Contents

 Contents
 Introduction
 TATA Capital Financial Services Ltd.
 Composition of BOD
 Rights of BOD
 Innovative products and services offered by the NBFC
 Conclusion
 References
 NBFC- A Non-Banking Financial Company (NBFC) is a company registered
under the Companies Act, 1956. They are engaged in the business of loans and
providing advances. They also help in acquisition of shares, stocks, bonds,
debentures and securities issued by Government or local author or other marketable
securities. A non-banking institution which is a company and has principal business
of receiving deposits under any scheme or arrangement in one lump sum or in
installments by way of contributions or in any other manner, is also a non-banking
financial company.

Non-banking financial companies can be divided into two categories based on their
character which is depository and non-depository. If a company does not take any
deposits, then they are suffixed with ND. Example of the deposit-taking institution
is saving stores, loans provider.

 Types of NBFC in India

1. Investment Company
The primary business of Investment Company is to hold and manage securities for
investment purposes; they typically offer investors a variety of funds and investment
services. This includes recordkeeping, accounting, tax management and portfolio
management. Investment companies include further subcategory;

 Core investment companies Core investment company is company holding

shares, debentures and is categorizes as NBFC’s by the RBI. They can’t deal in
trading of the instruments they hold. A core investment company needs to
register itself with RBI if it is dealing in raising funds through commercial
papers, debentures, inter-corporate deposits and by borrowing from financial
institution however if core investment company doesn’t need to get a certificate
of registration from RBI if companies’ asset is less than Rs. 100 crores.

 Asset finance companies - Asset finance companies are the financial institution
which deals with the business of financing physical assets that correlates with
any economic activity such as automobiles, power generators, and material
handling equipment. According to RBI regulation, any NBFC can act as an asset
finance company if the income arising out of it is less than 60% of its total
revenue.

2. Loan Companies
Any company which is a financial institution and its principal business is providing
finance by making loans, or an advance is a loan company under NBFC’s.
 3. Infrastructure Finance Company
IFC provides infrastructure loan in specific infrastructure sector only that are
energy, transport, water and commercial infrastructure. RBI guidelines regarding
registering any IFC as an NBFC is that it should be a non-deposit accepting
company.

4. Infrastructure Debt Fund

IDFs act essentially as vehicles for financing debt of infrastructure companies and
through this, they create space for commercial banks to lend to another
infrastructure project. They can be set up as a company or trust; only the company
based IDF’s would come under the purview of NBFC and hence governed by RBI.

5. Microfinance Companies
Micro-financial companies offer small loans to individuals or any self-help groups
with capital less than 50,000. Nowadays many financial organizations are applying
for a license to RBI to attain the status of Micro-finance companies.

 The advantage of NBFC’s in Indian Economy

In India where 70% of the population lives in rural areas, incorporation of a non-
banking financial firm is essential as they are small players who provide loans, chit–
funds etc. Many companies have come forward and registered themselves with RBI
to attain the status of NBFC. NBFC with their low-cost operations, simple sanction
procedure and flexibility has given it an edge over the commercial banking sector.
It is an important financial mediator, particularly for the retail and small-scale
sector.

The contribution of NBFC to Indian economy has increased 12% in the year 2015
moreover the ongoing stress in the public sector bank due to amounting bad debt
has deteriorated their service and their contribution to the Indian economy. This
mounting bad debt has driven commercial banks to decrease their grant of financial
help to small-scale traders and the infrastructure sector. NBFC recently
contributed 12.5% to GDP this recent success of NBFC can be attributed to its lower
cost, swiftness in providing strong risk management services and their reach in the
sector where public sector bank doesn’t.

In this assignment the focus of discussion will be on TATA CAPITAL

FINANCIAL SERVICES LTD., Its composition of Board of Directors, their
rights and duties and the products offered by the NBFC.
 Brief history of TATA Capital Financial Services Ltd.
Tata Capital, a subsidiary of Tata Sons Limited, was established in the year 2007. It
is the financial services arm of the USD 108 billion Tata Group. It is a holding
company of Tata Capital Financial Services Limited (TCFSL), Tata Securities
Limited, and Tata Capital Housing Finance Limited. The company is registered with
the Reserve Bank of India (RBI) as a Systematically Important Deposit Accepting
Non-Banking Financial Company. Tata Capital offers services like commercial
finance, investment banking, consumer loans, private equity, treasury advisory, and
credit cards. It serves corporate, retail, and institutional customers through its
wholly owned subsidiary, TCFSL. Tata Capital Limited is a financial and
investment service provider in India. It is based in Mumbai and has more than 100
branches across the country. The company offers consumer loans, wealth
management, commercial finance, and infrastructure finance, among others.

