NAME: DIBANGSHU BISWAS

ROLL NO.: 2182033

STREAM: BBA LLB SEC – A 2021 BATCH

SUBJECT: FINANCIAL ACCOUNTING

SUBJECT CODE: 1315

PRESENTED TO: DR. PRANABANANDA RATH

PROJECT ON: FINANCIAL ANALYSIS AND CHALLENGES FACED

BY HIRE PURCHASE COMPANY (BAJAJ FINANCE LTD.) IN INDIA
OBJECTIVE

The fundamental target of the investigation fiscal summary for any organization
is to give the essential data which is expected by the clients of the budget report
for the instructive direction, surveying the current and past exhibition of the
organization, expectation of the achievement or disappointment of the business,
and so on. Advertisers/proprietors want to find out whether the organization is
going in the correct heading or they are slacking in their objectives, which they
have arranged before. Ordinary recording of monetary exchanges assists them
with understanding their monetary position and assists them with examining
possibilities in a superior manner. Recording of everyday exchanges, i.e., deals
and buy, costs or wages, or different explanations, assist them with
understanding where they need to improve and pursue speedy choices if there
should be an occurrence of any inconsistencies. Quarterly articulations like
deals book, buy, exchanging a/c, or assembling a/c aides them in executing their
arrangements in a superior way. This gives them the chance to pursue future
choices with dependable data. There is another act of getting ready temporary
last records even by little organizations. Dissecting fiscal summaries on a
transient premise assists the association with pursuing productive choices. This
isn't the fundamental goal of investigating exchanges however the one which
can't be dismissed. Frequently we run over the news that the worker tricked his
chief, which prompted enormous misfortunes for the organization. Breaking
down the explanations will ensure that the representative will know that the
administration knows about all that is occurring in the organization and
furthermore assuming any doubt emerges on any monetary passage, the
executives can examine the matter and will actually want to address it without
causing additional misfortunes.

Content
 Introduction

 Problem Statement

 Methodology

 Financial highlights

 Challenges faced by the companies

 Highlighted Challenges

 Implementations during COVID ~ 19

 Recommendations

 Conclusion

 Bibliography
 INTRODUCTION

Bajaj Finance Ltd. ('BFL', 'Bajaj Finance', or 'the Company') is a store taking
Non-Banking Financial Company (NBFC-D) enrolled with the Reserve Bank of
India (RBI). It is an auxiliary of Bajaj Finserv Ltd. what's more, is occupied
with the matter of loaning and acknowledgment of stores. The Company has an
expanded loaning portfolio across retail, SMEs and business clients with a huge
presence in metropolitan and rustic India. It acknowledges public and corporate
stores and offers assortment of monetary administrations items to its clients.
BFL has two 100 percent auxiliaries (I) Bajaj Housing Finance Ltd. ('BHFL' or
'Bajaj Housing'), which is enrolled with National Housing Bank as a Housing
Finance Company (HFC); and (ii) Bajaj Financial Securities Ltd. ('BFinsec'),
which is enrolled with the Securities and Exchange Board of India (SEBI) as a
stock intermediary and safe member. BHFL began its business in the monetary
year 2017-18 (FY2018). BFinsec started its activities in the monetary year
2019-20 (FY2020). Bajaj Finance Limited, the loaning and venture arm of Bajaj
Finserv bunch, is one of the most broadened NBFCs in the Indian market taking
care of in excess of 38 million clients the nation over. Aside from being the
biggest lender of shopper durables in India, BFL is likewise one of the most
productive firms in this class. Spread across nine product offerings, Bajaj
Finance Ltd is centered around purchaser, SME and business lines of business.
BFL is available in 1997 areas with a solid circulation organization of 102600+
dynamic retail location. The 32 year old non-bank is centered around mass
prosperous client with a procedure to strategically pitch. With a solid spotlight
on stores acknowledgment and charge item dissemination, the organization is
available in 944 metropolitan areas and 951 provincial areas in India with over
in excess of 97,000 conveyance focuses. It partakes in a huge client
establishment of 38.70 MM with credits strategically pitch establishment of
22.78 MM. Bajaj Finance has 100 percent shareholding in Bajaj Housing
Finance Limited and 100 percent shareholding in Bajaj Financial Securities
Limited. Bajaj Finance Limited values holding the most elevated FICO score of
FAAA/Stable for any NBFC in the nation today. It is likewise the main NBFC
in India with the worldwide 'BBB' with stable viewpoint for long haul, by S&P
Global Rating.

PROBLEM STATEMENT

This venture centers around the difficulties looked by "The Bajaj Finance Ltd."
organization during the hour of COVID - 19.

A gathering of observationally sound and painstakingly prepared market

analysts have been endeavoring to appraise what may be the effect of the
pandemic in the monetary year 2020-21 (FY2021). The agreement is by all
accounts that genuine GDP development will tumble from 4.2% in FY2020 to (-
)5% in FY2021. If it somehow managed to occur as anticipated, this will
address the best fall in GDP development starting around 1979-80, when
genuine GDP development plunged from 5.7% in the earlier year to (- )5.2%.
As indicated by this gathering of market analysts, Q1 FY2021 will show a sharp
regrettable development; Q2 FY2021 will see convoluted limping back; and H2
FY2021 will see a progressive pickup in development which, tragically, may
not be adequate to keep the entire year's GDP from a sharp withdrawal. Talking,
we, in all honesty, don't have the foggiest idea. What we can say plainly is that
FY2021 will be the most troublesome year that we have seen for quite a while.
Us in India, yet across a significant part of the world. Accordingly,
Governments across the world have released enormous monetary measures to
safeguard financial action and emphatically fortify wellbeing administrations
and testing. National banks, as well, have started numerous financial and
administrative measures. India, as well, has started alleviation measures. The
Government of India declared a large number of wide-running changes across
differed areas in the midst of an extensive bundle conglomerating H 20 lakh
crore — or roughly 10% of ostensible GDP — which covered among others (I)
direct money moves and food security for weak segments of society, (ii)
insurance free advances and concessional credit to ranchers and road sellers,
(iii) improvement of foundational liquidity by the Reserve Bank of India (RBI),
(iv) unique liquidity and fractional credit ensure plan to give liquidity to
NBFCs, HFCs, MFIs and common assets, (v) 100 percent credit ensure conspire
for total H 3 lakh crore of crisis credit lines by banks and NBFCs to their
MSME borrowers and (vi) subjected obligation and value backing to MSMEs.
The Government has additionally started consistence help measures across
different administrative necessities. The RBI has likewise started a few
estimates like decrease in approach rates, financial transmission, credit streams
to the economy and giving help on obligation adjusting. A few specialists, in
any case, accept that the actions declared by the Government are transcendently
liquidity support instruments through banks and NBFCs, and comprise just a
restricted monetary improvement. Given the drawn out tenor of lockdown and
seriousness of its effect on the economy, almost certainly, the monetary boost
declared so far might not affect the economy. It is not yet clear whether there
are other financial measures in the offing.

