Fi

nancepr
oject

Name–Swet
a,Char
u,Jaswal
,Pr
ati
k,Pr
it
am.

Regi
str
ati
onno.–11810942,
11814268,
11811352,
11811250,
11811969

Rol
lno.–16,
17,
18,
19,
20.

Topi
cname–BAJAJFI
NANCELI
MITD

Submi
tt
edt
o–ANNUKUMARI

PEERRATI
NG:
-

SWETAKUMARI 10

CHARU 10

PRATI
KDAS 10

JASWAL 10

PRI
TAM SARKAR 10
Companypr
ofi
l
e
BajajFi nanceLt d( For mer lyKnownasBaj ajAut oFi nanceLt d)isoneoft hel eadi ngNon
Banki ngFi nanci alCor por ationi nI ndia.Headquar teredi nPunet hecompany '
spr oduct
offeringi ncludesConsumerDur abl eLoansLi fest y l
eFi nanceDi gitalPr oductFi nance
PersonalLoansLoanagai nstPr oper t
ySmal lBusi nessLoansHomel oansCr editCar ds
Two- wheel erandThr ee-wheel erLoansConst ruct ionEqui pmentLoansLoanagai nst
Secur itiesandRur alFi nancewhi chi ncludesGol dLoansandVehi cleRef inancingLoans
alongwi thFi xedDeposi tsandAdv i
sor ySer vices.TheReser veBankofI ndiacl assi fi
ed
thecompanyasanAssetFi nanceCompany .Baj aj Aut oFi nanceLt dwasi ncor porat edon
Mar ch251987asapr i
vat el imitedcompany .On20Oct ober1987i tbecameadeemed
publ i
ccompanyu/ s43A( 1)oft heCompani esAct1956.On24Sept ember1988i twas
register edasaPubl i
cLi mi tedCompany .On5Mar ch1998Baj ajAut oFi nancer egi stered
withRBIasaNon- BankCompany .I n1994- 95Baj ajAut oFi nancecameoutani nit
ial
publ i
cof ferandwasl i
stedont heBSEandNSE. Initiall
yt hecompanyaswaspr omot ed
byer st whi leBaj ajAut oLt dandBaj ajAut oHol dingsLt d.Aspert heschemeofde-
mer gerofer st
whi leBaj ajAut oLt dt heshar ehol dingofBaj ajAut oLt di nt hecompany
hasbeenv estedwi thBaj ajFi nser vLt d.Inor dert oof ferv ariousf i
nanceschemest he
companyopenedmanybr anchesi nv ariousl ocat ionst hroughoutt hecount r
y.Dur i
ng
they ear s1991- 95t hecompanyopenedt hei rbr anchof ficesatHy der abadNew Del hi
ChennaiBangal oreMumbaiNagpurVi j
ay wadaNasi kVi shakhapat t
anam Kol kat aGoa
Madur aiandPune. Dur i
ngt hey ear1995- 96t hecompanycompl etedt heirf i
rstReal
EstatePr ojectf orNay anCo- oper ativeHousi ngSoci et
yLt datPune.Al sot heyopened
theirbr anchof f
icesatBar odaandTr ivandur m.Dur i
ngt hey ear1998- 2003t heyopened
theirbr anchof ficesatv ar iouspl aceswhi chi ncl udeChandi gar hCochi nI ndor eLudhi ana
SuratKol hapurBhopalBhubaneshwarCal icutEr ode Jal gaon Jul lundharKanpur
Lucknow Rai purRaj kotSal em Sol apurUdai purTi rupat iAmar avat iAmr itsarBhav nagar
Dur gapurJamshedpurJodhpurKoper gaonMehsanaMy sor eSi l
igur iandVel l
ore. Dur i
ng
they ear2003- 04t hecompanyent eredi nt ot hef i
nanci ngofPer sonalComput ers.They
openedt hei rbranchof ficesatHi ssarHubl iPat ialaRour kel aAgr aAhmednagarAj mer
Akol aAl warAmbal aAnandBhar uchBhi laiChandr apurDi ndigulEl uruGunaGur gaon
Himat nagarJagadhr iJamnagarKar aikudiKar imnagarKar urKot tayam Kur noolNav sari
NellorePal ghatRaj ahmundr ySangl iTanj or eTi runel v el
