - - - - - - - - - - - - -
standard category outstanding
during the FY
Provision thereon - - - - - - - - - - - - - - - - - - - -
4 Restructured No. of Borrowers - - (5.00) - - - (5.00) (5.00) - - - (5.00)
standard advances

Small Industries Development Bank of India

Amount - - - - - - - - - - (7.13) - - - (7.13) (7.13) - - - (7.13)
which cease to outstanding
attract higher
provisioning and Provision thereon - - - - - - - - - - (0.01) - - - (0.01) (0.01) - - - (0.01)
/ or additional
risk weight at
the end of the FY
and hence need
not be shown
as restructured
standard advances
at the beginning of
the next FY
5 Downgradations No. of Borrowers - - - - - - - - - - - - - - - - - - - -
of restructured Amount - - - - - - - - - - - - - - - - - - - -
accounts during outstanding
the FY
Provision thereon - - - - - - - - - - - - - - - - - - - -
6 Write-offs of No. of Borrowers - - - - - - - - - - (1.00) (7.00) - - (8.00) (1.00) (7.00) - - (8.00)
restructured Amount - - - - - - - - - - (3.37) (9.37) - - (12.74) (3.37) (9.37) - - (12.74)
accounts during outstanding
the FY#
Provision thereon - - (0.01) - - - (0.01) (0.01) - - - (0.01)
7 Restructured No. of Borrowers - - - - - - - - - - 2.00 2.00 - - 4.00 2.00 2.00 - - 4.00
Accounts as on Amount - - - - - - - - - - 16.60 14.99 0.00 - 31.59 16.60 14.99 0.00 - 31.59
March 31 of the FY outstanding
(closing figures)*
Provision thereon - - - - - - - - - - (0.00) 0.00 (0.00) - (0.00) (0.00) 0.00 (0.00) - (0.00)

* Excluding the figures of Standard Restructured Advances which do not attract higher provisioning or risk weight (if applicable).
Note: Figures at Sr. No.6 includes increase in outstanding net of reduction / recovery of `3.25 crore in respect of existing restructured accounts.
 Corporate Overview Statutory Reports Financial Statements

(e) Movement of Non-performing assets

(` Crore)
Particulars FY 2023-24 FY 2022-23
Gross NPAs as on opening date of accounting period 55.05 299.60
(Opening Balance)
Additions (Fresh NPAs) during the year 129.38 93.39
Sub total (A) 184.43 392.99
Less :-
(i) Upgradations 6.72 35.01
(ii) Recoveries (excluding recoveries made from upgraded accounts) 1.86 32.79
(iii) Technical / Prudential Write offs 54.35 211.42
(iv) Write offs other than those under (iii) above - 58.72
Sub-total (B) 62.93 337.94
Gross NPAs as on 31st March of following year (Closing Balance) (A- 121.50 55.05
B)

(f) Write-offs and recoveries

(` Crore)
Particulars FY 2023-24 FY 2022-23
Opening balance of Technical / Prudential written off accounts as at 2,768.23 3,389.19
April 1
Add : Technical / Prudential write offs during the year 54.35 262.75
Sub total (A) 2,822.58 3,651.94
Less : Actual write off 966.48 594.90
Less : Recoveries made from previously technical / prudential written 228.13 288.81
off accounts during the year
Sub total (B) 1,194.61 883.71
Closing balance as at March 31 (A-B) 1,627.97 2,768.23
*Includes Optionally Convertible Debentures of `297.76 crore, Security Receipt of `52.44 crore(initial investment of `56.77 crore) and
Equity Share of `0.01 crore acquired by way of conversion of debt in line with extent RBI guidelines.

