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Star Housing Finance Ltd.

BSE: 539017 Sector: Financials
NSE: N.A. ISIN Code: INE526R01028
BSE 00:00 | 03 Feb 46.05 -1.20






NSE 05:30 | 01 Jan Star Housing Finance Ltd
OPEN 47.05
VOLUME 311529
52-Week high 60.20
52-Week low 23.04
P/E 47.47
Mkt Cap.(Rs cr) 348
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 47.05
CLOSE 47.25
VOLUME 311529
52-Week high 60.20
52-Week low 23.04
P/E 47.47
Mkt Cap.(Rs cr) 348
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Star Housing Finance Ltd. (STARHOUSINGFIN) - Director Report

Company director report


The Members

Star Housing Finartce Limited

(Formerly kno\vn as 'Akme Star Housing Finance Limited")

The Board of Directors are pleased to present the Compan/s Seventeenth Annual Reportalong with the audited financial statement forthefinar>cialyearer>ded March 312022.


The Board's Report shall be prepared based on the financial statements of the company.The Company's financial performance for the financial year ended MarchSl2022 issummarized below: -

(Rs. In Lacs)
PARTICULAR 2021-22 2020-21
Gross Income 1936.54 1560.29
Less:FinanceCost 617.01 498.83
Employee BenefitExp. 569.02 39726
Overhead 364.43 235.86
Depreciation 2721 14.66
Impairment of Rnancial instruments 50.97 195.25
Profit Before Tax 307.89 218.43
Less: Provision for taxation 69.69 62.78
Profit After tax 238.21 155.66
Balance Brought Forward from last year 1126.99 1113.01
Appropriations 238.21 155.66
Transferred to Statutory Reserve under Section 36{l)(viii) of the Income Tax Act 1961 read with Section 29C of National Housing Bank Act 1987 61S8 49.66
Transferred to General Reserve Nil Nil
Transferred to Impairment Reserve (Covid-19) Nil 52.83
Others S.54 Nil
Balance Carried ov^'to the Bala nee Sheet 1295.08 1126.99


KEY FACTORS 1 2021-22 2020-21 GROWTH (%)
Loan Portfolio 10408.92 9454.19 10.09%
EPS (Basis) in Rs. 1.49 0.99 51%
CRAR (%) 84.78% 86.35% 0-82%)

Note; Figures have been regrouped whenever necessary while preparing thestatement asp>erlND-ASrequirements.

The above mentioned performance vras amidst very strong headwinds created due tocertain events which had contagion effect on the entire sector. It is worth mentioningthat due to focusing on fundamentals which has been the main plank over this decadeenable thecompanynotonlytonavigatethrough this situation but achievedahigherthan thetargeted growth.


The Board of Directors of the Company have recommer>ded a final dividervd of Rs0.20/- per equity share of Rs. 10/- each for the year under review.


During the year under revlev/ your Company appropriated Rs. 6158 Lakhs to theStatutory Reserve under Section 36(1) (viii) of the Income Tax Act 1961 read with Section29C of National Housing Bank (NHB) Act 1987 out of the amount available for appropriationandan amount of Rs. 238.21 Lakhs is proposedto be retained intheProfitand Loss AccountSHARE CAPITAL

• Authorized Share Capital

The company has increased the authorized share capital to Rs. 300000000/- (dividedinto 30000000 Equity Shares of Rs.10/-each) vide passing ordinary resolution at anExtra Ordinary General Meeting of the membersof the company held on April 302021.

• Issued and Paid-up Capital

Thepaid-up Equity Share Capital of thecompanyisRs.165822.290(divided into 16582229EquItySharcsofRs.10/-each) a s on March31.2022.

During the year under review the company has issued 908729 equity shares of Rs. 10/-each to the Promoters and Non- Promoters on Preferential basis as approved in its BoardMeeting hold on 18th November. 2021


Your Company's financial disciplineand prudence is reflected in the strong creditrating assigned/renewed by India Rati ngs&Research Private Limited Care RatingLimited and Brickwork Rating India Private Limited durir>g the yearas under.

The details of the same are mentioned below:-

1 Fund based (Bank Facilities) 159 Long Term IND BBB -/ Stable
2 Fund based (Bank Facilities) 167 Long Term CARE BBB-/Stable
3 Fund based (Bank Facilities) 166 Long Term BWR BBB-/Stable


During the financial year2021-22your company raised Financial Assistancefrom followinginstitution:

1. Rs. 5.30Crore(RupeesRve Crore Thirty Lakhs only) through termloanfromHinduja HousingFinance Limited

2. Rs. SCrore (Rupees Five Crore only) Ref inarvee Assistance under Special RefinanceFacility2021 (SRF-2021) from National Housing Bank.

3. Rs.2Croros(RupeesTwoCroreOnly)underTerm Loan fromCaprtalIndiaFinance Limited.

4. Rs. 10 Ciores(Rupees Ten Crore only) under Additiorvsl Refinance from NationalHousing Bank.

5. Rs. 10 Crores (Rupees Ten Crore only) under Term Loan fromHinduja Leyland FinanceLimited.

6. Rs. 10 Crores (Rupees Ten Crore only) under Term Loan from Indian Ov^'seasBank.


Your Company isregisteredasa Housing Finance Company (HFC) with NHB to carryoutthehousingfinance activities in India.

To build a quality loan book >our Company endeavors to adopt superior underwritingpractices backed by robust monitoring and recovery mechanism. Your Company is committedtovvards improving efficiencyin aliits processes and service leveisfor Itscustomers. Your Company's thrust continues to be theaffordable housingsegmentwithitsfocuson catering to the aspirations of low and middle- income Indian Emilieswho dream to own their homes. Your Company has been facilitating credit access to the lowand middle-income self-employed customer's in semi-urban and rural areas in India. Themajority of your Company's customers have limited access to formal bankingcreditfacilities.