Methodology

The Group has taken on the utilization of three situations, agent of its
perspective on conjecture financial circumstances, expected to compute
impartial anticipated misfortune. They address a most probable result for
example focal situation and two more uncertain external situations alluded to as
the Upside and Downside situations. The Group has allocated a 10% likelihood
to the two external situations, while the Central situation has been relegated a
80% likelihood. These loads are considered suitable for the unprejudiced
assessment of effect of full scale factors on ECL. The key situation
presumptions are involved remembering outside gauges and Management
gauges which guarantee that the situations are fair. The Group has utilized
various financial factors and tried their connections with past misfortune
patterns saw. The monetary variables tried were GDP development rates,
development of bank credit, discount cost file (WPI), shopper cost record (CPI),
modern creation list, joblessness rate, raw petroleum costs, conversion scale and
strategy loan fees. In light of past relationship patterns, CPI and joblessness rate
were the two elements with OK connection with past misfortune patterns which
were in accordance with Management sees on the drivers of portfolio patterns.
These elements were alloted suitable loads to quantify ECL in gauge financial
circumstances. Given the COVID-19 pandemic, the Group has focused on its
focal situation for surveying the drawback situation risk in the midst of COVID-
19 pandemic: l Downside Scenario: The Group has involved pushed focal
situation for deciding disadvantage situation. For pushing focal situation, the
Group has considered information on joblessness distributed by a main business
data organization occupied with observing of Indian monetary pointers.
According to its most recent gauge of joblessness rate has raised to almost 23%
for March 2020 end till first seven day stretch of April 2020 - this was
altogether higher from 7.66% distributed for December 2019. Essentially, CPI
which floated between 3.50% to 5.84% for quarter finishing September 2019
and December 2019, separately, has been projected to top at 6.70% in March
2021 under the focused on focal situation - addressing expected pressure sway
because of lockdown and interruption in supply chains and expanded costs for
food and drinks. l Further, the Group has considered extra weight on joblessness
rate guage for COVID-19 situations for current anticipated credit misfortune
(CECL) by a main worldwide rating office.

Risk Managemest amidst in COVID-19

The unprecedented health scare caused by COVID-19 which led to a
countrywide lockdown will have a varying impact on different sectors of the
economy. Salaried individuals may have to contend with a scenario of reduced
income and/or job losses. Corporates, SMEs and MSMEs will struggle on
account of reduced economic activities and business rhythm that is no longer
efficient due to severe disruption in both demand and supply. All these will lead
to major cash flow constraints and erosion in the asset value. These
developments in turn will severely test risk Management frameworks across the
financial sector. On 27 March 2020, the RBI, in order to provide relief on debt
servicing obligations, permitted financial institutions to offer moratorium to
their borrowers on instalments falling due between 1 March 2020 to 31 May
2020. With uncertainties caused by COVID-19 pandemic including the pace of
easing of the lockdown restrictions, the time needed to restart the economy and
attaining some level of normalcy, the credit performance and repayment
behaviour of the customers need to be monitored closely. An analysis of the
customer segments seeking moratorium and their past repayment behaviour
reflects heightened anxiety from customer. Expectations of elevated default on
timely payment of instalments and collection related constraints are likely to
result in higher credit costs than witnessed hitherto. The Group has committed
for making requisite investment to deepen its collections infrastructure to
control its credit costs. Based on early indicators of moratorium and delayed
payment metrics observed in April 2020, the Group has made a contingency
provision of H 900 crore for the year ended 31 March 2020

FINANCIAL HIGHLIGHTS

Particulars 2021 2020 2019

Gross written 12624 12833 11097
premium
Net written 7417 8016 7774
premium
Net earned 7436 8206 7010
premium
Net incurred -5090 -5805 -4810
claims
Net commissions -49 -92 -375
Management -2060 -2320 -1807
expenses
Underwriting 237 -11 18
results
Recurring 1288 1131 1051
investment
income
Non recurring 270 278 95
investment
income
others -25 -22 -12
Profit before tax 1769 1376 1152
Provision for tax -439 -377 -372
Profit after tax 1330 999 780
Shareholder’s 7524 5642 5164
equity
Asset under 23150 18746 17237
management
Employee count 6937 7351 8150
(in Nos).
Growth in Gross -1.63% -15.64% 17.00%
written premium
Growth in net -9.38% 17.06% 15.70%
earned premium
Growth Rate of 19.85% 17.03% 14.58%
Net worth
Net Retention 58.75% 62.46% 70.10%
Ratio
Net incurred 68.45% 70.74% 68.60%
claims to net
earned premium
Net commission 0.67% 1.12% 4.80%
ratio
Expenses of 38.49% 39.27% 33.92%
management to
net written
premium ratio
Combined ratio 96.89% 100.83% 96.69%
Technical 191.04% 152.85% 160.09%
reserves to net
premium ratio
Underwriting 0.03 -0.17% 0.27%
balance ratio
Operating profit 19.23% 14.45% 13.54%
ratio
Liquid assets to 0.25 0.27 0.14
liabilities ratio
Return on net 18.65% 16.78% 15.33%
worth
Available 3.45 2.54 2.55
 solvency margin
(ASM) to (RSM)
Ratio

CHALLENGES FACED BY THE COMPANY

Macro economics over-review

A short outline of FY2020 and the arising patterns following COVID-19

pandemic are examined underneath. FY2020 started with an assumption that the
year would observer a log jam in development inferable from a huge control in
financial action. Perceiving the monetary headwinds, the Government of India
attempted different measures to help development — which incorporated a
significant duty alleviation to the corporate area to support ventures. Indeed,
even without the awful impacts of COVID-19, India's GDP development was
quickly dialing back. Prior to the COVID-19 pandemic and lockdown, both the
RBI and the Central Statistics Office (CSO) of the Government of India had
modified the GDP development rate downwards. The RBI changed its entire
year GDP development gauge from an underlying 7.2% to 5% in December
2019, and attributed the tightening of development to a tight credit market
affecting new ventures, powerless capital use and a lull in assembling. Along
these lines, the subsequent development evaluations of public pay for FY2020
delivered by the CSO on 28 February 2020 was significantly lower: GDP
development for FY2020 was fixed at 5% — a decadal low — contrasted with
6.1% in the monetary year 2018-19 (FY2019); and development in gross worth
added was assessed at 4.9% in FY2020 versus 6% in FY2019. On 29 May 2020,
the CSO delivered its evaluations of GDP and GVA development for FY2020
and the final quarter of FY2020. In this activity, it additionally significantly
overhauled descending its prior gauges for the initial 3/4 of FY2020. Gross
domestic product development was 5.7% in January-March 2019; tumbled to
5.2% in April-June 2019; then, at that point, once more to 4.4% in July-
September 2019; trailed by 4.1% development in October-December 2019 and
3.1% development in January-March 2020. Gross domestic product
development for FY2020 was 4.2% — most horrendously terrible over the most
recent 11 years.

Table 1 gives the information on genuine GDP and gross worth added (GVA)
development over the last four monetary years. Table 1: Growth in Real GDP
and GVA, India FY2017 (third RE) FY2018 (second RE) FY2019 (first RE)
FY2020 (PE) Real GDP development 8.3% 7.0% 6.1% 4.2% Real GVA

Industry over-review

The NBFC area kept on developing its portion in the monetary administrations
industry. Credit development of booked business banks (SCBs) kept on
directing all through FY2020. On 31 March 2019, development in advances of
SCBs was 13.2%. By 30 September 2019, this had diminished to 8.7% and on
27 March 2020, it was further down to 6.1%. SCBs additionally kept on
confronting resource quality difficulties in FY2020. Information distributed by
the RBI in its Financial Stability Report dated 27 December 2019 show that
NBFCs have beated SCBs on resource quality, as the figures beneath
demonstrate.

Table 2: Comparison of resource nature of NBFCs and SCBs 31 March 2019

30 September 2019 Particulars SCBs NBFCs SCBs NBFCs Gross Non-
Performing Assets 9.3% 6.1% 9.3% 6.3% Net Non-Performing Assets 3.8%
3.4% 3.7% 3.4% Source: Reserve Bank of India, Financial Stability Report,
dated 27 June 2019 and 27 December 2019. While the significance of NBFCs in
credit intermediation kept on developing, reimbursement default by a
fundamentally significant NBFC in September 2018 brought to concentrate
resource obligation befuddles of the area — where some NBFCs were more
affected than the others. To fortify the resource obligation profile of the area,
RBI presented a liquidity inclusion proportion (LCR) necessity for all NBFCs
with AUM of H 5,000 crore or more. The LCR guideline commands NBFCs to
keep a base degree of top notch fluid resources for cover anticipated net money
surges in a focused on situation. The guideline likewise specifies that NBFCs
ought to accomplish LCR of 100 percent in a staged way over a time of four
years beginning December 2020. It is a welcome administrative change and will
fundamentally reinforce ALM profile of the NBFC area. BFL's liquidity cradle
the board structure surpasses these prerequisites even today — and exhibits
major areas of strength for its towards liquidity the executives.