(g) Overseas Assets, NPAs and Revenue

(` Crore)
Particulars FY 2023-24 FY 2022-23
Total Assets Nil Nil
Total NPAs Nil Nil
Total Revenue Nil Nil

Annual Report 2023-24 79

(h) Depreciation and provisions on investments
(` Crore)
(1) Investments FY 2023-24 FY 2022-23
(i)Gross Investments 37,145.88 27,775.69
(a) In India 37,145.88 27,775.69
(b) Outside India
(ii) Provisions for Depreciation 708.64 362.25
(a) In India 708.64 362.25
(b) Outside India
(iii) Net Investments 36,437.24 27,413.44
(a) In India 36,437.24 27,413.44
(b) Outside India
(2) Movement of provisions held towards depreciation on
investments
(i) Opening balance 30.87 6.33
(ii) Add: Provisions made during the year 0.23 26.05
(iii) Appropriation, if any, from Investment Fluctuation Reserve - -
Account during the year
(iv) Less: Write off / write back of excess provisions during the 3.35 1.51
year*
(v) Less: Transfer, if any, to Investment Fluctuation Reserve - -
Account
(vi) Closing balance 27.75 30.87
*The Bank has appropriated `2.51 crore (net of applicable taxes) to Investment Fluctuation Reserve Account in FY 2024.

(i) Provisions and Contingencies

(` Crore)
Break up of 'Provisions and Contingencies' shown under the head
FY 2023-24 FY 2022-23
Expenditure in Profit and Loss Account
Provisions for depreciation/NPI on Investment (8.15) 5.76
Provision towards NPA 129.21 @ 148.83 @
Provision made towards Income tax (Including Deferred Tax Assets/ 1542.20 1251.54
Liability)
Other Provision and Contingencies (with details)$ 1966.62 $ 699.49 $
@ net of restructuring provision
$ includes provision for standard asset.

(j) Provisioning Coverage Ratio (PCR)

(` Crore)
FY 2023-24 FY 2022-23
Provisioning Coverage Ratio (PCR)* 100.00% 99.70%
* Floating provision has not been considered while calculating PCR.

(k) Provisioning pertaining to Fraud Accounts

(` Crore)
FY 2023-24 FY 2022-23
No. of frauds reported during the year 2 9
Amount involved in fraud (` in crore) 17.33 36.87
Amount involved in fraud net of recoveries/write offs/unrealised interest 16.79 31.06
as at the end of the year (` in crore)
Provision made during the year (` in crore) 0.00 1.13
Provision held as at the end of the year for the above accounts (` in 16.79 31.06
crore)
Amount of unamortised provision debited from “other reserves” as at - -
the end of the year (` in crore)

80 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

4. Investment portfolio: constitution and operations

(a) Repo Transactions
(` Crore)
Minimum Maximum Daily Average
Outstanding
outstanding outstanding outstanding
as on March
during the during the during the
31, 2024
year FY 2024 year FY 2024 year FY 2024
Securities sold under repo
i. Government securities - 23,510.00 7,494.65 18,985.00
ii. Corporate debt securities - - - -
Securities purchased under reverse repo
i. Government securities - 22,746.00 961.13 500.00
ii. Corporate debt securities - - - -

(` Crore)
Minimum Maximum Daily Average
Outstanding
outstanding outstanding outstanding
as on March
during the during the during the
31, 2023
year FY 2023 year FY 2023 year FY 2023
Securities sold under repo
i. Government securities - 13,673.20 2,720.28 10,543.96
ii. Corporate debt securities - - - -
Securities purchased under reverse repo
i. Government securities - 14,994.39 1,632.35 1,998.89
ii. Corporate debt securities - - - -

(b) Disclosure of Issuer Composition for Investment in Debt Securities

Amount of
Investment Below
Unrated
Issuer Amount made through Investment Unlisted
securities
private Grade Securities securities
held
placement Held
(1) (2) (3) (4) (5) (6)
PSUs 49.56 0.00 - - -
FIs 2861.89 2861.89 - 189.84 189.84
Banks 3833.19 3833.19 - 103.50 103.50
Private Corporates 821.30 754.61 - 754.61 746.57
Subsidiaries/Joint ventures 0.00 1,751.05 - 1,751.05 1,751.05
Others 963.52 963.52 - 963.52 963.52
Provision held towards depreciation (708.39) - - - -
Total 7821.07 10164.26 0.00 3762.52 3754.47

(c ) Sale & transfers of securities to /from HTM category:

During the FY2024, the Bank shifted investments in Venture Capital Funds from HTM to AFS category in accordance
with extant RBI guidelines. Except for the above, there was no shifting on investments to/from HTM category.

