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Notes to Accounts of Bajaj Finserv Ltd.

Mar 31, 2015

1 The Company is primarily engaged in the business of promoting financial services such as finance, insurance, wealth management etc. through its investments in subsidiaries and joint ventures. The Company is also engaged in the business of generating power through wind turbines, a renewable source of energy. Since investments dominated the composition of assets and revenue, the Company was registered on 30 October 2009 by RBI as a Non-Banking Financial Institution (Non-Deposit taking). However, the Company has obtained an exemption from RBI vide its letter dated 8 March 2010 on the compliance with the norms in respect ''concentration of investments'' prescribed in para 18(1) of the Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. The said exemption has been renewed for one more year upto 31 March 2015 vide its letter dated 8 July 2014.

2 Share capital

A. Further, of the above

i. 101,183,510 equity shares were allotted as fully paid up pursuant to the scheme of arrangement for demerger of erstwhile Bajaj Auto Ltd. (now Bajaj Holdings & Investment Ltd.) by the Company on 3 April 2008.

ii. 1,805,071 equity shares thereof are deemed to be issued by way of Euro Equity Issue represented by Global Depository Receipts (GDR) evidencing Global Depository Shares outstanding on the record date. Outstanding GDRs at the close of the year were 41,132 (41,132)

B. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of B 5 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed 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.

c. Shares reserved for issue at a subsequent date

26,677 (29,509) equity shares of B 5 each offered by way of right in an earlier year, have been held in abeyance pending adjudication of title and subscription thereafter.

3 Contingent liabilities

(Rs. In Crore)

As at 31 March

Particulars 2015 2014

a Claims against the Company not acknowledged as debts 8.26 12.23

b Income Tax matters under dispute Appeal by Company 27.85 27.85

c Value Added Tax (VAT) matters under dispute 1.64 0.61

4 Segment information

Segment information based on consolidated financial statements is given in note 33 to consolidated financial statements.

The Company has disclosed the business segments as primary reporting segment on the basis that risks and returns are primarily determined by the nature of products and services. Consequently, geographical segment has been considered as a secondary segment.

The business segments have been identified on the basis of the nature of products and services, the risks and returns and internal performance reporting systems.

The business segments comprise the following:

i. Insurance

ii. Windmill

iii. Retail financing

iv. Investments and others

5 Lease

As a lessor:

The Company has given a premise on operating leases. This lease arrangement is for a period of 3 years and is a cancellable lease. This lease agreement is renewable for further period on mutually agreeable terms and also include escalation clauses.

(6) Miscellaneous disclosures

a) Registration obtained from other financial sector regulators:

Apart from RBI, Company is also governed by SEBI and MCA.

b) Disclosure of penalties imposed by RBI and other regulators:

During previous year, no penalty was imposed by RBI or other regulators.

c) Related party transactions:

Please refer note 26 for details of related party transactions.

d) Ratings assigned by credit rating agencies and migration of ratings during the year:

Not applicable

Note:

Company is a non-deposit taking/accepting NBFC. It does not carry out lending/securitisation activity. Hence, there are ''Nil'' values in respect of following disclosures -

1. Derivatives

- Forward rate agreement/Interest rate swap

- Exchange traded interest rate (IR) derivatives

- Qualitative disclosures on risk exposure in derivatives

- Quantitative disclosures on risk exposure in derivatives

2. Securitisation

- Disclosures relating to securitised assets etc.

- Details of financial assets sold to securitisation/reconstruction company for asset reconstruction

- Details of assignment transactions undertaken by NBFCs

- Details of non-performing financial assets purchased/sold

3. Details of financing of parent company products

4. Details of Single Borrower Limit (SBL)/Group Borrower Limit (GBL) exceeded by the NBFC

5. Unsecured advances

6. Concentration of deposits, advances, exposures and NPAs

- Concentration of deposits (for deposit taking NBFCs)

- Concentration of advances

- Concentration of exposures

- Concentration of NPAs

- Sector-wise NPAs

- Movement of NPAs

7. Overseas assets (for those with joint ventures and subsidiaries abroad)

8. Off-balance sheet SPVs sponsored

9. Disclosure of customer complaints

7 The consolidated financial statements of the Company and its group are attached to these independent financial statements.

The details of the group regarding the nature of relationship and the basis of consolidation can be referred to in note 1 to the said consolidated financial statements.

8 Previous year figures

Previous year figures have been regrouped wherever necessary to make them comparable with those of the current year.

9 Miscellaneous

a. Rs. 1 crore is equal to Rs. 10 million.

b. Amounts less than Rs. 50,000 have been shown at actual against respective line items statutorily required to be disclosed.


