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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

504631

Report Date :

18.04.2018

 



IDENTIFICATION DETAILS

 

Name :

BAJAJ FINANCE LIMITED (w.e.f. 2010)

 

 

Formerly Known As :

BAJAJ AUTO FINANCE LIMITED

 

 

Registered Office :

Mumbai–Pune Road, Akurdi, Pune – 411035, Maharashtra

Mobile No.:

91-9810960704 (Mr. Ashok)

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

25.03.1987

 

 

Com. Reg. No.:

11-042961

 

 

Capital Investment / Paid-up Capital :

INR 1093.700 Million

 

 

CIN No.:

[Company Identification No.]

L65910MH1987PLC042961

 

 

IEC No.:

[Import-Export Code No.]

Not Divulged

 

 

GSTN :

[Goods & Service Tax Registration No.]

27 AABCB1518L1ZS

 

 

TIN No.:

27640895488

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AABCB1518L

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

The Company is a registered non-banking finance company engaged in the business of providing finance. (Registered Activity)

 

 

No. of Employees :

11479 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A++

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist 

 

 

Comments :

Bajaj Finance Limited is a non-banking finance company and a subsidiary of Bajaj Finserv Limited. BFL is one of the leading NBFC in India having a diversified loan book with exposure in various segments like consumer finance, SME finance, commercial finance and rural finance.

 

The company was incorporated in the year 1987 and is based in Pune, Maharashtra. It is an established company having excellent track record.

 

For the financial year ended 2017, the company has witnessed a growth in its revenue and has achieved decent profit margin at 18.41% (approx.)

 

The company possesses strong financial profile marked by healthy net worth base along with decent profit margin of the company.

 

Rating also takes into consideration rich experience of its promoter, long established track and strong operating efficiency of the company.

 

Rating also derives strength from its strong group “Bajaj Group” and its established brand name.

 

Share price are quoted high on stock exchange (Share price of INR 1931 with Face value of INR 2)

 

Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment.

 

In view of the aforesaid, the company can be considered normal for business dealings at usual trade terms and conditions

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Non-convertible debenture programme: AAA

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

23.10.2017

 

Rating Agency Name

ICRA

Rating

Commercial paper programme: A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

23.10.2017

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2016.

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 18.04.2018

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

INFORMATION DENIED BY

 

Name :

Mr. Ashok

Designation :

Manager

Contact No.:

91-9810960704

Date :

17.04.2018

 

 

LOCATIONS

 

Registered Office :

Mumbai–Pune Road, Akurdi, Pune – 411035, Maharashtra, India 

Tel. No.:

91-20-30186072

Mobile No.:

91-9810960704 (Mr. Ashok)

Fax No.:

91-20-30186364

E-Mail :

anant.damle@bajajfinserv.in

investor.service@bajajfinserv.in 

Website :

www.bajajfinserv.in/finance 

 

 

Corporate Office 1 :

4th Floor, Finserv Corporate Office, Off Pune-Ahmednagar Road, Viman Nagar, Pune – 411014, Maharashtra, India 

Fax No.:

91-20-30405020 / 30

 

 

Corporate Office 2 :

3rd Floor, Panchshil Tech Park, Plot 43/1, 43/2 and 44/2, Viman Nagar, Pune – 411014, Maharashtra, India

Tel. No.:

91-20-30186403

Fax No.:

91-20-30186364

 

 

DIRECTORS

 

AS ON 31.03.2017

 

Name :

Mr. Rajeev Jain

Designation :

Managing Director

Address :

D-2, Ivy Glen, Marigold Premises, Kalyani Nagar, Pune – 411014, Maharashtra, India

Date of Appointment :

01.04.2015

DIN No.:

01550158

 

 

Name :

Mr. Dipakkumar Jagdishprasad Poddar

Designation :

Director

Address :

Brij Kutir, 17th Floor, Rungta Lane, Off Nepean Sea Road, Mumbai – 400006, Maharashtra, India

Date of Appointment :

25.03.1987

DIN No.:

00001250

 

 

Name :

Mr. Omkar Goswami

Designation :

Director

Address :

E-121, Masjid Moth, First Floor, Greater Kailash-III, New Delhi – 110048, India

Date of Appointment :

16.05.2012

DIN No.:

00004258

 

 

Name :

Mr. Rahulkumar Kamalnayan Bajaj

Designation :

Director

Address :

Bajaj Vihar, Mumbai Pune Road, Akurdi, Pune – 411035, Maharashtra, India

Date of Appointment :

25.03.1987

DIN No.:

00014529

 

 

Name :

Mr. Madhurkumar Ramkrishnaji Bajaj

Designation :

Director

Address :

Bajaj Vihar, Mumbai Pune Road, Akurdi, Pune – 411035, Maharashtra, India

Date of Appointment :

15.05.1990

DIN No.:

00014593

 

 

Name :

Mr. Sanjivnayan Rahulkumar Bajaj

Designation :

Director

Address :

Bajaj Vihar, Mumbai Pune Road, Akurdi, Pune – 411035, Maharashtra, India

Date of Appointment :

18.01.2005

DIN No.:

00014615

 

 

Name :

Mr. Rajivnayan Rahulkumar Bajaj

Designation :

Director

Address :

34/35, Yog Lane No.2, Koregaon Park, Pune – 411001, Maharashtra, India

Date of Appointment :

02.05.1994

DIN No.:

00018262

 

 

Name :

Mr. Balaji Rao Jagannathrao Doveton

Designation :

Director

Address :

D-103, Adarsh Residency, 47th Cross, 2nd Main Jayanagar, 8th Block, Bangalore – 560082, Karnataka, India

Date of Appointment :

15.07.2009

DIN No.:

00025254

 

 

Name :

Mr. Dhirajlal Shantilal Mehta

Designation :

Director

Address :

301/ 302, Gora Gandhi Aprtments 3, Laburnam Road, Gamdevi, Mumbai – 400007, Maharashtra, India

Date of Appointment :

15.05.1990

DIN No.:

00038366

 

 

Name :

Nanoo Gobindram Pamnani

Designation :

Director

Address :