Annual Report 2023-24 81

5. Details of Financial Assets purchased/ sold
(a) Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction
(i) Details of Sales
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) No. of accounts (borrower) 2 Nil
(ii) Aggregate value (net of provisions) of accounts sold to SC/RC - Nil
(iii) Aggregate consideration (` crore) 455.30 Nil
(iv) Additional consideration realized in respect of accounts Nil Nil
transferred in earlier years
(v) Aggregate gain / loss over net book value Nil Nil

(ii) Details of Book Value of Investments in Security Receipts

(` Crore)
Particulars Book value of investments
in security receipts
FY 2023-24 FY 2022-23
(i) B acked by NPAs sold by the AIFI as underlying 52.71 0.27
(ii) Backed by NPAs sold by banks / other financial institutions / 0.00 0.00
non-banking financial companies as underlying
Total 52.71 0.27

(b) Details of Non Performing Financial Assets Purchased / Sold

(i) Details of non performing financial assets purchased:
(` Crore)
Particulars FY 2023-24 FY 2022-23
1. (a) No. of accounts purchased during the year Nil Nil
(b) Aggregate outstanding Nil Nil
2. (a) Of these, number of accounts restructured during the year Nil Nil
(b) Aggregate outstanding Nil Nil

(ii) Details of non performing financial assets sold:

(` Crore)
Particulars FY 2023-24 FY 2022-23
No. of accounts sold 2 Nil
Aggregate outstanding (` crore) 939.14 Nil
Aggregate consideration received (` crore) 455.30 Nil

6. Operating Results
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) Interest income as a percentage to average working funds 6.74 5.30
(ii) Non-interest income as a percentage to average working funds 0.14 0.14
(iii) Operating profit as a percentage to average working funds 1.55 1.63
(before provisions)
(iv) Return on average assets (before provisions for taxation) 1.14 1.40
(v) Net Profit per employee (` crore) 3.72 3.66

82 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

7. Credit Concentration risk

(a) Capital market exposure
(` Crore)
Particulars FY 2023-24 FY 2022-23
(i) direct investment in equity shares, convertible bonds, convertible 596.32 320.03
debentures and units of equity oriented mutual funds the corpus of
which is not exclusively invested in corporate debt;
(ii) advances against shares / bonds / debentures or other securities or - -
on clean basis to individuals for investment in shares (including IPOs /
ESOPs), convertible bonds, convertible debentures, and units of equity
oriented mutual funds;
(iii) advances for any other purposes where shares or convertible bonds or - -
convertible debentures or units of equity oriented mutual funds are taken
as primary security;
(iv) advances for any other purposes to the extent secured by the collateral - -
security of shares or convertible bonds or convertible debentures or units
of equity oriented mutual funds i.e. where the primary security other than
shares / convertible bonds / convertible debentures / units of equity
oriented mutual funds does not fully cover the advances;
(v) secured and unsecured advances to stockbrokers and guarantees issued - -
on behalf of stockbrokers and market makers;
(vi) loans sanctioned to corporates against the security of shares / bonds / - -
debentures or other securities or on clean basis for meeting promoter’s
contribution to the equity of new companies in anticipation of raising
resources;
(vii)bridge loans to companies against expected equity flows / issues; - -
(viii) underwriting commitments taken up by the banks in respect of primary - -
issue of shares or convertible bonds or convertible debentures or units of
equity oriented mutual funds;
(ix) financing to stockbrokers for margin trading; - -
(x) all exposures to Venture Capital Funds (both registered and unregistered) 1071.44 1,173.61
Total Exposure to Capital Market 1,667.76 1,493.63

(b) Exposure to Country risk

(` Crore)
FY 2023-24 FY 2022-23
Risk Category Net Funded Provision Net Funded Provision
Exposure held Exposure held
Insignificant 17,782.87 43.80 10,902.69 26.40
Low 1,049.64 - 1,018.09 -
Moderate 30.90 - 15.90 -
High 5.96 - 5.64 -
Very High - - - -
Restricted - - - -
Off-credit - - - -
Total 18,869.37 43.80 11,942.32 26.40

Annual Report 2023-24 83

(c ) Prudential Exposure Limits - Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded.
(i) The number and amount of exposures in excess of the prudential exposure limits during the year.