Mar 31, 2014

1 The Company is primarily engaged in the business of promoting financial services such as finance, insurance, wealth management etc. through its investments in subsidiaries and joint ventures. The Company is also engaged in the business of generating power through wind turbines, a renewable source of energy. Since investments dominated the composition of assets and revenue, the Company was registered on 30 October 2009 by RBI as a Non-Banking Financial Institution (Non-Deposit taking). However, the Company has obtained an exemption from RBI vide its letter dated 8 March 2010 on the compliance with the norms in respect ''concentration of investments'' prescribed in para 18(1) of the Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. The said exemption has been renewed vide its letter dated 3 October 2013 for one more year.

2 Summary of significant accounting policies followed by the Company

Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Consequent to the clarification from the Ministry of Corporate Affairs, vide General Circular 08/2014 dated 4 April 2014, these financial statements have been prepared in accordance with the relevant provisions/Schedules/ Rules of the Companies Act, 1956. Accordingly, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956 and the RBI guidelines/regulations to the extent applicable.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Revised Schedule VI to the Companies Act, 1956.

3 Contingent liabilities

(Rs. In Crore)

As at 31 March

Particulars 2014 2013

a Claims against the Company not acknowledged as debts 12.23 7.67

b Income Tax matters under dispute

Appeal by Company 27.85 0.14

c Value Added Tax (VAT) matters under dispute 0.61 0.29

4 The consolidated financial statements of the Company and its group are attached to these independent financial statements. The details of the group regarding the nature of relationship and the basis of consolidation can be referred to in note 1 to the said consolidated financial statements.

5 Previous year figures

Previous year figures have been regrouped wherever necessary to make them comparable with those of the current year.


Mar 31, 2013

1 The Company is primarily engaged in the business of promoting financial services such as finance, insurance, wealth management etc. through its investments in subsidiaries and joint ventures. The Company is also engaged in the business of generating power through wind turbines. Since investments dominate the composition of assets and revenue, the Company was registered on 30 October 2009 by RBI as a Non-Banking Financial Institution (non-deposit taking). However, the Company has obtained an exemption from RBI vide its letter dated 8 March 2010 on the compliance with the norms in respect ''concentration of investments'' prescribed in para 18(1) of the Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. The said exemption has been renewed vide its letter dated 27 June 2012 for one more year.

2 Contingent liabilities

(Rs. In Crore) 2013 2012

a Claims against the Company not acknowledged as debts 7.67 7.71

b Income Tax matters under dispute

Appeal by Company 0.14 0.14

c Value Added Tax (VAT) matters under dispute 0.29 -

3 Lease

Future minimum lease rental in respect of assets given on operating lease in the form of office premises after 1 April 2001 Minimum future lease payments as on 31 March 2013:

4 Schedule to Balance Sheet as on 31 March 2013

Balance sheet of a non deposit taking non-banking financial company

(As required in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007)

5 The consolidated financial statements of the Company and its group are attached to these independent financial statements. The details of the group regarding the nature of relationship and the basis of consolidation can be referred to in note 1 to the said consolidated financial statements.

6 Previous year figures

Previous year figures have been reclassified to conform to this year''s classification.

7 Miscellaneous

Rs. 1 crore is equal to Rs. 10 million.

Amounts less than Rs. 50,000 have been shown at actual against respective line items statutorily required to be disclosed.


Mar 31, 2012

1 The company is primarily engaged in the business of promoting financial services such as finance, insurance, wealth management etc. through its investments in subsidiaries and joint ventures. The company is also engaged in the business of generating power through wind turbines. Since investments dominate the composition of assets and revenue, the Company was registered on 30 October 2009 by RBI as a Non-Banking Financial Institution (non-deposit taking). However, the Company has obtained an exemption from RBI vide its letter dated 8 March 2010 on the compliance with the norms in respect of 'concentration of investments' prescribed in para 18(1) of the

Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. The said exemption has been renewed vide its letter dated 18 July 2011 for one more year.

2 Contingent liabilities

(Rs. In Crore)

2012 2011

a. Claims against the Company not acknowledged as debts 7.71 7.65

b. Income Tax matters under dispute Appeal by company 0.14 0.14

3 The consolidated financial statements of the Company and its group are attached to these independent financial statements. The details of the group regarding the nature of relationship and the basis of consolidation can be referred to in note 1 to the said consolidated financial statements.

4 Previous year figures

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

4 Miscellaneous

Rs. 1 crore is equal to Rs. 10 million.

Amounts less than Rs. 50,000 have been shown at actual against respective line items statutorily required to be disclosed.


