IIFL Finance : Annual Report 2021-22

27th ANNUAL REPORT 2021-22

Digital propulsion

for financial inclusion

Corporate Overview 1-63

Digital Propulsion for Financial Inclusion	2
IIFL Finance - At a Glance	4
Propulsion Reflected in Performance	6
Inclusion through Varied Offerings	8
Chairman's Perspective	16
Managing Director's Perspective	18
Inclusive Growth through Value Creation	20
Inclusion for Unlocking Opportunities	22
Propulsion of Building Wealth	24
Propulsion through Deeper Reach	26
Propulsion through Effective Digitization	28
Propulsion through Knowledge	34
Propulsion Backed by Inclusion	38
Responsible Inclusion through Conservation	40
Propulsion through Collaborated Efforts	42
Customer Testimonials	44
Inclusion through Supporting Communities	46
Inclusion through Right Policies and Practices	54
Propulsion through Right Supervision	56
Propulsion through Right Engagement	58
Propulsion through Awareness	60
Propulsion through Recognition & Appreciation	63

Statutory Reports 64-165

Directors' Report	64
Corporate Governance Report	107
Business Responsibility Report	138
Management Discussion and Analysis	148

Financial Statements 166-378

Standalone	166
Consolidated	280

Investor Information

Market Capitalization as

at March 31, 2022

• 108.2 Billion

CIN

L67100MH1995PLC093797

BSE Code

532636

NSE Symbol

IIFL

Bloomberg Code

IIFLIN

Dividend Distributed

• 3.50 per share

AGM Date

Friday, July 08, 2022

Please find our online version at:

https://www.iifl.com/finance/ investor-relations/financials

Disclaimer: This document contains statements about expected future events and financials of IIFL Finance Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements may not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to this disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the Management Discussion and Analysis section of this Annual Report.

About This Report

This Report is addressed to all of our stakeholders as one of our primary communication pieces. This Report contains comprehensive information on our operational and financial performance and their influence on our strategic objectives, resulting in our ability to create sustainable value.

Our Approach to Reporting

As a means of increasing transparency to all of our stakeholders, IIFL Finance Limited ('the Company') has created this Report in compliance with the principles of Integrated Reporting established by the International Integrated Reporting Council (IIRC). This Report provides detailed insights into our operational environment, strategy, material challenges, risks and opportunities, stakeholder engagement, and approach to long-term sustainability, in addition to our integrated value generation across six capitals, both financially and non-financially.

Reporting Period, Scope and Boundary

The reporting period for this Integrated Report is from April 1, 2021 to March 31, 2022. It includes an overview of our operations, business segments and key focus strategies.

ReportingStandards and Frameworks

Our Approach to Materiality

The Report provides an overview of our business and associated activities that assist us in creating long-term value. The Report also addresses several issues that may have a substantial influence on the organization's potential to create value, as well as the measures undertaken to mitigate them.

Management Assurance

The Report's content has been evaluated by our Company's senior management, which is overseen by the Managing Director. Our Company's Board of Directors has also imparted necessary governance supervision.

The Company has developed this Report using the principles of as laid out by the IIRC. The Statutory Reports, which include the Directors' Report, Management Discussion and Analysis (MD&A) section, Corporate Governance Report, and Business Responsibility Report, are in accordance with the Companies Act of 2013, the Securities ExchangeBoard of India (Listing Obligations and Disclosure Requirements) Regulations of 2015, and the prescribed Secretarial Standards. The non-financial information given in this Report is based on the Global Reporting Initiative's sustainability reporting criteria (GRI Standards).

Digital propulsion

for financial inclusion

Technology is fast evolving and reshaping the traditional styles of lending. Today, digitization is emerging as an effective way of bringing in efficiencies, automating procedures, smoothening operational management, broadening reach and other areas of service, by revolutionizing financial services rapidly.

At IIFL Finance, we have always believed in the potential of digital lending catapulting into a plethora of opportunities for the common man and businesses. And so, over the years, we have consistently worked on making this transition smooth by adapting to the changes, way before they became vital. Our cutting-edge technological integration and focus on small-ticket retail loans enable us to reach the people who are currently unserved in the financial domain.

As a pioneer in the industry, our digital capabilities extend beyond digital platforms as we focus on its integration across our entire value chain. Backed by our digital prowess, we are focused on providing affordable credit to the underserved. This, in turn, could boost the economy, enable leading better lives by providing better opportunities, secure our customers' future and offer solutions that help them meet their aspirations.

IIFL Finance strongly believes in promoting financial inclusion across the country. With the vision for India's future growth, expanding financial inclusion is crucial and we are motivated and prepared to contribute towards it.

We are all set for this Digital Propulsion while continually working on Financial Inclusion.

2 Annual Report 2021-22

Corporate Overview

Statutory Reports

Financial Statements

IIFL Finance Limited

3