Coronavirus further complemented ALM difficulties of the NBFC area. The

RBI's ban measures for clients is probably going to put extra weight on
numerous NBFCs. There is an imbalance. On one hand, NBFCs bring to the
table such bans to their clients; while on the other, their market borrowings
should be reimbursed on due dates. To ease liquidity strain on NBFCs, the RBI
has made numerous moves including a Targeted Long-Term Repo Operation
(TLTRO) for the area of H 50,000 crore and an extraordinary funding window
through SIDBI, NABARD and National Housing Bank (NHB) of one more H
50,000 crore to empower supporting NBFCs. It is not yet clear whether the RBI
will open an immediate window to help the NBFC area. The COVID-19
pandemic is likewise expected to bring about a decay in the resource nature of
the monetary area. NBFCs also will confront comparable tensions. Early signs
of non-delinquent clients deciding on bans mirror an impressive degree of
nervousness from clients. It is not yet clear the way in which this uneasiness
facilitates when monetary exercises continue. A long-drawn lockdown or
regular lockdowns of financial exercises might require the RBI to approach self
control arrangements for affected borrowers like an extensive one-time
rebuilding of advances without affecting resource order. Such a one-time
rebuilding system would empower monetary area to proceed to loan and
furthermore give clients satisfactory chance to recuperate from the financial
emergency and honor their commitments.

Working aftereffects of the Company BFL appreciated one more solid year of
execution supported by an enhanced item blend, powerful volume development,
reasonable obligation the executives, productive working expenses and
compelling gamble the board. With an independent AUM of H 116,102 crore
and a solidified AUM of H 147,153 crore, the Company has arisen as one of the
main broadened NBFCs in the nation today. During the nine months finished 31
December 2019, the Company kept up with major areas of strength for its
direction. It recorded a development of 35% in combined AUM, and of 52% in
united benefit after charge (PAT). The last quarter's exhibition was affected
because of a lockdown brought about by COVID-19 which brought about entire
year's combined AUM developing at 27% contrasted with 35% in the initial
nine months; and solidified PAT expanding by 32% versus 52% in initial nine
months. It was as yet major areas of strength for a given the troublesome
climate. Execution Highlights of the Company for FY2020 are as underneath l
Number of new advances booked expanded by 17% to 27.44 million. l AUM
became by 27% to H 147,153 crore on a merged premise and by 18% to H
116,102 crore on an independent premise. l Total pay expanded by 43% to H
26,386 crore on a combined premise and by 37% to H 23,834 crore on an
independent premise. l Net interest pay (NII) rose by 42% to H 16,913 crore on
a united premise and by 39% to H 15,977 crore on an independent premise. l
Total working expense for NII improved to 33% from 35% in FY2019 on a
united premise. l Impairment on monetary instruments was H 3,929 crore on a
merged premise, which incorporated a sped up charge of two distinguished huge
records of H 483 crore and a possibility arrangement of H 900 crore for
COVID-19. This on an independent premise was H 3,805 crore including the
sped up charge of H 483 crore and a possibility arrangement of H 850 crore for
COVID-19. l BFL's solidified and independent net NPA remained at 0.65% and
0.79%, separately among the most minimal across all NBFCs. The Company's
credit book kept on areas of strength for leftover of its profoundly installed risk
culture and vigorous gamble the board rehearses. l Profit before charge
expanded by 18% to H 7,322 crore on a united premise and by 13% to H 6,808
crore on an independent premise. l PAT became by 32% to H 5,264 crore on a
solidified premise and by 25% to H 4,881 crore on an independent premise. l As
on 31 March 2020, capital ampleness was 25.01%, which is well over the RBI
standards. Level I sufficiency was 21.27%. The Company proceeded to wisely
deal with its resource risk the board (ALM) with a methodology of raising long
haul borrowings and keeping a prudent blend of borrowings between banks,
currency markets and stores. As on 31 March 2020, the Company had a
combined liquidity cushion of H 15,725 crore. Chiefs' Report 33rd ANNUAL
REPORT 2019-20 65 During FY2020, the Company's getting cost expanded by
13 bps over FY2019. This was for two reasons; (I) raised getting rates for the
area in the early piece of FY2020 brought about naturally dedicated by a
foundationally significant NBFC in September 2018; and (ii) moderate liquidity
the board position of the Company to go long on its responsibility profile. The
Company's arrangement inclusion on non-NPA resources, on a merged premise,
barring the possibility arrangement, remained at 97 bps and 159 bps including
the possibility arrangement, which is higher than the surviving provisioning
standards of RBI for NBFCs. Given the COVID-19 circumstance, the
standpoint for the approaching year is supposed to very request. In the ongoing
circumstance, loaning organizations face four overwhelming difficulties of (I)
interruption in business obtaining, (ii) giving clients sufficient help on their
obligation overhauling commitments, (iii) managing debilitated client assistance
and obligation recuperation foundation, and (iv) proceeding to support their
own obligation. To conquer the COVID-19 emergency, legislatures across the
world will shift focus over to the monetary area to assist with resuscitating their
economies. Here, given your Company's solid capital sufficiency, solid liquidity
position, low gross NPA and net NPA, admittance to retail stores, enormous
client establishment, broadened portfolio blend, granular topographical
circulation and vigorous gamble measurements, it is preferred put over
numerous others in the NBFC space to gain by the open doors that will arise in
what will potentially be an absolutely new business climate.

