vakrangee ltd share price Management discussions
OVERVIEW
Indias Economic Performance
According to the Economic Survey of FY 2022-23 conducted by the Government of India, the Indian economy is anticipated to experience a surge in growth in the coming decade as the global impact of the pandemic subsides and commodity prices stabilize. Factors such as the limited global repercussions of rising Covid-19 cases in China and the normalization of supply chains contribute to Indias positive growth prospects. The temporary inflationary pressures from Chinas economic reopening and the recessionary tendencies in major advanced economies are expected to halt monetary tightening and attract capital flows to India. This, coupled with a stable domestic inflation rate below 6%, boosts business sentiment and drives private sector investment.
The survey also highlights significant credit growth observed in the Micro, Small, and Medium Enterprises (MSME) sector. This growth has been facilitated by the governments extension of the Emergency Credit Linked Guarantee Scheme (ECLGS). The recovery of MSMEs is evident through their GST payments, while the ECLGS alleviates their debt servicing concerns. The Central Governments Capital Expenditure (Capex) has played a crucial role in stimulating Indias economic growth and encouraging private Capex since early 2022.1
The findings of the Economic Survey 2022-23 reveal that India is projected to experience GDP growth ranging from 6.0 percent to 6.8 percent in 2023-24. This growth estimate is contingent upon the trajectory of global economic and political developments. The rebound in private consumption, driven by increased production activity, higher Capex, and widespread vaccination coverage, is expected to fuel growth. This, in turn, enables expenditure on contact-based services like hospitality, retail, and entertainment.
The fintech market opportunity in India is projected to reach a staggering USD 2.1 trillion by the year 2030, highlighting the immense potential for growth in the sector.
Fintech Industry
The fintech industry in India has experienced remarkable growth and emerged as a major player on the global stage. As per FDI India, a 14% share of global funding ranks India to be second in terms of deal volume, showcasing its significance in the fintech landscape. By 2030, the market opportunity for fintech in India is estimated to reach a staggering USD 2.1 trillion, highlighting the immense potential for growth in the sector.2 As per Invest India, India has emerged as one of the fastest growing fintech markets globally. With a market size of $50 billion in 2021, it is projected to reach approximately $150 billion by 2025. The total addressable market for the Indian fintech industry is estimated to be $1.3 trillion by 2025, with assets under management and revenue expected to reach $1 trillion and $200 billion respectively by 2030. The fintech industry in India encompasses various major segments, including payments, digital lending, insurtech, and wealthtech.
The payments landscape is predicted to reach $100 trillion in transaction volume and $50 billion in revenue by 2030. Digital lending in India was valued at $270 billion in 2022 and is expected to surpass $350 billion by 2023. India also holds the second largest insurtech market in the Asia-Pacific region, with projections indicating a growth of approximately 15 times to reach $88.4 billion by 2030. Furthermore, the Indian wealthtech market is anticipated to grow to $237 billion by 2030, fueled by an expanding base of retail investors.
Indias regulatory landscape has played a crucial role in fostering the growth of the fintech industry. The India Stack, consisting of a set of APIs, has facilitated the development of a robust digital infrastructure, promoting both public and private digital initiatives. The Jan Dhan Yojana, Aadhaar biometric identification system, and widespread mobile connectivity have further enhanced financial inclusion and accessibility. Cross-border linkages of Indias fast payment systems, such as UPI and RuPay network, have bolstered the countrys global footprint. Initiatives like financial inclusion programs, financial literacy campaigns, and the introduction of UPI123Pay and UPI Lite have contributed to the industrys growth and accessibility for a wider population.3 The Reserve Bank of India (RBI) has also set forth a vision for the future, aiming to increase digital payment transactions, registered customer base for mobile-based transactions, and PPI transactions. The introduction of the Account Aggregator Framework has allowed for consent-based sharing of financial information between providers and users, empowering users and enabling digital invoice financing for the MSME sector. Overall, the fintech industry in India is thriving, attracting substantial funding and witnessing remarkable growth. With supportive regulatory measures, a burgeoning market opportunity, and a focus on financial inclusion and literacy, India is poised to continue its ascent as a leading player in the global fintech ecosystem.
2 https://www.fdi.finance/sectors/bfsi
3 https://pib.gov.in/FeaturesDeatils.aspx?NoteId=151163&ModuleId=2
Entrepreneurship and the Fintech Industry
Entrepreneurship is playing a pivotal role in propelling the fintech industry in India to new heights. With India being a highly attractive market for fintech investment, several factors have contributed to its remarkable growth. One such factor is the widespread adoption of digital payment methods throughout the country. The Reserve Bank of India (RBI) reported that in January 2023 alone, a staggering 128 million retail digital payment transactions, amounting to USD 600 billion, were processed.
To bolster user safety and privacy, the Indian government has enacted new laws that restrict access to user data. These regulations have instilled confidence among users, fostering a favourable environment for fintech companies to thrive. Moreover, the governments initiatives aimed at promoting a cashless society, coupled with increased internet usage in both urban and rural areas, have significantly contributed to the industrys growth.
According to the Economic Survey 2022-23 conducted by the Government of India, Indian fintech companies have achieved an adoption rate of 87%, surpassing the global average by 23%. With over 2100 fintech companies, India now boasts the third-largest fintech ecosystem in the world. The governments consistent support at the policy level, combined with the ongoing digital transformation in the country, indicates that the fintech industry is poised for further expansion.
Despite occasional fluctuations in funding trends, the overall sentiment remains positive in the Indian fintech sector. Investors are actively seeking innovative solutions in the fintech space, and the funding landscape is expected to remain positive. Indias robust public digital infrastructure serves as a highway for fintech companies to develop and introduce ground-breaking products. The evolution of financial technology has unlocked new possibilities for offering personalized and customized solutions to consumers. This year, a notable trend has emerged, integrating technologies like artificial intelligence (AI), machine learning (ML), blockchain, cybersecurity, and fraud protection with digital banking and mobile payment services. This convergence of technology and finance has created exciting opportunities for entrepreneurs to innovate and thrive in the fintech industry.
As entrepreneurship continues to flourish and innovation drives the sector forward, India is on track to solidify its position as a global fintech hub. With its vibrant ecosystem, supportive policies, and a conducive market, the future looks bright for the fintech industry in India, poised to revolutionize the way financial services are delivered and accessed by millions. We believe, India is set to establish itself as a leading global fintech hub. We observe that the countrys thriving entrepreneurial spirit and focus on innovation are driving the sector forward. We view Indias ecosystem as vibrant, with a conducive market and supportive policies that foster growth and development in the fintech industry.
We continue to invest in cutting-edge technology and infrastructure to support our master franchisees, franchisees and our staff.
Our Operations and Performance
Our entrepreneurial spirit and expansive last-mile network have been instrumental in driving operational efficiency and success. As One of Indias largest network of last-mile retail outlets, Vakrangee Kendra are present in 566 districts and 5199 postal codes, ensuring widespread coverage across unserved rural, semi-urban, and urban markets. This extensive network, powered by advanced technology, allows Vakrangee to deliver a wide range of essential services, including real-time BFSI, ATM, e-commerce, and logistics, thereby promoting financial inclusion in line with government policies. At the heart of our operational excellence is its district-level master franchisee model, which fosters a culture of entrepreneurship and innovation. Local entrepreneurs, serving as master franchisees, are entrusted with the responsibility to manage and expand their district- level Kendra networks. They bring their unique insights, passion, and commitment to drive business growth within their territories. This approach ensures that our services effectively cater to the diverse needs of consumers.
Our commitment to operational efficiency extends beyond empowering franchisees. We continue to invest in cutting-edge technology and infrastructure to support our master franchisees, franchisees and our staff. By providing the necessary tools and resources, we enable our network of entrepreneurs to deliver exceptional service and create seamless consumer experiences. This steadfast dedication to innovation and customer satisfaction solidifies our position as a leader in the phygital market, successfully integrating physical and digital channels.
The turnover and profit/(loss) figures are on a standalone basis of our Company are given below
(in Rs. lakhs):
| Particulars | FY 2022-23 | FY 2021-22 (Restated) |
| Total income | 16,553.98 | 10,936.88 |
| EBITDA | 1,930.44 | 826.56 |
| Profit before tax (PBT), before exceptional | 227.55 | (719.01) |
| Profit before tax (PBT) | 227.55 | (887.67) |
| Profit after tax (PAT) | 60.01 | (998.46) |
Despite the challenges, we have managed to overcome obstacles and achieve commendable performance. We have demonstrated resilience and adaptability by implementing effective strategies to mitigate risks and capitalize on opportunities. By leveraging our entrepreneurial mindset and strong technological capital, we have not only sustained our operations but also delivered stable results.
Our master franchisee initiative is going to play a crucial role in strengthening our business model. By empowering and fostering entrepreneurship, this model shall enable us to expand our reach and tap into new markets effectively. Through strategic partnerships with master franchisees, we shall be able to leverage local expertise, resources, and networks, driving business growth and enhancing customer engagement.
We have a clear Focus on Market Expansion & to strengthen our First Mover Advantage, we are planning to cover entire 764 districts which is 100% of District coverage across the country through appointing exclusive District level Master Franchisees. We have successfully appointed master franchisees in 234 districts across 27 states across the country. These Master franchisees would provide on-ground operational support to our existing franchisees as well as drive new franchisee acquisition. This would lead to help us scale at a faster pace and expand on a pan India basis. We believe this Master Franchisee initiative is a game changer and strengthens our local field presence and operational control at the ground level. We Plan to achieve 100% District coverage by end of this financial year. These new initiatives would help us scale at a much faster pace and thereby achieve our Long Term targets well ahead of targeted timelines.
We have introduced BharatEasy App, Indias Super App, a revolutionary mobile platform designed to cater primarily to Rural India. Our goal is to provide a comprehensive range of services to empower the people of rural areas. With the launch of our app, we are thrilled to announce the availability of key services such as Online Shopping, Online Agriculture products, Total Healthcare services, Online Demat Account opening, CIBIL credit score rating services, and Online PAN Card application services. What sets us apart and gives us a sustainable competitive advantage is our unique ability to tap into the extensive Vakrangee On-Ground Ecosystem. This ecosystem comprises
The dynamic partnership between our master franchisees and Kendra franchisees not only propels our growth but also empowers us to extend our reach to more communities across the country.
a diverse network of physical stores spread across India, enabling us to offer unparalleled physical assistance to consumers residing in semi-urban and remote rural locations. With BharatEasy App, we bridge the gap between digital and physical experiences, ensuring that everyone has access to essential services regardless of their geographical location.
| Particulars | FY 2022-23 |
| Active Transacting Vakrangee Kendras Outlets | 20,399 |
| No of Kendras offering following services: | |
| BFSI | 20,399 |
| ATM | 6,324 |
| E-commerce & Logistics | 20,399 |
We are committed to serving all Indians, including remote areas, with financial, social, and digital inclusion. Through the master franchisee model, we empower local entrepreneurs, accelerating our expansion. By 2030, we plan to have 100% Pan India coverage through our Physical Vakrangee Kendra outlet network along with BharatEasy Digital Mobile App. Our target is to reach 3 lakh + outlets along with Minimum 15,000+ ATMs. With this, our plan is to achieve a Revenue target of US$ 1 Billion by 2030 along with a Gross Transaction Value of more than US$ 150 Billion. The entrepreneurial spirit of our master franchisees and Kendra franchisees is further fuelled by solid performance incentives and commissions, which encourage them to strive for excellence and continually raise the bar.
By providing performance incentives and commissions, we foster a culture of excellence among our franchisees, motivating them to deliver exceptional services and experiences. This dynamic partnership between our master franchisees and Kendra franchisees fuels our growth and enables us to reach more communities across the country. Together, we are building a network of empowered entrepreneurs who contribute to the economic development and progress of India.