Sl. PAN Number Borrower Industry Industry Amount Amount Non- Exposure as %tage to
Sector
No. Name Code Name Funded Funded capital Funds
1 Nil Nil Nil Nil Nil Nil Nil Nil

ii) Credit exposure as percentage to capital funds and as percentage to total assets, in respect of :

FY 2023-24 FY 2022-23
Sr.
Particulars As % to Total As % to Capital As % to Total As % to Capital
No.
Assets funds Assets funds
1 The largest single borrower 13.80 231.18 13.63 209.72
The largest borrower group As large borrowers are Primary lending Institutions, the concept of
borrower group is not applicable.
2 The 20 largest single borrowers 63.99 1071.75 67.94 1045.64
The 20 largest borrower group As large borrowers are Primary lending Institutions the concept of
borrower group is not applicable

iii) Credit exposure to the five largest industrial sectors as percentage to total loan assets :
(` Crore)
FY 2023-24 FY 2022-23
Name of Industry Amount. % to total loan Amount. % to total loan
Outstanding assets Outstanding assets
Textile products 4,179.00 0.92 1,373.15 0.36
Auto ancillaries 3,490.00 0.77 1,303.56 0.34
Metal products n.E.C. 2,446.00 0.54 1,298.56 0.34
Plastic moulded goods 2,155.00 0.47 707.12 0.19
Metal products parts except machinary 1,649.00 0.36 648.03 0.17

(iv) Total amount of advances for which intangible securities such as charge over the rights, licenses, authority etc. has
been taken is ‘Nil’.
(v) The bank had taken factoring exposure amounting `1424.89 crore in FY 2024 and `545.12 crore in FY 2023 under TReDS.
(vi) The bank had not exceeded the Prudential Exposure Limits during the current year and previous year.

(d) Concentration of borrowings /lines of credit, credit exposures and NPAs

(i) Concentration of borrowings and lines of credit
(` Crore)
Particulars FY 2023-24 FY 2022-23
Total borrowings from twenty largest lenders 4,03,811.75 3,16,623.42
Percentage of borrowings from twenty largest lenders to total 79.81% 79.04%
borrowings

(ii) Concentration of Exposures

(` Crore)
Particulars FY 2023-24 FY 2022-23
Total advances to twenty largest borrowers 3,58,526.52 2,98,449.36
Percentage of advances to twenty largest borrowers to Total Advances 73.93% 74.56%
Total Exposure to twenty largest borrowers / customers 3,89,132.18 3,33,833.93
Percentage of exposures to twenty largest borrowers / customers to 69.91% 73.38%
Total Exposure

84 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

(iii) Sector-wise concentration of exposures and NPAs

(` Crore)
FY 2023-24 FY 2022-23
Percentage Percentage
of Gross of Gross
Sr. Outstanding Outstanding
Gross NPAs Gross NPAs
No. Total Total
NPAs to Total NPAs to Total
Advances Advances
Advances in Advances in
that sector that sector
I. Industrial sector 4,16,079.36 81.21 0.02% 3,35,409.61 14.74 0.00%
1 Central Government - - - - - -
2 Central PSUs - - - - - -
3 State Governments 2,111.20 - 0.00% 1,541.63 - -
4 State PSUs - - - - - 0.00
5 Scheduled Commercial Banks 3,85,286.86 - 0.00% 3,14,619.21 - 0.00
6 Regional Rural Banks 1,709.51 - 0.00% 832.72 - -
7 Co-operative banks 64.72 - 0.00% - - -
8 Private sector (excluding banks) 26,907.07 81.21 0.30% 18,416.05 14.74 0.08%
II. Micro-finance sector 11,028.51 40.29 0.37% 6,575.89 40.31 0.61%
III. Others* 57,925.00 - - 36,056.54 - 0.00%
Total (I+II+III) 4,85,032.87 121.50 0.03% 3,78,042.04 55.05 0.01%
* includes advances to NBFCs.

