ABOUT THE COMPANY
Dhani is a comprehensive one-stop destination that offers a variety of
services aimed at simplifying various aspects of life. We are a data-driven technology
company catering to the diverse needs of customers, including E-commerce, UPI, Demat &
Trading services, and Credit facilities. Dhanis multifaceted approach reflects its
commitment to enhancing user experiences through an array of accessible solutions.
NEW BUSINESS OPPORTUNITY - REAL ESTATE DEVELOPMENT
The robust performance of the Residential Real Estate Market which hit
record sales numbers in FY23, led in both sales volume and value. There has also been a
significant rise in luxury housing which has picked up after the pandemic caused
homebuyers to reimagine their housing choices. Government policy support is also fuelling
growth in this sector. Private sector investment has surged driven by increasing
transparency and returns. The Government has allowed upto 100% FDI for townships and
settlement development projects. Real estate sector in India is expected to reach US$ 1
trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the
countrys GDP by 2025. Retail, hospitality, and commercial real estate are also growing
significantly, providing the much-needed infrastructure for Indias growing needs.
We are geared up to leverage this exciting opportunity. We have picked
up a land parcel in Gurgaon and Mumbai measuring approximately 17 acres and 0.57 acres,
having a development potential of approximately 5mn sq ft and 0.26mn respectively. This
will be the launchpads for our Real Estate development business, as we continue to explore
lucrative deals in the marquee micro markets in Mumbai & Gurgaon.
ABOUT DHANI PLATFORM
The Dhani platform, accessible through an Android and IOS mobile
application along with the website, stands out as a comprehensive solution hub. From
facilitating online transactions and UPI services to empowering users with Demat &
Trading options, Dhani offers a holistic digital experience. This diverse platform is
designed to cater to various financial and daily-life needs, demonstrating Dhanis
commitment to comprehensive digital solutions.
Dhani Store:
DhaniStore aims to provide a convenient and hassle-free shopping
experience to customers. With a wide range of products available at competitive prices,
customer scan easily find and purchase their desired items from the comfort of their
homes. The platform operates on a marketplace-led model, connecting merchants with
consumers. This allows customers to access a vast selection of products from various
sellers, ensuring a diverse range of choices.
Originally starting as Dhani Pharmacy, the platform has evolved to
cater to the diverse needs of consumers. In addition to pharmaceutical products, Dhani
Store now offers electronics, fashion goods, personal care items, daily household
necessities, and groceries.
By expanding its product offerings, Dhani Store aims to become a
one-stop-shop for customers, providing them with everything they need in one place. The
platform strives to offer attractive prices to ensure customers get the best value for
their money.
Overall, Dhani Store is committed to providing a seamless and
convenient shopping experience, connecting customers with trusted merchants and offering a
wide array of products to meet their needs.
Payments and Services:
Our digital payment solutions cover digital wallet under name
dhanipay, Rupay Prepaid Card and UPI payments along with recharge and bill payments
services across 17 categories.
Customers, on successfully KYC is completion, can access digital
wallet. Money can be loaded by multiple online methods including UPI, cards and
netbanking. Customers with digital wallet balance can use their balance seamlessly via
Rupay prepaid card or UPI transactions using features like pay to any UPI VPA and Scan and
Pay covering both P2P or P2M transactions.
Wallet customers can access services which includes Recharge (mobile,
FASTag, TV), Financial Services (Credit Card bill, Insurance & loan payments)
repayments and utility bill payments (electricity, broadband, gas bills etc). Transerv is
integrated with BBPS and non BBPS billers to provide customers wide range of options for
recharge and bill payments.
We have successfully became a part of UPI ecosystem by certifying for
UPI on PPI with NPCI in FY23. Dhani UPI now enables wallet customers to send or receive
money via UPI with seamless user experience.
Further, our Rupay cards are now certified for NCMC, which is an
inter-operable transport card system conceived by the Ministry of Housing and Urban
Affairs (MoHUA). This feature will allow customers to use Prepaid Card as a transit card
for traveling in metros and other NCMC-enabled transit points.