During the Rnancial Year under review your Company delivered a resilient performancewhich is reflected in the following financial snap^ot

• lncon>e&Profits

Total Irviome increased by 24.11% to Rs. 1936.54 Lakhs for the Financial Year endedMarch 312022 as compared to Rs. 1.56029 Lakhs in the previous Financial Year. Profitbefore Tax (P6T) v/as 40.95% higher at Rs. 307.89 Lakhs as compared to Rs. 218.43 Lakhs inthe previous Financial Year. The Total Comprehensive Income for the Financial Year 2021-22irwreased 57.83% from Rs.245.67 Lakhs in the Financial Year to Rs155.66 Lakhs in thePrevious Financial Year TheOutstarxling Bank Borrowing as on31.03.2022stood at Rs.7847.79Lakhs

• Sanctions

During the Financial Year under review your Company sanctioned housing loans for Rs.4314.01 Lakhs as compared to Rs. 2822.74 Lakhs in the previous Rnancial Year registering agroy/lh of 49.64%. The cumulative loan sanctiorrs since inception of your Companystood atRs. 19627.01 Lakhs as on March312022.

• Disbursements

During the Financial Year under review yourCompany disbursed loansfor Rs. 3657.94Lakhsascomparedto Rs.2943.44 Lakhs in thepreviousRnancialYearand recorded growthof24.27%in disbursements.

• Capital Adequacy

NHB vide its Notification No. NHB.HFC.DIR.22/MD&CEO/2019 dated June 17 2019 hasamended capital adequacy ratio for MFCs from 12%to15%byMarch2022.Thecapital adequacyratioof MFCs istobeincr€asedto15%byMarch312022.

Your Company'sCapital Adequacy Ratio asat March31.2022 was84.78%which isfarabovetheminimum required level of 15%

• Assets Under Management (AUM)

The AUM of your company stoodat Rs 10408.92 Lakhs as on March 312022 as against Rs.945419 Lakhsinthe previous financial year with a groi\>th of 10.09%.

RegulatoiYFrameworkfor HCFs.l^ed ^ RBI

In August 2019. the RBI tookoverthepowers to regulate MFCs from the NHB. However theNHBcontinuestocarryout the function of supervision of HFCs

In October2020 the RBI issued changes in the regulatoiy framework for HFC insupersession of the corresponding regulations by the NHB. The new framework introducedcertain regulatory changes for HFC such as the principal business criteria for housingfinance definition of housing finance requirement of minimum percentage of total assetsrequired towards housir>g finance and housing finance for individuals minimum netowned fund requirements guidelines on liquidity risk management framevvork and liquiditycoverage ratio amongst others

In November 2020 the RBI issued guidelines around co-lending by Banks and NBFCs(including HFC) to priority sector in order to improve the flow of credit to the unnervedand undeserved sector of the economy and make available furvds to the ultimate beneficiaryatan affordable cost considering the lower cost offends from banks andgreater reach ofttieNBFCV HFC On February 17 2021 the RBI issued Master Direction - Non-Banking RnancialCompany - Housing Finance Company (Reserve Bank) Directiore 2021 (RBI HFC Directions).These directions came into force with immediate effect.

on January222021. Based on the inputsreceivedtheRBIhasputinplacea revisedregulatoryframeworkforNBFCson Oct222021. Regulatory structure for NBFCs shall comprise offour layers based on their size activity and perceived riskiness. NBFCs in the lowestlayer shall be knov/n as NBFC - Base Layer (N6FC-BL). NBFCs in middle layer and upperlayer ^all be knov/n as NBFC - Middle Layer

(NBFC-ML) and NBfC - Upper Layer (NBFC-UL) respectively. The Top Layer is ideallyexpected to be empty and will be known as NBFC -Top Layer (NBFC-TL).

As the SBR framework encompasses different facets of regulation of NBFCs coveringcapital requirements governance standards prudential regulation etc. RBI first issuedan integrated regulatory framework for NBFCs under SBR providing a holistic view of theSBRstructureset of fresh regulations being introduced and respective timelines will beissued subsequently. These guidelines shall be effective from October012022.

According to these guidelines all MFCs fall under the category of Middle layer for thepurpose of regulation and supervision. The compianyhasputinplaceall the necessary steps inthis direction tocomply with the new Regulatory framework.


The RBI has come out with certain clarifications on Income Recognition AssetClassifications and Provisioning norms with a view to have a uniformity across all thelending institutions including HFCs vide their notification dated November 122021. Thecompany has been complying with these instructions meticulously.


There isa very huge market to be served which needs an efficient last mile delivery ofcredit thus creating enormous opportunity for all the financial institutions and HFCs inspecial. The Company continues to pursue the strategy of being multi-product andmultilocation thus giving the distinct edge from the risk nianagement and scalabilityperspective. The focus across the product is of catering to the lower and the middleincome segment which are the key driver of our economy.


The Company aims at sending the middle income and the lower income sector of theeconomy especially in the semi urban and rural areas y/hich are reckoned to be the keydrivers of the sector In the coming decades. Full-fledged efforts are on to executeefficiently as per the detail planning. Being aware of the challenges involved in servingthis class of the society a very cautious approach is adopted in building up volumes.Nevertheless Company is quite confident of building substantial volumes in the nearfuture. The Company's rural initiative will also start yielding results shortly. It isworth mentioning that despite the creditworthy customer class ascertaining the titleofthepropertyremainsachallengingjob.TheCompanyisactivelyinvolvedwithallthestakeholderstosmoothenthe process and Is assertive in getting the right set of documents. We continue toendeavor relentlessly and are confident of creating a quality portfolio and add value tothe ecosystem we work in.