iandUj jai
ndur i
ngt hey ear2004-
05.Dur ingt hey ear2005- 06t hecompanyopenedLoanShoppeswi thav iewt oenhance
theirdi rectmar ketingact i
v i
t yandt hei rbr andawar eness.Theyopened22shoppesand
14newbr anchof ficesdur i
ngt hef i
nanci aly ear .Dur i
ngt hey ear2006- 07t hecompany
opened11new br anchof ficesi nwhi cht het ot alnumberofbr ancheshasgoneupt o
113.Al sot heycov er280t ownst hr ought hei rbr anchnet wor k.Thecompanyl aunched
newpr oductl i
nes/ extensi onsdur ingt hey ear2007- 08.Theyl aunchedI POf i
nanci ngf or
highnet wor t
hcust omer sacqui sitionofAAAr at edsecur iti
zat iont ransact i
onsper sonal
l
oancr osssel lpr ogr ammet ot heirexi st ingcust omer sandf inanci ngf orper sonal
comput er stoSMEs.On6Sept ember2010t henameoft hecompanywaschangedf rom
BajajAut oFi nancetoBaj ajFinance. I
n2013t hecompanymakesRi ghtsissuei nt he
Ratio of3: 19.On1 Nov ember2014 t hecompanyacqui red 100% shar esofBaj aj
Fi
nanci alSol utionsforaconsi derationofRs.17cr orefrom i tshol dingcompanyBaj aj
Fi
nser vt opr omot et
hebusi nessofhousi ngf inance.BajajHousi ngFi nanceLi mi t
eda
whollyowned subsi diaryofBaj ajFi nancer eceived certi
ficateofr egistrati
on on 2
October2015 f rom t he Nat i
onalHousi ng Bank t o commence housi ng f inance
business. I
nJune2015Baj ajFi
nancer aisedRs.1400cr orethroughQual if
iedI nst
ituti
ons
Placement( QI P).On8August2017Baj ajFinanceent er
edi ntoanagr eementwi thOne
Mobi kwi kSy stemsPr i
vat eLimi t
ed( Mobi kwik)andi nvestedanamountofRs.225cr ore
i
nt heequi t
yshar esandcumul ativecompul sor i
lyconv er
tibl
epr ef erenceshar es( CCPS)
ofMobi kwikamobi l
ewal l
etmaj or.Postconv ersi
onofCCPSBaj ajFinancewoul dhol d
approximat ely10. 83%ofequi tyinMobi Kwikonaf ullydil
utedbasi s.I
nSept ember2017
BajajFinancer aisedRs.4500cr orethr oughQual i
fi
edI nsti
tutionsPl acement( QIP).The
QIPwaspr icedatRs.1690perequi t
yshar eofRs.2f acev alue.On11Oct ober2017
BajajFinanceandLGEl ectr
onicsI ndiaannouncedt helaunchofanexcl usiv eOEM co-
brandedcar d-LG Baj ajFinser vEMIcar dt hatwi l
lenablecust omer st obuyal lLG
productsatnocostEMIopt i
onacr ossal lLGf ormat s.

Mission -As a r esponsible,cust omerf ocused mar ketleader,we wi l

lst r
ivet o
understandt hei nsuranceneedsoft heconsumer sandt ransl
atei tintoaf f
ordable
productst hatdeliverv al
uef ormoney .BajajAll
ianzofferstechnicalexcell
encei nall
areasofGener alandHeal t
hI nsurance,aswel lasRiskManagement .Thispar t
nership
successfullycombi nesBaj ajFinserv'si n-
depthunder st
andingoft helocalmar ketand
extensivedist
ributi
onnet wor kwi ththegl obalexperi
enceandt echnicalexpert
iseoft he
All
ianzGr oup.Asar egisteredIndianI nsuranceCompanyandacapi t
albaseofRs. 110
crores,thecompanyi sfullylicensedt ounder wri
teallli
nesofi nsurancebusi ness
i
ncludinghealthinsur ance.