Flat No. 21, ELCID 13A, Ridge Road, Malabar Hill, Mumbai – 400006, Maharashtra, India

Date of Appointment :

11.07.2007

DIN No.:

00053673

 

 

Name :

Mr. Rajendra Lakhotia

Designation :

Director

Address :

Universal Auto Traders, M.G. Marg, Gangtok – 737101, Sikkim, India

Date of Appointment :

25.03.1987

DIN No.:

00163156

 

 

Name :

Mr. Ranjan Surajprakash Sanghi

Designation :

Director

Address :

Flat No.21, Mistry Court, 4th Floor, Dinshaw Vachha Road, Mumbai – 400020, Maharashtra, India

Date of Appointment :

25.03.1987

DIN No.:

00275842

 

 

Name :

Ms. Gita Piramal

Designation :

Director

Address :

61, 6th Floor, Piramal House, S Pochkhanawala Road, Worli Seaface, Mumbai – 400025, Maharashtra, India

Date of Appointment :

27.03.2014

DIN No.:

01080602

 

 

KEY EXECUTIVES

 

Name :

Mr. Anant Damle

Designation :

Company Secretary

Address :

Ashirwad, 11/171, Behind Hindusthan Bakery, Chinchwad, Pune – 411033, Maharashtra, India

Date of Appointment :

01.04.2010

PAN No.:

AARPD5193J

 

 

Name :

Mr. Sandeep Vijaykumar Jain

Designation :

Chief Financial Officer

Address :

Flat No. 811, Iris – II, Clover Acropolis, Viman Nagar, Pune – 411014, Maharashtra, India

Date of Appointment :

04.02.2016

PAN No.:

AFLPJ1609J

 

 

Name :

Mr. Ashok

Designation :

Manager

 

 

Audit Committee :
  • Nanoo Pamnani, Chairman
  • Sanjiv Bajaj
  • D S Mehta
  • Omkar Goswami
  • Ranjan Sanghi

 

 

Stakeholders Relationship

Committee :
  • Ranjan Sanghi, Chairman
  • Nanoo Pamnani
  • Sanjiv Bajaj
  • D S Mehta
  • Gita Piramal

 

 

Nomination and Remuneration Committee :
  • Nanoo Pamnani, Chairman
  • Rahul Bajaj
  • Sanjiv Bajaj
  • Omkar Goswami
  • Ranjan Sanghi
  • Rajendra Lakhotia

 

 

Corporate Social Responsibility Committee :
  • Rahul Bajaj, Chairman
  • Nanoo Pamnani
  • Sanjiv Bajaj

 

 

Risk Management Committee :
  • Nanoo Pamnani, Chairman
  • Sanjiv Bajaj
  • Rajeev Jain
  • Dipak Poddar
  • Rakesh Bhatt
  • Atul Jain
  • Sandeep Jain

 

 

SHAREHOLDING PATTERN

 

AS ON 31.03.2018

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Promoter & Promoter Group

318678085

55.14

(B) Public

256456103

44.37

(C) Shares held by Employee Trust

2834200

0.49

Grand Total

577968388

100.00

 

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of Shareholder

No. of Shares

Percentage of Holding

A1) Indian

 

0.00

Individuals/Hindu undivided Family

861015

0.15

RAHULKUMAR BAJAJ

186000

0.03

MADHUR BAJAJ

186000

0.03

SANJIVNAYAN BAJAJ

482000

0.08

SUMAN JAIN

7015

0.00

Any Other (specify)

317817070

54.99

BAJAJ FINSERV LIMITED

317816130

54.99

JAMNALAL SONS PRIVATE LIMITED

940

0.00

Sub Total A1

318678085

55.14

A2) Foreign

 

0.00

A=A1+A2

318678085

55.14

 

Statement showing shareholding pattern of the Public shareholder

 

Category of Shareholder

No. of Shares

Percentage of Holding

B1) Institutions

 

0.00

Mutual Funds/

44970718

7.78

ADITYA BIRLA SUN LIFE TRUSTEE COMPANY PRIVATE LIMITED AC BIRLA SUN LIFE BALANCED 95 FUND

6071340

1.05

AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND

8202657

1.42

Alternate Investment Funds

1072671

0.19

Foreign Portfolio Investors

112459901

19.46

GOVERNMENT OF SINGAPORE

22012030

3.81

Financial Institutions/ Banks

962670

0.17

Insurance Companies

4883999

0.85

Sub Total B1

164349959

28.44

B2) Central Government/ State Government(s)/ President of India

 

0.00

B3) Non-Institutions

 

0.00

Individual share capital upto INR 0.200 Million

44098128

7.63

Individual share capital in excess of INR 0.200 Million

10723335

1.86

NBFCs registered with RBI

55561

0.01

Any Other (specify)

37229120

6.44

Trusts

762215

0.13

Non-Resident Indian (NRI)

5194457

0.90

Clearing Members

1196051

0.21

Director or Director's Relatives

753975

0.13

Bodies Corporate

28977332

5.01

MAHARASHTRA SCOOTERS LIMITED

18974660

3.28

IEPF

345090

0.06

Sub Total B3

92106144

15.94

B=B1+B2+B3

256456103

44.37

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is a registered non-banking finance company engaged in the business of providing finance. (Registered Activity)

 

 

Products/ Services :

NIC Code No.