Your company has been successful in continuous expansion of its branch network vrith aview to support Its disbursomont grov/th deeper penetration in the states in which theCompany operates and enhancing customer reach. During the Rnancial Year under reviewtheCompanyhasexpanded its branch nehvorkto5stateswith7branchesason March 312022. YourCompany operates in the Udaipur Mumbai Pune Akola Indore Chennai andSurat


During the y^ar the HR continued to timely on-board experienced resources across alllocations* imparted functional and system training to develop productive resources for ailthe functional teams. The Company also gave an opportunity to identify and develop theinternal talent pool. Company hired professionals at senior positions as Functional Headsfor heading the various Departments of the Company having relevant industry experienceand expertise to strengthen and grow the housing finance business of the Company.

Company's success depends largely upon the quality and competence of its Managementteam and key personnel. Attracting and retaining talented professionals is therefore a keyelement of the Compian/s strategy and a significant source of competitive advantage. TheCompany hasa diverse workforceof 83 employees as on March312022.

Human resource development Is considered vital for effective implementation of businessplans. Constant endeavors are being made to offer professional growth opportunities andrecognition apart from impiarting training to the employees at all levels. Your Companyhas also provided the sales training to the new recruits to provide them betterunderstanding of the Company and align them towards the working cultureof theCompany.

Trust with all the above qualities accompanied l^the determination to excel this teamforms aformidable second line of management atStarHFC.

Your Company will alwaysstrive to sto'engthen this mostimportantresourcein its quest tohave enabling humancapital.


The Company in tandem v/ith its philosophy of pursuing the mission of 'Excellencethrough Endeavors" will strive to maximize the shareholders' value. TheCompanycontinues to pursue an efficient capital management policy which aims at maximizing thereturn on capital employed and at the same time adhering to the prudential guidelines laiddown fay NHB from time to time.

The Company by virtue of its performance over the years enjoys very good relationshipsvvilti many leading banks arxJ financial institutiorw. The Company could raise therequired resources from various banks and financial institutions easily. We anticipate thesame response from all our lending partners for the coming years too. The Companyanticipates credit lines from fev/ more banks and financialinstitutions besides theexisting ones.

During the year passed by when the whole sector was looked upon as a risky prepositionthe Company could not only manage to raise the required resources butalsoobtainedcreditlinesfor the coming year.

Your Company continues to command the respect and the confidence of Bankers as theirextended channel in their task of providing efficient delive of credit. Thecompanyacknowledgestheconstructivesupportof theinvestorsand Banks.


Your Compan/s borrowing policy is under the control of the Board. The Ck>mpany hasvide special resolution passed by means of special Resolution on 21st September 2019.under Section 180(l)(c) of the Companies Act 2013 authorized the Board of Directors toborrow money upon such terms and conditior^ as the Board may think fit in excess ofaggregate of paid up ^are capital free reserves security premium of the Company up to anamount of Rs. 500 crore and the total arrjounrt so borrowed shall be within the limits asprescribed undertheHousing Finance Companies (NHB) Directions 2010.

Your Company continued to use a variety of funding sources to optimize funding costsprotect interest margins and maintain a diverse furvding p>ortfolio which furtherstrengthened its funding stability and liquidity needs. Your Company continued to keeptight control over the cost of borrowings through ncgotiatior^ with lenders arvd thu^raised resources at competitive rates from its lenders while ensuring proper assetliability match.

Your Company continued to diversify its funding sources by exploring the Debt CapitalMarket through private placement of Secured NCDs to Multilateral/Development FinancialInstitutions NHB Refinance NHB SRF (fecial Refinance Facility Assistance) NHB‘sLIFT (Liquidity infusionscheme).


Details of Loans Guaranteesand Investments covered under the provisionsof Section 186of the Companies Act 2013 apart from the loans made guaranteegiven or security providedby theCompanyinthe ordinary course of business are given in the Notes to accounts formingpart of the Audited Rnanciai Statements for the year ended March3l 2022APOPnONANPALTERAnONlNMEMORANDUMANPARnCLEOFASSOCIATION;

Company has made Alteratic^ in the provisions of the Memorandum of Association of thecompany by way of char>ge in Name of Company and Change in Registered office inaccordance with the provisions of Companies Act 2013 vide passirvg Special Resolution(respectively) passed at Extra Ordinary General Meeting (EGM) heldon 30th April 2021.


TheGrossNPAofyourCompanyason March31.2022was Rs. 311.46 Lakhs;2.99% (previousyear288.18 Lakhs; 3.05%). The Net NPA as on March 312022 was Rs.248.17Lakhs;240%(fxeviousyear270.04 Lakhs; 2.86%). The regulatory and compliancereporting has been done inaccordance with the prudential guidelines for Non-Performing Assets (NPAs) issued by theReserve Bank of India under Master Direction-Non BankingRnanaal Company-Housing FinanceCom pany(Reserve Bank) Directions2021 Your Company has made adequate pro/ision for theassets on which installments are overdue for more than 90 days and on other assets^ asrequired. For details on the impairment provisioning pleaserefertoannexureno.9 ofdisclosures required by RBI/NHB to the financial statements. By way of prudence andabundant caution. Company has provided additional provision over and above the NHBguidelines as on March 312022.

TheCompany has maintained cumulative NPA provision of Rs 63.29 Lakhs against therequired provision of Rs63.29 Lakhs (Previous year Rs 18.13 Lakhs). Further for standardassets Company carriesprovision of Rs. 114.17 Lakhs (Previousyear Rs. 152.71 Lakhs).


T>ic Company has been granted registration by the National Housing Bank New Delhias a non-deposit taking Housing Finance Company. Being so the Company has neitheraccepted in the past nor hasany future plans to accept any public deposits^ by whatevername called.


The master directions issued by the RBI on 17 February 2021 are expected to bring ingreater discipline by way of detailed regulatory requirements which will bring about moretransparency and compliance inthe housing financesector.

The central bank's mandate regarding a liquidity buffer with respect to liquiditycoverage ratio (LCR) is expected to enhance HFCs' resilienceto potential disruptions toliquidity. This willbe on account of MFCs maintainingsufficienthigh-quality liquid assetsto mitigate any acute liquidity stressscenarios lasting 30 days.

The RBI's master directions on HFCs detailed the purview of housing finance to indudefinancing for purchase/ constructiory' reconstruction/repairsand rervovation of housirvgdwelling units. Withthis> the RBI brought companies engaged in construction financealso under the ambit of these directions thereby increasing the scope of its supervisionar>d enhancing the transparency across the construction value chain.

The regulations pertaining to HFCs were with the ertant N6FC regulations. The RBImaintained the flexibility of the HFCs with respect to risk weights as NBFCs generallyhave lesser flexibility for risk weights which are broadly classified into 0% 20% arni100%. As the flexibility has been continued the HFCs would not require additional capitalto service the same Loan Book and can maintain the current levelSy subject of course tominimum capital requirements.

As the larger HFCs already meet the above guidelines they are unlikely to facesignificant challenges when HFC regulationsare further harmonised with NBFCs goingforward.




During the year under review the Company receive total of 3 investor complaint duringand all of which were disposed of and same was submiltedto BSE pursuant to SEBI (LODR)Regulatk>a2015.


Your Company did not haveany funds tying unpaid or unclaimed for a period of sevenyears. Therefore therevverer>ofundsv/hich were required to be transferred to InvestorEducation and Protection Fund for the year under review.


No MaterialChangeshav^ taken place from the end of the financialyeartill thedateofthisreport.


The Company does not have any subsidiary Company or Joint Company or Associate Company.


In terms of Section 197of the Act read with Rule 5 of theCompanies (Appointment andRemuneration of Managerial Personnel) Rules 20H the disclosures with respect to theremuneration of Directors Key Managerial Personrtel and Employees of the Company havebeen provided in "Annexure VIM" to this Board's Report. Furtherstatement containing details of employees as required in terms of Sectiwi 197 of the Actread with Rule 5(2) and Rule 5(3) of the Companies(Appointmentand Remuneration ofManagerial Personnel) Rules 2014 is available for inspection at the Registered Office ofthe Company during working hours for a period of 21 days before the date of the ensuingAnnual General Meeting. A copy of the statement may be <^tair>ed by shareholders bywriting to the Company Secretary atthe Registered &CorporateOfficeof the Company or atcompliance(g)


In accordance with the provision of sec 134(3) (m) of the Act read v/ith Rule 8 of theCompanles(Accounts) Rules 2014 the requisite information relating to yourCompany are asunder:- A Conservation of energy;

The Company does not'fell under any of the industries covered by the Companies(Disclosure of particulars of Directors) Rules 1988

B. Technotogyabsorption:

Your company has implemented a next generation core housing virtual solution with thepurpose of aligning itself with the fast growing technology evolution and leveragingoperational capabilities while reducing the time taken for whole loan process.

With inter-connection of differentbranches with the head office inasafesecure andreliable360 cloud platform.

• For the aforesaid purpose your company has signed-up with Jaguar Software India& IXL( Mobility Solutions) in 2019-2020 and customized itwith the practical needs toareaof operation of company which results In following benefits

• Digitization of documents

• Centralization of all branches with corporate/registered office

• Speed-upthe loan process

• Single-Click Report Generation

• lnter-departmentalsolution( robust the collaboration)

• Androld/iOsappbasedsystemforfield stafftosubmitinitialdocumentsandverificationremarks

• Saving cost in logistics handling printingand mitigating risk of physicalmovements.

• Improvesthequalityofcreditanalysis.

• Secured andSafecloud based system withendtoendencryption.

• Predefined roleswlthmaker-checker concept with final approval authority toManaging director/Authorized Personnel

• Keeping of Digital trails which can keep the whole loan process details in onedick and useful during audit(s) and tracing purpose.

• Simplification of work flow with regular MIS.

JaguarSoftware India asaservice provider/software ver>dor will provideapplicableupgrades arxJ latest security protocols.

The NH8 had notified Information technology framework (guidelines) for Housing Rnancecompanies ('MFCs') vide its Notification No. NHB/ND/DRS and policy drcular no. 90/2017-2018 dated June 152018 to enhance safety security efficiency in process leading tobenefitforHFCsandtheir customer. Yourcompany Is in compliancevriththeaforesaid guidelines.

Your company and its software vendor conducts it's IT audit through external agenciesat regular intervals. The scope of IT audit is to identify the areas of risk checkvulnerabilities & cyber security etc at periodic intervals. The external agenciessuggestions and recommendations are reported to the Audit Committee& implementedwherever feasible.

C Foreign Exchange Earnings and Outgo:

Your company does not haveany foreign exchange earningsand outgo during the year underreview.


Your Company has insured its various properties and facilities against the risk offire theft and other perils etc and has also obtained Directors' and Officers' LiabilityInsurance Policy which covers the Company's Directors and Officers (employees inmanagerial or supervisory position) against the risk of financial loss including theexpenses piertaining to defense cost and legal representation expenses arisingintherwrmalcourseof business


With the challenging macroeconomic conditions and uncertainties there are heightenedrisks faced by the Company which can be inherent or market-related risks. There has been acontinuous focus on identifying measuring and mitigating risks by the Company. As ahousing finance company the Company is exposed to various risks like creditrisk marketrlsk(interest rate and currencyrisk) liquidity risk and operational risk (technologyemployee transaction and reputation risk). A k^ risk in the competifve home loans andmortgage-backed funding in general is losing customers that transfer out their loans forsmall gains in interest rates this represents a Significant loss of opportunity to theCompany given the long-term nature of mortgage loans. To identify and mitigate all theserisks the Company has aneffect've Risk Management ControlFrame'workthat has beendeveloped compassingall the aboveareas.

The Company has a Risk Management Committee (RMC) in placed that comprises itsdirectors and members of its senior

management team who have rich industry experience across domains. The RMCmetmultipletimesdunngthe year and kept an active watch on the emergent risks the Companywas exposed to. The Company's Chief Risk Officer (CRO) oversees the process ofidentification measurementandmitigaton of risks. The CROreportsdirectfy to the Board andmeetsthemmultipletimes and at least once in a quarter to discuss the risks faced by thoCompany and policies to mitigate them.