Industrys performance and outlook
# E-Governance
We take pride in our role as a catalyst for social, digital, and financial inclusion in India. Our Vakrangee Kendras not only provide access to the governments social schemes but also offer contemporary services from the private sector. Achieving comprehensive socioeconomic growth in a country requires prioritizing financial inclusion. In 2015, three schemes were introduced to prioritize the well-being of citizens by addressing the importance of safeguarding lives and providing financial stability during unexpected events. The government launched PMJJBY (Pradhan Mantri Jeevan Jyoti Beema Yojana) and PMSBY (Pradhan Mantri Suraksha Beema Yojana) as insurance schemes to cater to the financial security of individuals in the unorganized sector, while APY (Atal Pension Yojana) was introduced to address the financial needs during old age. Here are some key highlights of the governments efforts to promote both financial and social inclusion:
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a national initiative aimed at ensuring financial inclusion for all households in India. It provides access to basic financial services such as savings accounts, credit, remittances, insurance, and pensions to the marginalized and low-income groups. This inclusive approach is made possible through the effective use of technology, enabling deep penetration at an affordable cost. The PMJDY program encompasses a comprehensive strategy to achieve universal access to banking facilities, promote financial literacy, and facilitate credit, insurance, and pension services for every household. Each beneficiary is provided with a RuPay Debit card that includes accident insurance coverage of Rs. 1 lakh. The plan also emphasizes the direct transfer of government benefits to the beneficiaries accounts, streamlining the Direct Benefits Transfer (DBT) scheme. The balance in basic bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) witnessed a significant increase of Rs 50,000 crore during the fiscal ear ending on March 31, 2023. The total balance reached Rs 1.99 lakh crore, compared to Rs 1.49 lakh crore in the previous fiscal year. Moreover, the scheme saw the addition of 5 crore new accounts, resulting in a total of 48.65 crore beneficiaries, with women accounting for over 27 crore of the total beneficiaries.
4 https://pmjdy.gov.in/about
5 https://www.pib.gov.in/PressReleasePage.aspx?PRID=1854909
6 https://financialservices.gov.in/pension-reforms-divisions/Atal-Pension-Yojana
7 https://pib.gov.in/PressReleasePage.aspx?PRID=1920187
Atal Pension Yojana (APY)
The Atal Pension Yojana (APY) was launched in 2015 to provide a universal social security system for all Indians, particularly those in the unorganized sector, the poor, and the underprivileged. Administered by the Pension Fund Regulatory and Development Authority (PFRDA), APY is open to all bank account holders aged 18 to 40 years. The scheme offers different contribution options based on the desired pension amount. Upon reaching 60 years of age, subscribers are entitled to a guaranteed minimum monthly pension ranging from Rs. 1,000 to Rs. 5,000. Eligibility requirements include having a savings bank account or a post office savings bank account. Any Indian citizen can join the APY scheme. As of March 31, 2023, the number of people enrolled in the Atal Pension Yojana has exceeded 5.20 crore. In the financial year 2022-23, the scheme witnessed an increase of over 1.19 crore new subscribers, compared to 99 lakh in the previous year, representing a growth rate of over 20%. Currently, the total assets under management in the APY scheme amount to more than Rs. 27,200 crore. Since its inception, the scheme has generated an investment return of 8.69%.
Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY)
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year renewable life insurance scheme that provides coverage for death. Launched in 2015, the scheme is administered by both public and private sector insurance companies in collaboration with scheduled commercial banks, regional rural banks, and cooperative banks. The government aims to extend insurance coverage to a wider section of the population, particularly the poor and underprivileged, as part of its inclusive growth vision. To be eligible for PMJJBY, individuals must be between 18 and 50 years old and have a bank account. Aadhaar serves as the primary KYC for the bank account. The scheme offers a life cover of Rs. 2 lakhs for the one-year period from June 1st to May 31st, with the option to renew. In the event of the insured persons death, a risk coverage of Rs. 2 lakhs is provided regardless of the cause. The premium for the scheme is Rs. 436 per annum, which is auto-debited in a single installment from the subscribers bank account based on their chosen option by May 31st of each coverage period. As per PIBs report, as on 26.04.2023, the cumulative enrolments under the scheme have been more than Rs. 16.19 crore and an amount of Rs. 13,290.40 crore has been paid for 6,64,520 claims
Pradhan Mantri Suraksha Beema Yojana (PMSBY)
Pradhan Mantri Suraksha Beema Yojana (PMSBY) is a one-year accidental insurance scheme that can be renewed annually, providing coverage for death or disability caused by accidents. Individuals aged 18-70 with a personal bank or post office account are eligible to enroll. The scheme offers a cover of Rs. 2 lakh for accidental death or disability (Rs. 1 lakh for partial disability) at a premium of Rs. 20 per year. As per PIBs report, as on 26.04.2023, the cumulative enrolments under the scheme have been more than Rs. 34.18 crore and an amount of Rs. 2,302.26 crore has been paid for 1,15,951 claims. > Through our extensive network of kendras across India, we facilitate the solicitation and procurement of insurance business. Our focus is on reaching the underserved populations of the country and providing them
8 https://financialservices.gov.in/insurance-divisions/Government-Sponsored-Socially-Oriented-Insurance-Schemes/Pradhan-Mantri-Jeevan-Jyoti-Bima-Yojana(PMJJBY)
9 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1922622
10 https://www.ibef.org/industry/banking-india access to social security and micro-insurance schemes like APY, PMJJBY, and PMSBY. With the help of services such as instant policy issuance and paperless insurance enabled by our e-KYC facility, we ensure seamless and convenient processes. Our wide network coverage and simplified policy procedures allow us to extend our services to even the most remote areas, supporting the governments efforts to enhance accessibility to insurance services nationwide.
# Banking
As per a report published by IBEF in November 2022, the banking system in India encompasses a diverse range of institutions, including 12 public sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks, and a vast network of 96,000 rural cooperative banks. From FY16 to FY22, there was a compound annual growth rate (CAGR) of 0.62% in bank credit, resulting in a surge to US$ 1,532.31 billion by FY22. During the same period, deposits experienced a CAGR of 10.92%, reaching US$ 2.12 trillion by FY22. As of November 4, 2022, bank deposits stood at Rs. 173.70 trillion (equivalent to US$ 2.12 trillion).
The Indian banking industry has experienced positive growth due to factors such as strong economic expansion, higher disposable incomes, increased consumerism, and improved access to credit. Additionally, India ranks second in terms of global smartphone users and internet usage, which has led to the widespread availability and adoption of internet banking services. The Government of India is dedicated to expanding digital transactions in the countrys economy to strengthen the financial sector and improve the lives of its citizens. Through collaborative efforts from various stakeholders, including the government, the number of digital payment transactions has significantly risen from 2,071 crore transactions in FY 2017-18 to 8,840 crore transactions in FY 2021-22, as reported by the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), and banks.
Over the past five years, several convenient and user-friendly digital payment methods have witnessed substantial growth, such as Bharat Interface for Money-Unified Payments Interface (BHIM-UPI), Immediate Payment Service (IMPS), and National Electronic Toll Collection (NETC). These methods have transformed the digital payment ecosystem by facilitating both person-to-person (P2P) and person-to-merchant (P2M) transactions. BHIM UPI, in particular, has become the preferred payment mode for citizens, with 803.6 crore digital payment transactions valued at 12.98 lakh crore recorded in January 2023.
As of December 2022, Total ATMs stands at around ~2,17,092. Push towards Digital Assistants, social media tools and 3rd party channels is seeing increasing level of adoption. According to RBIs Scheduled Banks Statement of Position in India, deposits of all scheduled banks collectively surged by a whopping Rs.3.82 lakh crore (US$ 46.5 billion) in the fortnight ended December 30, 2022, even as their advances grew moderately at Rs.1.53 lakh crore (US$ 18.53 billion). With the development of the Digital Economy, India is fastly moving towards Digital Payment Mechanisms and Emerging as a Cashless Society.
With the fast pace of digital payment penetration, Cash transactions such as ATM & Banking transactions are expected to witness slow down. Therefore, there would be profitability & viability challenges for standalone business models such as only White Label ATMs, only Banking (AEPS) provider, only Money Transfer providers which are dependent on cash transactions.
We are future ready with a clear focus on building long term sustainable & profitable business model.
? N on-Cash based Banking Offering such as Account Opening, Loan Product, Insurance Services, Fixed Deposits & NPA Recovery ? No dependency on single line of product or services such as ATM or Banking Services.
? Wide portfolio of product & services such as Online Shopping, Total Healthcare Services, Bill Payments, Online Travel Services, Mobile Recharges, CIBIL Score services, Pan Card Services, Online Opening of Demat & Trading Account Opening Services and many more ? Highest commission in the industry
> We provide extensive banking services across the nation as a Business Correspondent for major public-sector banks & private banks. Our kendras offer real-time interoperable banking services, including account opening, cash deposits and withdrawals, money transfers, fixed and recurring deposits, balance inquiries, account statements, disbursement of Direct Benefit Transfers, and lead generation for loan products. Our outlets operate beyond normal banking hours and utilize paperless, biometric-enabled processes, making it convenient for rural populations with limited access to education to access banking services. With our widespread network of kendras across Gram Panchayats and villages, customers can avoid traveling long distances. Additionally, we offer SBM banking services that include free real-time zero balance account opening, interoperable banking through Aadhaar, and benefits such as competitive interest rates on fixed deposits and recurring deposits, with additional advantages for senior citizens.
# Insurance
The insurance industry in India is undergoing a remarkable transformation, fuelled by a multitude of factors. With the surge in personal incomes and a heightened awareness of insurance products, the sector is witnessing a significant upswing. Among the emerging insurance markets worldwide, India currently holds the prestigious fifth position, boasting an impressive annual growth rate of 32-34%.
In India, a diverse landscape of insurance companies exists, totalling 57 in number. Out of these, 24 cater to the life insurance segment, while the remaining 34 specialize in non-life insurance. It is worth noting that the Life Insurance Corporation (LIC) stands as the solitary public sector entity in the life insurance arena, while the non-life insurance domain encompasses six public sector insurers. Furthermore, ensuring national reinsurance coverage is the General Insurance Corporation of India (GIC Re).
Driving the industrys expansion over the past two decades has been the
Among emerging insurance markets worldwide, India currently holds the prestigious fifth position, boasting an impressive annual growth rate of 32-34%.
increased participation of private players and notable enhancements in distribution capabilities. The simultaneous improvement in operational efficiencies has played a pivotal role in the industrys overall growth trajectory.
Private insurers have witnessed commendable progress across various premium categories, including individual single premium, group single premium, and individual non-single premium. Projections suggest that private life insurers are poised to achieve a Compound Annual Growth Rate (CAGR) exceeding 17% in their retail Annualized Premium Equivalent (APE) from 2021 to 2023, while the realm of new retail term premiums is expected to witness a doubling within a five-year span. Additionally, the private non-life insurance segment is anticipated to experience a steady growth rate of 14% in the fiscal year 2023.
Recent data released by the Insurance Regulatory and Development Authority of India highlights LICs noteworthy market share growth of 67.72% as of October. At the conclusion of the 2021-22 fiscal year, private players commanded a market share of 36.75% in the life insurance sector, with LIC securing the remaining 63.25%.
As per IBEFs Insurance Report, it is projected that premiums emanating from Indias life insurance industry will reach an impressive Rs. 24 lakh crore (US$ 317.98 billion) by the end of the fiscal year 2031. Notably, in the fiscal year 2023 (until October 2022), new business premiums from life insurance companies amounted to US$ 25.3 billion. Furthermore, life insurers experienced a substantial increase in new business premiums in October 2022, reaching Rs. 15,920.13 crore (US$ 1.94 billion), as per data provided by the Life Insurance Council. Within the same timeframe, the gross first-year premium for life insurers expanded by 12.93%, reaching Rs. 314,262.42 crore (US$ 40.06 billion).
Our partnerships with leading insurance companies have enabled us to offer efficient and convenient insurance services to individuals. By implementing initiatives such as paperless insurance and instant policy issuance, we are steadily becoming a prominent provider of insurance services nationwide, with a specific focus on serving rural populations.
> We have established partnerships with leading insurance companies in the country to offer efficient and convenient insurance services to individuals. Through our initiatives, such as paperless insurance and instant policy issuance, we are becoming a prominent provider of insurance services across the nation, with a particular focus on serving rural populations.
# ATM
In India, cash is the preferred method of payment. The increased issuance of debit cards has not been accompanied by an increase in the number of ATMs. The countrys cash withdrawals from ATMs are second only to China.
