Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q4 FY2023 Earnings Presentation
62 slides from Iifl Finance's earnings presentation, Apr 26, 2023
Slide 1: Stock exchange cover letter
April 26, 2023 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. BSE Scri
Slide 2: Performance review Quarter ended March 2023
Performance review Quarter ended March, 2023 (Q4FY23 and FY23) Bloomberg: IIFL IN April 26, 2023
Slide 3: Contents
Financial Performance Q4FY23 and FY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 33 Corporate, Strategy and Others 35 – 44 Financials of the Subsidiaries 46 – 59 Link to download databook 60 2
Slide 4: FY23 Results Snapshot (Consolidated)
FY23 Results Snapshot (Consolidated) FY23 net profit ₹1608 Cr - up 35% yoy; RoE at 19.9% Earnings per share (₹ Cr) FY23 FY22 YoY% Q4FY23 Q4FY22 YoY % ₹39.5 Book value per share Loan AUM 64,638 51,210 26% 64,638 51,210 26% ₹231.1 PPOP 2,831.4 2,285.0 24% 766.1 656.4 17% Return on Equity 19.9% PAT (pr
Slide 5: FY23 Results (Consolidated)
FY23 Results (Consolidated) Income ₹5,077 Cr - up 31% yoy; PPOP at ₹2,831 Cr - up 24% yoy ₹ Cr FY23 FY22 Y-o-Y Interest income 6,240.1 5,362.4 16% Interest expense (3,221.8) (2,991.0) 8% Net interest income 3,018.3 2,371.3 27% Non-fund based income 2,058.8 1,505.5 37% Total income 5,077.1 3,876.8 31
Slide 6: Quarterly Results Q4FY23 (Consolidated)
Quarterly Results Q4FY23 (Consolidated) Income ₹1,379 Cr - up 23% yoy, 5% qoq; PPOP ₹766 Cr- up 17% yoy, 2% qoq ₹ Cr Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q Interest income 1,720.7 1,410.9 22% 1,597.5 8% Interest expense (860.6) (773.2) 11% (809.4) 6% Net interest income 860.1 637.7 35% 788.1 9% Non-fund b
Slide 7: FY23 Income Analysis (Consolidated)
FY23 Income Analysis (Consolidated) Non fund income - 41% of total income ₹ Cr FY23 FY22 Y-o-Y Loan book using risk capital 39,366 31,670 24% Securitized book 736 2,397 (69%) Loan Book (Ind AS Balance sheet) 40,102 34,067 18% Assigned assets 16,979 14,298 19% Co-lending book 7,557 2,845 166% Assets
Slide 8: Quarterly Q4FY23 Income Analysis (Consolidated)
Quarterly Q4FY23 Income Analysis (Consolidated) Non fund income - 38% of total income ₹ Cr Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q Loan book using risk capital 39,366 31,670 24% 35,237 12% Securitized book 736 2,397 (69%) 1,049 (30%) Loan Book (Ind AS Balance sheet) 40,102 34,067 18% 36,286 11% Assigned as
Slide 9: Consolidated Balance Sheet as at March 31, 2023
Consolidated Balance Sheet as at March 31, 2023 Total Equity at ₹10,202 Cr ASSETS (₹ Cr) LIABILITIES AND EQUITY (₹ Cr) 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 5,839 (a) Payables 197 (b) Receivables 273 (b) Borrowings (c) Loan Assets 40,001 - NCDs 11,128 (d) Investments
Slide 10: Key Business Metrics
Financial Performance Q4FY23 and FY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 33 Corporate, Strategy and Others 35 – 44 Financials of the Subsidiaries 46 – 59 Link to download databook 60 9
Slide 11: Key business metric - