Hero Fincorp Limited Unlisted Shares Annual Reports

Hero Fincorp Limited Unlisted Shares

Hero FinCorp's 33rd Annual Report for 2023-24 highlights the company's transformation and evolution, emphasizing its new brand identity symbolizing a "Rising Bharat" with a theme of "Windows of Opportunity," reflecting a commitment to enabling dreams. The company is dedicated to promoting excellence and teamwork, partnering with the Delhi Capitals IPL team. **Financial Performance:** Hero FinCorp moved to a new headquarters in Gurugram, Haryana, a state-of-the-art facility. The company was also recognized as a Great Place to Work for the 7th consecutive year. AUM crossed INR 50,000 Cr, reaching INR 51,821 Cr as of March 31, 2024, a 24% YoY growth. The highest-ever disbursal of INR 34,463 Cr was achieved, up 24% YoY. Profit After Tax (PAT) reached INR 986 Cr (post CCPS adjustment), a 25% YoY increase. They now touch over 11 million lives and maintain over 4,500 touchpoints nationwide. Return on Assets (ROA) stands at 2.1%, while Net Non-Performing Assets (NNPA) stood at their lowest at 2%. Retail AUM reached INR 33,726 Cr (29% growth), with disbursals at INR 25,400 Cr (26% growth). SME AUM stood at INR 10,780 Cr (27% growth), with disbursals at INR 4,865 Cr (22% growth). Corporate AUM was INR 5,988 Cr, with disbursals at INR 4,198 Cr. **Strategic Initiatives & Technological Advancements:** Hero FinCorp launched a Gen Al-powered servicing chatbot and scaled the Hero Instant Personal Loan App with a new UI/UX, building best-in-class product journeys to stay ahead in the digital era. **CSR Activities:** The company's commitment to Corporate Social Responsibility includes the DhanCharcha financial literacy initiative (reaching 4.6 lakh people in 367 villages across 5 states), the Raman Kant Munjal Scholarships (supporting 155 students in finance and accounts), Pathakshala (school transformation in Gurugram), and Hunar (skill development for underprivileged youth). 412 youth were trained and 60% secured placements. CSR initiatives provided financial literacy to 4.6 lakh people in 367 villages across 5 states, and 1.11 lakh beneficiaries enrolled in government schemes. 85% of the CSR budget was distributed in Haryana, Rajasthan, and Madhya Pradesh. **Board & Committees:** Dr. Pawan Munjal is the Chairman, and the Board includes Mrs. Renu Munjal, Mr. Abhimanyu Munjal, Mr. Pradeep Dinodia, Mr. Paramdeep Singh, Mr. Sanjay Kukreja, Mr. Amar Raj Singh Bindra, and Ms. Anuranjita Kumar. The report details the composition and responsibilities of various board committees, including the Audit Committee, Stakeholder Relationship Committee, Nomination & Remuneration Committee, and Corporate Social Responsibility Committee. **Operational & Regulatory Compliance:** The company is engaged in finance and investments as a Non-Banking Financial Company and has fulfilled the norms pertaining to non-performing assets, capital adequacy, and statutory liquidity. Compliance with Secretarial Standards is ensured. The company obtained a factoring business license from the RBI. **Financial Information & Ratios:** The report includes key financial data like total income (INR 7,804.69 Cr standalone), profit before tax (INR 925.20 Cr standalone), profit after tax (INR 601.92 Cr standalone), debt-equity ratio, net worth, and total debts to total assets. It provides a breakdown of loan assets mix, borrowing mix, gross NPA to loan assets, cost to income ratio, credit cost to average assets, and return on equity/assets. **Future Outlook:** The company is filled with enthusiasm and optimism for the future, focusing on enhancing digital capabilities, leveraging technological advancements, expanding product offerings, and strengthening risk management frameworks. They aim to connect more deeply with Indians and work towards a Viksit Bharat by 2047. This comprehensive summary provides a thorough overview of the key information and data presented in the Hero FinCorp Limited 33rd Annual Report 2023-24.

