Veritas Finance Annual Report & Balance Sheet

Veritas Finance Private Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Financial Assets
Cash and cash equivalents	47,744.92	23,825.39
Bank balances other than cash and cash equivalent	18,197.03	28,583.38
Trade Receivables	368.31	16.53
Other Receivables	170.09	-
Loans	5,63,454.98	3,47,561.64
Other Financial Assets	2,357.66	821.32
Non-Financial Assets
Current Tax Assets (Net)	158.82	52.17
Deferred tax Assets (net)	4,141.29	3,113.20
Property, plant and equipment (including right of use asset)	4,622.67	4,146.52
Intangible assets	839.68	200.76
Intangible assets under development	49.05	16.08
Other non-financial assets	423.10	303.41
Total Assets	6,42,527.60	4,08,640.40
Financial Liabilities
Trade Payables	879.88	552.97
Debt Securities	30,812.15	17,926.89
Borrowings (Other than debt securities)	3,66,302.06	2,24,388.82
Other Financial Liabilities	6,429.11	3,514.28
Non-Financial Liabilities
Provisions	866.07	823.51
Other non-financial liabilities	4,282.98	2,308.33
Equity Share Capital	12,751.92	11,422.40
Other Equity	2,20,203.43	1,47,703.20
Total Liabilities and Equity	6,42,527.60	4,08,640.40

 Veritas Finance Private Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from Operations
Interest Income	1,05,706.44	65,246.42
Fee and commission income	3,186.30	1,869.42
Net gain on fair Value changes	2,220.54	906.46
Sale of services	7.07	1.00
Other Income	1,259.72	197.84
Total Income	1,12,380.07	68,221.14
Expenses
Finance Costs	31,561.84	16,921.69
Fees and commission expense	435.24	199.88
Impairment on financial instruments	9,643.28	4,680.47
Employee Benefit Expenses	29,160.93	16,697.06
Depreciation and Amortization	2,356.33	1,511.42
Other Expenses	6,925.99	4,925.62
Total Expenses	80,083.61	44,936.14
Profit Before Tax	32,296.46	23,285.00
Current Tax	8,834	6,537
Adjustment of Tax relating to earlier periods	-	(63.42)
Deferred tax (Credit)/charge	(1,042.80)	(828.96)
Profit After Tax for the year	24,505.26	17,640.38
Other Comprehensive Income
Re-measurement of the defined benefit obligation	58.43	(228.34)
Income tax relating to items that will not be reclassified to profit and loss	(14.71)	57.48
Total Comprehensive income/(Loss) for the year, net of income tax	24,548.98	17,469.52
Earnings per Share of INR 10/- each
Basic	23.98	36.15
Diluted	23.76	14.57

 Veritas Finance Private Limited Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash flows from operating activities
Profit before tax for the year	32,296.46	23,285
Depreciation and amortization expense	2,356.33	1,511.42
Impairment on financial instruments	9,643.28	4,680.47
Share based payment expense	773.14	305.24
Interest income on security deposits	(76.23)	(28.65)
Profit on termination of leased assets	(30.72)	(10.27)
Finance costs	31,561.84	16,921.69
(Gain)/loss on sale of PPE (net)	(11.06)	3.43
Interest income on fixed deposits	(2,697.12)	(1,847.94)
Gain on sale of investments, net	(2,220.54)	(906.46)
Operating cash flow before working capital changes	71,595.38	43,913.93
Increase in loans	(225528.09)	(139026.84)
Increase in receivables	(521.87)	(16.53)
Increase in other financial assets	(1544.88)	(134.61)
Increase in other non-financial assets	(119.70)	82.16
Increase in trade payables	326.91	221.87
Increase in other financial liabilities	2,826.07	428.28
Increase in provisions	100.99	179.01
Increase in other non-financial liabilities	1,974.64	1,047.07
Cash used by operations	(150890.55)	(93305.66)
Finance costs paid	(34,697.74)	(17,656.24)
Interest  received on bank balances other  than cash and cash equivalents	2,697.12	1,847.94
Total Cash used by operations	(182891.17)	(109113.96)
Income tax paid (net of refunds)	(8940.65)	(6,113.19)
Net cash used by operations	(191831.82)	(115227.15)
Cash flows from investing activities
Purchase of Property, Plant and  Equipment  (including capital work in progress)	(2,129.76)	(1,476.25)
Proceeds from sale of  Property, Plant and  Equipment	31.43	19.75
Increase in fixed deposits  with banks (other than cash and cash equivalents	10,386.35	(17,061.76)
Purchase of investments	(660162.04)	(468921.69)
Proceeds from sale of investments	6,62,382.58	4,69,828.15
Net cash generated from/(used in) investing activities	10,508.56	(17611.80)
Cash flows from financing activities
Proceeds from issue of equity shares including securities premium	49,243.49	546.02
Payment  of lease liabilities	(1,517.88)	(1068.48)
Payment of share issue expenses	(735.86)	-
Proceeds from debt securities	26,500.OO	20,000.00
Proceeds from borrowings {other than debt securities)	2,67,216.OO	1,89,748.50
Repayment of debt securities	(10500.00)	(25,760.01)
Repayment of borrowings (other than debt securities)	-1,24,962.96	(60275.60)
Net cash generated from financing activities	2,05,242.79	1,23,190.43
Net increase/(decrease) in cash and cash equivalents	23,919.53	(9648.52)
Cash and cash equivalents  at the beginning of the year	23,825.39	33,473.91
Cash and cash equivalents at the end of the year	47,744.92	23,825.39

 Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flows from Operating Activities

Profit Before Tax:

2024: ₹32,296.46

2023: ₹23,285

Change: The profit before tax increased by ₹9,011.46, reflecting higher operational efficiency or increased revenue.

Depreciation and Amortization Expense:

2024: ₹2,356.33

2023: ₹1,511.42

Change: Depreciation and amortization increased by ₹844.91, indicating higher investments in fixed assets.

Impairment on Financial Instruments:

2024: ₹9,643.28

2023: ₹4,680.47

Change: A significant rise in impairment expenses by ₹4,962.81 suggests higher credit risk or increased provision for bad debts.

Share-Based Payment Expense:

2024: ₹773.14

2023: ₹305.24

Change: Share-based payment expense increased by ₹467.90, likely due to additional stock-based compensation plans.

Interest Income and Finance Costs:

Interest Income on Security Deposits:

2024: (₹76.23)

2023: (₹28.65)

Change: Increased by ₹47.58, reflecting higher returns on deposits.

Finance Costs:

2024: ₹31,561.84

2023: ₹16,921.69

Change: Finance costs nearly doubled, up by ₹14,640.15, indicating higher borrowings or increased interest rates.

Cash Flow Before Working Capital Changes:

2024: ₹71,595.38

2023: ₹43,913.93

Change: Increased by ₹27,681.45, showing improved operational cash flow before adjusting for changes in working capital.

Working Capital Adjustments:

Increase in Loans:

2024: (₹225,528.09)

2023: (₹139,026.84)

Change: Significant increase in loans by ₹86,501.25, potentially indicating expanded financing needs.

Increase in Receivables:

2024: (₹521.87)

2023: (₹16.53)

Change: Substantial increase in receivables by ₹505.34, suggesting slower collection of outstanding payments.

Other Financial Assets & Liabilities Adjustments:

Increase in Financial Assets:

2024: (₹1,544.88)

2023: (₹134.61)

Change: Increase of ₹1,410.27.

Increase in Financial Liabilities:

2024: ₹2,826.07

2023: ₹428.28

Change: Increase by ₹2,397.79, indicating higher short-term obligations.

Cash Used by Operations:

2024: (₹150,890.55)

2023: (₹93,305.66)

Change: Increase in cash used by operations by ₹57,584.89, highlighting a larger outflow for operational activities.

Finance Costs Paid:

2024: (₹34,697.74)

2023: (₹17,656.24)

Change: More than doubled by ₹17,041.50, in line with increased finance costs.

Net Cash Used by Operations:

2024: (₹191,831.82)

2023: (₹115,227.15)

Change: Increased outflow by ₹76,604.67, reflecting higher net cash used in operations.

Cash Flows from Investing Activities

Purchase of Property, Plant, and Equipment (PPE):

2024: (₹2,129.76)

2023: (₹1,476.25)

Change: Increase in investment by ₹653.51, indicating higher capital expenditures.

Proceeds from Sale of PPE:

2024: ₹31.43

2023: ₹19.75

Change: Increased by ₹11.68.

Fixed Deposits and Investments:

Increase in Fixed Deposits:

2024: ₹10,386.35

2023: (₹17,061.76)

Change: Increase of ₹27,448.11.

Purchase of Investments:

2024: (₹660,162.04)

2023: (₹468,921.69)

Change: Significant increase by ₹191,240.35.

Proceeds from Sale of Investments:

2024: ₹662,382.58

2023: ₹469,828.15

Change: Increase by ₹192,554.43.