> We have established and oversee White-Label ATMs to enhance financial accessibility for rural populations. Our Kendras offer a range of financial services including cash withdrawals, balance inquiries, PIN changes, and mini statements. Additionally, our Value Added Services, such as Aadhaar seeding, card-to-card fund transfers, cheque book requests, and mobile banking registration, ensure convenient access to financial services in underserved markets throughout the country.
# E-commerce
As per IBEFs E-Commerce Industry Report, India has witnessed a significant surge in internet and smartphone usage, thanks to initiatives like Digital India. Internet connections reached 830 million in 2021, and the smartphone base is projected to reach 1 billion by 2026. This has propelled the growth of Indias e-commerce sector, which is expected to reach a value of US$ 1 trillion by 2030. Various segments of e-commerce, including B2B, D2C, C2C, and C2B, have flourished. Notably, D2C is predicted to reach US$ 60 billion by FY27. The overall e-commerce market is set to reach US$ 350 billion by 2030, with an anticipated growth rate of 21.5% in 2022, reaching US$ 74.8 billion. Additionally, the online grocery market is estimated to expand to US$ 26.93 billion in 2027, growing at a CAGR of 33% from its FY21 value of US$ 3.95 billion. Indias consumer digital economy is projected to become a US$ 1 trillion market by 2030, rising from US$ 537.5 billion in 2020. The adoption of online services, such as e-commerce and edtech, is driving this growth. The Indian e-commerce market is expected to reach US$ 200 billion by 2026, a substantial increase from its value of US$ 38.5 billion in 2017. To support and foster the e-commerce sector, the Government of India has implemented initiatives like Digital India, Make in India, Start-up India, Skill India, and the Innovation Fund. These measures include the GeM portal for order facilitation, the use of ONDC for cataloguing and vendor discovery, consumer protection rules, partnerships with banks for cashless transactions, and the requirement for foreign e-commerce platforms to have PAN. These efforts aim to enhance the e-commerce ecosystem, streamline processes, and ensure transparency in the sector.
> Our Vakrangee Kendras offer customers the convenience of assisted online shopping, enabling them to have products delivered even in rural areas. Through our e-commerce model and the BharatEasy Mobile Super App, customers can enjoy the benefits of online shopping and receive authentic products. Additionally, customers have the opportunity to purchase genuine gold and silver items, including coins and jewellery, with the option to pay in instalments over 3, 6, or 9 months. They also have the flexibility to cancel orders within the instalment period. With the support of trusted brands like Augmont and competitive pricing, luxury goods and services are now accessible to customers across India. We have also launched our e-commerce portal i.e. Vakrangee e-Mart where customers can access to various products at an affordable & discounted price. We are in the process to design and launch our Buyer Application on ONDC platform to provide ecommerce shopping experience to franchisee and customers in rural market. We can replicate the model on our Bharat Easy Super App to provide ONDC experience directly to customer. We will also be registering as Seller on Seller App of ONDC to sell our services which are available on BharatEasy Mobile Super App. We will be developing a dedicated seller app which can provide a streamlined and optimized experience for local sellers near our Vakrangee Kendras. This will improve our reach and discoverability across multiple platforms.
# E-health
E-Health is a dynamic field that intersects medicine, public health, business, and modern technology. It involves using emerging electronic information and communication technologies to deliver healthcare services. The digital health market is anticipated to grow at a compounded annual growth rate of 29.6 percent from 2019 to 2025. In 2018, the digital health market in India was valued at Rs. 116.61 billion ($1.57 billion) and is expected to reach Rs. 485.43 billion ($6.53 billion) by 2024. This indicates a compound annual growth rate of approximately 27.41 percent during the 2019-2024 period. According to the Indias e-Health Market Opportunity Report 2021, the e-health market is projected to generate $10.6 billion in revenue by 2025.
> To meet the growing demand for e-health services, we have established partnerships with renowned organizations such as DocOnline and Corival Lifesciences/ Biogetica. Our assisted total healthcare services offer valuable support to customers, including access to telemedicine and genuine medicines at discounted prices and a team of highly trained telemedicine professionals such as doctors, nurses, dieticians, and behavioral health clinicians. Through our Vakrangee Kendra network, customers can conveniently order, pay for, and collect a wide range of prescription and over-the-counter medicines and health products. We have also collaborated with Additionally, we facilitate home-blood tests and doorstep delivery of medicines through our partner network. As part of our efforts to expand our services, we have joined forces with Biogetica to offer products that integrate traditional and modern scientific healing approaches.
# Logistics
Logistics Industry in India has been growing exponentially. The rise of e-commerce, streamlined GST and government infrastructure development projects are just a few drivers boosting the domestic logistics sector. India has played a critical role in raising its global position in cross-border trade from 146th in 2017 to 80th in 2016. Logistics investments, including infrastructure, are estimated to reach USD 500 billion annually by 2025. > Through our partnership with Delhivery, we offer courier services and last-mile delivery via our network of Vakrangee Kendras. This network provides convenient and affordable delivery of goods and services to customers in rural and urban areas. Our logistics services have a strong track record of reliability and customer satisfaction.
BUSINESS RISKS AND OPPORTUNITIES
Risk Management Framework
As per the requirements of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 and Companies Act, 2013, our Board of Directors has embraced a Risk Management Policy ("Policy") to establish a comprehensive framework for assessing and mitigating risks. The primary goal of this policy is to ensure sustainable business growth with stability and promote a proactive approach in reporting, evaluating, and resolving business-related risks. To achieve this objective, we have implemented a structured and disciplined approach to Risk Management that guides decision-making on risk-related matters.
To oversee and review risk management across our company, we have constituted a Risk Management Committee. This committee holds the overall responsibility of monitoring and assessing risk management activities. In our risk assessment process, we adopt a systematic approach that involves identifying and analyzing risks. During this process, we consider various parameters such as threats, vulnerability, probability of risk occurrence, impact, severity, and exposure to different risks. Our risk management practices align with the guidelines set by RBI for managing risks in banking correspondence and white label ATM operations, as well as with Regulation 21 of SEBI LODR.
Composition of Our Board-led Risk Management Committee
Through a continuous evaluation, our Board of Directors ensures the effectiveness of our risk management system. Our Department Heads take charge of implementing the risk management system when necessary and provides regular updates to the Board and Audit Committee. By combining a forward-thinking mindset with a comprehensive risk management approach, we strive to effectively identify, address, and communicate potential risks while fostering sustainable and resilient business growth.
To ensure comprehensive risk management within our organization, our Board assumes the following responsibilities:
? Take responsibility for establishing, implementing, and supervising our risk management plan. ? Ensure that all departments and verticals adhere to globally recognized best practices when developing their standard operating procedures (SOPs). These SOPs should comply with ESG standards, UN-SDGs, and effectively address both business and legal risks.
? D efine the tasks and duties of the Management Committee, delegate the monitoring and evaluation of the risk management plan to the Committee, and assign any additional functions deemed necessary.
? Implement appropriate risk management mechanisms throughout the organization.
? Engage Independent Directors to provide an impartial perspective during Board discussions on risk management issues. They should ensure that the risk management system is robust, defensible, and actively participate in significant decisions that impact the firms risk profile.
? Maintain awareness and continuously monitor the management of strategic risks.
? Establish procedures and controls Riskto mitigate less significant threats. Ensure the presence of a suitable accountability structure to record risk delegation and enable proper performance tracking. Additionally, incorporate risk management into board reporting and annual reporting methods.
? Convene any necessary board committees to effectively manage and address risks whenever required.
By fulfilling these responsibilities, we aim to establish a strong risk management framework that promotes business resilience and sustainability.
We have constituted a Risk Management Committee with majority members of the Board of Directors. Composition of our Risk Management Committee is:
| Sujata Chattopadhyay - Chairperson | |
| Risk Management Committee | Dinesh Nandwana – Member |
| Dr. Nishikant Hayatnagarkar – Member | |
| Kshitija Tambave - Officer |
Management and relevant management information should be readily accessible to the Committee. The Committee is required to convene at least once annually and has the authority to seek guidance from external experts or consultants when necessary. Additionally, the Committee should conduct an annual evaluation of the policy to ensure compliance with legislative requirements and organizational needs. Once the risk management committee has reviewed risks, they are communicated to all stakeholders.
Driving Economic Empowerment
While we have actively mitigated risks, we have also effectively transformed risks into economic opportunities. Our commitment to serving the nation includes providing essential services such as banking and ATMs at over 20,000 locations through our Next Generation Vakrangee Kendras. These business correspondents play a vital role in delivering government subsidies to Jan Dhan Account holders in rural areas nationwide.
Embedding Sustainability
Sustainability is deeply ingrained within our risk management framework. The purpose of our risk management framework is to establish a structured approach for assessing and mitigating risks. Its primary objective is to facilitate sustainable business growth with stability while fostering a proactive approach in identifying, evaluating, and resolving business-related risks. In order to effectively manage risks, the Board of Directors, Business heads, and Department heads ensure that all departments and verticals develop SOPs in accordance with globally recognized best practices. These SOPs are not only compliant with ESG parameters but also aligned with UN SDG goals, ensuring they address sustainability concerns. Moreover, they are designed to be free from any potential business or legal risks. Furthermore, we have established a dedicated Board ESG Committee, focusing on significant environmental, social, and governance matters relevant to our business operations. This committee plays a pivotal role in preserving our position as a global leader in ESG performance. Regular reviews are conducted, at least once a quarter, to ensure comprehensive analysis. Additionally, the committee conducts assessments as needed to thoroughly evaluate major company strategy decisions and the implementation requirements of any ESG-related initiatives. Members of the Board ESG Committee are responsible for the following: ? Reviewing Performance and Results of ESG Investor Initiatives: Carefully assess the performance and outcomes of significant ESG investor initiatives and surveys, as well as global benchmarks. This allows us to oversee the implementation of identified initiatives or areas for improvement derived from ESG investor feedback and global benchmarks.
? Considering Emerging ESG Issues: It is crucial for us to stay updated on emerging ESG issues and evaluate their materiality in relation to the long-term value creation of our company. By doing so, we ensure that we are well-informed and prepared to address these issues effectively.
? Evaluating Business Strategy from an ESG Impact Perspective: Actively review and evaluate the overall business strategy of our company, considering our impact on ESG factors. This ensures that our strategic decisions align with our commitment to sustainable development.
? Monitoring Sustainable Development Goals (SDGs) Integration: One of our key responsibilities is to monitor and review the integration of Sustainable Development Goals into any new business strategy or initiatives. This ensures that our company actively contributes to the global efforts to achieve these goals.
? Assisting in ESG Performance Evaluation of Senior Management: We provide support to the Nomination and Remuneration Committee in assessing the performance of senior management from an ESG deliverable perspective. This helps to ensure that our leadership team effectively incorporates and drives ESG considerations in their decision-making processes. ? Reviewing Progress of GHG
Reduction Initiatives: We actively review the progress of key initiatives implemented by the GHG Reduction Strategy Committee. This allows us to monitor our efforts in reducing greenhouse gas emissions and contribute to mitigating climate change.
| ? Supervise the implementation of various initiatives and commitments pertaining to environmental sustainability, including monitoring performance, identifying challenges, and exploring opportunities. | |
| ? Oversee the disclosure of our Climate-Related and GHG Carbon Emissions Disclosures. | |
| Environment | |
| ? Collaborate with the Board Risk Management Committee to assess the adequacy of managements approach in identifying and managing environmental risks and opportunities, particularly in relation to climate- related issues. | |
| ? Monitor the implementation of social responsibility and sustainability initiatives or commitments across our organization, evaluating performance, addressing challenges, and identifying opportunities to create social impact. | |
| Social | ? Supervise and evaluate processes and mechanisms for establishing and nurturing relationships with franchisees, customers, suppliers, and other key stakeholders, while understanding their expectations. |
| ? Assess the effectiveness of initiatives and policies supporting human rights and fostering diversity within our companys operations and supply chain. | |
| ? Work in conjunction with the Board Remuneration Committee to oversee inclusion, diversity, and general people and culture practices, as well as the associated frameworks. | |
| ? Monitor and assess the reputational impacts of our business strategies and practices. | |
| ? Ensure the existence of appropriate safeguards within our company policies and initiatives for fair and ethical dealings with third-party capital partners, suppliers, and other stakeholders. | |
| Governance | ? Review and endorse the groups Governance Management Framework for approval by the Board. |
| ? Review and endorse our Sustainability Performance Pack, Corporate Governance Statement, and ESG achievements and future commitments and targets on an annual basis, presenting them to the Board. |
By fulfilling these responsibilities, the Board ESG Committee plays a crucial role in guiding our company towards sustainable and responsible practices, aligned with the expectations of investors and global ESG benchmarks.
Business Risks
Risks can be defined as the impact of uncertainty on objectives, measured by consequences and likelihood. It is inherent in all business and administrative activities, both internally and externally. Managing risks is a continuous responsibility for every member of an organization. Risk management, which encompasses formal and systematic approaches, has emerged as a recognized best practice.
To ensure long-term value creation and address risks related to development and stakeholders, we proactively capitalize on opportunities arising from a dynamic environment.
Our risk mitigation strategies are based on formal and systematic methodologies. These include comprehensive risk assessments to identify and analyze potential threats, vulnerabilities, and hazards that may pose harm to our organization. The risk assessment process involves a detailed examination of threats, vulnerabilities, and exposure to various risks. We follow a structured approach during risk analysis and evaluation, which consists of the following steps:
? Risk Identification: The initial stage of the risk management process involves the identification of potential risks. This entails recognizing and acknowledging the existence of risks, followed by describing their potential effects and impacts.
? Risk Analysis: Once the risks have been identified, the next step is to perform a comprehensive risk analysis. This involves assessing the likelihood and consequences of each individual risk, gaining a thorough understanding of its nature, and evaluating how it could potentially affect the organizations goals and objectives.
? Risk Evaluation: After conducting the risk analysis, the magnitude of each risk is determined. This assessment considers both the likelihood of the risk occurring and the severity of its potential consequences. Based on this evaluation, a decision is made regarding the acceptability of the risk. If the risk is deemed unacceptable, further actions are taken to develop appropriate strategies for risk mitigation.
? Risk Treatment: The risk treatment phase encompasses the assessment of all identified risks and the implementation of action plans to mitigate them. This involves executing measures to reduce or eliminate the risks to acceptable levels. It is crucial to not only focus on minimizing negative risks but also to enhance and capitalize on identified opportunities.
? Risk Monitoring and Review: Following the implementation of risk mitigation measures, a process of ongoing risk monitoring and review is essential. This step involves regular tracking, examination, and evaluation of the identified risks and their associated mitigation strategies. By consistently reviewing risks, organizations can ensure the effectiveness of their risk management efforts and make necessary adjustments in response to changing circumstances.
Risks identified and evaluated through assessments
| Risk | Significance | Mitigation measure | Linkage with Capital |
| Changes in government policies | Our business is intricately tied to government policies concerning financial inclusion in semi-urban and rural areas of India, among various other factors. It is important to recognize that any modifications or changes made to these government policies have the potential to significantly impact our business operations. | We adopt a proactive approach by actively engaging with diverse stakeholders, conducting continuous reviews and monitoring of Indias economic and financial policies, and actively participating in representation at trade bodies. | >Financial |
| >Social and relationship | |||
| Rapid technological transformation | As a financial technology company, we provide our services leveraging electronic devices such as computers and printers, as well as advanced technologies including Internet of Things (IoT) and biometric identification. It is important to acknowledge that disruptive innovations within the industry have the potential to significantly impact a companys profit margins. | We duly acknowledge the utmost significance of adopting a next- generation company model in the digital era. In alignment with the governments digital payment agenda and with a strategic vision to seize the opportunity, we have successfully established a Unified Payment Platform capable of handling diverse payment methods including card payments, UPI, AEPS, Aadhaar Pay, and QR codes, among others. This platform empowers our Next-Gen Vakrangee Kendras to efficiently collect payments from our clients through various channels. Notably, we were among the pioneers in leveraging the Aadhaar enabled Payment System (AePS) for banking, allowing us to extend banking services to every citizen of India. | >Intellectual |
| Recognizing the inevitability of technological obsolescence, we conduct regular analyses to evaluate the obsolescence of our technological infrastructure. Consequently, we make diligent investments to leverage the most advanced and cutting-edge technologies available. Our procurement strategy considers all legislative requirements and anticipates future upgrades to ensure we consistently utilize the finest technological resources. | >Natural | ||
| Moreover, we have also unveiled an online digital platform to provide seamless services to our valued customers from the convenience of their homes. Through this initiative, we have successfully transformed into a distinctive Online-to-Offline (O2O) platform, offering assistance through our Physical Kendra network in conjunction with a comprehensive range of digital online services. The introduction of our pioneering Telemedicine services marks the commencement of this unique hybrid proposition. We are committed to expanding our service portfolio on this platform to encompass a multitude of offerings. Additionally, we have launched the Mobile Super Apps platform i.e. BharatEasy App, Indias Super App. | >Financial | ||
| We are in the process to design and launch our Buyer Application on ONDC platform to provide ecommerce shopping experience to franchisee and customers in rural market. We can replicate the model on our Bharat Easy Super App to provide ONDC experience directly to customer. We will also be registering as Seller on Seller App of ONDC to sell our services which are available on BharatEasy Mobile Super App. We will be developing a dedicated seller app which can provide a streamlined and optimized experience for local sellers near our Vakrangee Kendras. This will improve our reach and discoverability across multiple platforms. | |||
| Rapid increase in Digital Payment Mechanisms and India Emerging as a Cashless Society | With the development of the Digital Economy, India is quickly moving towards Digital Payment Mechanisms and Emerging as a Cashless Society. | We are future ready with a clear focus on building long term sustainable & profitable business model. | >Intellectual >Financial |
| With the fast pace of digital payment penetration, Cash transactions such as ATM & Banking transactions are expected to witness slow down. Therefore, there would be profitability & viability challenges for standalone business models such as only White Label ATMs, only Banking (AEPS) provider, only Money Transfer providers which are dependent on cash transactions. | Non-Cash based Banking Offering such as Account Opening, Loan Product, Insurance Services, Fixed Deposits & NPA Recovery | ||
| No dependency on single line of product or services such as ATM or Banking Services. | |||
| Wide portfolio of product & services such as Online Shopping, Total Healthcare Services, Bill Payments, Online Travel Services, Mobile Recharges, CIBIL Score services, Pan Card Services, Online Opening of Demat & Trading Account Opening Services and many more | |||
| Highest commission in the industry | |||
| Heavy dependence on franchisee model | While the franchisee model enables rapid expansion, it is essential to acknowledge the inherent risks associated with it. Our brand name and reputation may be susceptible to damage in the event of unfavourable incidents involving our franchisees. Additionally, franchisees often operate with narrower profit margins, and the potential for legal issues may pose challenges to otherwise efficient operations. | In the future, if deemed necessary, we have the option to consider alternative arrangements for our franchisee model. Specifically, we can explore the implementation of revenue-based banking correspondence and the integration of White Label ATMs as potential avenues for growth and expansion. | >Human |
| >Manufactured | |||
| >Social and relationship | |||
| >Financial | |||
| Legal Risk | Given our adherence to numerous laws and regulations, our organization is susceptible to legal risks in the event of any non-compliance or violation. | In order to ensure strict adherence to all contractual obligations, our proficient team of specialists and consultants diligently evaluate contract-related risks, ascertain our responsibilities, and effectively mitigate our liabilities. | >All |
| Financial Reporting Risk | Business uncertainty arises from the dynamic nature of laws, regulations, and standards governing accounting, corporate governance, and public disclosure, including guidelines from SEBI and restrictions on Indian stock market listings. The introduction of new rules, norms, and regulations may lead to varying interpretations due to their lack of precise clarity. Furthermore, as regulatory and governing bodies issue updated guidelines, their implementation and implications may evolve over time. Consequently, the perpetual adjustments to corporate governance regulations can generate ongoing ambiguity regarding compliance matters, resulting in increased expenses associated with ensuring compliance. | We uphold stringent principles of corporate governance and transparent public disclosure to adhere to the ever-evolving landscape of laws, regulations, and standards. | >Financial |
| >Social and relationship | |||
| >Human | |||
| Corporate Accounting fraud | Corporate accounting fraud, commonly referred to as accounting fraud, poses a significant risk to a company as it involves the improper utilization or diversion of funds, overstatement of revenues, understatement of costs, and similar deceptive practices. | To mitigate these risks, we employ a comprehensive set of measures, including: | >Financial |
| ? Deep comprehension of relevant laws and regulations. | >Social and relationshipc | ||
| ? Conducting thorough risk assessments to identify potential areas ? of vulnerability. | >Human | ||
| ? Vigorously enforcing and closely monitoring a code of conduct for key executives. | |||
| ? Establishing and maintaining whistle-blower mechanisms to encourage reporting of any misconduct. | |||
| ? Implementing a well-defined strategy and process for introducing and enforcing new controls. | |||
| ? Adhering strictly to internal control practices that deter collusion and prevent concentration of authority. | |||
| ? Employing mechanisms for multiple authorizations and cross- checks for critical transactions. | |||
| ? Conducting meticulous scrutiny of management information to detect discrepancies in comparative figures and ratios. | |||
| ? Fostering a supportive environment for internal auditors to ensure effective reporting. | |||
| ? Promptly addressing any minor deviations from prescribed procedures and manuals. | |||
| ? Implementing a wide range of measures throughout the organization to reinforce risk mitigation efforts. | |||
| These proactive steps are aimed at safeguarding our company against accounting fraud and ensuring the maintenance of robust control mechanisms and adherence to regulatory requirements. | |||
| Cyber risk | In the present business environment, concerns arise from incidents such as breach of user data privacy, data leakage, and cyber-attacks. The proliferation of internet-connected devices not only facilitates data management but also amplifies the vulnerability and exposure of data to potential risks. | The privacy and security of data are paramount to our organization, and we have implemented several mitigation measures to ensure their protection. These measures include: | >Financial |
| ? Validation and filtration of end-point inputs: We employ a rigorous process to validate and filter the inputs received from end-point devices, ensuring the entry of authentic and legitimate data into our systems. | >Social and relationship | ||
| ? Implementation of Mandatory Access Control (MAC): We enforce MAC policies to restrict user access to specific tasks and timeframes, enhancing data security by limiting unauthorized access. | >Human | ||
| ? Utilization of digital signatures and asymmetric encryption: We employ standard practices such as digital signatures, regular audits, and hash chaining to maintain data security and integrity. | >Intellectual | ||
| ? Real-time monitoring of logs: We continuously monitor logs to detect any anomalies, misuse, or abnormal activities, enabling prompt identification and response to potential security breaches. | |||
| ? Data tagging and time stamps: We implement data tagging and time stamps to trace and track unauthorized activities, providing an added layer of security and accountability. | |||
| ? Encryption of data in transit and at rest: We ensure the confidentiality and integrity of data by employing encryption measures for data in transit and within databases. This includes SSL encryption for secure client-server connections and granular encryption for data stored in databases. | |||
| ? Key exchange policy: We have established a robust key exchange policy for managing ATM encryption keys, leveraging Hardware Security Modules (HSM) for secure key storage and complying with industry standards such as ISO, PCI, and DSS. | |||
| ? Anti-skimming card reader installation: To mitigate skimming attacks, we have installed anti-skimming card readers at our ATMs, providing an additional layer of security against such fraudulent activities. | |||
| Through these rigorous measures, we strive to maintain the utmost privacy and security of data, protecting it from potential threats and ensuring the trust and confidence of our stakeholders. | |||
| Theft of physical assets | Ensuring the security and safety of franchisees and their stores is of utmost importance. It is imperative to prevent any risks related to theft, physical burglary, or damage that could potentially result in loss to the outlet. The ATM holds substantial value as a corporate asset, entrusted to the franchisee on a custodial basis. Consequently, we place significant emphasis on maintaining and safeguarding the ATM asset, recognizing its paramount significance. | We have implemented a comprehensive master insurance plan that provides coverage for all hardware within the Kendra, including ATMs, cash in transit, and cash at outlets, up to a limit of Rs. 10 lakhs. Additionally, we have introduced a unique product that combines ATM maintenance services and insurance. This offering ensures year-round maintenance support for ATMs and extends coverage for any damages to spare components. | >Financial |
| >Social and relationship | |||
| >Human | |||
| >Manufactured |
Risk identified and mitigated for the current financial year
| Risk Identified | Mitigation Strategy |
| The pandemic and its aftermath have significantly impacted various business services, including the implementation of nationwide lockdown measures. Consequently, store closures, reduced customer visits, and limitations on field visits for franchisee monitoring and training have been observed. | As an essential service provider, we have maintained the operation of critical services such as banking and ATMs throughout the pandemic and lockdown periods. This has provided support to franchisees whose core services remained operational, while other services like travel, online shopping, and logistics were affected. |