Hero Fincorp Limited Unlisted Shares

Here is a detailed summary of the provided PDF document. The document is the 32nd Annual Report for the Financial Year 2022-23 of Hero FinCorp Limited, a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). The report includes a tribute to Dr. Brijmohan Lall Munjal, Founder & Chairman Emeritus, Hero Group, who passed away. The theme of the report is "Confidence to make it happen." The report includes key highlights, chairman's message, joint MD & CEO's message, information about the company's foundation, board of directors, CSR report, a journey timeline for the company, growth at a glance, board committees, corporate information, board's report, and financial statements (both standalone and consolidated). **Key Highlights:** * Hero FinCorp has a team of more than 12,000 employees (both on and off roll). * The company has a strong credit rating of AA+. * It boasts the fastest network rollout, reaching over 2,000 locations. * Assets Under Management (AUM) reached INR 41,497 Cr. * The company focuses on financial inclusion, with 81% of customers being new to credit. * Hero FinCorp has over 4,100 touch points. * The company has impacted 10 million lives. * A loan is disbursed every 10 seconds. **Chairman's Message (Dr. Pawan Munjal):** * Celebrates the 10th Anniversary of Hero Fin-Corp, highlighting growth from 2013 to 2023. * The loan book has grown to INR 41,497 Cr., up 26% from the year before. * Touched over 10 million lives through more than 4100 touchpoints. * A loan is disbursed every 10 seconds. * Recorded its highest ever Profit After Tax (PAT) of INR 457 Cr. (post CCPS adjustment) in FY-23. * Focuses on operational excellence and digital transformation. * Awarded the Great Place to Work Certification for the 6th consecutive year and recognized among the Top 25 BFSI players in the country. * FY-24 focus will be on building granular and diversified portfolios as it enables the dreams of every Indian. **Jt. MD & CEO's Message (Abhimanyu Munjal):** * The economic outlook is promising, supported by government focus on infrastructure, digital transformation, and economic reforms. * The company's loan book reached INR 41,497 Cr., 26% higher than the year before, with a 30% compounded annual growth rate over the past 5 years. * Highest-ever profit after tax (PAT) of INR 457 Cr. in FY-23 (post-CCPS adjustment). * Emphasis on digital efforts, innovation, risk management, and compliance. * The company will adopt a three-pronged (dot) COM methodology pegged on Credit Cost Reduction, OpEx Optimization, and Margin Expansion. * Gratitude expressed to stakeholders including the Government, Regulators, Investors, Partners, Customers, and Employees. **CSR Initiatives (FY 2022-23):** * Raman Kant Munjal Scholarships: Scholarship initiative for meritorious students from humble backgrounds. In FY 23, 55 students were provided with the scholarships. Since its inception, the scholarships have positively impacted the lives of approximately 150 students. * DhanCharcha: A financial literacy campaign in rural areas, reaching 1.52 lakh beneficiaries across 270 villages. 30,000 beneficiaries enrolled in government schemes. * Hunar: Aims to skill youth in financial job roles. 250 youth were trained in FY-23, with 40% securing placements. * Pathakshala: Initiative to upskill teachers. In FY 23, 250 teachers were trained across 6 locations. * Saarthi: A career counselling program that benefitted 21,713 students from 146 schools across 14 states. * Miscellaneous initiatives included a BeMySanta Initiative, Computer Lab setup, and a Tree Plantation Drive (500+ trees planted). Hygiene Kit Distribution. * Thematic areas of intervention: Education (71%), Financial Literacy (19%), Skill Development (7%), Miscellaneous (3%). 1.74 Lakh Lives Impacted through 5 planned interventions. * 52% of beneficiaries were female and 48% were male. **Financial Performance & Key Financial Data:** * Total Income: Increased by 34% from Rs. 4,491 crore in FY 2021-22 to Rs. 6,033 crore in FY 2022-23. * Profit Before Tax: Increased by 378% from Rs. (256.13) crore in FY 2021-22 to Rs. 712.60 Crore in FY 2022-23. * Profit After Tax: Increased by 336% from Rs. (194.00) crore in FY 2021-22 to Rs. 457.33 crore in FY 2022-23. * Loan Assets: Grew by 25% from Rs. 30,231 crore in FY 2021-22 to Rs. 37,800 crore in FY 2022-23. * Capital Adequacy Ratio: Maintained at 20.57%, well above the RBI mandated norm of 15%. * Dividend: A final dividend of 81% (Rs. 8.10 per equity share) was recommended for FY 2022-23. The total dividend is ₹103.12 crore. **Corporate Governance:** * The company is committed to maintaining high standards of corporate governance. The report on corporate governance is annexed as Annexure B. The company does not have the requisite number of independent directors as required under Regulation 17 of SEBI Listing Regulations which it needs to comply with. **Funding and Borrowings:** * The company has a diversified borrowing profile including NCDs, commercial papers, and bank/FI lines. * The average cost of borrowing is 7.4% for the year ending March 31, 2023. **Risk Management:** * The company employs a three-lines-of-defense model. * Risk Management team is guided by the Company's Risk Management Committee which oversees development and implementation of Risk Assurance practices. **Other Key Points:** * HHFL saw considerable growth in the financial year 2022-23, receivables under financing activity has reached to Rs. 3,658.27 crore in the financial year 2022-23. HHFL has Revenue from operations of Rs. 400.32 crore in financial year 2022-23. * The company has received approval from Reserve Bank of India (RBI) for obtaining factoring business license. * The company is committed to work towards its plan to bring an Initial Public Offer of its equity shares which shall be enhancing the value for our stakeholders. This summary provides a holistic overview of the Hero FinCorp Limited’s 32nd Annual Report, covering its financial performance, strategic initiatives, CSR activities, and governance practices.