Net Cash Generated from Investing Activities:

2024: ₹10,508.56

2023: (₹17,611.80)

Change: Positive cash flow of ₹28,120.36 compared to the previous outflow.

Cash Flows from Financing Activities

Proceeds from Equity and Debt:

Proceeds from Equity Shares:

2024: ₹49,243.49

2023: ₹546.02

Change: Increase of ₹48,697.47, indicating a significant equity raise.

Proceeds from Debt Securities:

2024: ₹26,500.00

2023: ₹20,000.00

Change: Increase of ₹6,500.00.

Repayments:

Repayment of Debt Securities:

2024: (₹10,500.00)

2023: (₹25,760.01)

Change: Reduced repayment by ₹15,260.01.

Repayment of Borrowings:

2024: (₹124,962.96)

2023: (₹60,275.60)

Change: Increased repayment by ₹64,687.36.

Net Cash Generated from Financing Activities:

2024: ₹205,242.79

2023: ₹123,190.43

Change: Increase by ₹82,052.36, indicating strong financing inflow.

Net Increase/Decrease in Cash and Cash Equivalents:

2024: ₹23,919.53

2023: (₹9,648.52)

Change: Positive change of ₹33,568.05.

Cash and Cash Equivalents at Year-End:

2024: ₹47,744.92

2023: ₹23,825.39

Change: Increase by ₹23,919.53, reflecting improved liquidity.

Financial Ratios of Veritas Finance Private Limited

Particulars	2024	2023
PBT/Total Income	28.74%	34.13%
Return on Total Assets	4.66%	5.24%
Return on Equity	12.50%	11.76%
Diluted EPS	23.76	14.57
Debt/Equity	1.7x	1.5x
Capital Adequacy	41.49%	45.00%

Here is a summary of the financial and operational metrics for Veritas Finance Private Limited for the year 2024 and 2023:

PBT/Total Income (Profit Before Tax to Total Income)

The PBT/Total Income ratio reflects the portion of the company’s income that translates into profit before tax. In 2024, this ratio decreased to 28.74% from 34.13% in 2023. This decline suggests a reduction in the company’s ability to convert income into pre-tax profit, potentially due to increased operating expenses, lower gross margins, or higher costs. A lower ratio indicates that a larger proportion of income is consumed by expenses, which could affect the company 's overall profitability and financial performance.

Return on Total Assets (ROA)

The Return on Total Assets measures how efficiently the company uses its assets to generate profit. In 2024, ROA decreased to 4.66% from 5.24% in 2023. This reduction signifies a decline in the company’s efficiency in utilizing its assets to generate earnings. The decrease may result from lower net income or a higher asset base without a proportional increase in profits, indicating that the company 's asset utilization has become less effective.

Return on Equity (ROE)

ROE gauges the return generated on shareholders ' equity, illustrating how effectively the company is using shareholders ' funds to generate profit. In 2024, ROE increased to 12.50% from 11.76% in 2023. This improvement indicates that the company has become more efficient in generating profits from shareholders ' equity. An increasing ROE suggests enhanced profitability and can be an encouraging sign for investors, reflecting a better return on their investment.

Diluted EPS (Earnings per Share)

Diluted EPS represents the earnings available to common shareholders on a per-share basis, factoring in all possible conversions of convertible securities. In 2024, Diluted EPS increased to 23.76 from 14.57 in 2023. This significant rise indicates that the company has achieved higher profitability, resulting in more earnings per share, which is positive for shareholders. A higher EPS generally reflects improved financial health and is likely to enhance shareholder value.

Debt/Equity Ratio

The Debt/Equity ratio measures the proportion of debt relative to shareholders ' equity in the company 's capital structure. In 2024, the ratio increased to 1.7x from 1.5x in 2023. This rise suggests a higher level of debt compared to equity, indicating that the company is relying more on borrowed funds to finance its operations and growth. While higher leverage can potentially amplify returns, it also increases financial risk and could impact the company 's stability if not managed carefully.

Capital Adequacy Ratio

The Capital Adequacy Ratio measures a financial institution’s capital relative to its risk-weighted assets, reflecting its ability to absorb losses. In 2024, the ratio decreased to 41.49% from 45.00% in 2023. This reduction indicates a smaller capital buffer relative to risk-weighted assets, which could mean that the institution has either taken on more risk or experienced a decrease in capital. A lower capital adequacy ratio may signal reduced financial stability or increased vulnerability to financial stress.