!n compliance with the clause 51 of Chapter IX- Corporate Governance of Non-BankingFinancial Company -Housing Finance Company (Reserve Bank) Directions 2021 Mr. B.S.Kachhawaha is desigr^ated as Chief Risk Officer (CRO) of the Company who has directreporting to MD of the Company.

During the Rnancial Year under review the Risk Management Committee reviewed the risksassociated with the business of your Company undertook its rootcause analysis andn>onrtoredthe efficacy of the measures taken to mitigate the san>e.


The Asset Liability Management Committee (ALCO) lays down policies and quantitativelimits that involve assessment of various types of risks and shifts in assets andliabilities to manage such risks. ALCO ensures that the liquidity and interstate risksarecontained within the limits laid down by the Board. The Com panyhasduly implemented theNHB's Asset Liability Management Guidelines. VIGILMECHANISNVWHISTLEBLOWER POLICY:

Pursuant to the provisions of Section ?77 (9) & (10) of the Companies Act 2013read with Rule 7 of Companies (Meetings of Board and its Powers) Rules 2014 andSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 the Company has in place a Whistle Blov/er Policy which provides for aframework to promote a resp>onsible and secure whistle blower. It protects DirectorVemployees wishing to raise a concern about serious irregularities within the Company. Itprovides for a vigil mechanism to chanr>elize reporting of such instances/ complaint^grievances to ensure proper governance. The Audit Committee oversees the vigil mechanism.No employee has been denied access to the Chairperson of Audit Committee. The whistleblower policy is placed on the website of the Company arwi can be accessed at w^


Your Company has formulated various policies and codes in compliance with provisions ofDirections and Guidelines issued by the National Housing Bank Companies Act 2013Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 and to erasure high ethical standards in the overall furvrtioning of theorganizatiorv The said policies arxJ codes are periodically reviewed by the Board ofDirectors. The key polices and codes as approved by the Board of Directors and therespective compliance there undoraredetailod herein below:

(a) KnowYourCustomer& Anti Money Laundering Measure Policy

Your Company has approved Know Your Customer & Anti Money Laundering Measure Policy(KYC & AML Policy) in placed and adheres to the said Policy. The said Policy is inline with the National Housing Bank guidelines. The Company has also adhered to thecompliance requirement in terms of the said policy lelating to the monitoring andreportir>g of cash/ suspicious transactiorts. The Company furnishes to RnancialIntelligence Unit (FlU) India in the electronic medium information of all cashtransactions of the value of more than Rupees Ten Lakhs or its equivalent in foreigncurrency and suspicious transactiorvs whether or not made in cash in terms of the saidPolicy. The followir^g policy is placed on the vvebsite of the Company and can be accessedat wwwstarhfl-com

(b) Fair Practice Code

Your Company has in placed a Fair Practice Code (FPC) which includes guidelines onappropriate staff conduct when dealing with the customers and on the organization'spolicies vis-a-visclient protection. TheFPC captures the SfHht of the National HousingBank guidelines on fair practices for Housing Finarvee Companies. During the year underreviev/ FPC v/as modified by the Board and the grievance redressal mechanism within theCompany was further strengthened. The following policy is placed on the websiteoftheCompany and can be accessed at wwW;Staillfl-fifiCD

(c) Policy on Disclosure of material eventsand information

During the year under review your Company has adopted the Policy on Disclosure ofMaterial Events and Information in accordance with Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 to determine theevents arvd information which are material in nature and are required to be disclosed tothe Stock Exchanges. The [x>licy is placed on the website of the Company and can beaccessed at www.s1arhf l-OTm

(d) Code of Conduct for Board Membersand theseolor management

Your Company has in placed Code of Conduct for the Board of Directors and the SeniorManagement Personnel to set forth the guiding principles on which the Company and itsBoard and Senior Management Personnel shall operate and conduct themselves withmultitudinous stakeholders government and regulatory agencies media and anyone else withwhom it is connected. A declaration by the Chief Rnancial Officer and Managing Directorwith regard to the Compllarvce with the said code forms part of this Annual Report Thefollowing policy is placed on the website of the Company and can be accessed at\yvw^starbfl .Cpm

(e) Insider Trading Pracd<?!S

Your Company has formulated and adopted a Code for Prevention of Insider TradingPractices in accordance with the model code of conduct as prescribed under the Securitiesand Ej(change Board of India (Prohibition of Insider Trading) (Amendment) Regulations2018 as amended. The code lays down guidelines which includes procedures to be followedand disclosures to be n%ade while dealing in the shares of the Company. The code isapplicable to the promoters directors senior designated employees and their dependentand the said persons are restricted from dealing (n the securities of the Companyduringthe'restricted trading periods'notified by theCompany from time to time.

(f) Code of Business Ethics (COBE)

Your Company has adopted a Code of Business Ethics (COBE) V/hich lays down theprinciples and standards that govern the activities of the Company and its employees toensure and profTK>teethical behav'ror within the legal framework of the organization.

Your Company has in place a Policy on Prevention Prohibition & Redressal of SexualHarassment of Women at Workplace and an Internal Complaints Committee OCC) has beenconstituted there under. The Policy's primary objective is to protect the women employeesfrom sexual harassment at the place of work and also provides for punishment in case offalse and maliciousrepresentations. During the year no com plaints werereceived in thisregard.

(9) CiHDpiieJ)9JQSjb??L^)(Mandgen)entPQlIcy

Your Company is committed to manage its risk in a proactive manner and has adopted astructured and disciplined approach to risk management by developing and implementing riskmarvagement framevrork. With a view to manage its risk effectively your Company has inplace a Comprehensive Risk Management Policy vvh'tch covers a formalized Risk ManagementStructure alorvg vrith other aspects of risk management i.e. credit risk managementoperational risk management market risk management and enterprise risk management. TheRisk Management Committee of the Board on [periodic basis oversees the riskmanagementsystems processesand minimization proceduresof the Company.