HIGHLIGHTED CHALLENGES FACED BY THE COMPANY DURING

COVID ~ 19

1. Lockdown effect: Bajaj Finance had lost 350,000 clients in 10 days.

2. Consumer bank Bajaj Finance Ltd's most memorable quarter

measurements were a revolting image of how a pandemic can annihilate
utilization. Resource under-administration development was 7%, a sorry excuse
for the 35-40% the organization found the middle value of in past quarters.

3. They couldn't gather reimbursements as well as promote items - Bajaj

Finance's development has endured thus has its portion cost.

Implementations during COVID – 19

• Monetary help to groups of expired workers going from around 1.5 times
to multiple times their yearly compensation. Fixed measure of Rs 100 lacs for
senior representatives.

• Training help of up to Rs 2 lacs for each annum, per youngster, for up to

two kids until their graduation.

• Broadened clinical protection for the family for a very long time.
Recommendations

Resolution Framework for Small and Individual Businesses

Resolution plan will be applicable for Individual and small businesses subject to
following conditions:

i) Account should be classified as Standard with the Company as on March 31,

2021.

ii) The decisions on requests/applications received by BFL from customers for

invoking

restructuring under this facility shall be communicated in writing to the

applicant by BFL within

30 days of receipt of such requests/applications.

iii) If a resolution plan is implemented in adherence to the provisions of this

circular, the asset

classification of borrowers’ accounts classified as Standard may be retained as

such upon

implementation, whereas the borrowers’ accounts which may have slipped into
NPA between

invocation and implementation may be upgraded as Standard, as on the date of

implementation

of the resolution plan.

iv) Resolution plan must be invoked latest by September 30, 2021 and must be
implemented within 90 days from the date of invocation.
v) In cases of loans of borrowers specified in Clause 5.1 above where resolution
plans had been implemented in terms of the Resolution Framework – 1.0, and
where the resolution plans had permitted no moratoria or moratoria of less than
two years and / or extension of residual tenor by a period of less than two years,
BFL is permitted to use this window to modify such plans only to the extent of
increasing the period of moratorium / extension of residual tenor subject to
maximum 2 years.

vi) The resolution plans implemented under this window may inter alia include
rescheduling of payments, conversion of any interest accrued or to be accrued
into another credit facility, revisions in working capital sanctions, granting of
moratorium etc. based on an assessment of income streams of the borrower.
However, compromise settlements are not permitted as a resolution plan for this
purpose.

vii) The resolution plan may also provide for conversion of a portion of the debt
into equity or other marketable, non-convertible debt securities issued by the
borrower, wherever applicable, and the same shall be governed in terms of
Paragraphs 30-32 of the Annex to the Resolution Framework – 1.0.

viii)The decision to invoke the restructuring under this facility shall be taken by
BFL having exposure to a borrower independent of invocation decisions taken
by other lending institutions, if any, having exposure to the same borrower.