Product/ Services Description

65923

Non–Banking Finance Company engaged in lending and allied activities

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

Customers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

No. of Employees :

11479 (Approximately)

 

 

Bankers :

Banker Name :

Central Bank of India

Branch :

--

Person Name (With Designation) :

--

Contact Number :

--

Name of Account Holder :

--

Account Number :

--

Account Since (Date/Year of Account Opening) :

--

Average Balance Maintained :

--

Credit Facilities Enjoyed (CC/OD/Term Loan) :

--

Account Operation :

--

Remark :

--

 

  • State Bank of India
  • IDBI Bank Limited
  • Syndicate Bank
  • Bank of India

 

 

Facilities :

SECURED LOANS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Privately placed redeemable non-convertible debentures/bonds secured

by pari passu charge by mortgage of Company's Flat No. 103, Nayan Co-operative Hsg Society, CTS 718, Plot No. 11, ICS Colony, Shivaji Nagar,

Pune - 411016 and/or Company's office at Unit No. 806 admeasuring 2280 sq. ft. 8th Floor, Block, A of Wing Delta, Raheja Towers, Anna Salai, Mount Road, Chennai – 600 002 and book debts/loan receivables under financing activity as stated in the respective information memorandum

156513.700

108444.000

From Banks, against hypothecation of assets under finance, book debts

and other receivables

117687.500

118366.100

SHORT TERM BORROWINGS

 

 

From Banks, against hypothecation of assets under finance, book debts and other receivables

 

 

Cash credit

12342.600

18800.800

Working capital demand loan

5000.000

0.000

Overdraft facility

861.500

2399.700

Collateralised borrowing and lending obligation, against Government securities held by the Company

3500.000

2000.000

Total

295905.300

250010.600

 

Auditors :

 

Name :

Dalal and Shah LLP

Chartered Accountants

 

Secretarial Auditor

 

Name :

Shyamprasad D Limaye

Practising Company Secretary

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company:
  • Bajaj Finserv Limited

 

 

Subsidiary:
  • Bajaj Housing Finance Limited
  • Bajaj Financial Securities Limited

 

 

Fellow Subsidiary:
  • Bajaj Allianz Life Insurance Company Limited
  • Bajaj Allianz General Insurance Company Limited

 

 

Enterprises over which anyone in (B) and (C) exercises significant influence:
  • Bajaj Auto Limited
  • Bajaj Holdings and Investments Limited
  • Mukand Limited
  • Hind Musafir Agency Limited
  • Bajaj Electricals Limited
  • Jamnalal Sons Private Limited
  • Hercules Hoists Limited
  • Maharashtra Scooters Limited
  • Bajaj Auto Holdings Limited

 

 

CAPITAL STRUCTURE

 

AFTER 19.07.2017

 

Authorised Capital : INR 1500.000 Million

 

Issued  Subscribed & Paid-up Capital : INR 1155.937 Million

 

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

#750000000

Equity Shares

INR 2/- each

INR 1500.000 Million

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

#549890090

Equity Shares

INR 2/- each

INR 1099.800 Million

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

#549890090

Equity Shares

INR 2/- each

INR 1099.800 Million

 

Less: 3 057 500 equity shares of INR 2 each held in

Trust for employees under ESOP Scheme

 

INR 6.100 Million

 

 

 

INR 1093.700 Million

 

# Pursuant to approval of the Members:

 

(i) Authorised share capital of the Company was increased and subdivided from INR 750.000 Million (consisting of 75 000 000 equity shares of face value of INR 10 each) to INR 1500.000 Million (consisting of 750 000 000 equity shares of face value of INR 2 each)  consequent to the decision to subdivide issued capital of 53 872 190 equity shares of face value of INR 10 each as on the record date  i.e. 10 September 2016 (end of the day)  into 269 360 950 equity shares of face value of INR 2 each and declaration of bonus thereon as stated in (ii) below.

 

(ii) On 14 September 2016  the Allotment Committee of the Board of Directors allotted 269 360 950 equity shares of face value of INR 2 each as bonus shares in the proportion of one bonus equity share for every one equity share of face value of INR 2 held as on the record date  by capitalising an amount of INR 538 721 900 from securities premium account. The bonus shares were listed on BSE Limited and National Stock Exchange of India  Limited. w.e.f. 19 September 2016.

 

(iii) Consequently

 

(a)   in terms of the SEBI (Issue of Capital and Disclosure Requirements) Regulations  2009  the exercise price and the number of warrants earlier issued to the promoter  Bajaj Finserv  Limited. and equity shares offered on rights basis held in abeyance*  were proportionately adjusted and

 

(b)   (b) in terms of the Employee Stock Option Scheme  2009 of the Company  the grant price and the number of outstanding stock options in respect of stock options granted under the Employee Stock Option Scheme  2009 were proportionately adjusted.

 

Reconciliation of the shares outstanding at the beginning and at the end of the year

 

Particulars

As at 31 March 2017

Nos.

INR In Million

Equity shares

 

 

At the beginning of the year (Subscribed and paid up)

53 872 190

538.700

Adjusted no. of shares on account of sub-division of equity share #

269 360 950

538.700

Add: Issue of bonus shares during the year to eligible shareholders #

269 360 950

538.700

Add: Issued during the year – Employee Stock Option Plan

1 918 040

3.900

Add: Issued during the year to promoter on account of

conversion of warrants +

9 250 000

18.500

Add: Issue of shares on Right basis (INR 300  previous year INR 150) *

150

--

 

549 890 090

 

1099.800

Less: Equity shares held in trust for employees under ESOP scheme

3 057 500

6.100

Outstanding at the end of the year

546 832 590

1093.700

 

+ During the year  Bajaj Finserv Limited. (Promoter) exercised the option to convert 9 250 000 warrants  issued on preferential basis  upon payment of INR 3060.800 Million being balance 75% amount of the issue consideration and accordingly  9 250 000 equity shares of the face value of INR 2 each were allotted to Bajaj Finserv  Limited. on 23 November 2016 at a premium of INR 439.20 per equity share. The funds received upon allotment have been utilised for meeting funding requirements of the business activities of the Company as per the objects of the issue.

 

* The Company during the year 2012-13 had issued equity shares on right basis of which 8 590 shares (of face value of INR 2 each  adjusted for sub-division and issue of bonus shares) were held in abeyance pending adjudication of title/claim from respective shareholders. Of these  150 shares (of face value of INR 2 each) were allotted during the year at a premium of INR 108 per share.

 

Terms/rights/restrictions attached to equity shares

 

(i) The Company has only one class of equity shares having a par value of INR 2 per share (Previous year INR 10 each). Each holder of equity shares is entitled to one vote per share. The dividend recommended by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid in Indian Rupees. In the event of liquidation of the Company  the holders of equity shares will be entitled to receive remaining assets of the Company  after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

(ii) Pursuant to the SEBI (Issue of Capital and Disclosure Requirements) Regulations  2009  equity shares held by Bajaj Finserv  Limited. are restricted from transfer as per details below:

 

(a) 308 566 130 equity shares up to 13 June 2017.