Hero Fincorp Limited Unlisted Shares

Soaring Higher The document is the 31st Annual Report for 2021-22 of Hero FinCorp Limited. The report includes a tribute to Dr. Brijmohan Lall Munjal, Founder & Chairman Emeritus of the Hero Group. **Key Financial Highlights:** * Hero FinCorp has a strong credit rating of AA+. * The company has 4,100+ touchpoints. * Assets Under Management (AUM) reached INR 32,953 Cr. * The fastest network rollout with 2,000+ locations. * Loans are disbursed every 10 seconds. * The company processes over 3 Lakh Loan applications per month. * The company has 10,400+ employees. * Financial Inclusion: 70% of customers are new to credit. * Impacted lives: 7.5 Mn.+ **Chairman's Message (Dr. Pawan Munjal):** The Chairman acknowledged the challenges posed by the COVID-19 pandemic and emphasized the company's commitment to its motto: 'Do it! Move it! Make it Happen!'. Standalone Disbursals increased from INR 13,822 Crore in FY 2021 to INR 18,543 Crore in FY 2022 (35% YOY increase). Consolidated Asset Book increased from INR 27,490 Crore in FY 2021 to INR 32,953 Crore in FY 2022 (20% YOY increase). Customer base grew from 6 million in FY 2021 to 7.5 million in FY 2022 (25% YOY increase), and the employee base grew from 7,800+ to 10,400+ (33% YoY increase). India is projected to be amongst the fastest-growing economies with a growth projection of 6.4% in FY 2023. The company was recognized as a Great Place to Work (Overall & BFSI) for the 5th consecutive year. The company is adopting an Agile Operating Model and aims to be one of the largest and most customer-focused Financial Institutions in India. **Jt. MD & CEO's Message (Abhimanyu Munjal):** The second half of the year contrasted with the first, with improvements following vaccinations and reduced restrictions. The company showed 34% YoY growth in Disbursements, growing from INR 13,822 Cr. in FY-21 to INR 18,453 Cr. to FY-22 (standalone figures). The Consolidated Asset Book grew by 20% YOY, from INR 27,490 Cr. in FY-21 to INR 32,953 Cr in FY-22. Hero FinCorp has over 4,100 touch points, spread across over 2,000 locations in India. The company is strengthening its Collections Infrastructure and Risk Management Capabilities, and focused on making Retail Collections more Digitally inclined. The company prioritized Process Improvements, Fraud Prevention, and strengthened Underwriting Scorecards. Collections Efficiency improved and Digital Payments increased. The company’s Collections Efficiency in quarter 4 was better than pre-Covid, and they delivered highest ever Resolution Rates. An Agile Transformation Office was set up with the motto: Committed To Perform While We Transform. Customer Service Capabilities were strengthened Online (through the app) and Offline. FY-23 has started off positive. **Our Key Principles** * Empowering every Indian's Dream of Upward Mobility! * We strive to be the best, most transparent, next-gen, ultra-lean, credit champion. * Our culture manifests through 5 Core Values - 'TITHI' - Teamwork | Integrity | Trust & Respect | Humility | Innovation & Speed * To be a Financier of choice and become a one-stop Financial Services Company, by offering world-class products through Innovation & Teamwork. **CSR Initiatives** Hero FinCorp's CSR initiatives focus on Financial Literacy and Skilling, Sustainability & Environment, Aiding Rural Economy & its Stakeholders, Support and Empowerment for Women & Children. *Raman Kant Munjal Scholarships:* The program has supported over 54 meritorious and deserving students this year, out of which 60% are girls. *Pathakshala:* A Teachers Training Program has trained 255 teachers impacting 25+ schools. *UMANG:* Employee Volunteering Activities impacted 6,500+ people. *Be My Santa:* 150 heroes donated gifts for 600 delighted children. *International Women's Day:* 125+ Hygiene