Dhani Stocks:
Dhani Stocks is a prominent player in the Indian brokerage industry,
continues to distinguish itself through its customer-centric approach, innovative
offerings, and versatile trading platforms to empower every trader.
As a brokerage platform, Dhani Stocks takes pride in delivering a
comprehensive suite of trading services to its customers over an App, a web-based platform
and a desktop software, striving to meet their diverse needs and preferences in the
ever-evolving financial markets.
Our brokerage platform offers trading services to customers at
competitive prices, featuring easy account opening, bracket and cover order and margin
trading facilities, and the ability to perform certain calls and trades at zero cost.
KEY OPERATIONAL HIGHLIGHTS: FY 2023
• New individual customers served: 0.08 million
• New individual paid customers served: 0.07 million
• Total active paid individual customers as on 31st
March 2023: 0.07 million
• Consolidated Revenue of INR 7.40 Bn
ASSET LIABILITY MANAGEMENT
Given the short term maturity of its loan portfolio and adequate
liquidity buffers enjoyed by the company, its Asset Liability Position is comfortable. The
Companys capital requirements are assessed in order to maintain an efficient overall
financing structure while avoiding excessive leverage. The Company manages the capital
structure and makes adjustments to it in the light of changes in economic conditions and
the risk characteristics of the underlying assets.
ANALYTICS
As the world is increasingly moving towards a data-driven approach,
data analytics play a crucial role in informed decision making to drive organizations
towards better and improved efficiency and help achieving desired organizational
objectives.
The company has made sizable investments in developing advanced data
analytics capabilities to manage large customer data and help create customized
offers/product for the customer for their respective needs, at the same time it also aids
in risk management by monitoring the trends at customer segment level performance and help
resultant proactive risk management strategies by segmenting delinquent borrowers. The
Artificial Intelligence (AI) based data analysis helps predicting customers preference
and recommend proactive retention strategies to improve customer loyalty.
RISK MANAGEMENT
The Company is exposed to a variety of risks such as credit, interest
rate, liquidity, operational, business, regulatory risks among others. Companys risk
management framework is driven by the Board and its subcommittees including the Audit
Committee, the Asset Liability Management Committee and the Risk Management Committee. The>
Company continues to invest in people, processes and technology to have
an integrated approach towards Risk Management. The Company has a robust overall risk
management framework which involves risk identification, assessment, monitoring, reporting
and mitigation.
BORROWINGS
Total borrowings of the group as on March 2023 were R 9.54 Bn. compared
to R 22.49 bn. The borrowings (net) of the company have decreased by R 12.95 bn during the
fiscal year due to repayments to its lenders during the fiscal year.
REGULATORY GUIDELINES / AMENDMENTS
Dhani Loans & Services Limited, complies with Reserve Bank of India
norms for NBFCs. In accordance with this, the Company is in compliance with all
regulations pertaining to prudential norms for asset classification, income recognition,
provisioning, capital adequacy and credit ratings.
TRAINING AND HUMAN RESOURCES MANAGEMENT
Our vision is to create a cohesive work environment that encourages
employees to pursue their professional and self-development goals in addition to building
operational excellence and a sense of belongingness. We have re- engineered our
recruitment process by development of Applicant tracking system in Recruitment process to
bring more efficiency for hiring managers, reduce paper work and improve accuracy. We
strongly believe that our employees play a pivotal role in the success of our Company and
its initiatives. They are representatives of the Company for the customers and it is of
utmost importance that our employees are skilled and well trained to attend to customers
needs in the best way possible. Our focus and belief lies in enabling and empowering our
talent pool for the challenges of tomorrow by providing new learning avenues that are
technology driven. Employee Stock Option Plans have been approved by the Compensation
Committee in various years for retention and incentivising the employees. The company has
also formed an Employee Welfare Trust which has granted Stock Appreciation Rights (SARs)
to the employees of the company. The Company also undertook various health-care and
general initiatives promoting well-being to enhance employee engagement. In all the areas
of work, the Human Resources firmly beliefs in confidentiality, accountability and trust.
Human Resource department provides internal processes and services like talent management,
administration benefits and many other services that are essential for organization.