(b) 9 250 000 equity shares up to 11 December 2019.

 

Shares held by Holding Company

 

Particulars

As at 31 March 2017

Nos.

INR In Million

Bajaj Finserv Limited*

317 816 130

635.600

 

* An associate of Bajaj Holdings and Investments Limited

 

Details of shareholders holding more than 5% shares in the Company

 

Particulars

As at 31 March 2017

Nos.

% Holding

 

 

 

Bajaj Finserv Limited*

317 816 130

57.80%

 

* An associate of Bajaj Holdings and Investments Limited

 

Shares reserved for issue under Employee Stock Option Plan

 

Particulars

No. of Shares

Number of equity shares approved/reserved for issue under Employee Stock Option Plan 2009 of the Company drawn in accordance with SEBI (Employee stock option Scheme and Employee Stock Purchase Scheme)  Guidelines 1999 (SEBI Guidelines) (i.e. 5% of the then subscribed and paid up share capital) as on 31 March 2016 of the face value of INR 10 each

2 507 116

Resultant shares due to sub-division of the face value to INR 2 each and issue of bonus shares

25 071 160

 

 

Number of shares allotted to the trust up to 31 March 2016 of the face value of INR 10 each

1 241 988

Resultant shares on sub-division and after bonus

12 419 880

Allotted to the trust during the year on 15 February 2017 of the face value of INR 2 each

1 918 040

Total number of shares alloted to the trust up to 31 March 2017

14 337 920

Number of equity shares reserved for issue under Employee Stock Option Plan  2009

10 733 240

 

 

Equity shares held by the trust as on 31 March 2016 of the face value of INR 10 each

322 674

Option exercised up to record date of sub-division and bonus i.e.10 September 2016

133 240

Shares available with the trust on record date for sub-division and bonus

189 434

Resultant shares on sub-division and after bonus of the face value of INR 2 each

1 894 340

Add: Allotted on 15 Feb 2017 of the face value of INR 2 each

1 918 040

Less: Exercised after record date for sub-division and bonus of the face value of INR 2 each up to 31 March 2017

754 880

Equity shares held by the trust as on 31 March 2017 of the face value of INR 2 each

3 057 500

 

Consequent to the opinion expressed by the 'Expert Advisory Committee' of the Institute of Chartered Accountants of India on the applicability of clause 22A.1 of the SEBI Guidelines  the balance unexercised equity shares held by the trust at the close of the year have been reduced against the share capital as if the trust is administered by the Company itself.

 

The securities premium related to the unexercised equity shares held by the trust at the close of the year aggregating INR 622283779 (As at 31 March 2016 INR 448741587) has also been reduced from securities premium account and adjusted against the loan outstanding from the trust. See note no. 29 for further details.

 

Dividends declared by the Company do not accrete to unexercised options. Accordingly  any dividend received by the ESOP trust is remitted to the Company and adjusted against the source from which dividend has been paid.

 

 

FINANCIAL DATA

[all figures are INR Million]

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1093.700

535.500

500.000

(b) Reserves & Surplus

94909.400

72710.600

47497.000

(c) Money received against share warrants

0.000

1020.300

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

96003.100

74266.400

47997.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

331159.600

252869.700

182736.200

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

4848.700

4474.000

1357.700

(d) long-term provisions

3622.100

2429.400

1520.800

Total Non-current Liabilities (3)

339630.400

259773.100

185614.700

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

89224.200

56384.900

42778.300

(b) Trade payables

5288.100

3349.100

2736.600

(c) Other current liabilities

25659.800

8546.500

5966.500

(d) Short-term provisions

9327.300

6417.500

1672.300

(e) Current maturities of long-term borrowings

72112.700

60992.400

41032.500

Total Current Liabilities (4)

201612.100

135690.400

94186.200

 

 

 

 

TOTAL

637245.600

469729.900

327797.900

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2859.000

2429.500

2182.600

(ii) Intangible Assets

752.300

440.500

309.200

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

10903.000

4851.500

1750.900

(c) Deferred tax assets (net)

3690.700

2800.400

2122.800

(d) Receivables under financing activity

320281.000

247785.500

181196.700

(e)  Long-term Loan and Advances

598.600

997.900

886.000

(f) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

339084.600

259305.300

188448.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

29844.000

5489.200

1572.000

(b) Inventories

0.000

0.000

0.000

(c) Receivables under financing activity

256546.300

184936.800

130797.800

(d) Cash and cash equivalents

3565.200

13291.500

2286.200

(e) Short-term loans and advances

4967.900

4588.900

3035.300

(f) Other current assets

3237.600

2118.200

1658.400

Total Current Assets

298161.000

210424.600

139349.700

 

 

 

 

TOTAL

637245.600

469729.900

327797.900

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

99773.600

72935.400

53818.000

 

Other Income

259.500

398.400

364.300

 

TOTAL

100033.100

73333.800

54182.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Employee benefits expense

9316.700

6296.300

4507.300

 

Loan losses and provisions

8181.900

5428.500

3845.600

 

Other expenses

15614.000

12131.300

9421.000

 

TOTAL

33112.600

23856.100

17773.900

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

66920.500

49477.700

36408.400

 

 

 

 

 

Less

FINANCIAL EXPENSES

38033.700

29268.600

22483.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

28886.800

20209.100

13925.400

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

711.600

563.400

356.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

28175.200

19645.700

13569.400

 

 

 

 

 

Less

TAX

9809.700

6860.500

4590.700

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

18365.500

12785.200

8978.700

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

24108.500

16840.300

11719.100

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transfer to Reserve Fund in terms of section 45-IC(1) of the Reserve Bank of India Act, 1934

3680.000

2560.000

1850.000

 

Transfer to Infrastructure Reserve in terms of section 36(1)(viii) of the Income Tax Act, 1961

35.000

0.000

0.000

 

Transfer to General Reserve

1840.000

1280.000

900.000

 

Transfer to Infrastructure Reserve

0.000

0.000

21.000

 

Final dividend to qualified institutional buyers

0.000

58.900

0.000

 