8. Derivatives
(a) Forward Rate Agreement / Interest Rate Swap
(` Crore)
Sr. Particulars
FY 2023-24 FY 2022-23
No
i) The notional principal of swap agreements Nil 123.72
ii) Losses which would be incurred if counterparties failed to fulfill their Nil -1.91
obligations under the agreements
iii) Collateral required by the bank upon entering into swaps Nil Nil
iv) Concentration of credit risk arising from the swaps Nil Nil
v) The fair value of the swap book Nil -1.91

The nature and terms of the IRS as on March 31, 2024 are set out below:
Sl. no. Nature Nos. Notional Principal Benchmark Terms
1 Hedging NIL NIL NIL NIL

The nature and terms of the IRS as on March 31, 2023 are set out below
Sl. no. Nature Nos. Notional Principal Benchmark Terms
1 Hedging NIL INR 123,72,29,020.00 6 M USD LIBOR Fixed receivable V/s
floating payable

Annual Report 2023-24 85

(b) Exchange Traded Interest Rate Derivatives
(` Crore)
Sr. Particulars
FY 2023-24 FY 2022-23
No
i) Notional principal amount of exchange traded interest rate derivatives NIL NIL
undertaken during the year (instrument - wise)
ii) Notional principal amount of exchange traded interest rate derivatives NIL NIL
outstanding as on March 31 (instrument - wise)
iii) Notional principal amount of exchange traded interest rate derivatives NIL NIL
outstanding and not "highly effective" (instrument - wise)
iv) Mark-to-market value of exchange traded interest rate derivatives NIL NIL
outstanding and not "highly effective" (instrument - wise)

(c ) Disclosures on risk exposure in derivatives

(i) Qualitative Disclosures
(1) The Bank uses Derivatives for hedging of interest rate and exchange risk arising out of mismatch in the assets and
liabilities. All derivatives undertaken by Bank are for hedging purposes with underlying as Foreign Currency borrowings,
which are not MTM, but only translated. The Bank does not undertake trading in Derivatives.
(2) Internal Control guidelines and accounting policies are framed and approved by the Board. The derivative structure is
undertaken only after approval of the competent authority. The particulars of derivative details undertaken are also
reported to ALCO/Board.
(3) The Bank has put systems in place for mitigating the risk arising out of derivative deals. The Bank follows the accrual
method for accounting the transactions arising out of derivative deals.

(d ) Disclosure on Credit default swap - Bank has not undertaken any credit default swap during the year.
(ii) Quantitative Disclosures
(` Crore)
Sr. Particulars FY 2023-24 FY 2022-23
No. Currency Interest rate Currency Interest rate
Derivatives Derivatives Derivatives Derivatives
1 Derivatives ( Notional Principal Amount ) 2,571.32 - 3,361.40 123.72
(i) For hedging 2,571.32 - 3,361.40 123.72
(ii) For trading - - - -
2 Marked to Market Positions [1] 431.60 - 535.51 -1.91
(i) Asset (+) 431.60 - 535.51 -
(ii) Liability (-) - - - 1.91
3 Credit Exposure [2] 544.66 - 730.12 -
4 Likely impact of one percentage change in interest 24.44 - 1,681.43 (0.72)
rate ( 100* PV01)
(i) On hedging derivatives 24.44 - 1,681.43 (0.72)
(ii) On trading derivatives - - - -
5 Maximum and Minimum of 100*PV01 observed - - - -
during the year
(i) On hedging 479.62/24.44 - 1912.87/0.56 (0.72)/(2.47)
(ii) On trading - - - -

86 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

9. Disclosure of Letters of Comfort (LoCs) issued by AIFIs

The particulars of Letters of Comfort (LoCs) issued during the year, assessed financial impact, and assessed cumulative
financial obligations under the LoCs issued in the past and outstanding is as under:
(` Crore)
LoCs outstanding as on LoC issued during LoCs redeemed during the LoCs outstanding as on
April 01, 2023 the year year March 31, 2024
No of LoC Amount No of LoC Amount No of LoC Amount No of LoC Amount
- - - - - - - -

