Annual Report: 2022
Berar Finance Limited - Annual Report 2021-2022 Summary:
Overview: The 32nd Annual Report of Berar Finance Limited highlights the company's financial performance, operational activities, and adherence to regulatory guidelines for the fiscal year ended March 31, 2022. The report showcases the company's growth, profitability, and commitment to corporate governance and social responsibility.
Financial Performance: The company experienced growth in its business operations, with the following key financial results (in lakhs):
Appropriation of Profits: The Directors proposed appropriating the net profit as follows (in lakhs):
Funding Resources: The company utilized various funding sources, including:
Review of Operations: The company's primary business remains financing two-wheelers, with additional loan products like personal loans and used car loans. The company experienced growth, with a 26.67% increase in disbursement and a 30.21% increase in gross income compared to the previous fiscal year.
Branch Network: The company expanded its branch network by opening 10 new branches during the year, bringing the total to 101 branches as of March 31, 2022. As of the report date, it has 114 branches. Plans are in place to add more branches in FY 2022-2023.
RBI Guidelines & Regulatory Compliance: Berar Finance Limited adheres to the Reserve Bank of India (RBI) guidelines, including prudential norms for income recognition, asset classification, and capital adequacy. The company is classified as Systemically Important Asset Finance Company-Deposit Taking. The company's Liquidity Coverage Ratio (LCR) was 170.54% as of March 31, 2022. The company falls under the category of Investment & Credit Company (NBFC-ICC) and is classified as NBFC- Middle Layer.
Related Party Transactions: All transactions with related parties were conducted at arm's length and in the ordinary course of business.
Credit Rating: The company's credit ratings are:
Directors and Key Personnel: Several changes occurred in the Board of Directors, including appointments of Non-Executive Directors and the resignation of Mr. Dattatraya Prabhakar Dalal. Mr. Sandeep Jawanjal resigned as CFO and Mr. Yogesh Tahalyani was appointed as the new CFO. The Board has carried out performance evaluations of the Directors, Chairman, Committees, and Managing Director.
Corporate Governance: The company follows robust governance practices and is committed to high standards of the Corporate Governance Code.
Exit Offer Scheme: An exit offer scheme was provided to identified shareholders, and the company is pursuing compounding of offenses with SEBI and the National Company Law Tribunal (NCLT).
Directors' Responsibility Statement: The Directors confirmed that the annual accounts were prepared on a going concern basis, and proper internal financial controls were in place and operating effectively.
Risk Management: The company manages various risks, including credit risk, liquidity risk, interest rate risk, and operational risk, through stringent credit norms and regular monitoring.
Internal Financial Controls: The company has a systematic set of controls and procedures to ensure orderly and efficient conduct of its business, with internal financial controls tested and reported as adequate and operating effectively.
Human Resources and ESOP: The company emphasizes attracting, training, and retaining quality talent, and has introduced the Berar Employee Stock Option Plan, 2019.
Energy Conservation & CSR: The company is not engaged in manufacturing activity. The company is pursuing Corporate Social Responsibility (CSR) programs as per its approved policy, available on its website.
Disclosure on Sexual Harassment: The company has implemented a policy for prevention, prohibition, and redressal against sexual harassment at the workplace.
Other Disclosures: The report also covers compliance with Secretarial Standards, maintenance of cost records, particulars of loans and investments, annual return, material changes affecting financial position, and other statutory disclosures.
Auditors' Report: The report includes the Independent Auditor's Report, expressing an opinion on the financial statements of the company. The report includes discussion of Key Audit Matters, such as the allowance for expected credit losses.
Annexures: The report includes various annexures, such as the Management Discussion and Analysis, Secretarial Audit Report, Report on Corporate Governance, and Annual Report on CSR Activities.
Outlook and Strategy (Management Discussion and Analysis): The company expects a sustained recovery in the economy and anticipates growth in business and profitability for fiscal year 2023, balancing risks while tapping diverse funding sources. It aims to improve its performance in FY 2022-2023 and sustain its growth trajectory, while balancing risks. The company will continue to tap diverse source of funds to maintain an optimal capital structure.
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