Berar Finance Limited Shares

Annual Report Summary

Here's a comprehensive summary of the Berar Finance Limited Annual Report 2023-2024, capturing key information and insights:

Overview: Berar Finance Limited presents its 34th Annual Report for the financial year ended March 31, 2024 (FY 2023-2024). The company's business operations continued to grow satisfactorily.

Financial Performance:

• Loans disbursed during the year: ₹95,792.48 lakhs (FY 2022-2023: ₹84,252.07 lakhs).
• Gross Assets under Management (AUM): ₹1,11,762.30 lakhs (FY 2022-2023: ₹94,704.78 lakhs).
• Assets sold under Securitisation: ₹1,425.51 lakhs (FY 2022-2023: ₹299.46 lakhs).
• Gross Income: ₹25,181.03 lakhs (FY 2022-2023: ₹21,796.16 lakhs).
• Net Profit (after Tax): ₹2,218.06 lakhs (FY 2022-2023: ₹1,708.12 lakhs).
• The company will pay a dividend of ₹1 per Equity Share for FY 2023-2024.

Appropriation of Profits:

• ₹445 lakhs transferred to the statutory reserve fund as per Section 45-IC of the RBI Act, 1934.
• Dividend paid during the year: ₹123.37 lakhs.
• Balance carried forward: ₹1,789.31 lakhs.

Share Capital:

• No new equity shares were issued during FY 2023-2024.
• Paid-up share capital as of March 31, 2024: ₹1233.68 lakhs, consisting of 1,23,36,846 equity shares of face value ₹10 fully paid-up.

Funding Resources:

• Bank Facilities: Consortium of bankers providing CC facilities of ₹6,500.00 lakhs, alongside limits outside the consortium. The overall outstanding balance is ₹5408.76 lakhs as of March 31, 2024.
• Fixed Deposits: Total fixed deposits amounted to ₹20,318.76 lakhs, including public deposits of ₹18,905.83 lakhs.
• Term Loans: Outstanding balance of term loans for working capital as of March 31, 2024 is ₹63,197.88 lakhs.
• Assets Securitised: Closing balance of assets securitized as of March 31, 2024 is ₹1425.51 lakhs.

Non-Convertible Debentures (NCDs):

• No new NCDs were issued during the year.
• The company has redeemed several NCDs.
• As of March 31, 2024, total outstanding Secured NCDs stood at ₹7,490.26 lakhs.

Review of Operations & Branch Network:

• Financing of two-wheelers remains the primary product. Other loan products include personal loans, used car loans, two-wheeler refinancing loans, and secured MSME/Loan against property.
• The company recorded a 13.69% increase in disbursement and a 15.53% increase in gross income during FY 2023-2024.
• As of March 31, 2024, the company had 115 branches. Has opened 11 more branches after fiscal year end and closed one. The total branch count is 125.
• Plans to add more branches during FY 2024-2025 to increase geographical coverage.

RBI Guidelines & Regulatory Framework:

• The company is classified as Systemically Important Asset Finance Company- Deposit Taking.
• Falls under the category of NBFC - Investment & Credit Company (NBFC-ICC).
• Classified as NBFC-Middle Layer.
• Liquidity Coverage Ratio (LCR) as on March 31, 2024 was 136.57%, exceeding the regulatory requirement of 85%.
• Complies with the Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023.
• The company has framed an ICAAP Policy as required by RBI.
• The company has put in place policies which include Business Continuity Policy, Information Security Policy, Information Technology Policy, Information Security and Cyber Security Policy, IT Outsourcing Policy, Cyber Crisis Management Plan and Security and Cyber Incident Management Policy.

Corporate Governance:

• The Board has an optimum combination of Executive and Non-Executive Directors, including a Woman Independent Director.
• The company is approaching the Hon'ble National Company Law Tribunal, Mumbai Bench for compounding of offence voluntarily
• The company is on the Online Dispute Resolution Portal.
• The company follows robust governance practices.

Directors and Key Managerial Personnel:

• Changes in Directors: Mr. Himanshu Joshi ceased to be an Independent Director. Mr. Rajesh Vasudevan appointed as an Additional Director.
• Appointments and Resignations of KMP: Mr. Rangarajan Srinivasan resigned as Chief Financial Officer; Mr. Ravindra Dorle appointed as CFO.
• The Board approved the appointment of Mr. Rajesh Vasudevan as an Additional Director.
• Mr. Himanshu Joshi ceased to be an Independent Director, effective May 31, 2024.
• The Board is looking to appoint Mr. Varun Bhalla.
• Declaration by Directors: All Independent Directors have submitted the declaration of independence.
• Key Managerial Personnel: Mr. Maroti Jawanjar, Mr. Sandeep Jawanjal, Mr. Ravindra Dorle and Ms. Deepali Balpande are key managerial personnel as of March 31, 2024.

Performance Evaluation:

• The Board conducted an annual performance evaluation of the Board, its Committees, and individual Directors.

Related Party Transactions:

• All transactions with related parties were in the ordinary course of business and on an arm's length basis.

Internal Financial Controls:

• Internal financial controls are adequate and operating effectively.

Human Resources and Employee Stock Options Plan:

• Emphasis on attracting, training, and retaining talent.
• 29350 options were vested with employees under the "Berar Employee Stock Option Plan, 2019”.

Conservation of Energy and Technology Absorption:

• No manufacturing activity, but measures taken to ensure optimum energy utilization.
• Invested in advanced Cloud-Based Solutions and robust cyber security technologies.
• Implementing BRE Rules in Autonom8 LOS.

Corporate Social Responsibility (CSR):

• CSR programs pursued as per approved policy.
• CSR obligation for FY 2023-2024 is ₹55.33 lakhs; amount spent is ₹55.80 lakhs.

Disclosure under the Prevention of Sexual Harassment at Workplace Policy:

• Policy in place, no cases filed.

Changes to the Constitutional Documents:

• The AoA of the Company was amended to enable DT to appoint their Nominee on the Board upon occurrence of any of the event specified in regulation 15(1)(e) of the DT Regulations vide special resolution passed by shareholders on September 25, 2023.

Other Statutory Disclosures:

• RBI circular has prescribed a procedural framework for unclaimed interest. A policy titled 'Policy for filing and processing of claim for unclaimed amount by Investors of Non-Convertible Securities' has been framed by the Company.
• The Company Secretary has been designated as the Nodal Officer for the purposes of this circular. As on March 31, 2024, there is no amount remaining unclaimed in respect of non-convertible debentures.
• The company complies with statutory requirements and has put in place mechanisms for redressal.

Economic Overview & Outlook:

• The global and Indian economies have shown resilience.
• The company is optimistic about its growth potential, with strong financial positioning and low NPAs.

Risk Management:

• The company promotes a strong risk culture and has established a Risk Management Committee (RMC).

Customer Service:

• Remains customer-focused, provides prompt services, and attends to customer inquiries and complaints. Implemented a grievance redressal mechanism.

Auditor's Report:

• The auditor's report is unmodified.

Appendices: Several appendices form part of the report, including:

• Management Discussion and Analysis (Annexure I)
• Secretarial Audit Report (Annexure II)
• Report on Corporate Governance (Annexure III)
• Annual Report on CSR Activities (Annexure IV)
• Form AOC-2 (Annexure V(i))
• Related Party Transaction Policy (Annexure V(ii))
• Disclosure under the Indian Accounting Standard (Ind AS) 102 - Share-based Payment: Annexure VI
• Particulars of Employees as per Section 197 of The Companies Act, 2013 read with rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014: Annexure VII

AGM Details:

• The 34th Annual General Meeting will be held on September 20, 2024.