Name of the Student: SANKALP.

Registration Number: 21DBCOL009

Programme: B.COM ., L.L.B., (HORNS)

Semester: III

Course Name: ADVANCE ACCOUNTING

Course Code:5BCL301

Date of Submission: 7 NOV 2022

Submitted to: Prof. G. VIGNESH

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INTRODUCTION

A division of Bajaj Finserv Limited is Bajaj Finance Limited, formerly known as Bajaj Auto Finance
Limited.The lending and deposit taking operations of the company can be found here. One of the
most diversified NBFCs in the Indian market, Bajaj Finance Limited, the lending and investment
arm of the Bajaj Finserv group, serves over 38 million customers nationwide.BFL is not only
India's largest consumer durables financier, but it is also one of the most profitable companies in
this sector.
Spread across nine product offerings, Bajaj Money Ltd is centered around customer, SME and
business lines of business.BFL has a strong distribution network of more than 102600 active point
of sale and is present in 1997 locations.
The non-bank, which is 32 years old, uses a cross-selling strategy to target wealthy masses.The
company is present in 944 urban and 951 rural locations in India, with over 97,000 distribution
points, and places a strong emphasis on deposit acceptance and fee product distribution.It has a
large franchise of 38.70 million customers and a 22.78 million loans cross-sell franchise.
Both Bajaj Housing Finance Limited and Bajaj Financial Securities Limited are 100% owned by
Bajaj Finance.Bajaj Finance Limited is proud to have the highest credit rating of any NBFC in the
country at FAAA/Stable.According to S&P Global Rating, it is also the only NBFC in India with an
international rating of "BBB" and a stable long-term outlook..It has a differentiated loaning
portfolio across retail SMEs and commercialcustomers with critical presence in both metropolitan
and country India.It provides a wide range of financial services to its clients and accepts deposits
from both individuals and businesses.The company was classified as an Asset Finance Company by
the Reserve Bank of India.In addition, it focuses on six general categories:Deposits for consumer,
small- and medium-sized business, and rural lendingand Services and PartnershipsOn March 25,
1987, Bajaj Auto Finance Limited was founded as a Non-Banking Financial Company primarily
focused on providing financing for two- and three-wheeled vehicles.It became a deemed public
company under section 43A(1) of the Companies Act 1956 on October 20, 1987.It was officially
established as a Public Limited Company on September 24, 1988.As a non-bank business, Bajaj
Auto Finance applied to the RBI on March 5, 1998.Bajaj Auto Finance had an initial public offering
and was listed on the BSE and NSE in 1994 and 1995.The business then expanded into consumer
lending, SME (small and medium-sized) lending, commercial lending, rural lending, deposit
management, and wealth management.The company was initially promoted by Bajaj Auto Ltd. and
Bajaj Auto Holdings Ltd. In accordance with the Scheme of Demerger of the former Bajaj Auto
Ltd., Bajaj Auto Limited's shareholding in the company has been transferred to Bajaj Finserv
Limited.The company opened numerous branches across the nation in order to provide a variety of
financing options.The company opened branch offices in Hyderabad, New Delhi, Chennai,
Bangalore, Mumbai, Nagpur, Vijaywada, Nashik, Vishakhapattanam, Kolkata, Goa, Madurai, and
Pune from 1991 to 1995.The company completed their first real estate project in Pune for Nayan
Co-operative Housing Society Ltd. between 1995 and 1996.Additionally, they established their
branch offices in Trivandurm and Baroda.They opened branch offices in various cities from 1998
to 2003, including Chandigarh, Cochin, Indore, Ludhiana, Surat, Kolhapur, Bhopal,
Bhubaneshwar, Calicut, Erode, Jalgaon, Lucknow, Rajkot, Salem, Solapur, Udaipur, Tirupati,
Amaravati, Bhavnagar, Durgapur, Jamshedpur, Kopergaon, MehsThe company began offering
financing for personal computers in 2003-2004.During the years 2004-2005, they opened branch
offices in Hissar, Hubli, Patiala, Rourkela, Agra, Ahmednagar, Akola, Alwar, Ambala, Bharuch,
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Dindigul, Guna, Gurgaon, Himatnagar, Jamnagar, Karaikudi, Karimnagar, Karur, Kurnool,
Navsari, Nellore, Palghat, RajahmundryDuring the fiscal year, they opened 22 new shops and 14
new branch offices.The company added 11 new branch offices between the years 2006 and 2007,
bringing the total number of branches to 113.Additionally, through their branch network, they
serve 280 towns.During 2007-2008, the company introduced new product lines and extensions.

UNIQUE SELLING PROPOSITION

Bajaj Finserv through its loaning arm Bajaj Money Ltd., offers an interesting recommendation -
Individual Credit extension to client dispenses a particular sum that can be removed and utilized
for any monetary necessities.
A personal line of credit is a loan that lets a person use any amount within the limit that has been
set and pays interest on what they use.The user only pays the interest as an EMI on this
loan.Customers who choose a Line of Credit pay EMIs that are up to 45% lower each month and
can more easily handle unexpected costs.
In addition, the Bajaj Finserv Line of Credit provides consumer-friendly financing options without
imposing excessive interest rates thanks to its simple and convenient procedures.

Benefits of Personal Line of Credit by Bajaj Finance ltd

Lower instalments:
The consumer's monthly payments are likely to be significantly lower because they do not begin
paying interest until they use the loan amount.

Flexibility
You can choose how much you want to withdraw from a line of credit and when you want to pay it
back, which can take anywhere from 24 to 60 months.

No collateral
One of the few options for financing that does not require evidence of your assets or collateral to
secure the loan amount is a line of credit.

No additional costs
When you withdraw money, there are no fees that you are expected to pay.

Another advantage of a line of credit is that you can change it into a term loan at any time during
the term. You can withdraw money as many times as you want.Therefore, if a customer discovers
halfway through the term that they may not be able to pay off the principal in full, they can convert
the loan to a term loan and pay it back in equal monthly installments.

The benefits of the Bajaj Finserv line of credit include loans up to Rs. 25 lakhs, instant loan
approval, disbursement within 72 hours, and attractive interest rates.

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Repayment of Principal amount

The principal amount on a Personal Line of Credit must be paid only at the end of the
tenor.Customers can choose bullet repayment or partial prepayments toward the principal amount
whenever their financial circumstances permit it.

STRENGTH OF BAJAJ FINSERV

Strengths describe an organization's strengths and what sets it apart from the competition:a
distinctive technology, a devoted customer base, a solid balance sheet, and so forth.After that,
Bajaj Finserv must decide how to use those results to attract new investors.

Numerous Financial Products:Bajaj Finserv's ability to provide a wide range of financial services to
its large customer base is one of its strengths.The company created investments and securities with
the intention of offering its clientele financial gains in the short or long term.

High turnover of revenue:Even before and after Covid 19, Bajaj Finserv's revenue has increased
steadily over time.A solid management structure, marketing strategies, solid financial product
development, and cost-cutting strategies play a significant role in maintaining revenue.

Solid Structure of Capital:One of Bajaj Finserv's fundamental business goals is to keep a growing
capital structure.The group's net worth has significantly increased over the past five fiscal years as
a result of raising Rs 14908 crores in value.

ROI (return on investment):Through its stocks that are traded on the exchange Year on Year
(YoY), Bajaj Finserv has been providing its shareholders with high returns on their investments for
the past five years.

Quick Monetary Administrations:One of Bajaj Finserv's unique strengths is that it provides

customers with one-stop financial offers in three minutes, which has now been reduced to three
seconds. This is another strength of Bajaj Finserv.

WEAKNESS

An organization is prevented from achieving its ideal level by its weaknesses.They are a part of the
business that needs to be improved in order to remain competitive:for instance, a bad brand, a
higher average turnover rate, a lot of debt, a bad supply chain, or a lack of capital.

Holdings in Decreased Mutual Funds:In the preceding quarters, Bajaj Finserv's mutual fund
holdings have decreased significantly.Last quarter, mutual funds decreased their shareholding,
companies with high gearing ratios and weak financials, a decrease in net profit and a falling profit
margin quarter over quarter (QoQ), and mutual funds.

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Bajaj Finserv's non-performing assets include:NPAs (Non-Performing Assets) are the
financial service industry's biggest setback.NPAs typically indicate loans that cannot be
repaid.Bajaj Finserv will unavoidably suffer financial losses as a result.

Financial products are not widely available in rural areas:It has been discovered that the
financial services sector focuses more on urban areas than rural ones in most nations.This is a
significant flaw in the banking industry.

THREATS

Components that have the potential to harm an organization are referred to as threats.Negative
government policies, for instance, and a significant drop in revenue Other common threats include
rising material costs, rising competition, a shortage of labor, and so forth.

Governing Practices:The banking sector of a nation can be directly impacted by government

regulations, and these policies may be detrimental to Bajaj Finserv.

Financial Ecosystem Uncertainty on a Global Scale:The world is currently experiencing

challenging economic times.Trade wars, protectionist policies, and economic downturns have all
had an impact on the international banking industry.The financial services industry will face a
bleak future if global economic conditions do not change.

Insufficient cyber security measures:The current banking industry is completely dependent

on the internet.Everything is stored digitally, including data storage, financial transactions, and
personal data.Because of this, hackers who want to take advantage of flaws in the bank's digital
infrastructure to gain financial gain are most likely to target the banking industry.There will be a
significant cyberspace threat, so banks must take effective cybersecurity measures to protect their
records.

SCAMS

There is no scams done in bajaj finance ltd yet. But usally scams are done through call , messages ,
there is no specific scam done in bajaj finance .

RECENT TRENDS

 Motilal Oswal is bullish on Bajaj Finance recommended buy rating on the stock with a
target price of Rs 8310 in its research report dated October 21, 2022.

 Bajaj Finance Q2 results: Net profit jumps 88% to Rs 2,781 crore

 Bajaj Finances deposit book stood at approximately Rs 39,400 crore as of 30 September

2022 as compared to Rs 28,720 crore as of 30 September 2021

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OTHER

UNIQUE SELLING PROPOSITION ON LOAN

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BALANCE SHEET