Vi
sion-Wi
tht
hei
ntent
iont
obui
l
dasetoff
inanci
alser
vicebusi
nessesi
ncomi
ngy
ear
sthat
sharet heBajajFi
nser
vGroup'
scommon val
ues 
ofreli
abil
it
y,i
nnovat
ionandef
fi
ciencyand
provi
de customerswit
h hi
gh qual
i
typr
oductsand servi
ces,Baj
ajFinser
vhascreated i
ts
brand 
ident
it
y.

 Tobet
hef
ir
stchoi
cei
nsur
erf
orcust
omer
s.

 Tobet
hepr
efer
redempl
oyerf
orst
affi
nthei
nsur
ancei
ndust
ry.

 Tobet
henumberonei
nsur
erf
orcr
eat
ingshar
ehol
derv
alue.
Fi
nanci
ngsour
ceofBaj
ajFi
nanceLi
mit
ed

Businesssimplycannotf unction wit

houtmoney ,and t
hemoney
requir
edtomakeabusi nessf uncti
onisknownasbusi nessfunds.
Throughoutthelif
eofbusi ness,moneyi sr equir
edcont i
nuousl
y.
Sourcesoffundsareusedinact iv
iti
esofthebusiness.

 Anal
ysi
sofequi
tyofBaj
ajFi
nanceLi
mit
ed

Per
io I
nst
rumen --
- CAPI
TAL 
(Rs. -PAIDUP-
d t cr)
 -
--

Fr
om To Aut
hor
ise I
ssue Shares Face Capi
ta
d d (nos) Valu l
e

2018 201 Equi

ty 150 115.
5 57687466 2 115.
3
9 Shar
e 9 5 7

2017 201 Equi

ty 150 115.
5 57513418 2 115.
0
8 Shar
e 9 8 3

2016 201 Equi

ty 150 109.
9 54683259 2 109.
3
7 Shar
e 8 0 7

2015 201 Equi

ty 75 53.
87 53549516 10 53.
55
6 Shar
e

2014 201 Equi

ty 75 50.
15 50000398 10 50
5 Shar
e

2013 201 Equi

ty 75 50.
14 49748753 10 49.
75
4 Shar
e

Infi
nanci
aly
ear2018-2019companyauthori
zedcapi
talwas150cr
andno.ofshar
esissuedwere576874665wi t
hfacev al
ueof2as
compareto2017-
18.Companyincreasestheirr
eser
vesharewith
 0.
34crascompar
ingt
o2017-
18.

Infinanci
alyear2017- 2018companyauthorizedcapitalwas150cr
andno.ofshar esi ssuedwere575134188wi t
hf acev al
ueof2as
compar eto 2016-17.companyincr
eases theirreserv
e share wi
th
5.66crascomparingt o2016-
2017.

Infi
nanci
alyear2016-
2017companyauthori
zedcapi
talwas150cr
andno.ofshareissuedwere546832590withfacevalueof2as
compareto2015-16.Companyincr
easestheirr
eser
vesharewith
55.
82crascompari
ngto2015-
16.

 Inf i
nanci
alyear2015-2016companyaut hori
zedcapitalwas75cr
andno.ofshar eissuedwere53549516wi t
hf acevalueof10as
compar eto2014-15.Companyi ncr
easestheirreser
vesharewith
3.55crascompari
ngto2014-15.

