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Max Financial Services Limited Interim / Quarterly Report 2021
60505_rns_2021-12-07_7f1d9707-e5d9-44fb-b60c-78fc5a54a080.pdf
Interim / Quarterly Report
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December 7, 2021
Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalai Street Mumbai — 400 001
Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai — 400051
Scrip Code: 500271
Name of Scrip: MFSL
Dear Sirs/Madam,
Sub: Disclosure of Related Party Transactions pursuant to Regulation 23 (9) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Pursuant to Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith disclosure on Related Party Transactions for the half year ended September 30, 2021, on a consolidated basis.
You are requested to take the aforesaid on record.
Thanking you,
Yours faithfully, For Max Financial Services Limited
V. Krishnan Company Secretary and Compliance Officer
Encl.: As above
MAX FINANCIAL SERVICES LIMITED
CIN: L24223P81988PLC008031
Corporate Office: L2OM(21), Max Towers, Plot No. C-001/A/1, Sector-1613, Noida- 201301 1 P: + 91 120 4696000 1 www.maxfinanclalservices.com Regd. Office: Bhai Mohan Singh Nagar, Village Railmajra, Tehsil Balachaur, Dist. Nawanshahr, Punjab - 144 533, India
| Max Financial Services Limited | |
|---|---|
| Notes forming part of the consolidated financial statements |
Related party transactions
A. List of related parties
| Names of related parties with whom transactions have taken place during the year | ||||
|---|---|---|---|---|
| Entity/person having significant | - Max Ventures Investment Holdings Private Limited |
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| influence/control upon the Company | - Mitsui Sumitomo Insurance Company Limited, Japan (w.e.f. December 8, 2020) |
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| - Mr. Analjit Singh |
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| Key Management Personnel (KMP) | - Mr. Analjit Singh (Chairman & Non-executive Director) |
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| - Mr. Mohit Talwar (Managing Director) |
||||
| Mr. Aman Mehta (Director) - |
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| Mr. D.K. Mittal (Director) | ||||
| - Mrs. Naina lal Kidwai (Director) |
||||
| - Mr. Sahil Vachani (Director) |
||||
| - Mr. Jai Arya (Director) |
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| - Mr. Charles Richard Vernon Stagg (Director) |
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| - Mr. Hideaki Nomura (Director) (w.e.f. December 8, 2020) |
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| Mr. Mitsuru Yasuda (Director) (w.e.f. December 8, 2020) | ||||
| Mr. K Narasimha Murthy (Director) (w.e.f. March 30, 2021) - |
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| - Mr. Jatin Khanna (Chief Financial Officer) (till September 30, 2021) |
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| - Mr. V Krishnan (Company Secretary) |
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| Enterprises owned or significantly | - Max India Foundation |
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| influenced by key management | - Max India Limited (formerly Advaita Allied Health Services Limited) |
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| personnel or their relatives | - Max Ventures & Industries Limited |
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| - Antara Purukul Senior Living Limited |
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| - Max Skill First Limited |
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| - Antara Senior Living Limited |
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| - Antara Assisted Care Services Limited |
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| - Max Asset Services Limited |
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| - Max UK Limited |
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| Delhi Guest House Private Limited | ||||
| - New Delhi House Services Limited |
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| - Forum I Aviation Private Limited |
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| - SKA Diagnostic Private Limited |
||||
| - Max Healthcare Institute Limited (till May 31, 2020) |
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| - Max Towers Private Limited (Formerly known as Wise Zone Builders Pvt. Ltd.) |
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| - Max Speciality Films Limited |
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| - Max Ventures Private Limited |
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| - Max Estates Limited |
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| Employee benefit funds | - Max Financial Services Limited Employees' Provident Fund Trust |
Note : The related parties have been identified by the management.
fit
Max Financial Services Limited Notes forming part of the consolidated financial statements
B. The following table provides the total amount of transactions that have been entered into with related parties for the relevant period.