Mar 31, 2011

Balance sheet of a non deposit taking non-banking financial company

(As required in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007)

(Rs. In Lakhs)

Particulars Liabilities Side: Amount Amount Outstanding Overdue

(1) Loans and advances availed by the NBFCs inclusive of interest accrued thereon but not paid:

(a) Debentures : Secured Nil Nil

: unsecured Nil Nil (Other than falling within the meaning of public deposit*)

(b) Deferred Credits Nil Nil

(c) Term Loans Nil Nil

(d) Inter-corporate Loans and Borrowings Nil Nil

(e) Commercial Paper Nil Nil

(f ) Other Loans (specify nature) Nil Nil

* Please see Note 1 below


Mar 31, 2010

1. A. The Company was incorporated on 30th April 2007 with the object of carrying out financial services under the name Bajaj Finserv Ltd. Under a scheme of arrangement under section 391 to 394 of the Companies Act 1956 between the company and erstwhile Bajaj Auto Ltd., now known as Bajaj Holdings & Investment, the "Strategic Business Undertaking" comprising of interests in the insurance joint ventures, financing business through an associate and investment activity of erstwhile Bajaj Auto Ltd, vested with the company from 1st April 2007 ("the appointed date").

B. In response to the application made by the company, the company has been registered on 30th October 2009 as a Non-Banking Financial Institution (non-deposit taking).The company has complied with Non-Banking Financial (non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, as applicable thereto, except in respect ofconcentration of investmentsprescribed in para 18(1) of the above mentioned directions, for which the company has obtained exemption dated 8 March 2010, subject to fulfillment / observance of certain terms and conditions and review by RBI at the end of one year.

2. Significant Accounting Policies followed by the Company are as stated in the Statement annexed to this schedule.

As at As at 31 March 2010 31 March 2009 (Rs. In Million) (Rs. In Million)

3. Contingent Liability, not provided for:

Claims against the company not acknowledged as debts 109.2 100.4

4. Estimated amounts of contracts remaining to be 1.6 135.2 executed on capital account and not provided for, net of Advances.

5. (a) Expenditure in foreign currencies VER Sale Expenses -- 3.3

Travelling Expenses 0.4 0.8

(b) Earning in foreign currencies

FOB Value of Exports (VER Sale) -- 52.7

6. Investments:

a. Investments made by the Company other than those with a maturity of less than one year, are intended to be held for a long term, hence diminution in the value of quoted Investments are not considered to be of a permanent nature. On an assessment of the non-performing investments (quoted and unquoted) and keeping in mind the relevant provisioning norms applicable to the company as a NBFC and as per guidelines adopted by the management, no provision has been determined during the year ended 31 March 2010.

b. The company had acquired 2,178,490 detachable warrants, attached to Non Convertible debentures, issued by Bajaj Auto Finance Limited (hereinafter referred to as"BAFL") as part of rights issue of Non Convertible debentures in 2006-07. The warrant entitled the company to apply for equity shares in BAFL at the warrant exercise price of Rs. 500/- per warrant, within the warrant exercise period, which expired on 8 January 2010. Since the market price of equity shares of BAFL was lower than the warrant exercise price through the warrant exercise period, the company did not exercise its right to apply for shares of BAFL. Consequently amount of Rs. 104.6 million, being cost of warrants has been fully provided for.

7. The Sales tax deferral benefit available to the company as a wind power generator was availed by the manufacturing undertaking vested with Bajaj Auto Ltd. The amount of liability deferred by the latter has been passed on to the company, and recognised as a liability, as the obligation to pay now lies with the company.

8. In absence of any information on earlier requests to the vendors with regards to their registration (filing of Memorandum) under "The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006)"and in view of the terms of payments not exceeding 45 days, which has been promptly paid, no liability exists at the close of the year and hence no disclosures have been made in this regard.

9. The disclosures required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 are given in the Annexure forming part of these Financial Statements.

10. Disclosure of transactions with Related Parties, as required by Accounting Standard 18Related Party Disclosureshas been set out in a separate statement annexed to this Schedule. Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

11. a) The consolidated financial information/ statements of the company and its group are attached to these independent financial statements. The details of the group regarding the nature of relationship and the basis of consolidation can be referred to in Note No. 1 to the said consolidated financial statements.

b) Segment Information based on the Consolidated Financial Statements attached to the Independent Financial Statements has been disclosed in the Statement annexed to this Schedule.

12. Amounts less than Rs. 50,000 have been shown at actual, against respective line item statutorily required to be disclosed.

13. Previous year figures have been regrouped to make them comparable with that of the current year.

 
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