Infi
nancialy
ear2014-2015companyauthorizedcapi
talwas75crand
no.ofshareissuedwere49748753wit
hf acev al
ueof10ascompar e
to2013-2014.Companyi ncr
easest
hei
rr eserveshar
ewi t
h0.25cras
comparingto2013-14.
Char
tofBaj
ajFi
nanceLi
mit
ed
Concl
usi
onr
elat
edt
othei
requi
tycapi
tal
:

Theabov echar tshowsust hatBaj ajfi

nancel imitedequi
tywasont he
averagelevelasthetotalissuedcapi tali
n2014- 15wer e50crand2015-16
i
ssuedcapi talwere53.55cr.I nthese2y earstherewer eonl
yincreaseof
3.55crbutwhent heyenterin2016- 17, weseethatt herei
sahugeboom i n
thenoofshar esaswel lasi ssuedcapi t
al.Thei ssuedcapit
algoesupt o
109.37cr,notonlyt
hisbutal socont i
nuest heboom andgoesupt o115.03
and115.37i n2017-18and2018- 19respectiv
ely
.

I
n aver
age of5 y ear
s ofBaj
ajFi
nance Li
mit
ed t
hei
rreser
ve capi
tal
i
ncr
eases53.80cr
.

Thi
sconcludesthatBaj
ajFi
nanceLimi
tedisplayingamajorr
olri
nequi
ty
marketandalsogi
vi
ngagoodprofi
ttot
heirsharehol
der
s.

Anal
ysi
sofdebtofBaj
ajFi
nanceLi
mit
ed
y
ear MAR'
19 MAR'
18 MAR'
17 MAR'
16 MAR'
15 MAR'
14

TOTAL 86,
351.
7 53,
739.
2 42,
038.
3 37,
024.
7 22,
587.
5 15,
950.
5
DEBT 2 0 8 0 2 4

Curr
ent 2,515.
64 12,
061.
4 10,
796.
8 1,
636.
96 5,
104.
67 4,
440.
12
Li
abil
it
ies 2 1

TOTAL 105,
915. 70,
257.
4 51,
638.
6 44,
451.
3 27,
387.
2 19,
941.
4
LI
ABILI
TI 35 9 9 4 2 0
ES

Non-
cur
rentl
i
abi
l
iti
es

Non-current l
iabil
it
ies,al so cal
l
ed long-
ter
m liabi
l
iti
es,arel ong-
ter
m
fi
nancialobli
gationslistedonacompany ’sbal
ancesheetthatnotduefor
sett
lementwi t
hinoney earasopposedtocurr
entl
iabi
li
ti
eswhichareshort
-
ter
m debt s.

 Non-
cur
rentl
iabi
l
iti
esofcompanyar e86,
351.
72cr53,739.
20cras
compar
eto2019as2018.Non-cur
rentl
i
abi
li
ti
esincr
easeby22%as
compar
edtoprev
iousy
ear2018.

 Non-
cur
rentl
i
abil
it
iesofcompanyar e53,739.
20cror42,
038.
38cras
compar
eto2018as2017.Non- cur
rentl
iabil
it
iesi
ncr
easeby12%as
compar
edtoprev
iousyear2017.

 Non-
cur
rentl
i
abi
l
iti
esofcompanyare42,
038.
38cror37,
024.
70cras
compar
eto2017as2016.Non-cur
rentl
i
abi
li
ti
esincr
easeby8%as
 compar
edt
opr
evi
ousy
ear2016.

 Non-
cur
rentl
i
abil
it
iesofcompanyare37,
024.
70cror22,
587.
52cras
compar
eto2016as2015.Non- cur
rentl
i
abi
li
ti
esincr
easeby2%as
compar
edtoprev
iousyear2015.

 Non-
cur
rentl
i
abil
it
iesofcompanyar e22,587.52cror15,
950.
54cras
compar
eto2015as2014.Non- cur
rentl
iabil
i
tiesincr
easeby0.
7%as
compar
edtoprev
iousyear2014.

