Financial Year: 2023
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Tata Capital Limited's board meeting on February 13, 2024, approved the unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2023. The results, along with the Limited Review Report from KKC & Associates LLP, the Statutory Auditors, are enclosed. The board also approved the issuance of Non-Convertible Debentures (NCDs) on a private placement basis, up to Rs. 20,000 crore, pending shareholder approval. Additionally, the board approved the appointment of MSKA & Associates as one of the Joint Statutory Auditors, based on the Audit Committee's recommendation and subject to shareholder approval. Requisite details pertaining to the appointment of the Joint Statutory Auditor are in Annexure A, detailing the auditor as MSKA & Associates, Chartered Accountants, the reason for change as appointment of one of the Joint Statutory Auditors of the company based on RBI guidelines, appointment date as February 13, 2024 for a period of three consecutive years, and their brief profile. MSKA & Associates is an Indian partnership firm established in 1978 and registered with the Institute of Chartered Accountants of India (ICAI) and the PCAOB. Regulation 54 Security Cover Certificate, statement on the utilization of NCD issue proceeds, and a statement indicating Nil deviation and variation are also annexed to the Unaudited Financial Results.
The independent auditor’s review report by KKC & Associates LLP states that they have reviewed the unaudited standalone financial results of Tata Capital Limited for the quarter ended December 31, 2023, and the year-to-date results from April 1, 2023, to December 31, 2023. The review was conducted according to the Standard on Review Engagements (SRE) 2410. They state that nothing has come to their attention that causes them to believe that the statement has not disclosed the required information or contains any material misstatement or that it has not been prepared in accordance with relevant prudential norms. Attention is drawn to Note 4 narrating the amalgamation of Tata Capital Financial Services Limited ("TCFSL") and Tata Cleantech Capital Limited ("TCCL") by the Hon'ble NCLT, effective from January 1, 2024, with an appointed date of April 1, 2023. KKC & Associates LLP also conducted a review of the consolidated financial results of Tata Capital Limited and its subsidiaries, with subsidiaries including Tata Capital Housing Finance Limited, Tata Securities Limited, and Tata Capital Pte Limited.
Key financial highlights from the standalone results for the quarter ended December 31, 2023 (with figures for the quarter ended September 30, 2023, and December 31, 2022, in parentheses for comparison) are: Revenue from Operations: Rs. 3,365.25 crore (Rs. 2,998.78 crore, Rs. 2,397.62 crore); Profit before tax: Rs. 837.39 crore (Rs. 673.84 crore, Rs. 546.74 crore); and Profit for the period: Rs. 664.35 crore (Rs. 490.92 crore, Rs. 406.32 crore). For the nine months ended December 31, 2023 (with figures for the nine months ended December 31, 2022, in parentheses): Revenue from Operations: Rs. 9,206.00 crore (Rs. 6,637.01 crore); Profit before tax: Rs. 2,257.27 crore (Rs. 1,729.70 crore); and Profit for the period: Rs. 1,715.53 crore (Rs. 1,312.88 crore). Earnings per share, basic and diluted, for the quarter ended December 31, 2023, were Rs. 1.80. The debt-equity ratio was 4.89. The gross Non-Performing Assets (NPA) were 1.69%, and the net NPA was 0.39%. The provision coverage ratio was 77.47%. The funds raised through Non-Convertible Debt Securities are used for lending, investments, repaying existing loans, and business operations, adhering to the company's investment policy. Privately placed NCDs are secured by a pari passu charge on specified assets, while public issues are secured by a first-ranking pari passu charge on specific immovable property.
Key financial highlights from the consolidated results for the quarter ended December 31, 2023 (with figures for the quarter ended September 30, 2023, and December 31, 2022, in parentheses for comparison) are: Revenue from Operations: Rs. 4,623.23 crore (Rs. 4,218.84 crore, Rs. 3,295.14 crore); and Profit before tax: Rs. 1,297.73 crore (Rs. 1,097.99 crore, Rs. 784.87 crore). For the nine months ended December 31, 2023 (with figures for the nine months ended December 31, 2022, in parentheses): Revenue from Operations: Rs. 12,773.78 crore (Rs. 9,082.55 crore); and Profit before tax: Rs. 3,381.16 crore (Rs. 2,470.34 crore). The Debt Equity ratio: 5.91. Gross Non Performing Assets (%): N/A. Net Non Performing Assets (%): N/A. Provision Coverage Ratio (%): N/A. Security Cover (No of times): N/A.
Annexure 2 outlines the utilization of issue proceeds from Non-Convertible Debentures raised through private placements. It specifies the ISIN, date of raising funds, amount raised, and the amount utilized, confirming no deviations. A security cover certificate as of December 31, 2023 is also included, detailing assets and liabilities and calculating security cover ratios. The debt equity ratio 5.91, and the security cover (no. of times) is 1.79.
KKC & Associates LLP's independent auditor’s review report on unaudited consolidated financial results notes that these results include unaudited financials from some subsidiaries and associates, and the review is based partially on other auditors’ reports. Attention is drawn to note narrating the amalgamation of Tata Capital Financial Services Limited (“TCFSL”) and Tata Cleantech Capital Limited (“TCCL”) by Hon'ble NCLT effective from 1 January 2024 with appointed date 1 April 2023 as per Ind AS 103 – “Business Combinations” by way of common control entities.
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