Tax on final dividend to qualified institutional buyers and ESOP trust

0.000

12.800

0.000

 

Proposed dividend

0.000

377.100

902.700

 

Provision for tax on dividend

0.000

76.800

183.800

 

Interim dividend

0.000

969.700

0.000

 

Tax on interim dividend

0.000

197.400

0.000

 

Adjustment of dividend to ESOP trust

(1.700)

(15.700)

0.000

 

Balance Carried to the B/S

36920.700

24108.500

16840.300

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

Basic

34.01

24.23

179.94

Diluted

33.67

23.88

177.7

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

NA

NA

NA

 

 

 

 

Cash generated from operations

NA

NA

NA

 

 

 

 

Net cash from operating activities

(105002.300)

(98708.300)

(71471.400)

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2017

(Unaudited)

30.09.2017

(Unaudited)

31.12.2017

(Unaudited)

 

1st Quarter

2nd Quarter

3rd Quarter

Net sales

31504.700

30862.400

35406.300

Total Expenditure

11392.500

10789.700

11694.300

PBIDT (Excluding Other Income)

20112.200

20072.700

23712.000

Other income

140.400

160.900

26.600

Operating Profit

20252.600

20233.600

23738.600

Interest

10779.500

11437.800

11708.800

Exceptional Items

NA

NA

NA

PBDT

9473.100

8795.800

12029.800

Depreciation

218.800

240.700

267.600

Profit Before Tax

9254.300

8555.100

11762.200

Tax

3233.900

2986.100

4094.100

Provisions and contingencies

NA

NA

NA

Profit after tax

6020.400

5569.000

7668.100

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

6020.400

5569.000

7668.100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

938.52

925.50

887.09

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

0.39

0.39

0.41

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.00

0.00

0.00

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

18.53

17.24

14.61

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.84

0.83

0.84

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

4.38

4.16

4.70

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

2.10

1.83

1.96

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.04

0.04

0.05

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

1.76

1.69

1.62

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

18.41

17.53

16.68

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

2.88

2.72

2.74

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

19.13

17.22

18.71

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.48

1.55

1.48

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

1.48

1.55

1.48

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.15

0.16

0.15

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

384.37

577.51

451.03

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.48

1.55

1.48

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 2/-

Market Value

INR 1931/-

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

500.000

535.500

1093.700

Reserves & Surplus

47497.000

72710.600

94909.400

Share Application money pending allotment

0.000

0.000

0.000

Net worth

47997.000

73246.100

96003.100

 

 

 

 

Long-Term Borrowings

182736.200

252869.700

331159.600

Short Term Borrowings

42778.300

56384.900

89224.200

Current Maturities of Long term debt

41032.500

60992.400

72112.700

Total borrowings

266547.000

370247.000

492496.500

Debt/Equity ratio

5.553

5.055

5.130

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

53818.000

72935.400

99773.600

 

 

35.522

36.797

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

53818.000

72935.400

99773.600

Profit

8978.700

12785.200

18365.500

 

16.68%

17.53%

18.41%

 

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

1093.700

535.500

(b) Reserves & Surplus

 

94908.900

72711.800

(c) Money received against share warrants

 

0.000

1020.300

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

96002.600

74267.600

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

331159.600

252868.600

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

4848.700

4474.000

(d) long-term provisions

 

3622.100

2429.400

Total Non-current Liabilities (3)

 

339630.400

259772.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

89224.200

56384.900

(b) Trade payables

 

5288.100

3349.100

(c) Other current liabilities

 

25662.100

8547.200

(d) Short-term provisions

 

9327.300

6417.500

(e) Current maturities of long-term borrowings

 

72111.600

60992.400

Total Current Liabilities (4)

 

201613.300

135691.100

 

 

 

 

TOTAL

 

637246.300

469730.700

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

2875.100

2429.500

(ii) Intangible Assets

 

752.300

440.500

(iii) Capital work-in-progress

 

0.000

0.000

(iv) Intangible assets under development

 

0.000

0.000

Goodwill on consolidation

 

32.700

32.700

(b) Non-current Investments

 

7623.000

4571.500

(c) Deferred tax assets (net)

 

3690.700

2800.400

(d) Receivables under financing activity

 

320281.500

247785.500

(e)  Long-term Loan and Advances

 

599.000

998.200

(f) Other Non-current assets

 

0.000

0.200

Total Non-Current Assets

 

335854.300

259058.500

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

33072.100

5719.500

(b) Inventories

 

0.000

0.000

(c) Receivables under financing activity

 

256546.300

184936.800

(d) Cash and cash equivalents

 

3568.100

13308.500

(e) Short-term loans and advances

 

4967.900

4588.900

(f) Other current assets

 

3237.600

2118.500

Total Current Assets

 

301392.000

210672.200

 

 

 

 

TOTAL

 

637246.300

469730.700

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

99773.600

72935.400

 

Other Income

 

291.700

400.200

 

TOTAL

 

100065.300

73335.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Employee benefits expense

 

9316.700

6296.300

 

Loan losses and provisions

 

8181.900

5428.500

 

Other expenses

 

15643.800

12132.100

 

TOTAL

 

33142.400

23856.900

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

66922.900

49478.700

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

38037.100

29268.500

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

28885.800

20210.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

711.700

563.400

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

28174.100

19646.800

 

 

 

 

 

Less

TAX

 

9810.300

6860.500

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

18363.800

12786.300

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

Basic

 

34.01

24.23

Diluted

 

33.67

23.88

 

LEGAL CASES

 

CASE DETAILS

BENCH:-BOMBAY

 

Presentation Date:-

06/02/2017

 

Lodging No.:-

ITXAL/318/2017

Filing Date:-

06/02/2017

Reg. No.:-

ITXA/485/2017

Reg. Date:-

18/03/2017

 

 

Petitioner:-

THE PR. COMMISSIONER OF INCOME TAX - 5

 

Respondent:-

BAJAJ FINANCE LTD (EARLIER KNOW AS BAJAJ AUTO FINANCE LTD)

 

 

Petn.Adv.:-

TEJVEER SINGH MASTAN SINGH (I3678)

 

Resp.Adv.:-

VASANTI B PATEL (I4796)