| Doorstep Banking Facility: In response to the lockdown measures, our Banking Business Correspondents (BCs) offered doorstep banking services to Jan Dhan Account Holders in remote rural areas, with a particular focus on senior citizens and pensioners. | |
| Launch of BharatEasy Mobile Super App platform: To adapt to the changing landscape, we have introduced a unique Hybrid O2O (Online to Offline) platform, combining physical store assistance with digital online services. This initiative enables customers to seamlessly access various partner services through both physical outlets and the online platform, leveraging the trust and convenience associated with the existing Kendra network. | |
| The COVID-19 pandemic has necessitated the adoption of technology, process automation, and innovative digital initiatives to facilitate business operations and manage field activities. We have established dedicated virtual communication channels for franchisees to access online training sessions and engage in real-time two-way communication with business teams, exclusive dedicated district level master franchisees and relationship managers. Furthermore, CCTV monitoring systems and a dedicated troubleshoot helpdesk have been implemented to enhance monitoring and support for franchisees. These measures have not only reduced manpower requirements at the field level but also improved franchisee satisfaction, de-centralized management of operations, and overall cost efficiency and profitability. | |
| Security and safety of the franchisee and its outlet is of utmost importance, hence any risk arising out of theft, physical burglary attack, any damage or loss to the outlet needed to be taken care of. Further, ATM is a valuable asset for our company which is given to the franchisee on a Custodian basis. Therefore, proper maintenance of the ATM asset as well as security of the Asset has been of prime importance. | We have implemented a master Insurance policy which now covers the entire hardware of the Kendra, ATM machine, cash-in-transit and cash at outlet upto Rs. 10 Lakhs. |
| ATM maintenance is completely taken care off by a unique offering whereby all year servicing of the ATM along with coverage of any damage of spare parts is taken care off by us. | |
| The Government of India has prioritized the promotion of digital payments across the nation. However, not all payment mechanisms, such as QR code and UPI payments, are currently enabled within the Kendra network. | We recognize the significance of adopting a next-generation business model in the digital era. In alignment with the governments mission to promote digital payments, we have successfully implemented a Unified Payment Platform that facilitates various payment methods, including card payments, UPI, AEPS, Aadhaar Pay, and QR codes, among others. This integration empowers our Next Generation Vakrangee Kendras to accept payments from customers through any preferred mode. As pioneers in the Aadhaar enabled Payment System (AePS) based banking system, we are committed to providing accessible banking services to every citizen of India, even in the most remote regions. |
| Our operations are reliant on the Governments policies pertaining to financial inclusion in semi-urban and rural areas of India. Consequently, any alterations in the policy framework or restrictions imposed on transactions have the potential to impact the businesss profitability. | To address the risks arising from potential policy changes, we actively engage with various stakeholders, continuously reviews and monitors the countrys economic and financial policies and participates in representation at trade bodies. |
| It is worth noting that this risk is not deemed significant, considering the Governments heightened focus on improving financial, social, and digital inclusion within the country. These efforts are vital for the overall infrastructure and economic development of the nation. We stand to benefit from its business model being aligned with the Governments vision and long-term developmental objectives for the country. | |
| As the Digital Economy continues to advance, India is rapidly progressing towards becoming a cashless society, with a significant increase in the adoption of digital payment mechanisms. Consequently, traditional cash transactions, including ATM and banking transactions, are expected to experience a slowdown. This shift poses profitability and viability challenges for standalone business models that solely rely on cash transactions, such as white label ATMs, exclusive banking (AEPS) providers, and exclusive money transfer providers. | We are future ready with a clear focus on building long term sustainable & profitable business model. We have diversified our offerings beyond cash-based banking, incorporating non-cash services such as account opening, loan products, insurance services, fixed deposits, and NPA recovery. |
| Our business model is not reliant on a single line of product or service, such as ATMs or banking alone. We maintain a wide portfolio of products and services, including online shopping, total healthcare services, bill payments, online travel services, mobile recharges, CIBIL score services, pan card services, online demat and trading account opening, and more. | |
| Additionally, we offer the highest commission rates in the industry. | |
| The rapid pace of technological advancements can potentially disrupt existing business models, impacting our margins as new cost-effective and disruptive innovations emerge. | We recognize the inevitability of technological obsolescence and actively evaluates it on an ongoing basis. Investments are made to adopt the most advanced technology available, aligning with our belief in staying at the forefront of technological advancements. The procurement policy considers both regulatory requirements and the potential for future upgrades, ensuring the incorporation of state-of- the-art capabilities. |
| While the franchisee model allows for rapid expansion, it also exposes us to certain risks. The reputation of the brand may be at stake if any individual franchisee experiences a loss of repute. Additionally, franchisees generally operate with lower profit margins, and legal issues can disrupt smooth operations. | In the future, if necessary, we have the flexibility to explore alternative franchise models. One such option is the adoption of revenue-based banking correspondence and the deployment of white label ATMs as alternative arrangements to mitigate potential risks and ensure continued growth. |
| Legal risk refers to the potential exposure of a Company to legal actions as a result of non- compliance with laws and regulations governing its operations. | Given our obligation to conduct business within the boundaries of the law, it is susceptible to legal risk exposure. To address this risk, the we rely on a team of seasoned professionals and advisors who diligently assess the risks associated with contracts, determine our obligations as per relevant laws, limit liabilities under contracts, and take necessary measures to ensure compliance with all contractual commitments. This comprehensive approach aims to mitigate legal risks and uphold adherence to legal requirements. |
| The dynamic landscape of changing laws, regulations, and standards pertaining to accounting, corporate governance, public disclosure, SEBI rules, and Indian stock market listing regulations creates uncertainty for companies. These new or revised regulations may lack specificity and be subject to various interpretations. Furthermore, their practical application may evolve over time as regulatory and governing bodies provide further guidance. Consequently, ongoing uncertainty surrounding compliance matters and increased compliance costs due to continuous revisions in corporate governance standards may arise. | We are steadfast in upholding high standards of corporate governance and public disclosure. By diligently adhering to evolving laws, regulations, and standards in these domains, we aim to effectively address these challenges and mitigate associated risks. |
| Accounting fraud or corporate accounting fraud are business scandals arising out of Misusing or misdirecting of funds, overstating revenues, understating expenses etc. | We mitigate this risk by: |
| ? Understanding the applicable laws and regulations. | |
| ? Conducting risk assessments. | |
| ? Enforcing and monitoring code of conduct for key executives. | |
| ? Instituting Whistle blower mechanisms. | |
| ? Deploying a strategy and process for implementing the new controls. | |
| ? Adhering to internal control practices that prevent collusion and concentration of authority. | |
| ? Employing mechanisms for multiple authorization of key transactions with cross checks. | |
| ? Scrutinizing of management information data to pinpoint dissimilarity of comparative figures and ratios. | |
| ? Creating a favourable atmosphere for internal auditors in reporting and highlighting any instances of even minor non-adherence to procedures and manuals and a host of other steps throughout the organization. | |
| Increasing concern for user data privacy, data leakage, and number of cyber-attacks are the reason for rising attention to the question of data security, which became more relevant in the recent years. The increasing number of devices connected to the Internet not only creates more data but also makes it more vulnerable and not very well protected. It is expected that security analytics costs will raise up. Thus, it is critical to keep up with latest trends in the field of data security. | ? Privacy and data security are of utmost importance to us, and we have made consistent efforts to safeguard data through the following approaches: |
| ? Validation and filtration of end-point inputs: We ensure the use of authentic and legitimate end- point devices, as they serve as the entry point for genuine and valid data into our system. | |
| ? Mandatory Access Control (MAC): We implement strict controls that limit each users access to a predefined set of tasks and within specific timeframes. | |
| ? Digital signatures using asymmetric encryption: To enhance data security, we employ standard practices such as regular audits and hash chaining. | |
| ? Real-time monitoring of logs: We continuously monitor logs to promptly detect any anomalies, misuse, or abnormal activities, allowing for timely intervention. | |
| ? Data tagging and enforced time stamps: We utilize data tagging and implement time stamps to facilitate tracing and identification of unauthorized activities. | |
| ? Encryption: Encryption plays a crucial role in maintaining data confidentiality and integrity. We employ encryption techniques both during data transit and while data is at rest in databases. Secure Socket Layer (SSL) encryption is utilized to establish a secure connection between clients and servers, ensuring that only trusted computers can access the encrypted data. | |
| ? Granular data encryption: Our data encryption practices encompass encrypting data within the database, implementing access control measures, masking sensitive data, and enforcing stringent authorization policies. Regular updates of security patches are applied to ensure optimal protection. By employing granular data encryption, we aim to safeguard data even in the event of a system breach. | |
| ? Key Exchange policy: For the management of ATM encryption keys, we have established a key exchange policy. Hardware Security Modules (HSMs) are utilized to facilitate key life-cycle management, including key generation, distribution, and injection. Our tamper-evident and tamper-responsive servers are equipped with secure cryptographic devices for key storage. Moreover, we comply with industry standards such as ISO and PCI DSS to ensure comprehensive data security. | |
| Fraudsters may place skimmers at ATMs to illegally capture customer card details and PIN information. | ? To counter this threat, we have implemented anti-skimming card readers at all Vakrangee ATMs, providing protection against skimming attacks. |
We have strategically positioned ourselves to build a long-term sustainable and profitable business model that aligns with the evolving digital landscape.
We have adopted well established process to monitor and identify any arising risk which are as follows:
Risk Monitoring Tool:
Granular Auditing: We conduct thorough analysis of network logs to effectively detect and identify any potential cyber-attacks or malicious activities.
Data Provenance: We prioritize the classification of data, recognizing the importance of understanding its origin to ensure accurate data origin identification, authentication, validation, and access control.
Periodic Audit:
Audits serve as a disciplined documentation process that consistently evaluates operational compliance with established policies and standards, ensuring adherence to regulatory requirements.
Training Management:
Our comprehensive training programs aim to ensure effectiveness and foster continuous learning and improvement across our organization. These programs are delivered through various mediums and cover staff, ATM custodians, and banking operators.
Surveillance:
We have deployed closed-circuit surveillance (CCTV) systems across
Vakrangee Kendras, providing round-the-clock monitoring of ATM and banking operations. Additionally, our Kendras are staffed during business hours to further enhance security. Upon successful monitoring and identification of risks, the Risk Management Committee promptly informs the Managing Director and/ or Compliance Officer, outlining the identified risks and proposing appropriate mitigation measures. These findings are subsequently communicated to the Board of Directors during the next board meeting. In the case of critical and significant risks, the Board is immediately notified for further deliberation and to seek their insights on necessary mitigation steps.
Business Opportunities
Vakrangee Kendra as a Long-Term
Sustainable & Profitable Business
Model:
The rapid growth of the Digital Economy in India is driving the adoption of digital payment mechanisms, leading to a shift towards a cashless society. With the increasing penetration of digital payments, there will be a slowdown in cash transactions such as ATM and banking transactions. This poses challenges for standalone business models that solely rely on cash transactions, such as White Label ATMs or only Banking (AEPS) providers.
We have strategically positioned ourselves to build a long-term sustainable and profitable business model that aligns with the evolving digital landscape. Our offering includes a range of non-cash based banking services, such as account opening, loan products, insurance services, fixed deposits, and NPA recovery. Importantly, we have diversified our product and service portfolio beyond a single line of offerings, such as ATM or banking services.
We are in the process of leveraging the ONDC (Open Network for Digital Commerce) platform to expand our services. Designing a Buyer Application on ONDC will provide ecommerce shopping experiences to our franchisees and customers in rural markets.
Our wide range of products and services includes online shopping, total healthcare services, bill payments, online travel services, mobile recharges, CIBIL score services, PAN card services, online demat and trading account opening services, and much more. Additionally, we offer the highest commission rates in the industry.