Resolution Framework for Micro, Small and Medium Enterprises

( MSMEs)

1.The rules of the RBI will be relevant for MSME Sector subject to following
circumstances:

I) The borrower ought to be named a miniature, little or medium venture as on

March 31, 2021 concerning the Gazette Notification S.O. 2119 (E) dated June
26, 2020.
ii) The total openness, including non-reserve based offices, of all loaning
establishments to the borrower doesn't surpass ₹25 crore as on March 31, 2021.

iii) Borrower's record should be named Standard Asset as on March 31, 2021.

iv) The getting element is GST enlisted on the date of execution of the
rebuilding.

In any case, this condition won't make a difference to MSMEs that are absolved
from GST enlistment. This

not entirely set in stone based on exclusion limit acquiring as on March 31,
2021.

v)The borrower's record was not rebuilt concerning the brochures

DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020;
DOR.No.BP.BC.34/21.04.048/2019-20 dated February 11, 2020; or
DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019.

vi)The rebuilding of the borrower account will be summoned by September 30,

2021. For this

reason, the rebuilding will be treated as summoned when the BFL and the
borrower consent to

continue with the endeavors towards concluding a rebuilding intend to be

executed in regard of

such borrower. The choices on applications got by BFL from clients for
summoning rebuilding under this office will be conveyed recorded as a hard
copy to the candidate by BFL in the span of 30 days of receipt of such
applications.

vii) The rebuilding of the borrower account is executed in somewhere around 90

days from the date of summon.
viii) The choice to summon the rebuilding under this office will be taken by
BFL having openness to a borrower autonomous of conjuring choices taken by
other loaning establishments, if any, having openness to a similar borrower.

ix)If the borrower isn't enlisted in the Udyam Registration entryway, such
enrollment will be expected to be finished before the date of execution of the
rebuilding plan for the arrangement to be treated as carried out.

x) BFL will address complaints of the clients under the Resolution Framework -
2.0 according to its current complaint redressal component for clients.

CONCLUSION

Financial analysis determines a company’s health and stability, providing an

understanding of how the company conducts its business. But it is important to
know that financial statement analysis has its limitations as well. Different
accounting methods adopted by different firms’ changes the visible health and
profit levels for either better or worse. Different analysts may get different
results from the same information. Hence, we must conclude that financial
statement analysis is only one of the tools (although a major one) while taking
an investment decision. The financial statement analysis helps to pinpoint the
areas where in the managers have shown better efficiency and the areas of
inefficiency. For example, using financial ratios, it is possible to analyse relative
proportion of production, administrative and marketing expenses. Any
favourable or unfavourable variations can be identified and reasons thereof can
be ascertained to pinpoint managerial efficiency and deficiency Judging the
Short-term & Long-term Efficiency of the Enterprise. On the basis of financial
analysis, long-term as well as short-term solvency of the concern may be
judged. Creditors or suppliers are interested to know the short-term
solvency/liquidity of the concern i.e. ability to meet short-term liabilities.
Debenture holders and lenders judge the ability of the company to pay the
principal amount and interest on the basis of financial analysis. Inter-firm
comparison becomes easy with the help of financial analysis. It helps in
assessing own performance as well as that of others, if merges and acquisitions
are to be considered. Past financial statement analysis helps a great deal in
assessing developments in the future, especially the next year. For example,
given a certain investment, it may be possible to forecast the next year’s profit
on the basis of earning capacity shown in the past. Analysis thus helps in
preparing the budgets.