TATA Capital Unlisted Shares

Annual Report Summary

The provided PDF is the annual report for 2023-24 of Tata Capital, a subsidiary of Tata Sons Private Limited. The report highlights the company’s performance, initiatives, and compliance with regulatory standards. The report showcases "Telescopic Views to Rover Expeditions, Ascending to a Tech-Driven Tomorrow" and emphasizes the company's commitment to being a responsible financial partner, fulfilling India's aspirations through technology and innovation.

Key Sections and Information:

• About Us: Tata Capital Limited (TCL) operates as a non-banking financial company (NBFC-ICC) and is obtaining a license from the Reserve Bank of India (RBI). It offers financial solutions in lending and other financial services.

• Purpose and Pillars: Tata Capital aims to be a responsible financial partner, driven by trust, collaboration, innovation, speed, customer focus, and delivering delight.

• Corporate Social Responsibility (CSR) Initiatives: Tata Capital engages in CSR activities focused on climate action, healthcare, and education. Key programs include JalAadhar (watershed management), The Green Switch (solar micro off-grid model), VN (Vanaropan for Neutrality), Aarogyatara (eye care), and Pankh Scholarships. In FY23-24, the Company positively impacted 6.66 lakh beneficiaries from underserved communities.

• Product Portfolio: Tata Capital provides a range of financial products and services to retail, corporate, and institutional customers, including personal loans, home loans, business loans, consumer loans, cleantech finance, institutional distribution, private equity, loan against property, wealth products distribution, commercial and SME finance, leasing solutions, and Tata Cards.

• Digital Initiatives: Tata Capital has launched a new website and mobile application, introduced a new loan origination system for SMEs, enhanced customer service with multilingual capabilities and self-service kiosks, upgraded its omnichannel marketing strategy, forged innovative partnerships through APIs, and streamlined operational efficiency through RPA and intelligent workflow systems. The company is also harnessing AI for customer service, underwriting, and marketing content creation. Over 85% of retail loan applications were assessed using machine learning-based scorecards.

• New Products Introduced: Tata Capital has introduced Education Loans for students pursuing higher education in various countries, offering collateral-free and secured loans.

• Brand Initiatives: Tata Capital onboarded cricketer Shubman Gill as a brand ambassador. Brand campaigns like “Khoobsurat Chinta” were launched, and media presence was enhanced during the cricket world cup and Tata Women's Premier League (WPL). WPL also saw a 20% increase in viewership.

• Corporate Information: Lists the Board of Directors and key personnel for Tata Capital Limited, Tata Capital Housing Finance Limited, and Tata Securities Limited.

• Snapshot of Numbers: Book size is ₹1,57,761 crore, with the Retail + SME Book comprising 85%+. Profit After Tax is ₹3,150 crore. There are 723 branches, with 92% located in non-metros. The customer base is 4.5 million+, with 83% from non-metros.

• Awards: Includes a list of awards received by Tata Capital.

• Message from the Chairman: Highlights consolidated results during FY23-24, including crossing ₹1 lakh crore in yearly disbursals, loan book growth of 35% YoY, and highest ever profits after tax of ₹3,150 crore. Also mentions financing 17GW+ of renewable capacity and helping to avert 27Mn ton+ carbon emissions. Mentions Tata Capital’s emphasis on the 3S strategy of simplification, synergy and scale.

• Message from the Managing Director & CEO: Mentions crossing ₹1 lakh crore in annual disbursals and ₹1.5 lakh crore loan book. Disbursals grew by 40% YoY to ₹1,05,244 crore. Expansion into education loans and focus on deeper markets. Branch expansion averaged over 5 branches per week, reaching 723 total, with 92% in non-metros. GNPA at 1.5% and NNPA at 0.4%. 97% of customers are onboarded through digital platforms. Mentions partnership with Women’s Premier League and onboarding Shubman Gill as brand ambassador.

• Board's Report: Approves a Scheme of Arrangement for the merger of Tata Capital Financial Services Limited (“TCFSL”) and Tata Cleantech Capital Limited (“TCCL”) with Tata Capital Limited (“TCL”). Mentions an increase in the Authorised Share Capital, allotment of Equity Shares to International Finance Corporation, and redemption of Cumulative Redeemable Preference Shares (“CRPS”). Recommends a final dividend of Re. 0.21 per Equity Share of Rs. 10 each for FY 2023-24. Discusses operations across Retail, SME, and Corporate customer segments. Announces TCL’s closing portfolio has grown by 35% to ₹1,57,761 crore, and funds aggregating Rs. 1,05,244 crore were disbursed. Describes the structure of business operations at Tata Capital and its subsidiaries.

• Financial Results: Presents the consolidated and standalone financial results for FY2023-24 and FY2022-23. The consolidated book size increased to Rs. 1,57,760.55 crore as at March 31, 2024. The company had borrowings aggregating Rs. 1,48,185.29 crore as at March 31, 2024.

• Share Capital: Details the increase in authorized share capital and issuance of equity shares on "Right Basis" to existing shareholders.

• Dividend: Declares Interim Dividend on the CRPS. Recommends a final dividend of Re. 0.21 per Equity Share of Rs. 10 each for FY 2023-24.

• Compliance: Discusses compliance with RBI regulations, including Scale Based Regulation (SBR), and the maintenance of Capital to Risk Assets Ratio (CRAR).

• Digital Platforms & Analytics: Details ongoing efforts to invest in technology to differentiate itself in the industry.

• Tata Capital Journey of Excellence: Describes the use of the Tata Business Excellence Model (“TBEM") for continuous process improvement.

• The Tata Capital Brand: Details efforts to increase brand awareness and consideration.

• Corporate Social Responsibility: Outlines Tata Capital’s CSR purpose and mission, focusing on Climate Action, Healthcare and Education. Details key CSR programs.

• Risk Management: Details the risk management framework across all business activities.

• Directors' Responsibility Statement: Confirms the adequacy and effectiveness of internal financial controls.

• Independent Auditor's Report: Report of auditor with unmodified opinion.

• Key Managerial Personnel: Lists key managerial personnel (KMP).