Kits Donated by 50+ heroes. *Donation for BPL Students Studying in Raman Munjal Vidya Mandir:* Hero FinCorp donated Rs. 4.5 lacs to support education. *Vaccination Support Van for Rural Areas:* Hero FinCorp donated a VANO Van to the Raman Kant Munjal Foundation. **Our Journey:** * 1991-2012: Incorporated as Hero Honda Finlease Ltd. Later renamed Hero FinCorp Ltd. * 2013-14: Launched Two Wheeler Financing business * 2015-16: Launched Corporate Finance Division & Loyalty Loan Program * 2017-18: Incorporated Hero Housing Finance Ltd. * 2019: Established presence at over 3,000 touch points spread across 1,700+ locations * 2020: Became India's No.1 Two-Wheeler Financier. * 2021: Launched Customer Service App and SimplyCash (a digital Loan Product) * 2022: AUM reached ₹32,953 Cr. Achieved highest ever Disbursals of ₹19,700+ (Consolidated) in a Financial Year. **Numbers at a Glance:** * Disbursements increased from INR 13,822 Cr. in FY21 to INR 18,543 Cr. in FY22 (25% YoY). * Loan Assets increased from INR 23,389 Cr. in FY20 to INR 32,953 Cr. in FY22 (+30% from FY21). The board report indicates the authorized share capital of the company has increased, and provides a financial summary comparing 2021-22 and 2020-21. The company is registered with the Reserve Bank of India as a Systemically Important Non-Banking Financial Company. The Board does not recommend payment of any final dividend on the equity shares for the FY 2021-22. There was no change in the nature of business of the Company during the financial year ended March 31, 2022. The directors also affirmed adherence to regulatory guidelines and standards. Receivables under financing activity including leasing portfolio has grown by 20% from Rs. 25,121 crore in FY 2020-21 to Rs.30,231 crore in FY 2021-22. The total income has shown growth of 10% from Rs. 4,092 crore in FY 2020-21 to Rs. 4,491 crore in FY 2021-22. Profit/ (Loss) before tax decreased by 384% from Rs. 90.07 crore in FY 2020-21 to Rs. (256.13) crore in FY 2021-22, accordingly the Profit/(loss) after tax registered a decrease of 375% from Rs. 70.62 crore in FY 2020-21 to Rs. (194.00) crore in FY 2021-22. COVID-19 has spread across India. As the company enter FY22-23, the third wave of COVID-19 has not had any significant impact on its business. Commercial papers worth Rs. 4,390 crore (On Face Value) were issued by the Company during the year under review. Secured term loans worth Rs. 6,250 crore (including Rs.50 crore in Foreign Currency Loan) and Secured ECB of Rs. 868.65 crore were borrowed from different banks/FIs during the year under review. As on March 31, 2022, the total outstanding bank/FI lines (secured and unsecured) of the Company stands at Rs. 20,014.78 crore. The Capital Adequacy Ratio (CAR) is 15.60% as on March 31, 2022, which is well above the RBI mandated norm of 15%. **Board Committees include:** Audit Committee, Stakeholder Relationship Committee, Nomination & Remuneration Committee, Corporate Social Responsibility Committee, and Committee of Directors. **Key Managerial Personnel include:** Mrs. Renu Munjal, Mr. Abhimanyu Munjal, Mr. Jayesh Jain, and Mr. Shivendra Suman. The company also outlines its SWOT analysis, including strengths like a strong brand, PAN India presence, and experienced management; weaknesses like business linked to GDP and potential stress in retail portfolios; opportunities such as a large untapped market and technology upgrades; and threats such as the pandemic, inadequate bank finance, and competition. The company's future strategy involves periodical review of pandemic risks, focusing on digital initiatives, utilizing data analytics, enhancing loan portfolio quality, maintaining customer loyalty, and promoting work from home and employee up-skilling. The outlook is positive, with the Indian economy expected to continue its growth trajectory.