The Reserve Bank of India today released on its website the data related to the performance of Non-Government Non-banking Financial and Investment (NGNBF&I) companies (including Chit fund/Kuri and Mutual Fund companies) for 2013-14. The data have been compiled based on audited annual accounts data of 18,225 companies, of which 17,636 companies’ data are based on Ministry of Corporate Affairs (MCA) systems (Extensible Business Reporting Language (XBRL) and Form 23AC/ACA (Non-XBRL) platform) and remaining 589 companies’ data are as collated by Department of Statistics and Information Management, Reserve Bank of India (not included in the select NGNBF&I of MCA), which closed their accounts during the period April 2013 to March 2014. The data draw a comparative picture over the three years period 2011-12 to 2013-14 based on a common set of companies. ‘Explanatory notes’ pertaining to statements are given at the end.

According to the provisional estimate of population paid-up capital (PUC) supplied by MCA, GoI, the select 18,225 companies accounted for 91.3 per cent of all NGNBF&I companies as on March 31, 2014.

Highlights:

• Growth in financial income of the select 18,225 NGNBF&I companies declined to 13.6 per cent in 2013-14 from 23.3 per cent in 2012-13 mainly due to lower growth in interest income. Growth in total income decreased to 13.7 per cent during 2013-14 as against 22.8 per cent recorded in the previous year.

• Growth in total expenditure decreased to 12.9 per cent in 2013-14 (from 21.4 per cent in 2012-13) aided by lower growth in interest expenses (18.6 per cent in 2013-14 from 30.9 per cent in previous year).

• Growth in operating profits (EBDT) as well as net profit of the select NGNBF&I companies declined in 2013-14. However, the operating profit margin (measured as a ratio of operating profits to financial income) along with return on assets (measured as a ratio of net profits to total net assets) and return on shareholders’ equity (measured ratio of net profits to net worth) increased marginally in 2013-14 as compared to the previous year.

• The growth in total borrowings declined to 11.3 per cent in 2013-14 from 19.7 per cent in 2012-13, though debt to equity ratio of select NGNBF&I witnessed increasing trend over the three years period. However, growth in borrowings from banks increased significantly to 10.2 per cent in 2013-14 from 4.5 per cent in the previous year.

• On the liabilities side, share of short-term borrowings and shareholders’ fund declined gradually over the three years period i.e., 2011-12 to 2013-14. However, the share of long-term borrowings increased during 2013-14.

• On the assets side, share of long-term loans and advances rose significantly during 2013-14, whereas the share of non-current investment declined gradually over the study period.

• The select NGNBF&I companies continued to rely mainly on external sources for funds in business expansion; however their share in total sources of funds declined marginally during 2013-14 as compared to the previous year.

• The share of funds mobilised through long-term borrowings by select NGNBF&I declined marginally to 34.9 per cent in 2013-14 from 35.3 per cent in the previous year. The funds were used predominantly for expanding their long-term loans portfolios.

• The share of long-term loans and advances extended by select NGNBF&I companies in total uses of funds increased significantly to 62.9 per cent in 2013-14 from 48.0 per cent recorded in 2012-13.

An article analysing the performance of select 18,225 NGNBF&I companies at the aggregate level as well as activity-wise is being published in the October 2015 issue of the RBI Bulletin.

Sangeeta Das
Director

Press Release : 2015-2016/625