Cur
rentl
i
abi
l
iti
es

I
naccounti
ng,cur
rentl
iabi
li
ti
esareoft
enunderstoodasal ll
iabi
l
iti
esoft
he
busi
ness t
hataret o be set
tl
ed i
n cash wit
hint he f
iscalyearorthe
oper
ati
ngcycl
eofagi v
enfirm,whi
cheverper
iodislonger
.

 Curr
entli
abil
it
iesofcompanyare2,515.
64cr12,
061.
42crascompar
e
to2019as2018.Cur r
entl
iabi
l
iti
esincr
easeby7% ascompar edt
o
prev
iousyear2018.

 Curr
ent l
i
abil
it
ies of company ar
e 12,
061.42cr 10,
796.
81cr as
compar
et o 2018 as2017.Curr
entli
abi
li
ti
esi ncr
easeby- 2% as
compar
edtopr ev
iousy
ear2017.

 Curr
entli
abil
it
iesofcompanyar
e10,
796.81cr1,
636.
96crascompar
e
to2017as2016.Cur rentl
i
abi
li
ti
esi
ncr
easeby78%ascompar edt
o
prev
iousyear2016.

 Curr
entl
iabi
l
iti
esofcompanyare1,
636.96cr5,
104.
67crascompar
e
to2016as2015.Curr
entl
iabi
l
iti
esi
ncreaseby46%ascompar edt
o
 pr
evi
ousy
ear2015.

 Curr
entlabi
li
ti
esofcompanyare5,104.
67cr4,
440.
12crascompar
e
to2015and2014.Curr
entl
iabi
l
iti
esincr
easeby20%ascomparedt
o
prev
iousyear2014.
 Capi
tal
str
uct
ureofBaj
ajFi
nanceLi
mit
ed

Forthecompari
sonofcapi
talst
ruct
ureofBaj
ajFi
nanceLi
mit
ed,wear
e
taki
ngICI
CIBANK.

Year 31_Mar
_ 31_Mar
_ 31_Mar
_ 31_Mar
_ 31_Mar
_ 31_Mar
_
19 18 17 16 15 14

Wei
ght 0 0 0 0 0 0
t
o debt
(
WACC)

Weight 1 1 1 1 1 1
of
equi
ty
(WACC)

WACC 0 0.
1525 0.
1638 0.
1585 0.
1537 0.
1841
(Wei
ght
ed cost
of
Capi
tal
)

CompoundAnnual
Growt
hRat
e(CAGR)ofBaj
ajFi
nser
vLt
d.

Per
iod 1Year 3Year 5Year
Wei
ght t
o debt 0% 0% 0%
(
WACC)

Wei
ght of equi
ty 0% 0% 0%
(
WACC)

WACC (
Weight
ed 0% 0% 0%
costofCapi
tal
)

Dat
aanal
ysi
sofBaj
ajFi
nanceLi
mit
ed
I
CICIBANK:
I
CICIBankLimi
ted( I
ndust
ri
alCr
edi
tandInvest
mentCorpor
ati
onofIndi
a)isan
I
ndianmult
inat
ionalbanki
ngandfi
nanci
alservi
cescompanyheadquar
ter
edin
Mumbai ,Maharashtrawi thit
sr egi
steredoff
iceinVadodara,
Gujarat.Asof2018,
ICI
CIBanki sthesecondl argestbanki nIndiaintermsofasset sandmar ket
capit
ali
sati
on.I
tof f
ersawi der angeofbanki ngproduct
sandf i
nanci alservi
ces
forcorporat
eandr etailcustomerst hroughav ari
etyofdeli
verychannel sand
special
i
sed subsidiaries int he areas ofi nvest
mentbanking,l i
fe,non-li
fe
i
nsurance,venturecapi t
alandassetmanagement .Thebankcur rentl
yhasa
networkof4867br anchesand14367ATMsacr ossIndi
aandhasapr esencein
17countri
esincludi
ngI ndi
a.