Launch of Digital Vakrangee Kendra:
We have introduced a mobile super app-based business platform called BharatEasy App, known as India ka Super App. Through this platform, we have already activated key services such as online shopping, online agriculture products, total healthcare services, online demat account opening, CIBIL credit score rating services, and online PAN card application services.
Our digital super app leverages the extensive physical store network of Vakrangee, known as the Vakrangee On-Ground Eco-system, which provides physical assistance, especially in semi-urban and rural remote areas. This unique proposition of combining digital and physical assistance, known as "phygital," allows our digital channel to scale up quickly and reduces costs associated with customer acquisition, physical assistance, order fulfillment, and return management. Moreover, leveraging our physical presence enhances customer interaction, strengthens brand recall, and improves service experience and customer trust. It is evident that we have a strong brand recall, access to our existing customer base, and a well-established network of 20,000+ outlets, which further supports our digital ventures and strengthens our competitive advantage in the market.
Leveraging the ONDC Platform:
We are in the process to design and launch our Buyer Application on ONDC platform to provide ecommerce shopping experience to franchisee and customers in rural market. We can replicate the model on our Bharat Easy Super App to provide ONDC experience directly to customer. We will also be registering as Seller on Seller App of ONDC to sell our services which are available on BharatEasy Mobile Super App. We will be developing a dedicated seller app which can provide a streamlined and optimized experience for local sellers near our Vakrangee Kendras. This will improve our reach and discoverability across multiple platforms.
OUR PERFORMANCE HIGHLIGHT
In this chapter, we delve into the remarkable performance of our organization throughout the FY 2022-23. It is a testament to our unwavering commitment to excellence and our relentless pursuit of growth and success. We will showcase key achievements, milestones, and notable outcomes that have shaped our journey during this period. Join us as we explore the exceptional performance highlights that highlight our dedication, resilience, and remarkable progress.
Performance of our Vakrangee Kendras
1. F inancial performance
O ur extensive network of 20,399 Vakrangee Kendras has demonstrated robust performance by delivering convenience and inclusivity to underprivileged and underserved individuals across India. The results of our dedicated efforts and perseverance are reflected in our product-wise performance outcomes. During the fiscal year 2022-23, our ATMs facilitated over 5.1 million transactions, amounting to a gross value of more than Rs. 113 billion. Additionally, our banking services recorded around 75 million transactions, with a gross value of Rs. 351 billion during the reporting period. These impressive figures highlight our unwavering dedication, sincerity, and endurance in fulfilling our mission.
Looking ahead, we anticipate further growth as we estimate that our Gross Transaction value will surpass US$150 billion annually by 2030. Embracing a neo-bank model, we are transitioning towards a more cost-effective approach, enabling us to reach every corner of India.
| S. No. | Particulars | FY 2022-23 | |
| 1 | Debtors Turnover (%) | 0.20 | The ratio indicates the number of times we collect our average accounts receivable balance during a specific period. It is assumed that the entire revenue from operations represents total credit sales, fewer sales returns and allowances. The ratio between the average trade receivables and the revenue from operations is considered. |
| 2 | Inventory Turnover (%) | 0.01 | It is a financial metric that measures the number of times we sell and replenish our inventory within a given period. The ratio between the revenue from operations and the average inventory between the beginning and end of FY 2022-23 is taken. The net sales are considered in this regard |
| 3 | Interest Coverage Ratio (%) | 0.08 | The ratio represents our ability to cover our interest expenses with our operating earnings. |
| 4 | Current Ratio (%) | 1.05 | The ratio measures our ability to meet our short-term liabilities with our short-term assets. Although there has been a decrease in the ratio as compared to FY 2021-22, we are in a good position as we more current assets than current liabilities, suggesting a relatively healthy liquidity position. |
| 5 | Debt Equity Ratio (%) | 0.47 | It is a financial metric that compares our total debt to our shareholders equity. A ratio of 0.47 suggests that we have a lower level of debt in relation to our equity, indicating a relatively conservative capital structure. |
| 6 | Operating Profit Margin (%) | 74.94% | For the computation of the ratio, EBIT is taken without considering the exceptional items |
| 7 | Net Profit Margin (%) | 0.51% | The ratio represents the percentage of revenue that remains as profit after deducting all expenses and taxes. The decrease in net profit margin compared to last year can be attributed to the demerger of our company. |
| 8 | Return on Net worth (%) | 0.81% | The net profit for the FY has increased, leading to a greater return on net worth, which is calculated by taking into consideration the ratio between the net profit and the shareholders equity. The ratio measures our profitability in relation to our shareholders equity. There has been a decrease in this value from last year, which can be contributed to the demerger of our company. |
* The above figures and calculations are on a standalone basis.
* There is no long term debt / borrowings and finance cost, hence these ratios are not applicable
During the fiscal year 2022-23, our Company achieved a total income of Rs. Rs. 16,553.98 lakhs, with an EBIDTA of Rs. 1,930.44lakhs. The PAT for the year amounted to Rs. 60.01 lakhs, and the EPS (basic) for the face value of Rs. 1 was Rs. 0.01 in FY 2022-23.
2.Manufactured capital
We have made significant strides in achieving our goal of extending our services to every corner of the country and ensuring accessibility for all. Our extensive presence in remote areas, coupled with the evolution of our services, has driven growth in terms of financial, digital, and social inclusion. By adopting the Unique Hybrid Model, we have seamlessly integrated physical and digital platforms, enabling enhanced accessibility and convenience. Additionally, we have expanded our reach by establishing 20,399 active transacting Vakrangee Kendras across 29 States & UTs. Moreover, we have strengthened our operations by appointing Master Franchisees in 234 Districts across 27 States, who provide essential support to existing franchise outlets and facilitate new franchise acquisitions. Our presence extends to various Left-Wing Extremist (LWE), Tribal, and Aspirational districts, enabling us to deliver high-quality services to underserved areas of the country. Within these districts, we have established a network of 4,607 outlets. More than 79% of Tier IV, Tier V and Tier VI sites were covered by our geographical footprint, distributed throughout 29 states, 566 districts, and 5159 postal codes. ISO 9001:2015 is a globally recognized standard that focuses on the implementation of effective Quality Management Systems (QMS). The QMS encompasses all processes, resources, assets, and cultural values that contribute to achieving customer satisfaction and organizational efficiency. our ISO 9001 certification in since 1998, we continuously strive to demonstrate our unwavering commitment to excellence and meeting our customers needs. We prioritize delivering the highest quality in our services and fostering a culture of continuous improvement to exceed customer expectations.
We also adhere to ISO 20400. As ISO 20400 certified organization, we acknowledge the significance of sustainable procurement and adopt a structured approach to its practical implementation. This internationally recognized standard serves as a valuable framework for us to effectively integrate sustainability considerations into our procurement processes. It is important to note that ISO 20400 does not impose specific requirements on suppliers or serve as a means to evaluate their sustainability performance. Instead, it enables us to enhance our own sustainable practices and contribute to a more responsible and ethical supply chain.
As an ISO 20400 certified organization, we highly value sustainable procurement and follow a structured approach to its practical implementation. Adhering to this internationally recognized standard allows us to effectively integrate sustainability considerations into our procurement processes.
3. Human Capital
At our organization, we have established a culture centred around inclusivity, continuous improvement, and equal opportunities for all employees. Our commitment to fostering a qualitative work environment emphasizes collaboration, teamwork, and the cultivation of an entrepreneurial spirit. We encourage employees to leverage their strengths, engage in innovative thinking, and provide them with the necessary tools and resources to excel in their roles.
Recognizing the significant role employees play as key stakeholders, we place great emphasis on their professional development and growth. Through continuous investment in enhancing their knowledge and skills, we strive to improve their performance and contribute to our collective goal of serving the underserved and unserved citizens of India. With a dedicated workforce of over 250 individuals, our organization is a testament to our unwavering dedication to our employees. Our investment in human capital has yielded positive outcomes, including increased productivity, enhanced employee loyalty, and heightened motivation within the workplace. By valuing and empowering our employees, we foster an environment that cultivates their potential and facilitates the realization of our shared vision.
As signatories of the UNGC, we endorse the ten principles outlined by the United Nations Global Compact on human rights, labour, environment, and anti-corruption. Our organization is fully committed to integrating these principles into our Companys strategy, culture, and daily activities. To demonstrate our commitment, we have aligned our culture with these principles. Our drivers of value for human capital are:
We have redirected our focus towards leveraging technologies, implementing process automation, and launching innovative digital projects as novel approaches to efficiently manage operations and day-to-day business activities.
Organizational culture: Our primary objective is to cultivate a meaningful work environment characterized by continuous engagement. We strongly believe that a professional and respectful culture fosters enhanced productivity, growth, and positivity. To achieve this objective, we strive for fair resolutions, merit-based decision-making, equal treatment of all stakeholders, and transparency in our decision-making processes.
Technological leverage: We have shifted our focus towards harnessing technologies, implementing process automation, and launching innovative digital projects as novel approaches to managing field operations and day-to-day business activities. We provide training sessions to our franchisees, enabling them to connect through dedicated virtual communication channels. Additionally, we facilitate live, two-way interactions between centralized relationship managers at the head office and our franchisees direct business teams to address any queries they may have. Human rights: Our commitment to human rights encompasses strict adherence to labor laws, raising awareness of human rights among our employees, providing equal employment opportunities, fostering a harassment-free workplace, ensuring employee health and safety, and establishing a robust grievance mechanism for employees. Diversity and inclusion: We vehemently prohibit discrimination based on race, color, religion, disability, gender, national origin, sexual orientation, age, genetic information, or any other legally protected status. Our continuous efforts in this regard have resulted in 13.88 percent of our staff being women.
Gender equality: We prioritize gender equality through various initiatives, including the establishment of a Pay Equity Committee, conducting salary negotiations, implementing a fair reward system, promoting pay transparency, offering bonuses, providing flexible work schedules, and ensuring equitable increments for women employees. Our aim is to achieve a 1:1 gender ratio across the organization by 2025. Targeted recruitment: Our objective is to recruit the finest talent from diverse backgrounds across the country, thereby exemplifying our commitment to providing equal opportunities for all. With our widespread presence throughout India, we actively engage with individuals from diverse backgrounds to work collaboratively towards achieving our organizational goals. Our recruitment process involves aptitude assessments, competency mapping, skill set benchmarking, and evaluating individual capabilities.
Mentorship: We have established mentorship programs to guide our employees in their professional journeys, including programs specifically tailored for minority groups, women, individuals with disabilities, military personnel, new joiners, and mentor-buddy programs.
Training and development: Our employees undergo comprehensive training programs, covering areas such as ISO certifications, induction processes, and behavioural aspects. Talent retention: Many employees have been dedicatedly associated with our organization, as evident from our average voluntary attrition rate of permanent employees at 1.9% in FY 2022-23.
Employee satisfaction: We actively execute various employee engagement initiatives, including competitions, family events, sponsorships, and motivational programs. Additionally, we conduct employee engagement surveys and provide in-house store services to cater to our employees needs. Health and safety: In our commitment to promoting health and safety, we have implemented several initiatives, such as the Employee Assistance Program, practical well-being support, yoga classes, fire safety measures, and emergency drills. Grievance redressal: We have assembled a team of qualified professionals dedicated to addressing grievances from all our stakeholders.
4.Social and Relationship Capital
In the domain of Social and Relationship Capital, our focus lies in establishing effective engagement with stakeholders to fully comprehend their expectations from our company. We have developed trustworthy relationships with key stakeholders, including franchisees, customers, business partners, local communities, shareholders, suppliers, and government or regulatory bodies. Upholding transparency as a fundamental principle, we consistently strive to foster cooperation and maintain strong relationships with our stakeholders. To further demonstrate our commitment to building robust connections, we have implemented various policies, such as the Sustainable Sourcing Policy, Green Procurement Policy, Corporate Social Responsibility Policy, Political Involvement Policy, and Shareholder Engagement Policy, among others. These policies exemplify our dedication to cultivating strong relationships and provide us with a framework to adapt to the diverse requirements of our stakeholders.
Shareholders
? We interacted with shareholders through conference calls, business updates through press releases, roadshows, analyst meetings, and Annual General Meeting. We have recorded and uploaded the sessions on our website.