 

 

District:-

PUNE

 

 

Bench:-

DIVISION

Status:-

Pre-Admission

Category:-

TAX APPEALS

 

Next Date:-

16/03/2018

Stage:-

 

Coram:-

ACCORDING TO SITTING LIST

 

ACCORDING TO SITTING LIST

 

 

Act :-

Income Tax Act, 1961

Under Section:-

260A

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

GENERAL INFORMATION

 

The Company is a registered non-banking finance company engaged in the business of providing finance. The Company is registered with the Reserve Bank of India as a Non-Banking Finance Company (NBFC) with effect from 5 March 1998, with Registration No.A-13.00243. The Company primarily deals in the financing of two and three-wheelers, consumer durables, small business loans, personal loan cross-sell, mortgage loans and loan against securities etc. The Reserve Bank of India vide its letter dated 7 October 2010, has re-classified the Company as a ‘Loan Company’ from 'Asset Finance Company'.

 

FINANCIAL RESULTS

 

WORKING RESULTS

 

The receivables under financing activity as on 31 March 2017 were INR 568320.000 Million as compared to INR 427560.000 Million as on 31 March 2016, an increase of 33% over the previous year.

                    

Total income during FY2017 increased to INR 100030.000 Million from INR 73330.000 Million during FY2016, an increase of 36% over the previous year.

 

The profit before tax for FY2017 was INR 28180.000 Million, as against INR 19650.000 Million for FY2016, an increase of 43% over the previous year. The profit after tax for FY2017 was INR 18370.000 Million as compared to INR 12790.000 Million for FY2016, an increase of 44% over the previous year. This has been due to the Company’s healthy net interest margins, operating efficiencies and prudent risk management. The Company had an excellent year aided by strong volume growth across all its lines of businesses. During FY2017, the Company launched various new products and variants to strengthen its business model and continue its growth momentum.

 

The Company’s current provisioning standards are more stringent than Reserve Bank of India (RBI) prudential norms. In line with its conservative approach, the Company continues to strengthen its provisioning norms beyond the RBI regulations by accelerating the provisioning to an early stage of delinquencies based on past experience and emerging trends.

 

The Company’s loan loss and provisions increased from INR 5430.000 Million in FY2016 to INR 8180.000 Million in FY2017 taking into account the increased business. The Company ended FY2017 with a net NPA of 0.44%.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

A MACROECONOMIC OVERVIEW

 

Financial year 2016-17 (FY2017) began on a positive note. India had closed FY2016 with growth in real GDP of 7.9% and a growth in gross value added (GVA) of 7.8%. Despite two disconcerting facts — namely, the high level and proportion of the banking sector’s non-performing assets coupled with a muted growth in bank credit — there were expectations of India achieving a GDP growth rate somewhere between 7.5% and 8% in FY2017.

 

Unfortunately, that has not occurred. The second advance estimates of national income forecast by the Central Statistics Office released on 28 February 2017 suggest a real GDP growth of 7.1% for FY2017; and a real gross value added (GVA) growth of 6.7%. Both estimates are significantly lower than what the economy achieved in the previous year. Table 1 gives the data over the last four financial years.

 

On 8 November 2016, the Government announced demonetisation of INR 500 and INR 1,000 banknotes, which represented 86% of the currency in circulation. Contemporary evidence suggested significant disruption arising out of unprecedented cash constraints throughout the economy. For lending institutions in particular, the impact of lower collection efficiencies was quite severe, and resulted in poorer credit growth.

 

However, the national income data published by the CSO does not suggest any significant reduction in GDP or GVA growth in the third quarter of FY2017 which could have been correlated with the demonetisation drive. The third quarter traditionally tends to be muted. In FY2016, the growth rate of real GVA in Q2 was 8.4%; and in Q3 it was 7%, or a sequential drop of 1.4 percentage points. In FY2017, GVA growth in Q2 was 6.7%, and in Q3 it was 6.6%. In other words, despite the effects of demonetisation for over 60% of Q3 FY2017, the negative effect — as reported by the CSO — has been only 10 basis points. They need harder evidence to clearly quantify the impact of demonetisation on real GDP or GVA growth. What the data so far suggests is that it was more moderate than the naysayers claimed it would be. And that the effects would be transitory.

 

If demonetisation was not the prime cause for the lower estimate of GDP and GVA growth in FY2017, then what were the other determinants? There are two.

 

The first is insufficient investments, especially over the last five years. Gross fixed capital formation (GFCF) for FY2017 is estimated to be only 0.6% higher than what it was in FY2016. The share of GFCF to GDP has steadily fallen from 31.7% in FY2015 to 31.1% in FY2016 to a low of 29.2% in FY2017. Unless investments rapidly pick up in FY2018 and the following year, it is difficult to envisage how India can achieve a sustained real GDP growth of 7.5%, leave aside an aspirational target of 8%.

 

The second is also related to investments and linked to the state of their banks, especially many of those under Government ownership. Data for the quarter ended 31 December 2016 shows that for the 27 public sector banks which account for the vast majority of the nation’s loans and advances, gross NPAs were estimated at INR 6477590.000 Million, a 140% increase over what it was two years earlier. Today, such NPAs constituted 12% of total loans and advances. The proportion may indeed be higher still. In any event, with these banks being so badly stressed, there is no appetite for advancing term loans without which, it is impossible to envisage the investment spends required to transit to a higher growth path.

 

Consequently, it is not surprising that several sectors of the economy have seen a reduction in growth. Real GVA in mining and quarrying is estimated to grow by only 1.3% in FY2017 versus 12.3% in the previous year. Manufacturing growth for FY2017 is pegged at 7.7%, which will be 290 basis points lower than what it was a year ago. GVA from trade, hotels, transport, communications and broadcasting services are expected to grow by 7.3% compared to 10.7% in FY2016. And GVA from financial, real estate and professional services is estimated to grow at 6.5% in FY2017 versus 10.8% a year before.

 

Having said this, it needs to be emphasised that 7.1% real GDP (or 6.7% real GVA) growth happens to be among the highest in the developed world and across all major emerging markets, including China. From a cross-country perspective, therefore, they seem to be doing well enough. The issue is internal to India: Is such growth sufficient to significantly increase incomes and employment and reduce poverty in the country? And the answer is straightforward: they need to do much more.