CAPI
TALSTRUCTUREOFI
CICIBANK

31-
03- 31-
03- 31-
03- 31-
03- 31-
03-

Year 2018 2017 2016 2015 2014

Wei
ght t
o debt
0.806 0.
7961 0.
8119 0.
7431 0.
7708
(
WACC)

Wei
ghtof equi
ty0.
194 0.
2039 0.
1881 0.
2569 0.
2292
(
WACC)

WACC 0.
1312 0.
1267 0.
1254 0.
1255 0.
1622

(Wei
ghtedcostof
Capi
tal
)

COMPOUNDANNUALGROWTHOFI
CICIBANK

Per
iod 1Year 3Year 5Year
Weightto 1.24% 4.
15% -
2.65%
debt(WACC)
Weightofequi
ty -
4.86% -
3.86% 3.
47%
(WACC)
WACC 3.55% -
0.92% -
1.59%
(Weight
edcost
ofCapit
al)
DATAANALYSI SOFI
CICIBANK:
Compar
isonofbot
hthebank:

 Lasty
ear
ICI
CIBankweightofdebtwas1. 24%andwei ghtofequit
ywas-1.01%,thi
s
showsthati
nlastyearBajajFi
nanceLi
mitedhasr eser
vesfori
tselfandon
theot
herhandICICIbankhasdebthastel
l
st hatithastogiv
emoney .
ICICIBankweightofequitywas- 4.
86% andweightofequi t
yofBajaj
FinanceLi
mitedwas1.12%.ThisshowsusthatBajajFi
nanceLi
mit
edhas
agoodshareofequit
ycomparingtoICI
CIBankasithas-4.
86%whichi
sof
courseinminust
hatmakesICICIBankhastopayt
oot her
s.
Thus,weight
edcostofcapi
talf
orlasty
earf
orICI
CIBankwas3.55%and
BajajFi
nanceLi
mitedwas- 0.
30%.ThismakesBajajFi
nanceLi
mit
edin
profi
tascompar
ingtoICI
CIBank.

Last3y
ear
s
ICICIBankweightofdebtwas4.15%andwei ghtofequi
tywas2.
75%,t
his
showst hati
nlast3rdyearBaj
ajFinanceLimit
edwasl i
abl
etopayot
hers
butont heotherhandI CI
CIbankhasmor edebtpercent
agethenBaj
aj
Financeli
mit
ed,thatmakesICI
CIBankliabl
etopay.
ICICIBankwei ghtofequit
ywas- 3.
86% andwei ghtofequit
yofBaj aj
FinanceLimit
edwas-8.94%.Thi
sshowsust hatBaj
ajFi
nanceLimitedhas
goneawayt olowinequit
ycompari
ngtoICICIBankasithas-3.86%.But
hereBaj ajFi
nanceLi
mitedisi
ngreatlow prof
il
efrom t
hev i
ew pointof
equity.
Thus,wei
ghtedcostofcapi
talf
orlast3r
dyearf
orICICIBankwas-0.
92%
andBajaj
FinanceLi
mit
edwas1. 49%.Thi
smakesICI
CIBankinpr
ofi
twith-
0.92%.

Last5t
hyear
ICI
CIBankwei ghtofdebtwas- 2.
65%andwei ghtofequit
ywas0.47%,thi
s
showst hati
nlast5thyearBajajFinanceLimit
edwasl i
ablet
opayothers
wit
h0. 47%butont heotherhandICICIbankhaslessdebtper
cent
agethen
Bajaj
Financeli
mited.
I
CICIBankweightofequit
ywas3. 47% andwei ghtofequi t
yofBaj aj
Fi
nanceLi
mit
edwas-1.81%.Thisshowsust hatBajajFi
nanceLimitedhas
gonedownali
tt
lebi
tinequi
tycomparingt
oICICIBankasi thas3.47%.
Thus,wei
ghtedcostofcapi
talf
orlast5t
hyearf
orICICIBankwas-1.
59%
andBajaj
FinanceLi
mit
edwas1. 10%.Thi
smakesICI
CIBankinpr
ofi
t.
Recommendati
onsr
elat
edt
ocont
rol
ofcostofcapi
tal
inBaj
aj
Fi
nancel
i
mited:
 Costcontr
olandcostcutti
nghav ebeenestabl
ishedasamant r
a
amongbanksi nter
nati
onall
ytoimprovethei
rprofi
tsperf
ormance.
 Costcontr
olisthePartofCostManagement .
 CostManagementi stheprocesswherebycompaniesusecost
account
ingtoreportorcontr
olthevar
iouscostsofdoingbusi
ness.