Franchisees
? We empower rural entrepreneurship, employment generation as well as skill development.
? Doorstep Banking was introduced primarily for senior citizens and old-age pensioners. ? Total Healthcare Services which provided professional medical consultations by doctors and reduced physical consultations.
Suppliers/ Vendors
? Assessed four suppliers based on their social and environmental impact. Moreover, we conducted regular meetings and held internal audits to monitor their performance on our ESG requirements.
Customers
? We have entirely focused on providing a sustainable business model to enable Indians to benefit from financial, social and digital inclusion.
Government and Regulatory Authority
? We have no direct relationship with Government bodies; however, we own a license from the Reserve Bank of India to set up and manage White Label ATMs. We are the 4th largest ATM operator in rural India. ? Tie-ups with nationalised banks for Corporate Business Correspondent.
? Member of CATMi, BCFI and NPCI, well-recognised industry bodies in the country
Local community
? Sponsor activities like marathons encourage our employees to participate in the run to promote the significance of an active life. ? We operate a multi-speciality in the heart of Kota where we undertake all the multi-speciality treatments on a no-profit no-loss basis, including cardiology, neurology, urology, general surgery, gynaecology, orthopaedic, gastroenterology.
? During FY 2022-23, our company made CSR contributions totalling Rs. 124.89 lakhs.
To showcase our commitment towards building a strong social and relationship capital, we have achieved several ISO certifications that reflect our commitment to various aspects of responsible business practices. These certifications include: ? ISO 26000:2010 Social Responsibility Management System, demonstrating our dedication to sustainable development and exceeding legal compliance requirements. ? ISO 37001:2016 Anti-bribery Management System, highlighting our commitment to conducting business with transparency, ethics, and fairness.
? ISO 45001:2018 Occupational Health and Safety Management System, affirming our efforts to establish and maintain a safe and healthy workplace.
? ISO 20400:2017 Sustainable Procurement Management System, showcasing our rigorous sustainable procurement practices.
5. Intellectual Capital
As a company focused on growth and innovation, we continuously strive to enhance our services. Even amidst the challenges posed by the pandemic, we remain committed to bridging the gap between rural and urban populations through our last-mile services. As we continue to invest in cutting-edge technologies, we remain dedicated to providing unwavering assistance to both new and existing franchisees, propelling their performance to new heights. Some of the key highlights of FY 2022-23 were - We are certified in the relevant ISO standard certifications, ensuring we have proper systems and processes to run our operations.
ISO/ IEC 27001:2013 Information Security Management System protects sensitive data of our Company and our customers.
As we continue to invest in cutting-edge technologies, the introduction of Artificial Intelligence and Natural Language Processing has revolutionized our services. These advancements enable advanced data analysis, personalized customer interactions, and automated processes, resulting in enhanced efficiency and customer satisfaction.
ISO 27701- Privacy Information Management System, which ensures the enforcement of compliance with mandatory regulatory, internal compliance, best practices, legal and ethical requirements along with the need for managing risk.
ISO 20000-1:2011 - IT Management System benefits us with improved IT service management, reliable IT services with reduced downtimes, minimal risk of errors, lower costs, time-saving and increased customer confidence.
ISO 22301- Business Continuity Management System specifies the requirements for a management system to protect against, reduce the likelihood of, and ensure that the organisations business recovers from disruptive incidents.
? We have trained all the employees and 20,399 franchisees in advanced technologies. ? As a result of strengthening data security in our operations, we faced 0 instances of a data breach in our corporate office and outlets.
? 100% of franchises are using IoT, along with all 6,324 ATM Franchisees.
? 100% of franchisees are using electric surveillance. ? Introduced contactless payment in Next-Gen.
? With the introduction of Artificial Intelligence and Natural Language Processing, we have revolutionized our services by enabling advanced data analysis, personalized customer interactions, and automated processes, leading to enhanced efficiency and customer satisfaction. Our Chatbot Conversational Interface and Designs utilize advanced Natural Language Processing to understand and respond to text chat in a contextually appropriate manner, enhancing communication efficiency.
? We have implemented Virtual Assistance to provide users with an immersive spatial experience, allowing them to engage with our services as if they were physically present. ? Through the Internet of Things, we enable the seamless connectivity and remote control of smart devices, enhancing convenience and control for our customers.
? By use of Blockchain technology, we ensure secure and transparent transaction recording and asset tracking within our business network. Through our utilization of Big Data and data analytics, we delve deep into large and complex data sets to extract valuable insights and make informed predictions. We have also embraced Augmented Reality (AR) and Virtual Reality (VR) technologies, allowing customers to virtually experience our products and services before making a purchase, eliminating the need for physical availability.
6. Natural capital Growth with environmental stewardship
We firmly believe that success is not solely measured by financial achievements but also by the positive impact we create on the world around us. As part of our commitment to sustainable practices and environmental stewardship, we have established the National Capital Chapter, a dedicated initiative focused on driving positive change for both our organization and the planet. Our commitment to doing better goes beyond mere compliance with environmental regulations. We actively seek opportunities to implement sustainable practices, conserve resources, and protect the environment. By embracing renewable energy sources, optimizing waste management systems, and integrating eco-friendly technologies, we aim to minimize our ecological impact and promote a greener future.
Impact of initiatives
We have environmental impact reduction imbibed in our business model; with our well-defined corporate policies, we have guidance to perform our business in an environmentally conscious way.
? Paperless ATMs have been introduced as part of our Go-Green Initiatives, eliminating the need for paper and reducing waste. ? Biometric-enabled paperless banking at our Vakrangee Kendras has significantly reduced paper consumption and waste.
? Expansion of our Vakrangee Kendras in rural areas has minimized travel distances for customers and stakeholders, leading to decreased fuel consumption and greenhouse gas emissions.
? Our corporate offices follow Green Building principles, featuring energy-efficient design, rooftop solar panels for renewable energy, and sustainable practices such as using recycled materials.
? We incentivize carpooling, vanpooling, biking, and public transit for our employees to reduce fuel consumption and emissions.
? By utilizing existing infrastructure for our Kendras, we minimize greenhouse gas emissions, biodiversity disturbance, fuel consumption, land clearing, and water usage associated with construction.
? We provide clean drinking water facilities in all our Kendras, particularly benefiting rural areas and reducing the reliance on plastic bottles.
? Our waste management practices prioritize circularity, recycling, and eco-friendly disposals, including the replacement of plastic drinking water bottles with glass bottles for office meetings.
? We are actively working to reduce greenhouse gas emissions by adopting renewable energy, leveraging technology, digitalizing transactions, and fostering energy-efficient practices.
? We have obtained ISO certifications for Environmental Management System, Sustainable Procurement Management System, Greenhouse Gas Emission Management, and Energy Management System to demonstrate our commitment to environmental stewardship.
BUSINESS OUTLOOK – OUR CORPORATE STRATEGY
We have aligned our sustainability efforts with the Sustainable Development Goals established by the United Nations. These goals provide a roadmap for creating a better future through a combination of physical and digital transformation, fostering inclusivity in India. Our objective is to effectively implement these goals and address global challenges such as poverty, inequality, climate change, environmental degradation, prosperity, and peace and justice. Our framework for Environmental, Social, and Governance (ESG) initiatives is based on the overall sustainable development of the economy as a whole. We integrate ESG practices into our core business processes to promote sustainable development.
Our goal is to promote financial and digital literacy among the underserved and unserved populations in rural and urban areas of India. By physically and digitally reaching out to these communities, we act as a major equalizer, bridging the gap between the financial, social, and digital inclusion of urban and rural India. We strive for financial inclusion by supporting government financial schemes and social inclusion efforts such as PMJDY (Pradhan Mantri Jan-Dhan Yojana) and social security insurance schemes. We provide universal access to banking, insurance, and pension plans, along with facilitating the direct transfer of subsidies through the Direct Benefit Transfer system.
We are committed to ensuring accessibility to our services and plan to reach 3 lakh + outlets along with Minimum 15,000+ ATMs. Our vision is to create Indias largest distribution channel based on a franchisee model, with a strong emphasis on rural areas. We estimate that our Gross Transaction value will exceed US$150 billion annually by 2030.This growth will result in substantial revenue and profitability due to our asset-light franchise-based business model, which leverages operating efficiency As a result, our Cash Adjusted Return on Capital will experience significant improvement.
In addition to our commitment to financial, digital, and social inclusion, we actively foster an entrepreneurial spirit to drive the growth of businesses. Our envisioned objective remains the establishment of a comprehensive presence in every District and Postal code across the nation, ensuring convenient access to essential services within close proximity or through digital means. Through the introduction of innovative concepts and cutting-edge technology, we aim to solidify our position as Indias leading retailer while facilitating universal financial, digital, and social inclusion. At the core of our innovative business strategy and extensive store network lies a strong emphasis on promoting entrepreneurship. We recognize the importance of empowering individuals and businesses to thrive and succeed. By offering a diverse range of services all under one roof, we create a conducive environment for entrepreneurs to establish and expand their ventures. Our goal is to nurture a vibrant entrepreneurial ecosystem that not only caters to the everyday needs and convenience services of our customers but also serves as a catalyst for their business growth. Through our comprehensive range of offerings and strategic support, we inspire and encourage individuals to embrace entrepreneurship, fostering an environment that promotes innovation and economic development. By providing aspiring entrepreneurs with the necessary resources, mentorship, and opportunities, we aim to empower them to tap into global markets and maximize the benefits of financial, digital, and social inclusion. As we continue to evolve as the preferred destination for customers seeking everyday products and services, we are committed to instilling an entrepreneurial mindset, where customers associate our motto of "Sab Kaam Ek Dukaan" or "Now, the Whole World is Nearby" with the limitless possibilities and growth potential that entrepreneurship offers.
With a strong commitment to fostering an entrepreneurial spirit, we empower local entrepreneurs through our master franchise network. They can manage and grow their Kendra networks within their respective districts.
The "Vakrangee Effect": adopting economic, social and governance aspects
Our extensive operational network, utilizing the phygital model that combines physical and digital presence, has played a pivotal role in financially empowering a significant portion of society that was previously excluded from mainstream economic progress. We have aligned our corporate growth plan with the principles of sustainable development and responsible business practices. Collaborating with the government and corporate sector, we strive to promote financial, social, and digital inclusion in rural areas of India.
Our mission entails seamlessly integrating these goals into our overall strategy and business operations, while addressing global challenges such as poverty, inequality, climate change, environmental degradation, prosperity, peace, and justice. Joining forces with a global network comprising over 9,500 businesses and 3,000 non-profit organizations, we are dedicated to creating a more sustainable future.
Enhanced participation of individuals will provide crucial support to industrialization, agriculture, and the expansion of the market for products and services. Consequently, by ensuring the financial and social inclusion of a significant segment of society that contributes to over half of Indias GDP, we can further bolster and invigorate the Indian economy. We refer to this phenomenon as "The Vakrangee Effect." As a company, we consistently engage in strategic planning, with a focus on organic business growth Our target is to reach 3 lakh + outlets along with Minimum 15,000+ ATMs. With this, Our plan is to achieve a Revenue target of US$ 1 Billion by 2030 along with a Gross Transaction Value of more than US$ 150 Billion. In addition to our ongoing efforts, we have recently appointed Master Franchisees in 234 Districts across 27 States nationwide. These Master Franchisees play a crucial role in providing on-ground operational support to our existing franchisee outlets and spearheading the acquisition of new franchisees. Our aim is to achieve comprehensive District coverage, reaching 100% of all Districts, by March 2024. This strategic step allows us to strengthen our operational capabilities and ensure seamless support for our franchisees across the country. By leveraging the expertise and local presence of our Master Franchisees, we enhance our ability to deliver quality services and expand our network of Vakrangee Kendra outlets. Ultimately, this initiative reinforces our commitment to fostering financial, digital, and social inclusion while driving sustainable business growth.