 

What about inflation? The Consumer Price Index (CPI) inflation varied month-to-month between 3.2% and 6.1% during FY2017. Excluding food and fuel, however, core CPI inflation has remained at around 4.9% since September 2016, which is somewhat higher than what the Reserve Bank of India (RBI) is comfortable with. Thus, in February 2017, the RBI changed its monetary policy stance from accommodative to neutral. With core inflation remaining firm in the neighbourhood of 5%, the RBI in its first monetary policy statement for 2017-18 (FY2018) has justified maintaining a hawkish stance.

 

Growth in bank credit continued to be subdued. Thanks to the overhang of NPAs, it grew only by 5.2% in FY2017 versus 10.2% in the previous year. On the liability side, demonetisation led to an unnatural growth in bank deposits, which increased by 11.9% in FY2017 compared to 9.1% in FY2016. Awash with post-demonetisation liquidity, the banks significantly reduced their incremental marginal cost based lending rates in January 2017. This, they believe, has created a potentially alarming situation in the banking sector, especially for the public sector banks. On the one hand, these institutions remain saddled with high levels of NPAs from which they earn little or no returns and need quarterly provisioning to the detriment of their profits. On the other hand, extra liquidity has forced a reduction in lending rates which, in turn, reduced the net income margin from new lending. Without exaggeration, it is fair to say that the state of most banks continue to be alarming.

 

How FY2018 plays out depends upon two factors: the investment appetite of the country and a perennial annual variable called the monsoons. Regarding the former, there is still no sign of even a modest upsurge in private investments as firms continue to leverage efficiency improvements and squeeze the best out of existing capacities. As far as the latter is concerned, the India Meteorological Department has come out with an initial forecast of a normal monsoon. That remains to be seen. It will only be after August 2017 that they know how ample the south west monsoon was.

 

On the positive side, the roll out of the nation-wide Goods and Service Tax (GST) in FY2018 ought to aid growth. To be sure, a task as monumental as the GST will have teething troubles in the first two quarters. They believe that it is only in FY2019 that the country will begin to see the overall benefits of this key economic reform. Equally, the Insolvency and Bankruptcy code ought to finally create a market for stressed assets; and, all other things being equal, reduced bank lending rates should make borrowing more attractive than before.

 

Despite these positives, it is difficult to see a quantum jump in GDP growth in FY2018. From their perspective, if they see India’s real GDP growing at around 7.4% to 7.5% in the coming year, it will be a creditable achievement. Anything higher will be a bonus.

 

Non-Banking Finance Companies (NBFCs) continued to grow their share in the financial services industry. As per data published by RBI in its Financial Stability Report of December 2016, NBFCs have outperformed Scheduled Commercial Banks (SCBs) on growth in advances and in asset quality.

 

UNSECURED LOAN:

 

PARTICULARS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Privately placed partly paid redeemable non-convertible debentures

1241.000

0.000

Privately placed Subordinated (Tier II) redeemable non-convertible debentures

33383.000

12783.000

Term loans from bank

0.000

1000.000

Fixed deposits

21094.400

12276.600

Inter-corporate deposits

1240.000

0.000

SHORT TERM BORROWINGS

 

 

From banks:

 

 

Overdraft facility

5025.200

6423.800

Working capital demand loan

5000.000

5000.000

Fixed deposits

7256.200

5484.500

Inter-corporate deposits

4351.800

0.000

Borrowings by issue of commercial papers

45886.900

16276.100

Total

124478.500

59244.000

 

 

STATEMENT OF UN-AUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2017

 (INR In Million)

Particulars

Quarter Ended

Nine months  ended

 

31.12.2017

30.09.2017

31.12.2017

 

Unaudited

Unaudited

Unaudited

INCOME FROM OPERATIONS

 

 

 

Net Sales

35406.300

30868.300

97530.100

Other Operating Income

26.600

155.000

189.800

Total Income from Operations

35432.900

31023.300

97719.900

 

 

 

 

EXPENSES

 

 

 

Employee benefits expense

3695.200

3361.800

10138.900

Finance Costs

11708.800

11437.800

33926.100

Depreciation and Amortization expenses

267.600

240.700

727.100

Loan losses and provisions

2468.200

2278.200

7562.900

Other Expenditure

5530.900

5149.700

15793.300

Total Expenses

23670.700

22468.200

68148.300

 

 

 

 

Profit / (Loss) before Tax

11762.200

8555.100

29571.800

Tax Expense

 

 

 

Current tax

4353.500

3451.500

11120.000

Deferred tax expenses

(259.400)

(465.400)

(805.900)

Total Tax Expense

4094.100

2986.100

10314.100

Profit / (Loss) after Tax

7668.100

5569.000

19257.500

Paid-up Equity Share Capital (Face value INR 2/- per share)

1149.800

1149.500

1149.800

Reserves (excluding Revaluation Reserve)

--

--

--

Earnings per Share (EPS) - INR

 

 

 

Basic EPS (in INR)

13.34

10.06

34.48

Diluted EPS (in INR)

13.21

9.96

34.12

 

Note:

 

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 1 February 2018 and have been subjected to a limited review by the Statutory Auditors.


2. Figures for the previous periods have been regrouped, wherever necessary, to make them comparable with the current period.


3. The Company is engaged primarly in the business of financing and accordingly there are no separate reportable segments as per Accounting Standard 17 dealing with Segment Reporting.


4. Pursuant to the option given by Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has opted to publish standalone financial results during financial year 2017-18.


5. The secured non-convertible debentures issued by the Company are fully secured by first pari passu charge by mortgage of the Company's immovable property at Pune/ Chennai and by hypothecation of book debts / loan receivables to the extent as stated in the respective information memorandum.


6. On 8 August 2017, the Company entered into an agreement with One Mobikwik Systems Private Limited ("Mobikwik") and has invested an amount of approximately INR 2250.000 Million in the equity shares and cumulative compulsorily convertible preference shares of Mobikwik.