(h) Corporate Social Responsibility (CSR) Policy

Your CompanyhasCorporateSocial Responsibility Policy (CSR Policy) aspertheprovisionsof the Companies (Corporate Social Responsibility Policy) Rules. 2014 asamended which inter-alia. lays down the guidelines and mechanism for undertakingsocially useful projects for welfare and sustainable development of the community atlarge. As per the provisions of Section 135 of the Companies Act 2013 the Company hasconstituted a Corporate Social Responsibility Committee. The Comm'ittee assists the Boardinfutfillingitsduty towards the community and society at large by identifying theactivities and programmers that can be undertaken by the Company in terms of theCompany's CSR Policy. The composition of theCSR Committee arid its terms of reference aregiven in the Corporate Gowrnance Report forming part of this Annual Report Statutorydisclosures witii respect to the CSR Committee and a report on CSR expenditures ismentioned in" Annexure III" annexed to this report.

(i) Remur>eration Policy

The Nomination and Remuneration Committee had laid down criteria for determiningDirectors Qualification Attributes and Independence of a Director remuneration ofDirectors Key Managerial Per?sonnel and other employeesand criteriaf o r valuation ofDirectors ChairpersOT Norv-Executive Directorsand Board and the evaluation processofthesame. Thepolicy may be accessed on the Company's website

(j) Related Party Transactions Policy:

Your Company has in placed the Related Party Transaction Policy intended to ensurerequisite approval reporting and disclosure of transactions between the Company and itsrelated parties. The said policy also defines the materiality of related partytransactions and lays down the procedures of dealing with related party transactionsDuring the year under review the Related Party Transaction Policy was amended to alignthe same with the requirements of Companies (Amendment) Act. 2015 and Securities andExchange Board of India (Listng Obligations and Disclosure Requirements) Regulations2015. The followir>9 policy is placed on the websiteof the Company (k) FamtiiarizationProgrammeforindependentDirectors;

The objective of a familiarization programme is to ensure that the non-executvedirectors are updated on the business environment and overall operations of the Company.This enables the non-executive directors to make better informed decisions in the interestof the company and its stakeholders The following policy is placed on thevvebsite of theCompany and can be accessed


The Board of Directors of the Company comprises of Five [5] directors of which one [1]is Executive Directors; One [1] is Chairman & Managing Director & Three [3] areIndepervdent & Non- E>?cutive Director including one woman director as on March312022 who bhng in a wide range of skills and experience to the Board.

• Retirement of Director by rotation

In accordance with the provisions of Section 152 of the Companies Act 2013 ar>dArticles of Association of the company Mr. Kavish Jain Executive Director of the Companyis liable to retire by rotation at the ensuring 17th Annual General Meetirvg of thecompany. Heiseligibteandofferedhimselfforre-appointmentAresolutionforhisreappointmentisbeing proposedat the 17th Annual General Meeting and his Profile is included in the Notice.

Th? Bc^rd .of ptrectoTS of the Compao^are:- . Composition of the Board as on March312022

DIN Name of Director Category of Directors
02041164 Mr. Ashish Jain Chairman & Managirvg Director
02041197 Mr. Kavish Jain Executive Director
02173432 Mr. Amrit Singh Rajpurohit Non Executive & Irvdependent Director
06964564 Mr. Amlendra Prasad Saxena Non Executive & Independent Director
07703994 Dr. Rekha Jain Non Executive & Independent Director

Based on the confirmations received norve of the Directors are disqualified for beingappointed/re-appointed directors in terms of Section 164 the Companies Act 2013.

During the year following changes took place In the Board of Directors / KMP ofCompany;

S. No. Name of Directors/ KMP Designation Appointment/ Resignation Date of change
1 Mr. NirmalKunvsr Jain Non- Executive Director Resignation 31.122021

After the closer of the f irvancial year following changes took place in the KMP:

- Mr. Paritosh Kothari resigned as a Company Secretary and Compliance Officer of thecompany with effect from 1st June 2022.

- Mr. Shreyas Mehtra appointed as a Company Secretary and Compliance Officer of thecompany with effect from 1st June 2022.

• Reappointment of Independent director

TheCompany has Re-appointed Mr Amlendra Prasad Saxena (DIN: 06964564) as an IndependentDirector of the company for a term of Five years in Annual General Meeting held onSeptember292021.

• Declaration from independent Directors on Annual Basis:

.TheCompany hasreceived necessary declaration from each Independent Director of theCompany UnderSection 149(7) of the Companies Act. 2013 that theindependentDirectorsoftheCompany meet with the criteria of their Independence as laid down in Section 149(6) andthe provisions of Regulation 16(l)(b) of the Securities and Exchange Board of India(Listing Obligations and

Disclosure Requirements) Regulations 2015.

Based on the confirmations received none of the Directors are disqualified for beingappointed/re-appointed as directors in termsof Section 164 theCompanles Act 2013

• StockOption

During the year Employee Stock Option Scheme2021(ESOP) for the employeeof theCompanyapproved vide passing Special resolution in Extra OrdinaryGeneral Meeting of themembersofthecompany held on April30.2021


The provisions of the Companies Act 2013 mandates formal annual evaluation of theBoard of Directory its committees and individual Directors. Schedule IV of the CompaniesAct 2013 also requires the performance evaluation of Chairman & Managing Director andNon-Executive Directorsand Board as a whole to be carried out at a separate meeting by theCompany's Independent Directors. It also states that performanceevaluation of IndependentDirectors shall be done by theentire Board excluding the Director being evaluated. Theprovisions of Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations. 2015 also require that the Board shall monitor and review theBoard Evaluation Framework. Theannual petformanceevaluati<^of the Boardasa whole allDirectors as well as the evaluation of the Board Committees including Audit CommitteeNomination & Remuneration Committee Risk Management CommitteeStakeholders'Relationship Committee and Corporate Social Responsibility Committee of theBoard of Directors of the Company was carried out.


