BharatPe’s non-banking financial company (NBFC), Trillionloans Fintech, reported Rs 169 crore in revenue from operations for the financial year ending March 31, 2024—a 55% increase from the Rs 109 crore recorded in FY23.

However, this Rs 109 crore figure is notably lower than what Trillion Loans had previously reported in its financial statement for the year 2022-2023 filed with the Registrar of Companies. According to that filing, the company’s revenue from operations for FY23 stood at Rs 232 crore.

The company reported Rs 156.6 crore in interest income for FY24, up from Rs 108.6 crore in FY23, according to its audited financial statement sourced by The Head and Tale.

However, its FY23 financial statement had previously recorded Rs 198 crore in interest income for 2022-23.

On the other hand, income from fees and commissions stood at Rs 4 crore in FY24, compared to Rs 7 lakh in FY23. Notably, the FY23 financial statement had originally reported Rs 33.8 crore under this category.

The company transitioned from Indian Generally Accepted Accounting Principles (IGAAP) in FY23 to Indian Accounting Standards (Ind AS) in FY24.

While the change in accounting standards can impact an NBFC's reported revenues, but auditor SCA and Associates – in its qualified opinion on the FY24 financial statement – noted weaknesses in the company's internal financial controls.

“According to the information and explanations given to us and based on our audit, material weakness in the operating effectiveness of the internal financial control system established by the company with respect to interest income, identification, and upgradation of NPA including days past due and provisioning there against were observed, which were remediated subsequent to the reporting date,” the auditor stated.

A material weakness refers to a deficiency, or a combination of deficiencies, in internal financial controls over reporting, creating a reasonable possibility that a material misstatement in the company’s financial statements may go undetected or uncorrected in a timely manner.

Interestingly, interest income and NPA recognition are two of the most critical elements in an NBFC's operations.

Another thing to note is that auditor for Trillion Loans has also been changed multiple times from FY23 to FY24. H Rajen & Co. served as the company’s auditor before SCA and Associates took over in FY24.

In December 2024, the company appointed Tripathy and Co, Chartered Accountants as its statutory auditor.

On the expense side, finance cost stood at Rs 82 crore during FY24, compared to Rs 82.5 crore reported a year earlier. Employee benefit expenses jumped from Rs 1.2 crore in FY23 to Rs 6.8 crore in FY24. Other expenses touched Rs 18 crore in FY24 – up from Rs 7 crore in FY23.

Trillion Loans reported a net profit of Rs 36.5 crore for FY24, compared to a Rs 15 crore loss in FY23. However, its 2023 financial statement filed with the RoC had previously shown a Rs 1.05 crore profit for FY23.

Trillion Loans’ total loans and advances during FY24 stood at Rs 850 crore, compared to Rs 631 crore in FY23. The portfolio mix during FY24 was Rs 174 crore (secured) and Rs 676 crore (unsecured).

“The total amount which is overdue for more than 90 days in respect of loans and advances was Rs 36.85 crore as at March 31 2024, in respect of 56401 number of loans,” the FY24 financial statement mentioned.

The NBFC’s gross NPA during FY24 stood at 4.3%. 

Cash and cash equivalents at the beginning of FY24 was at Rs 191 crore; however, during the end of year Rs 14.97 crore.

As of March 31, 2024, Resilient Innovations (BharatPe) held a 56.56% stake in Trillion Loans, while Liquiloans owned the remaining 43.44%.

BharatPe had acquired a majority 51% stake in Trillion Loans in early 2023 for around Rs 300 crore. According to sources, the fintech giant ultimately plans to take full ownership of the NBFC. Trillionloans Fintech was previously owned by Achal Mittal and Gautam Adukia, who also own Liquiloans, a well-known peer-to-peer (P2P) NBFC.

In December, BharatPe entered into an agreement with the Adani Group. The Head and Tale exclusively reported that as part of the deal, BharatPe would eventually drive Adani’s payments and lending ambitions. “The plan is for Adani to potentially leverage BharatPe’s NBFC to offer loans to its merchant partners at airports,” a source had told at the time.