10. Asset Liability Management

(` Crore)
Over 3 Over 6 Over 3
29 days Over 1 year
1 to 14 15 to 28 months month & years & Over 5
to 3 & up to 3 Total
days days & up to 6 up to 1 up to 5 years
months years
months year years
Deposits 76.99 2,516.77 495.63 16,829.21 47,881.29 1,66,852.59 3,935.01 2,828.24 2,41,415.73
Advances 7,155.63 1,643.76 36,631.61 75,346.00 86,814.64 2,55,559.93 19,400.02 2,381.51 4,84,933.09
Investments 6,619.73 9,195.12 19,174.71 25,661.21 3,072.63 893.60 1,500.00 1,359.44 67,476.43
Borrowings 21,336.08 12,250.00 77,852.82 26,885.08 56,073.23 50,431.07 25,348.64 368.57 2,70,545.49
Foreign Currency 5.03 8.45 1,453.75 73.32 1,482.21 490.20 303.82 0.92 3,817.70
assets
Foreign Currency 1.06 7.47 1,099.64 66.81 408.60 880.64 602.93 259.50 3,326.65
liabilities

ALM includes figures of SIDBI and MUDRA only.

11. Draw Down from Reserves

There is no draw down from Reserves during the current year and previous year.

12. Business Ratios

Particulars FY 2023-24 FY 2022-23
Return on average Equity (before provisions for taxation) (%) 20.14 18.91
Return on average assets (before provisions for taxation) (%) 1.27 1.40
Net Profit per employee (` crore) 4.31 3.66

13. Disclosure of Penalties imposed by RBI

RBI had not imposed any penalty on the Bank during the current year and previous year.

14. Customer Complaints

1. Complaints received by the bank from its customers
Particulars FY 2023-24 FY 2022-23
1 No. of complaints pending at the beginning of the year 1 1
2 No. of complaints received during the year 163 230
3 No. of complaints redressed during the year 161 230
3(i) Of which, number of complaints rejected by the Bank 48 83
4 No. of complaints pending at the end of the year 3 1

Annual Report 2023-24 87

2. Top five grounds of complaints received by the bank from customers
Grounds of complaints, (i.e. complaints % increase/
Number of Number of Number of Of 5, number
relating to) decrease in
complaints complaints complaints of complaints
the number
pending at the received pending at pending
of complaints
beginning of during the the end of beyond 30
received over the
the year year the year days
previous year
1 2 3 4 5 6
FY 2024
Loans and advances - 30.00 (14.29) - -
Levy of charges without prior notice/ excessive - 22.00 (37.14) - -
charges/ foreclosure charges
Others 1.00 46.00 (13.21) - -
FY 2023
Loans and advances - 35 (18.60) - -
Levy of charges without prior notice/ excessive - 35 34.62 - -
charges/ foreclosure charges
Others 1 53 (67.88) 1 0
RBI vide their Circular CEPD.CO.PRD.Cir.No.01/13.01.013/2020-21 dated 27.01.2021 on Strengthening of Grievance Redress
Mechanism in Banks had categorized grievances under 16 categories and had advised Banks to make disclosures accordingly.

15. Off-Balance Sheet SPVs Sponsored

The Bank had no Off-balance sheet SPVs sponsored during the current year and previous year.

16. Disclosure as per specific accounting standards

(a) Accounting Standard 5 – Net Profit or Loss for the period, prior period items and changes in accounting policies
Income in schedule XIII - ‘other income’ includes Prior Period Income of `49,48,292 for FY 2023-24 [Previous Year `10,08,72,058]
and Other expenditure in schedule XIV - ‘Operating Expenses’ for FY 2023-24 includes Prior Period Expenditure of `3,55,13,145
[Previous Year `1,22,71,798].

(b) Accounting Standard 17 – Segment Reporting

As required under RBI master directions and Accounting Standard-17 ‘Segment Reporting’ the Bank has disclosed “Business
segment” as the Primary Segment. Since the Bank operates in India, there are no reportable geographical segments. Under
Business Segment, the Bank has identified Whole Sale Operations (Direct Lending), Whole Sale Operations (Refinance) and
Treasury as its three reporting segments. These segments have been identified after considering the nature and risk profile
of the products and services, the organization structure and the internal reporting system of the Bank. Previous year’s figures
have been regrouped and reclassified to conform to the current year’s methodology.