| Related party transactions | Parties | Half Year ended 30.09.2021 |
Rs. In Iakhs Year ended 31.03.2021 |
|---|---|---|---|
| Sale of services | Max India Limited | 240.25 | 400.61 |
| Max Ventures and Industries Limited | 25.00 | 162.03 | |
| Rental Income | Max Skill First Limited | 12.82 | 137.18 |
| Max Ventures and Industries Limited | 167.89 | 335.77 | |
| Max Towers Private Limited | 114.41 | 377.57 | |
| Max India Limited | 0.90 | ||
| Premium Income | Max Skill First Limited | - | 10.51 |
| Max Ventures and Industries Limited | 1.05 | 1.07 | |
| Max Ventures Private Limited | 0.06 | 1.80 | |
| Max India Limited | 0.54 | 5.02 | |
| Antara Senior Living Limited | 0.35 | 4.00 | |
| Antara Purukul Senior Living Limited | 0.02 | 1.00 | |
| Antara Assisted Care Services Limited | 1.59 | - | |
| Max Estates Limited | 1.42 | 2.00 | |
| New Delhi House Services Limited | 0.08 | 4.00 | |
| Max Speciality Films Limited | 0.24 | 16.00 | |
| Miscellaneous income | Max Skill First Limited | - | 30.54 |
| Max Towers Private Limited | - | 40.88 | |
| Retiral benefits received (on transfer of employees) Training expense |
Max Skill First Limited Max Skill First Limited |
265.76 | - |
| 271.00 | 4,059.97 | ||
| Repairs and maintenance - others | New Delhi House Services Limited | 54.59 | 129.17 |
| Max Asset Services Limited | 55.10 | 186.03 | |
| Max India Limited | 14.14 | - | |
| Miscellaneous expenses | New Delhi House Services Limited | 49.43 | 87.62 |
| Antara Purukul Senior Living Limited | 0.13 | ||
| Antara Senior Living Limited | - | 10.98 | |
| Employer contribution to provident fund | Max Towers Private Limited | 5.92 | |
| Max Financial Services Limited Employees' Provident Fund Trust |
2,310.01 | 4,344.45 | |
| Legal and professional expenses | Max India Limited | 325.00 | 530.00 |
| Max UK Limited | 40.00 | 80.00 | |
| Rent including lease rentals | Delhi Guest House Pvt Limited | 52.90 | 104.96 |
| Max India Limited | 43.74 | 184.40 | |
| SKA Diagnostic Private Limited | 50.00 | 100.00 | |
| CSR and voluntary donations | Max India Foundation | 320.19 | 850.00 |
| Travelling and conveyance | Forum I Aviation Private Limited | 57.50 | 134.64 |
| Reimbursement of expenses (Received from) | Max Ventures and Industries Limited | 3.65 | 3.19 |
| Max India Limited | 1.82 | 116.81 | |
| Antara Assisted Care Services Limited | 1.82 | - | |
| Antara Senior Living Limited | 1.82 | 1.60 | |
| Max Healthcare Institute Limited | - | 0.90 | |
| Transfer (in) of fixed assets | Max India Limited | 1.48 | 20.55 |
| Security Deposit paid | Max India Limited | 21.87 | |
| Interim dividend paid by subsidary company | Mitsui Sumitomo Insurance Company Limited | 912.06 | 979.00 |
| Share capital issued (including securities premium) | Mitsui Sumitomo Insurance Company Limited | - | 4.26.421.20 |
LtAc4,-zicy
Max Financial Services Limited Notes forming part of the consolidated financial statements
C. Transactions with the key management personnel during the year:
| Name of key management personnel | Nature of transaction | Half Year ended 30.09.2021 |
Year ended 31.03.2021 |
|---|---|---|---|
| Mr. Mohit Talwar (Note 1) | Remuneration | 713.13 | 1,956.87 |
| Mr. Jatin Khanna (Note 1) | Remuneration | 393.52 | 117.85 |
| Mr. V Krishnan (Note 1) | Remuneration | 176.48 | 125.68 |
| Mr. Analjit Singh | 4.00 | 8.00 | |
| Mr. K Narasimha Murthy | 4.00 | - | |
| Mr. Aman Mehta | 8.00 | 15.00 | |
| Mr. D.K. Mittal | 8.00 | 16.00 | |
| Mrs. Naina lal Kidwai | Director sitting fee - |
3.00 | 15.00 |
| Mr. Sahil Vachanl | 3.00 | 6.00 | |
| Mr. Jai Arya | 4.00 | 8.00 | |
| Mr. Charles Richard Vernon Stagg | 4.00 | 5.00 | |
| Mr. Analjit Singh (Note 2) | 150.00 | 300.00 | |
| Mr. Aman Mehta | 20.00 | ||
| Mr. D.K. Mittal | - Commission |
- | 20.00 |
| Mrs. Mam a Lal Kidwal | - | 20.00 | |
| Mr. Jai Arya | - | 20.00 | |
| Mr. Charles Richad Vernon Stagg | - | - | 20.00 |
Note 1 : The remuneration paid to aforesaid KMP's includes one - time special incentive of Rs. 7.75 crores paid for their valued contribution in consummation of Max Financial - Axis transaction. This includes payment of Rs. 5 crores made to Mr. Mohit Talwar, MD of the company with the approval of shareholders. Mr. Jatin Khanna, CFO of the company resigned from the services of the company effective close of business hours on September 30, 2021, the remuneration paid to him includes F&F payment.
Note 2 : Payments made to Mr. Analjit Singh on his extensive involvement in the strategic developments at the company are with the approval of shareholders.
D The following table provides the year end balances with related parties for the relevant year:
| . In lakh | |||
|---|---|---|---|
| Nature of transaction | Name of related party | As at 30.09.2021 |
As at 31.03.2021 |
| Trade Receivables | Max Ventures and Industries Limited | 110.29 | 252.96 |
| Other Receivables | Max India Limited | - | 27.02 |
| Max Ventures and Industries Limited | 28.00 | ||
| Max Towers Private Limited | 5.04 | ||
| Antara Assisted Care Services Limited | 1.82 | ||
| Antara Senior Living Limited | 1.82 | - | |
| Security Deposit Receivable | Delhi Guest House Private Limited | 22.82 | 22.82 |
| SKA Diagnostic Private Limited | 25.00 | 25.00 | |
| Max India Limited | 21.87 | - | |
| Advances paid | Max Skill First Limited | 299.10 | |
| Max India Foundation | - | 270.00 | |
| Trade Payables | New Delhi House Services Limited | - | 28.75 |
| Max India Limited | 46.00 | 261.33 | |
| Max UK Limited | 120.00 | 80.00 | |
| Max Asset Services Limited | 2.86 |
E. Terms and conditions of transactions with related parties
Transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. The Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.