 System ofl endingcashcr edit

/l
oans/ bi
ll
s:
Thest udygr oupf oundt hatther ewasasubst antialgapbetweent he
sanct ionedl i
mitofcashcr editandt heextentoft heirutil
i
zati
on.They
recommendedt hatt hebankshoul dstr
ict
lyensur ethatar ev
iewofal l
borrower ’
saccount s,enj
oy i
ngwor ki
ngcapitalcreditl
imitsofRs.10Lac
andov erfrom thebanki ngsy stem ismadeatl eastonceay ear,A
wor king capitallimitwi llinclude allfund-based limit
sf orwor king
capitalpur poses.Itwi l
lv eri
fyt heconti
nuedv i
abil
ityofthebor rowers
andal soassesst heneed- basedchar act
eroft heirl
imit.
 Bifurcat i
onofcreditlimit
s:
Bifurcati
onofcashcreditli
mit
sintoademandl oanpor ti
onandafluct
uat
ing
cashcr editcomponenthasnotf oundacceptanceeitheronthepartofthe
banksort heborr
owers.Suchbi
furcati
onmaynotser v
et hepur
poseofbett
er
creditplanningbynar
rowinggapbet weensanct
ionedli
mi t
sandtheext
entof
uti
lizati
ont her
eof
.
 Reduct
ioni
nov
erdependenceonbankf
inances:
The need f orreducing the ov
erdependence oft he medium and l
arge
borrowers bothi n pri
vat
e and publi
c sect
ors on bank f
inance f
orthei
r
producti
on/tradi
ngpurposesarerecogni
zed.
 I
ncr
easeI
nowner
'scont
ri
but
ion:
Inordert oensur et hattheboomer sdoenhancet hei
rcont r
ibuti
onswor king
capitalandtoimpr ovetheircurr
entrati
o,itisnecessar ytoplacet hem under
thesecondmet hodofsendi ngr ecommendedbyhandoncommi tteewhi ch
wouldgi veami nimum cur rentrati
oof1. 33:1,Asmanyoft hebor rowersmay
notbei mmedi atelyinaposi ti
ontowor kundert hesecondmet hodofl ending
theexcessbor rowi ngsshoul dbesegr egatedandt r
eatedaswor kingcapi tal
terml oanwhi chshoul dbemader epayablel oan,itshouldbechar gedat
higherr at
e ofi nter est
.The commi tt
ee r ecommends t hatt he addi ti
onal
i
nt er
estmaybef ixedat2%perannum ov ert herateappli
cableont herelat
ive
cashcr edi
tli
mi t
s.
 Tempor
aryAccommodat
iont
hroughl
oan:
I
fanyad-hocortempor ar
yaccommodati
onisr
eq.i
nexcessofthesanct
ioned
l
imitt
omeetunpr ovenconti
ngenci
estheaddi
ti
onalf
inanceshoul
dbegi ven,
wherenecessar
y,throughaseparat
edemandl oanA/Corasepar atenon-
oper
ablecashCr .A/C.Thereshouldbeast i
ffpenalt
yforsuchdemandl oan
ornon-oper
ablecashcr.Port
ion,atleast2%abovethenormalrat
eunlessthe
RBIexamplessuchpenal t
y.Thedi sci
pli
nemaybemadeappl i
cablei
ncases
i
nvolv
ingwor ki
ngcapit
all
imitsofRs.10lacsandabove.