Part A: BUSINESS SEGMENTS

(` Crore)
Business Segments Wholesale Operations Wholesale Operations
Treasury Total
(Direct Lending) (Refinance)
Particulars FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023
1 Segment Revenue 2,314.39 1,554.09 27,701.56 15,619.60 4,214.91 2,827.74 34,230.86 20,001.43
Exceptional Items - -
Total 34,230.86 20,001.43
2 Segment Results 82.83 378.01 5,493.66 3,878.35 1,815.91 1,219.55 7,392.40 5,475.91
Exceptional Items (500.00) -
Total 6,892.40 5,475.91
Unallocable Expenses 537.35 326.70

88 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

(` Crore)
Business Segments Wholesale Operations Wholesale Operations
Treasury Total
(Direct Lending) (Refinance)
Particulars FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023
Operating profit 6,355.05 5,149.21
Income Tax (Net of write back) 1,542.33 1,251.54
Share of profit in associates (9.61) 33.81
Net profit 4,822.34 3,931.48
3 Other information
Segment Assets 29,089.78 20,055.91 4,69,014.38 3,76,514.65 58,692.44 39,426.65 5,56,796.60 4,35,997.21
Unallocated Assets 3,789.44 3,255.31
Total Assets 5,60,586.04 4,39,252.52
Segment Liabilities 24,107.47 15,883.66 4,40,489.41 3,51,767.20 58,037.55 39,121.93 5,22,634.43 4,06,772.79
Unallocated Liabilities 4,122.03 3,340.17
Total 5,26,756.46 4,10,112.96
Capital / Reserves 4,815.95 4,155.25 27,972.00 24,326.26 1,041.63 658.05 33,829.58 29,139.56
Total 33,829.58 29,139.56
Total Liabilities 5,60,586.04 4,39,252.52

Part B: GEOGRAPHIC SEGMENTS - The operations of the Bank is confined to India only, hence no reportable geographic
segments.
(c ) Accounting Standard 18 – Related Party Disclosures
(i) Key management personnel
SIDBI Trustee Company Ltd Chairman & Managing Director
Micro Units Development & Refinance Agency Ltd Deputy Managing Director
India SME Technology Services Limited Deputy Managing Director

(ii) Significant transactions with related parties

(` Crore)
Items / Related Party Relatives of Key
Key Management
Management Total
Personnel @
Personnel
Borrowings# - - -
Outstanding at the year end - - -
Maximum during the year - - -
Deposit# - - -
Outstanding at the year end - - -
Maximum during the year - - -
Placement of deposits# - - -
Outstanding at the year end - - -
Maximum during the year - - -
Advances# - - -
Outstanding at the year end - - -
Maximum during the year - - -
Investments# - - -
Outstanding at the year end - - -
Maximum during the year - - -
Non funded commitments# - - -
Outstanding at the year end - - -
Maximum during the year - - -

Annual Report 2023-24 89

 (` Crore)
Items / Related Party Relatives of Key
Key Management
Management Total
Personnel @
Personnel
Leasing arrangements availed# - - -
Outstanding at the year end - - -
Maximum during the year - - -
Leasing arrangements provided# - - -
Outstanding at the year end - - -
Maximum during the year - - -
Purchase of fixed assets - - -
Sale of fixed assets - - -
Interest paid - - -
Interest received - - -
Dividend received - - -
Dividend paid - - -
Rendering of services* - - -
Receiving of services* - - -
Management contracts** 1.32 - 1.32
@Whole time directors of the Board
# The outstanding at the year end and the maximum during the year are to be disclosed
* Contract services etc. and not services like remittance facilities, locker facilities etc.
** Remuneration to Key Management Personnel.

17. Unamortised Pension and Gratuity Liabilities

The pension and gratuity liability are provided for on the basis of an actuarial valuation made at the end of each financial year based on the
projected unit credit method. The actuarial gains/ losses are taken to the profit & loss account and are not amortized.