The key focus is to find a right fit between the organization and the
individual. Our constant endeavour is to select people who are able to match personal
aspiration with the organizations growth plans. Agility is one of the key traits that we
look for, as it is required to quickly adapt to the changing needs of the dynamic external
environment. As a new age company, the focus is to build a robust team which is not only
geared to face todays challenges but to also be prepared for the opportunities of
tomorrow. The Company provides fast track growth for key performers in every department.
The Human Resource team partnered with businesses to ensure that right talent is
on-boarded for all roles. The leadership is engaged with all key performers and ensures
that they have a defined career path within the organization. We have a competitive reward
policy to keep the team motivated and engaged to achieve every milestone we set our eyes
upon.
IT SECURITY AND CUSTOMER PRIVACY
Information has become the critical asset for our organization
encompassing sensitive customer information. Shielding such information along with its
supporting IT Infrastructure from rapidly evolving cyber threats is one of our top
business priorities which is being catered through careful monitoring and effective
implementation of risk mitigation measures. Aiming to cater the Cyber Security challenges,
we have outlined and espoused the comprehensive IT and IS Policies based on the industry
best practices encompassing ISO 27001 Information Security Management Framework Standard.
Our Information Technology Policy, Information Security Management System Framework, Cyber
Security Policy and Data Privacy and Protection Policy include detailed directions to
ensure the protection of business and customer informations at all levels. Effective and
adequate security controls have been in-placed to ensure the business resilience in case
of any adversity. Backup and restoration policy supported through industry best solution
has been implemented to safeguard critical information. Periodic assessment of implemented
controls has been carried out to ensure its effectiveness and improve them as needed.
Our Companys "Privacy Policy" ensures the protection of
customers personal information. The Company explicitly discloses the manner in which
customer information is collected, stored and used. The policy also ensures that the usage
of customer information is in compliance with designated statutory and regulatory
authorities requirements.
INTERNAL CONTROL SYSTEMS
The company has adequate internal control systems, based on policies
and guidelines, which ensure timely and accurate execution of responsibilities. Internal
Control Systems evaluate operations, financial reporting, strategic investments and
regulatory compliances to protect interests of the investors. The effectiveness and
reliability of Internal Control Systems is reviewed periodically by the Audit Committee
and the Board of Directors which gives its recommendations regarding improvements over
existing control systems.
SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
In compliance with the requirements of Schedule V of the SEBI LODR
Amendment Regulations, 2018, significant changes (change of 25% or more from FY 2021-22 to
FY 2022-23) in the key financial ratios applicable to the Company, are as under:
Debt Equity Ratio:
The debt equity ratio of the Company on a consolidated basis has
reduced from 0.30 for FY 2021-22 to 0.18 for FY 2021-22 primarily due to decrease in
borrowings in FY 2022-23.
Return on Average Equity (Net worth):
The return on equity of the Company on a consolidated basis as on March
31, 2023 stood at -4.10% compared to -10.43% as on March 31, 2022. The said reduction in
the Companys return on equity ratio is on account of reduction in total income.
Interest Coverage Ratio:
The interest coverage ratio of the Company on a consolidated basis has
reduced from -2.28 for FY 2021-22 to -1.67 for FY 2022-23. As stated above the said
reduction is account of reduction in the total income of the company resulting in
reduction in operating profits.
Net Profit Margin (%):
The net profit margin % of the Company on a consolidated basis has
reduced from -58.71 for FY 2021-22 to -79.09 for FY 2022-23. The said reduction in the
Companys net profit margin is on account of reduction in interest income from financing
activities.
Debtors Turnover Ratio:
The Debtors turnover ratio has improved from 10.69 in FY 2020-21 to
4.92 in FY 2022-23 due to pick up in collections. There has been no significant change in
the other key financial ratios, as applicable to the Company.
CAUTIONARY STATEMENT
The statements that are not historical facts presented in the Annual
Report about Company are forward looking statements. These statements reflect the
assumptions, views and expectations based on current market dynamics and future outlook.
There might be deviations in expectations from those expressed in the Annual Report. It
should not be assumed that the statements will be changed if there is new information or
subsequent developments.
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