Date : Mar 23, 2016
Performance of Non-Government Non-Banking Financial and Investment (NGNBF&I) Companies, 2014-15: Data Release
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 2014-15. The data have been compiled based on audited annual accounts data of 23,293 companies. Of these, data pertaining to 22,899 companies are based on Ministry of Corporate Affairs (MCA) systems (Extensible Business Reporting Language (XBRL) and Form AOC-4 (Non-XBRL) platform), data for 363 companies are as collated by Department of Statistics and Information Management, Reserve Bank of India,while the data for theremaining 31 companies are obtained from CapitalinePlus data Services (not included in the select NGNBF&I of MCA and Company Finances Division (CFD) data), which closed their accounts during the period April 2014 to March 2015. The data draw a comparative picture over the three years period 2012-13 to 2014-15 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 23,293 NGNBF&I companies accounted for 77.8 per cent of all NGNBF&I companies as on March 31, 2015.
Highlights:
- The performance of NGNBF&I companies had improved in 2014-15 as compared to the previous year. Financial income of the select 23,293 NGNBF&I companies witnessed a growth of 17.1 per cent in 2014-15 (15.1 per cent in 2013-14) mainly due to higher interest income. Total income increased by 17.4 per cent during 2014-15 as against 13.1 per cent increase recorded in the previous year.
- Total expenditure grew by 16.3 per cent in 2014-15 (14.3 per cent in 2013-14) mainly due to increase in employees’ remuneration (25.1 per cent in 2014-15 from 11.4 per cent in the previous year). However, interest expenses grew at lower rate of 12.7 per cent in 2014-15 as against 17.1 per cent in 2013-14.
- Operating profits (EBDT) as well as net profit of the select NGNBF&I companies increased in 2014-15. 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 2014-15 as compared to the previous year.
- Total borrowings increased by 19.1 per cent in 2014-15 from 12.5 per cent growth seen in 2013-14. However, borrowings from banks decelerated marginally to 11.7 per cent in 2014-15 from 12.0 per cent in the previous year. Debt to equity ratio of select NGNBF&I companies witnessed increasing trend over the three years period.
- On the liabilities side, share of short-term and long-term borrowings increased during 2014-15 as compared to the previous year. However shareholders’ fund declined gradually over the three years period i.e., 2012-13 to 2014-15.
- On the assets side, share of short-term loans and advances along with current investment increased during 2014-15, whereas the share of long-term loans and advances as well as non-current investment declined in 2014-15 as compared to the previous year.
- 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 2014-15 as compared to the previous year. The share of funds mobilised through short-term and long-term borrowings increased to 20.3 per cent and 42.6 per cent in 2014-15, respectively from 14.8 per cent and 36.9 per cent in the previous year. The funds were used predominantly for expanding their current and non-current investments as well as short term loans and advances portfolios.
- The share of non-current investments extended by select NGNBF&I companies in total uses of funds increased significantly to 13.0 per cent in 2014-15 from 6.7 per cent in 2013-14.
An article analysing the performance of select 23,293 NGNBF&I companies at the aggregate level as well as activity-wise is being published in the April 2016 issue of the RBI Bulletin.
Ajit Prasad
Assistant Adviser
Press Release : 2015-2016/2251