 Composition of the Board of Directors

 Board of Directors-

I. Mr. Mukund S. Dharmadhikari (Independent Director)

Mr. Mukund Dharmadhikari was articled with Whiney Murray & Co.,
Chartered Accountants, London, UK, and qualified as a Chartered
Accountant from the Institute of Chartered Accountants in England and
Wales in 1975. He is a Fellow Member of that Institute as well as of The
Institute of Chartered Accountants of India. He has rich experience in the
fields of audit, accountancy and finance. He has been the Senior Partner
of M/s A. F. Ferguson & Co., Chartered Accountants and later a Partner
and a Member of the Governing Board of M/s Deloitte Haskins & Sells.
Mr. Dharmadhikari has been a signing Partner of several large corporates
including Tata Motors Limited., ITC Limited., Siemens Limited., ABB
Limited., Coromandel Fertilizers Ltd., Pfizer Ltd, KEC International
Limited., etc. He retired on September 30, 2010 after serving in the
profession for over 35 years.

II. Ms. Anuradha E. Thakur (Independent Director)

Ms. Anuradha Thakur, a graduate in Arts (English Literature) from the
Pune University and a C.A.I.I.B. from the Indian Institute of Bankers,
started her career as a Probationary Officer with the State Bank of India
(“SBI”) in 1973 and retired in 2007, as the Chief General Manager,
Corporate Accounts Group. During her tenure with SBI, Ms. Thakur
attended to diverse business requirements of the top 500 customers of
 SBI, arranging their loan syndications, international banking, project
financing, liquidity requirements, etc. Ms. Thakur has experience in
diverse industries including petrochemicals, engineering goods and
equipment, non-conventional energy, textiles and pharmaceuticals. At
present, Ms. Thakur is Director of the National School of Banking and a
visiting faculty in the Symbiosis School of Business Management. Ms.
Thakur has also been appointed as a Nominee Director by SBI, in Patnaik
Steel P. Limited, Odisha.

III. Mr. Farokh Nariman Subedar (Non – Executive Director)

Mr. Subedar has vast experience in the matters of company
administration, finance and taxation, and accounts. He is on the board of
various Tata companies and has been closely associated with several Tata
Non - Banking Financial Companies. Mr. Subedar superannuated from
Tata Sons Limited as the Chief Operating Officer and Company Secretary
in September 2017 after a long and distinguished tenure of over 32 years.
He continues to be associated with the Group as Finance Advisor -Tata
Sons. He works with the Executive Chairman and Group CFO in this new
role. Mr. Subedar is the current President of the Bombay Chambers of
Commerce and Industry.

IV. Mr. Rajiv Sabharwal (Non-Executive Director)

Currently, Mr. Rajiv Sabharwal is the Managing Director & CEO of Tata
Capital Limited. Mr. Sabharwal has over 27 years of experience in the
banking and financial services industry. He was a Partner in True North
Managers LLP, which was mainly involved in building and managing
businesses with a primary focus in the financial service sector. He has
served as an Executive Director on the Board of ICICI Bank where he
was responsible for several businesses including retail banking, business
banking, rural banking, financial inclusion business and digital banking
technology. Mr. Sabharwal also had successful stints with Sequoia
Capital, Godrej Group, SRF Finance, GE Capital and Times Bank.

V. Mr. Kusal Roy (Managing Director)

Mr. Kusal Roy is the Managing Director of Tata Capital Financial
Services Limited. Mr. Roy is a management professional with 23 years
of experience, largely in Retail Unsecured Lending and Payments, at
 Citibank NA, Barclays Bank Plc. and ICICI Bank Ltd. In his last role
from 2010-18, Mr. Roy was Senior General Manager and Head of
Payments Businesses and Unsecured Loans at ICICI Bank Ltd. In this
role, he headed the Cards (Credit, Debit, Prepaid) and Personal Loans and
Business loan businesses. Prior to this, Mr. Roy was a founding partner
with IncValue Advisors, an advisory firm engaged in management
consulting, financial intermediation, and incubation, apart from being
associated with Barclays and Citibank India. Mr. Roy has graduated from
Indian Institute of Technology (IIT), Kharagpur in 1993, and post-
graduated from Indian Institute of Management (IIM) Ahmedabad in
1995.
Other prominent members of the company are:
 Chief Financial Officer - Mr. Puneet Sharma
 Company Secretary- Ms. Avan Doomasia
 Statutory Auditors- B S R & Co. LLP