Driving Performance through Entrepreneurship
This year, we are placing a strong focus on fostering entrepreneurship through the implementation of our master franchisee model. Building upon the success of our previous initiatives, we have appointed Master Franchisees in 234 Districts across 27 States throughout the country. This strategic move aims to provide on-ground operational support to our existing franchisee outlets and drive the acquisition of new franchisees. By empowering entrepreneurs at the district level, we aim to accelerate growth, strengthen our operational management, and enhance scalability. In our pursuit of creating an inclusive India, we recognize the importance of nurturing an entrepreneurial spirit. Through our master franchisee network, we empower local entrepreneurs to manage and grow their Kendra networks within their respective districts. This approach capitalizes on their unique insights, passion, and dedication to effectively address the diverse needs of our customers. By fostering entrepreneurship, we not only drive business growth but also contribute to the socio-economic development of the communities we serve. To incentivize and motivate our master franchisees and Kendra franchisees, we offer performance-based incentives and commissions. These rewards encourage excellence and create a culture of continuous improvement. Our master franchisees play a vital role in ensuring operational compliance, providing active support to existing franchisee outlets, and driving the expansion of our franchisee network. By leveraging their expertise and local presence, we aim to achieve comprehensive district coverage across the nation, targeting 100% coverage by March 2024. This focus on entrepreneurship and our master franchisee network allows us to scale rapidly and achieve our long-term targets ahead of schedule. It fuels innovation, efficiency, and accelerated growth throughout our organization. By fostering an entrepreneurial mindset and providing the necessary support and incentives, we create an environment that encourages our franchisees to thrive, resulting in the overall success of our phygital network.
Apart from creating employment opportunities within our company, our unique business approach has a significant ripple effect that contributes to employment generation in society.
Through our commitment to entrepreneurship and the entrepreneurial spirit of our master franchisees and Kendra franchisees, we are driving performance, accelerating growth, and shaping a more inclusive India. Together, we are confident in achieving our vision of ensuring access to global markets and enabling financial, digital, and social inclusion for every Indian.
Promoting Social Inclusion
Skills Enhancement: Our business approach prioritizes the facilitation of skills enhancement. We actively recruit individuals from diverse backgrounds and provide them with comprehensive training to develop their skill sets, resulting in significant achievements. Furthermore, we encourage these employees to obtain essential certifications, thereby enhancing their technological capabilities in delivering Aadhaar and Banking Services.
Job Creation: Our business model revolves around a robust franchisee system. In addition to generating employment opportunities within our company, each franchisee is required to employ a minimum of 1 to 2 local resources. This approach leads to the creation of more job prospects and financial security within the community. The ripple effect of our unique business approach significantly contributes to employment generation in society. E-Governance: Social inclusion plays a crucial role in empowering citizens by providing them with a distinct identity, recognizing their presence, and enabling the government to effectively reach out to local communities for the administration of various welfare programs. It also fosters financial inclusion and enhances accessibility to loans, thereby promoting economic empowerment and upliftment.
Promoting Financial Inclusion
We facilitate the provision of essential banking and insurance services, ensuring accessibility for individuals across the country. Moreover, we enable the direct transfer of government subsidies into the bank accounts of citizens through the Direct Benefit Transfer (DBT) scheme. By extending financial inclusion to a broader segment of the population, encompassing a significant portion that contributes to more than half of the nations GDP, we have the potential to further expand and enrich the Indian economy.
Digital Empowerment for All
We are actively working to extend digital literacy and accessibility to the lower strata of the socioeconomic pyramid. Our efforts revolve around bridging the gap and connecting unserved and underserved rural and urban citizens throughout India. To achieve this, we offer biometric-enabled banking services, assisted e-commerce facilities, and a range of digital services and e-governance solutions at our Kendras. Through our technologically advanced platform, integrated with the Core Banking Systems (CBS) of multiple banks, we provide real-time and interoperable banking access.
To ensure nationwide accessibility, we have established online platforms that enable consumers from every corner of the country to access a wide range of services conveniently.
Addressing Inequalities
One of our primary objectives is to minimize disparities and bridge the gap between Indias urban and rural populations. Under the theme "Ab Poori Duniya Pados Mein" (Now, the Whole World is Nearby), we have introduced Next-Gen Vakrangee Kendras. Our innovative approach involves establishing "One Stop Shop Digital Convenience Stores" that offer goods and services at the same price, simultaneously, and with equal quality to both urban and rural populations. We have also made significant strides in serving regions characterized by Left Wing Extremism (LWE), tribal communities, and aspirational districts. Through our initiatives, we aim to reduce inequalities, enhance access to essential services, and foster equitable development across diverse areas of the country. Facilitating Productive Work and Economic Growth: We are dedicated to offering individuals suitable opportunities to engage in productive, stable, and fairly compensated work. Our network of franchisees plays a vital role in generating local employment by hiring individuals from the community. Moreover, we provide certification and training programs in essential areas such as banking, insurance, and UIDAI, equipping individuals with the necessary skills to thrive in their roles.
"Embracing Convenience at Your Doorstep" Empowering Rural India through Seamless Services: With around 1.3 billion Indians residing in rural areas, accounting for approximately 65 percent of the nations population, our mission is to connect and unite Indias rural communities under the umbrella of financial, social, and digital inclusion through our Next-Gen Vakrangee Kendras. These Vakrangee Kendras have emerged as pivotal consumer hubs within the rural economy. We are committed to continually enhancing the services offered by our Vakrangee Kendras to effectively cater to the unique needs of rural India. Recognizing the distinct requirements of the rural population, we employ a tailored strategy that acknowledges the differences between rural and urban areas. Supported by the Indian governments push for digital payments, we strive to transform our stores into comprehensive one-stop shops, offering a diverse range of goods and services. By embracing a phygital transformation, blending online and physical store experiences, we aim to create an inclusive India. Our focus is on seamlessly integrating digital and traditional platforms, providing rural communities with access to the convenience they deserve.
Harnessing the Power of Entrepreneurship for Financial Inclusion and Economic Growth
Building upon the success of Government-backed financial inclusion initiatives, every Indian family now benefits from owning a bank account and gaining access to a debit card. The expansion of banking services in rural areas has been significantly facilitated by the Direct Benefit Transfer (DBT) program As digital platforms become more accessible, there is a growing demand for digital banking alternatives across the nation.
Our Kendras have played a pivotal role in empowering rural markets by providing access to digital and financial services. Leveraging cutting edge technologies such as Aadhaar enabled Payment Systems (AePS), e-KYC, interoperability, and real-time banking transactions, our valued customers benefit from seamless and efficient financial solutions. As corporate agents, we collaborate with multiple insurance companies to offer comprehensive coverage, including life, general, and health insurance. To enhance convenience and reduce the need for extensive travel to access essential services, we have established a widespread network of ATMs through our Kendras. This local presence enables communities to conveniently withdraw cash within their neighbourhoods, providing a much-needed financial resource. As a technology-driven retailer, we offer a diverse range of services under one roof, including e-commerce, online healthcare, telemedicine, and online travel reservations. While rural citizens may indirectly access modern services, we understand the challenges associated with the limited availability of products in rural areas, often due to transportation costs and logistical barriers.
In line with our mission as the largest equalizer within the franchise-
As a technology-driven retailer, we offer a diverse range of services under one roof, including e-commerce, online healthcare, telemedicine, and online travel reservations.
based, multi-service retail network, we are committed to fostering entrepreneurship. By nurturing entrepreneurial spirit and creating opportunities for local individuals, we empower aspiring entrepreneurs to join our network as franchisees, further driving financial inclusion and economic growth. Through our Vakrangee Kendras, we provide aspiring entrepreneurs with the platform and support to establish and operate their own successful businesses, thereby contributing to the local economy and serving the needs of underserved segments of society.
By integrating entrepreneurship with financial inclusion initiatives, we aim to create a holistic ecosystem that fosters economic empowerment, elevates rural communities, and paves the way for a more inclusive and prosperous India.
Unique features and advantages of Next-Gen Vakrangee Kendra
| Store exclusivity and consistent branding | ? E xclusive store model with same service level and same customer experience |
| ? Standardised layout and design by L&H (Lewis & Hickey) | |
| ? Uniform and consistent branding for higher brand recall and visibility | |
| ATM in outlet | ? A TM installed in outlet (Optional) |
| ? Potential to enhance the footfall significantly | |
| ? Additional stream of revenue for both – the franchisee and for our company | |
| Centralized monitoring system | ? Centralised CCTV system |
| ? Better security at the store | |
| ? Full compliance with RBI guidelines to maintain more than 90 days video recording backup | |
| Digital advertising | ? Digital signage to enable centrally monitored advertisement campaigns |
| ? To enhance the interaction between consumer and partners | |
| ? Focus to initiate advertising revenue | |
| PIN pad device | ? T o enable various kinds of payment modes at any Vakrangee Kendra |
| ? Integration in process to start accepting RuPay, Debit and Credit card payments |
Embracing Technological Advancements for a Thriving Business Model
At the core of our business strategy lies a strong focus on technological innovations. We firmly believe in the transformative power of technological advancements and have embraced a range of cutting-edge solutions, including biometric-enabled banking, paperless digital transactions, and e-KYC (Know Your Customer). Continual technology updates are integral to our operations. Here are a few of the innovative solutions we employ:
Next-Generation Payment Solutions:
Acknowledging the Indian Governments push for digital payments, we understand the significance of embracing a next-generation business model in the digital era. In line with the governments mission, we are developing a Unified Payment Platform that facilitates various payment methods such as card payments, UPI, AEPS, Aadhaar Pay, and QR codes. This platform empowers our Next-Generation Vakrangee Kendras to accept payments from customers through any preferred mode. We are proud to be among the early adopters of an Aadhaar-enabled Payment System (AePS)-based banking system. By integrating diverse digital payment options, we ensure banking services are accessible to individuals across all sections of society.
Big Data and Data Analytics:
With the tremendous amount of data generated daily, we recognize the need for robust data management. Traditional database systems are inadequate for handling such vast quantities of data. Therefore, we have embraced big data solutions to effectively manage and process large datasets. Leveraging artificial intelligence (AI), we extract behavioral insights through data analytics, enabling us to make informed decisions. Machine learning (ML) algorithms help us improve outcomes by leveraging historical data to provide accurate forecasts, enabling proactive actions.
Artificial Intelligence (AI) and Machine Learning (ML):
AI and ML play pivotal roles in modern corporate strategies, given their ability to handle massive amounts of data. We have implemented AI and ML technologies to enhance our product lines, develop sophisticated business solutions, and gather relevant information for improved accuracy. These technologies aid in resource allocation, automation of operations, and significant time savings. Our primary objective is to augment the existing workforce by leveraging AI, enabling engineers and experts to gain valuable insights that boost efficiency and allocate more time to enhancing the customer experience.
In recognition of the Indian Governments emphasis on digital payments, we are currently developing a Unified Payment Platform that facilitates various payment methods, including card payments, UPI, AEPS, Aadhaar Pay, and QR codes.
Internet of Things (IoT):
The Internet of Things has emerged as a leading technology for managing devices and applications in todays interconnected world. By connecting wearable devices, physical assets, and electronic devices through sensors and actuators, IoT enables real-time data collection from various departments, processes, or business lines. We have embraced IoT to enhance process efficiency, optimize asset usage, and streamline production. Our utilization of IoT extends to monitoring ATMs, electric surveillance, and logistics.
Chatbot Conversational Interface and Design:
As chatbots gain popularity across industries, we have introduced conversational interfaces that leverage Natural Language Processing (NLP) to engage in human-like voice dialogues. These chatbots serve various roles, assisting both employees and customers. Personal assistants engage in instant two-way communication, answering queries, taking notes, and playing on-demand videos. Meanwhile, customer service professionals provide comprehensive information about products and services, enriching the customer experience.
By harnessing these robust technological innovations, we continue to redefine our business model, ensuring that we remain at the forefront of advancements while delivering exceptional services to our valued customers.
We have introduced conversational interfaces that leverage Natural Language Processing (NLP) to engage in human-like voice dialogues.
ONDC:
We are in the process to design and launch our Buyer Application on ONDC platform to provide ecommerce shopping experience to franchisee and customers in rural market. We can replicate the model on our Bharat Easy Super App to provide ONDC experience directly to customer. We will also be registering as Seller on Seller App of ONDC to sell our services which are available on BharatEasy Mobile Super App. We will be developing a dedicated seller app which can provide a streamlined and optimized experience for local sellers near our Vakrangee Kendras. This will improve our reach and discoverability across multiple platforms.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
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2024, IIFL Securities Ltd. All Rights Reserved
Follow us on
ATTENTION INVESTORS
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
- KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.