7. On 12 September 2017, the Company through Qualified Institutions Placement (QIP) allotted 26,627,218 equity shares to the eligible Qualified Institutional Buyers (QIB) at a price of INR 1,690 per equity share of INR 2 face value (inclusive of premium of INR 1,688 per share) aggregating to approximately INR 4,500 crore. The issue was made in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Funds received in the QIP of equity shares have been utilized for the purpose mentioned in the objects of the issue in the offer document.


CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Disputed claims against the Company not acknowledged as debts

172.900

173.400

VAT matters under appeal

22.400

68.600

ESI matters under appeal

51.400

51.400

Service tax matters under appeal:

 

 

On interest subsidy

11471.000

0.000

On others

0.000

14.900

Income tax matters:

 

 

Appeals by the Company

129.300

98.000

Appeals by the Income tax department

329.800

493.600

 

i) The Company is of the opinion that the above demands are not sustainable and expects to succeed in its appeals/defense.

 

ii) The Commissioner of Service Tax, during the year, confirmed the demand of service tax on interest subsidy received from manufacturers and dealers, which was previously questioned by show cause notice issued on the Company. Consequently, the Commissioner has demanded service tax amounting of  INR 6446.500 Million for the period up to 30 September 2016, interest approximating  INR 3035.000 Million (Interest up to 31 March 2017) and penalty of  INR 1989.500 Million. The Company has disputed the said demand and in accordance with legal advice, is in the process of filing an appeal refuting the said claim.

 

The Company in line with the opinion obtained from an Eminent Counsel, is of view that the said demands are not tenable and has accordingly disclosed it as a contingent liability.

 

iii) It is not practicable for the Company to estimate the timings of the cash flows, if any, in respect of the above pending resolution of the respective proceedings.

 

 

INDEX OF CHARGE:

 

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

AMOUNT

ADDRESS

1

G73270373

100147180

CATALYST TRUSTEESHIP LIMITED

27/12/2017

-

4000000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

2

G73271496

100147188

CATALYST TRUSTEESHIP LIMITED

27/12/2017

-

10850000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

3

G55839609

100131372

CATALYST TRUSTEESHIP LIMITED

05/10/2017

-

11800000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

4

G48139158

100110314

CATALYST TRUSTEESHIP LIMITED

04/07/2017

-

3650000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

5

G48142640

100110528

CATALYST TRUSTEESHIP LIMITED

04/07/2017

-

10250000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

6

G59561340

100131588

CATALYST TRUSTEESHIP LIMITED

04/07/2017

-

10000000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

7

G46230629

100105626

CATALYST TRUSTEESHIP LIMITED

07/06/2017

-

8855000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

8

G46232096

100105627

CATALYST TRUSTEESHIP LIMITED

07/06/2017

-

2500000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

9

G46233177

100105629

CATALYST TRUSTEESHIP LIMITED

07/06/2017

-

2250000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

10

G46651675

100105921

CATALYST TRUSTEESHIP LIMITED

07/06/2017

-

10000000000.0

GDA HOUSE, FIRST FLOOR, PLOT NO. 85S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUDPUNEMA411038IN

 

 

 

FIXED ASSETS:

 

Tangible assets

 

  • Leasehold improvements
  • Land freehold
  • Building
  • Computers
  • Office equipments
  • Furniture and fixtures
  • Vehicles

 

Intangible assets

 

  • Specialised software

 

 

WEBSITE DETAILS

 

PRESS RELEASES / NEWS

 

BAJAJ FINANCE TO ACQUIRE 12.6% IN MOBIKWIK

 

In August last year, Bajaj Finance had entered into a subscription agreement with One MobiKwik Systems to acquire 10.83 per cent stake for about INR 2250.000 Million.

 

Bajaj Finance today said it will acquire 12.60 per cent stake in mobile wallet company Mobikwik as against 10.83 per cent stated earlier due to a change in conversion price of the compulsory convertible cumulative preference shares.

 

In August last year, Bajaj Finance had entered into a subscription agreement with One MobiKwik Systems to acquire 10.83 per cent stake for about INR 2250.000 Million.

 

"Due to the change in the conversion price of compulsory convertible cumulative preference shares (CCCPS)...the company will now hold approximately 12.60 per cent of equity in Mobikwik on a fully diluted basis post conversion of CCCPS, as and when it happens," it added.

 

"There is no further investment made by the company that what has been made earlier," it added.

 

Under the agreement, Bajaj Finance will acquire 10 equity shares and 271,050 compulsory convertible preference cumulative preference shares (CCCPS) of Mobikwik.

 

Shares of Bajaj Finance were trading down 2.16 per cent at INR 1,704.25 on BSE.

 

 

 

BAJAJ FINANCE'S Q2 NET PROFIT RISES 37% AT INR 5570.000 MILLION; ASSET QUALITY IMPROVES

 

The net interest income (NII) was higher by over 41 percent at INR 19580.000 Million against INR 1385.000 Million year on year.

 

NBFC major Bajaj Finance reported 37 percent rise in its September quarter net profit at INR 5570.000 Million against INR 4080.000 Million during the same period last year. The number was largely in line with CNBC-TV18 poll of INR 5660.000 Million.

 

The net interest income (NII) was higher by over 41 percent at INR 19580.000 Million against INR 13850.000 Million year on year. The revenue was reported at INR 30860.000 Million against INR 23350.000 Million during the same quarter last year.

 

The asset quality was slightly better as net NPAs were seen at 0.51 percent against 0.53 percent in the previous quarter, while gross NPAs was seen at 1.68 percent against 1.7 percent quarter on quarter.

 

The assets under management (AUMs) were up 38 percent at INR 721390.000 Million against INR 523320.000 Million in the same period last year, while provision coverage ratio was seen at 70 percent as of September 30.

 

At 14:08 hrs Bajaj Finance was quoting at INR 1,922.15, down INR 32.70, or 1.67 percent, on the BSE. It touched an intraday high of INR 1,972.45 and an intraday low of INR 1,920.05.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 65.61

UK Pound

1

INR 94.21

Euro

1

INR 81.32

 

 

INFORMATION DETAILS

 

Information Gathered by :

ARC

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

KVT

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.