 Rights and duties of the members

Rights of board of directors include:

 Any decision on sale or dissolution of the company
 Issuing new shares of stock
 Changes to the size of the Board of Directors
 Creating, owning or selling any subsidiary
 Any change to the certificate of incorporation or Bylaws.
 Issuing any debt

Duties of boards of directors include:

 governing the organization by establishing broad policies and objectives;
 selecting, appointing, supporting and reviewing the performance of the chief
executive;
 ensuring the availability of adequate financial resources;
 approving annual budgets;
 accounting to the stakeholders for the organization's performance;
 setting the salaries and compensation of company management.
 Innovative products and services offered

 Credit Cards
Tata Capital offers a wide variety of Credit Cards that cater to the requirements of
its consumers. These cards satisfy all the needs of the consumers like travel or
lifestyle at a very competitive rate of interest. Tata capital credit cardholders get
exclusive privileges and savings on using Tata capital credit cards. Card members
get to enjoy exclusive access to airport lounges, reward points on departmental
stores, grocery and dining, fuel surcharge waiver, etc.
Following are the cards offered by Tata Capital-
1. Tata Platinum Card
2. Tata Croma Platinum Card
3. Tata Titanium Card
4. Tata Croma Titanium Card

 Loans
Tata Capital offers a wide variety of loans that cater to all the different needs and
requirements of the customers whether it is for home, personal or educational
purposes. The different types of loans offered by Tata Capital are as follows:
1. Car Loan– Owning a car is a dream for everyone; with Tata Capital car loan
you can convert your dream into a reality. The car loan is provided at
attractive interest rates, flexible tenure and low EMI by Tata Capital. They
provide loan on new cars as well on the second hand cars. The process of
obtaining loan from Tata Capital is smooth and easy.
2. Home Loan – Tata Capital offers loan solutions to all the house related
problems of the consumers. They provide home loans to buy a new house,
buy a plot to build a new house, renovate the old house, loan against property
etc. These loans are offered at an attractive rate of interest with easy EMI
options. The company also offers a list of approved projects online and the
loan process is fast where the customers can enjoy doorstep services.
3. Loan against property – Tata Capital values your requirements and aims at
providing you the best help with their loan against property facility.
Managing your wedding expenditure, meeting your healthcare expenditure
or financing your child’s education, a loan against property from Tata Capital
enables you to manage everything efficiently. You can pledge your
residential, commercial or alternate property against the loan amount you
need. Interest rates are low and are also available at flexible EMIs.
4. Personal Loan– Be it higher studies, marriage or medical requirements, you
can avail personal loan from Tata Capital with minimal documentation,
lower rate of interest and fast processing. The loans offered by Tata capital
 are at the lowest EMIs for the highest possible tenure. The process of
acquiring personal loan is hassle-free and prompt.

 Conclusion
With the vision of becoming the most admired financial solutions partner and the
mission of doing what’s right for the shareholders including employees, customers
and society at large, TATA Capital Financial Services Ltd. is performing quite well
in providing their products and services to the society. With a profit of ₹21,598
lakhs in 2017 and ₹48,258 lakhs in 2018 their performance is improving and there
is growth in the company.

 Bibliography

About Us. (n.d.). Retrieved from TATA Capital Financial Services Ltd.:
http://www.tatacapitalfinancialservices.com/AboutUs/vision.htm
Ansanelli, J. (2012, December 03). What are the rights and responsibilities of board
members? Retrieved from Quora: https://www.quora.com/What-are-the-rights-
and-responsibilities-of-board-members
Bhatia, A. (2018, December 19). Non-Banking Financial Company (NBFC). Retrieved
from Quick Company: https://www.quickcompany.in/articles/non-banking-
financial-company-nbfc
Financial Reports 2017-18. (2018). Retrieved from TATA Capital Financial Services
Ltd.: https://www.tatacapital.com/documents/174439/803474/TCFSL+-
+Annual+Report+2017-18.pdf/08e2c3e6-9841-158e-a0a7-7cf3e58999b8
Financial Reports. (2018). Retrieved from TATA Capital Financial Services Ltd.:
https://www.tatacapital.com/documents/174439/803474/TCFSL+-
+Annual+Report+2017-18.pdf/08e2c3e6-9841-158e-a0a7-7cf3e58999b8
TATA Capital. (n.d.). Retrieved from Paisa Bazaar: https://www.paisabazaar.com/tata-
capital/
TATA Capital. (2018, December 08). Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Tata_Capital