• Board

Your Company holds at least four Board meetings in a year one in each quarterinter-alia to review the iinancial results and also holdsadditional Board Meetings toaddress its specific requirements as and when required. All the decisions and urgentmatters approved by way of circular resolutions are placed and numbered and noted at thesubsequent Board meeting. Annual calendar of meetings of the Board are finalized wellbefore the beginnir?g of the financial year after seeking concurrence of all theDirectors.

During the financial year 2021-22 Frfteen (15) Board Meetings were held are asfollows.

S. no. Date of Meeting
1 07042021
2 21.04.2021
3 22.05.2021
4 02.06.2021
5 18.06.2021
6 10.072021
7 05.08.2021
8 31.08.2021
9 05.10.2021
10 18.10.2021
T1 29.10.2021
12 18.11.2021
13 06.01.2022
14 18.01.2022
15 26.02.2022

The intervening gap between the Meetings was within the period prescribed under theCompanies Act 2013 and the Securities and Exchange Board of India (Ustif>g Obligationand Disclosure Requirements) Regulations 2015. The details of the Boardcomposition itsmeetings held during the year along with the attendance of the respective Directors thereat are set out in the Corporate Goverrvance Report forming pat t of this Annual Report.

The Company's Independent Directors meet at least once in every financial year withoutthe presence of Executive Directors or management personnel. The Independent Directors ofthe Company met once during the year on March 302022 to review the performance ofNon-Independent Directors and the Board as a whole review the performance of the Chairmanof the Company and access the quality quantityandtimelinessofflowof information betweenthecompanymanagementand the Board.

• Shareholder's Meeting

During thefinancialyear202I-22ExtraOrdif^ryGerieralMeetingwas held as follows.

Day/ Date/TIme Location Details of Ordir^ary/Special Resolution passed
April. 302021 at Through Video conferencing at the Ordinary Resolution:
11.00 a.m. Registered office of the Company at AKME -To increase in Authorized Share Capital of the Company
Business Centre (ABC) 4-5 Subefty Centre Special Resolution
Savina Circle Opp. Krishi Upaz Mandi Udaipur Rj313002 - Change in the name of the Company from Akme Star Housing Finance Limited to Star Housing Rnance Limited
- Shifting of Registered Office of the Company from State of Rajasthan to State of Maharashtra
- Approval of the Akme Employee Stock Option Plan 2021' (AKMEESOPSCHEME2021)
October 29.2021 Through Video Conferencing At the Special Resolution
at 11.00 a.m. Registered office of the Company at AKME Business Centre (ABC) 4-5 Subcity Centre Savina Circle Opp. Krishi Upaz Mandi UdaipurRj 313002 - To approve the issuance of 1030730 (Ten Lakhs Thirty Thousand Seven Hundred arvj Thirty) Equity Shares of Face value INR- 10/ - each (Equity Share) at a price of INR 89/- (induding premium of INR 79/-per Equity Share) for a total consideration of Rs. 91734970 (Rupees Nine Crore Seventeen Lakh Thirty Four Thousand Nine Hundred and Seventy)

Audit CommitteeAQttt^'fioaplCommittees

Your Company has a duly constituted Audit Committee as per the provisions of Sectioni77 of Companies Act 2013 and provisions of Securitiesand Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015.

The Board of Directors has constituted four other committees namely -

• Nomination and Remuneration Committee

• Stakeholders'Relationship Committee

• RiskManagementCommittee

• CorporateSocial Responsibility Committee

This enables the Board to deal w:th pacific areas/activities that need a closer reviev/and to have an appropriate structure to assist In thedischargeof thelrresponsibllities.

The Audit Committee and crfr?er Board Committees meet at regular intervals and ensureto perform the duties and functions as entrusted upon them by the Board.

Thedetails of theAudit Committee and other Board Committeesare also set out in theCorporateGoverna nee Report forming part of this Annual Report.


In accordance with theprovisionsof Section 188 of the Actand rules made thereunder thetransactionsentered with related parties are in the ordinary course of business and on anarm's length pricing basis the details with respect to the related party transactions arementioned in the notes to the audited financial statements.

Durirtg the financial year under review your company has not entered into materialcontract arrangement or transaction with related party as defined under Securities andExchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 and Related Parly Trar?actk>n Policy of the Company.

Form AOC-2 as per the Related Pat ty Transactior^ is attached as "Annexure r tothis Report and forms a part of it. The Related Party Transaction Policy as approved bythe Board of Diiectors is available on the vvebsite of the Company which can be accessedat


During the year r>o significant or material order was passed by the Regulators orCouits or Tribunals and the Company has complied •Mth the order and Compliances ofCompanies Act 2013.


Your Company confirms that it has paid the annual listing fees for the relevant periodto Bombay Stock Ew:hange vrhere the Company'ssharesare listed.


There has been nochangein the nature of business of the Company during the year underreview.

The Company being a Housing finance Company is not required to maintain cost records asprescribed under section 148(1) of the Act


During the year under reviev/ the Company has complied with the applicable secretarialstandards issued by the Institute of Company Secretaries of India.


1. Statutory Auditors

M/s. Nyati Mundra & Co. Chartered Accountants (Rrm Registration No.008153C) wereappointed as Statutory Auditors of the Comp3nyforatermofS(five)consecutive years at theAnnual General Meeting held on September 29 2021. They have confirmed their eligibilityand qualifications required under the Act for holding office as Statutory Auditors of theCompany. The Notes on financial statement referred to in the Auditors' Report areself-explanatory and do not call for any further comments. The Auditors'Report doesnotcontain any qualification reservation adverseremarkor disclaimer. No fraudhave beenreported by the Audrtorsof the Com panyintermsof Section 143(12) of theCompanies Act 20X3.


2. Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act 2013 and Rule 9 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 and Pursuantto Reg. 24A of Securities Exchange Board of India (Listing Obligation&DisclosureRequirement) (Amervdments) Regulations 2018 the Boardof Directors of the Company hadappointedMr.RonakJhutha\vatProprietorofM/sRonakJhuthawat&Co..PracticingCompanySecretaf?es.Udaipurto undertake the Secretarial Audit of theCompanyforthefinancialyear 2021-22. TheSecretarial Audit Reportforthe financial year ended March 312022 is annexed as"Annexure H" to this report.

The said report does not contain any qualification reservation or adverse remarkhowever contains certain observations of t h e Secretarial Auditor whichareself-explanatory.andthusdonotcallforanyfurther comments.


3. Internal auditor

Your Company has appointed CA Sandesh Deorukhkar Chartered Accountants as an InternalAuditor of the Company >vho reports to the Audit Committee and to the Board ofDirectors of the Company. The Internal Auditor conducts comprehensive audit of furKtionalareas and operations of the Company to exam inetheadequacy of and compliance withpolicies proceduresstatutoryandregulatoryrequirements.SignificarYtauditobservationsandfolk>wupacik>nsthereonarereportedtothe Audit Committee.TheAudltCommitteereviev/sadequacyandeffectivenessoftheCompany'sinternalcontrolenvironment and

monitorstheimptementation of audrt recommendations.

Theaudrtfunctionmaintainsitsindependenceand objectivity v/t>ilecarry;ng outassignments. Itevaluatesof^acontinuous basis the adequacy and effectivenessof internalcontrol mechanism. The function also proactively recommends improvement in(X)liciesandprocessessuggestsstreamliningofcontrolsagainstvariousrisks. Your Company haslaid down set of standards processesandstructure which enablesittoimplementinternalfinancial control across the Company and ensure that the same are adeq uate and operatirvgeffectively.

DIRECTORS' RESPONSIBILITY STATEMENT The Board of Directors state that;

• inthepreparationof theannualfinancialstatementsfortheyearendedMarch312022.theapplicableaccountingstandards read with the requirements set outunder Schedule III to the Act have been followed and there were no material departuresfrom the same;

• The Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable andprudentsoastogiveatrueandfairviewof thestateofaffairsof theCompanyason March 312022 andof the profit of theCompanyforthe year endedonthat date;

•TheDirectorshavetakenproperandsufficientcarehasforthemaintenanceofadequateaccountingrecordsinaccordance with the provisionsof the Act for safeguarding the assetsof the Company and forpreventing and detecting fraud andother irregularities;

• The Directors have prepared theannual accountson a going concern basis;

• The Directors have laid down interrvalfinancial controlstobe followed bytheCompany and that the financial controlswere adequate and wereoperating effectively:

• The Directors have devised proper systems to ensure compliance with theprovisior^ of all applicable laws and vvere adequate and operating effectively.


Your Company has taken adequate steps to adhere to all the stipulations laid down inthe SEBI (Listing Obligatiorre and Disclosure Requirements)Regulations?20l5 CorporateGovernance (National Housing Bank) Directions 2016 RBI Directionsand toe Companies Act2013 and Rules thereto as amended from time to time. Pursuant to the SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 RBI/ NHB Directions anddisclosures as required under The Companies Act 2013 and the Rules thereto a separateSection titled ‘Report on Corporate Governance'forms part of this Annual Report.

The certificate by the Practicing Company Secretary confirming compliance with toeconditions of Corporate Governance as stipulated intheSEBI(LODR) Regulations 2015 formspart of thisreport as "ANNEXUREV".

The said certificate for financial year 2021-22 does not containsanyqualificationreservation or adverse remarks.

In terms of Section 136 of The Companies Act2013 the reports and accounts are beingsent to the members arvd otoers entitled thereto.


Pursuant to Regulation 34 of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 Management's Discussion andAnalysis Report for the year ur>dor review is presented in as separate sectionforming partof this Annual Report ANNUAL RETURN

As required under Section 134(3)(a) of the Act the Annual Return is available on theCompany's website and can be accessed at VAW/


Your Company believes toat Its Members are among its most important stakeholders.Accordingly your Company's operations are committed to the pursuit of achieving highlevels of operating performance and cost competitiveness consolidating and building forgrowth enhancing the productive asset and resource base and nurturing overall corporatereputation. Your Company is alsocommittedtocreatingvalueforitsotherstakeholdersbyensurirvgthatitscorporateactionspositivelyimpjactthesocio-economicandenvironmental dimereionsand contribute tosustainable growth and development.


• Focus on grovvth of Individual home loans segment.

• Making online loan application more effective arKl enhance its contributiontowards the incremental business.

• Strengthening marketing offices opened during the last 3 years artd making themhigh growth centers.


• UnderstandingtheinherentriskstotJ>ebusinessand managing it effectively.

• Widespread marketstudiesassistirvgmodellir>goftoanproduct&to^itcustomerneeds.

• Making use of information provided by marketing off ices about ground marketcorvditions.


Your Board of Directors take this opportunity to express their appreciation to allstakeholders of the Company including the Reserve Bank of India. National Housing Bankthe Ministry of Corporate Affairs. Securities and Exchange Board of lr>dia theGovernment of India. Stock Exchanges and other Regulatory Authorities Bankers. Lenders.Rnancial Institutions. Members Credit Rating agencies Customers of the Company for theircontinued support and trust Your directors v/ould like to express deep appreciation forthe commitment shown by the employeesin supporting theCompany in achieving continuedrobust performance onall fronts.

In closing we would like to thank all the investors as well as the communities weoperate in who have reposed their trust in us and supported us incur journey.

For and on behalf of the Board of Directors
Sd/- Sd/-
Ashish Jain KavfshJain
Chairman&Managing Director Director
DIN:02041164 DIN:02041197
Place: Mumbai