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

90 Small Industries Development Bank of India

 Corporate Overview Statutory Reports Financial Statements

Consolidated Cash Flow Statement

for the year ended March 31, 2024
(` Crore)
March 31, 2023 Particulars March 31, 2024 March 31, 2024
1. Cash Flow from Operating Activities
51,49,20,30,632 Net Profit before tax as per P & L Account 63,55,05,26,872
Adjustments for :
26,67,08,148 Depreciation 61,89,71,613
24,53,96,517 Provision for net depreciation in investments 23,53,946
9,16,74,09,694 Provisions made (net of write back) 23,71,80,43,474
(8,27,32,54,340) Profit on sale of investments (net) (93,40,45,879)
(1,33,74,835) Profit on sale of fixed assets (35,85,730)
(7,99,78,141) Income Received on Investments (10,00,98,51,810) 13,39,18,85,614
52,80,49,37,675 Cash generated from operations 76,94,24,12,486
(Prior to changes in operating Assets and Liabilities)
Adjustments for net changes in :
(14,93,03,26,041) Current assets (14,48,12,30,097)
64,91,97,74,553 Current liabilities 32,95,45,60,348
(5,17,69,19,133) Bills of Exchange (8,82,05,13,503)
(15,51,99,51,48,710) Loans & Advances (10,61,08,79,39,978)
12,49,45,48,36,350 Net Proceeds of Bonds and Debentures & other 7,00,09,62,36,090
borrowings
1,91,47,46,99,722 Deposits received 4,87,92,33,65,970
(66,25,30,83,259) 1,36,58,44,78,830
(13,44,81,45,584) 2,13,52,68,91,316
(14,18,16,41,591) Payment of Tax (22,17,09,56,152) (22,17,09,56,152)
(27,62,97,87,175) Net Cash flow from operating Activities 1,91,35,59,35,164
2. Cash Flow from Investing Activities
(28,94,14,376) Net (Purchase)/Sale of fixed assets (50,92,74,876)
16,23,33,23,888 Net (Purchase)/sale/redemption of Investments (1,78,06,46,45,874)
5,73,50,433 Income Received on Investments 10,07,12,69,195
16,00,12,59,945 Net cash used in Investing Activities (1,68,50,26,51,555)
3. Cash flow from Financing Activities
- Proceeds from issuance of share capital & share -
premium
(79,81,84,026) Dividend on Equity Shares & tax on Dividend (1,13,70,82,338)
(79,81,84,026) Net cash used in Financing Activities (1,13,70,82,338)
(12,42,67,11,256) 4. Net increase/(decrease) in cash and cash 21,71,62,01,271
equivalents
43,65,29,72,381 5. Cash and Cash Equivalents at the beginning of the 31,22,62,61,125
period
31,22,62,61,125 6. Cash and Cash Equivalents at the end of the period 52,94,24,62,396

Annual Report 2023-24 91

Consolidated Cash Flow Statement
for the year ended March 31, 2024
(` Crore)
March 31, 2023 Particulars March 31, 2024 March 31, 2024
7 Cash and cash equivalents at the end of the period
includes
6,14,370 Cash in Hand 6,08,479
6,30,75,42,823 Current account balance with Bank 1,95,73,06,212
- Mutual Funds 3
24,91,81,03,932 Deposits 50,98,45,47,702

Note : Cash Flow statement has been prepared as per the Indirect Method prescribed in AS-3 (Revised) ‘Cash Flow Statement’
issued by the Institute of Chartered Accountants of India (ICAI)

Significant Accounting Policies XV

Notes to Accounts Annexure 1

As per our report of even date BY ORDER OF THE BOARD

For J. Kala & Associates Ajit Nath Jha Prakash Kumar Sudatta Mandal
Chartered Accountants Chief Financial Officer Deputy Managing Director Deputy Managing Director
FRN.118769W

Jayesh Kala G Gopalakrishna K S Nagnyal

Partner Director Director
M.No. 101686
Place: Mumbai
Date: May 29, 2024

92 Small Industries Development Bank of India

Small Industries Development Bank of India

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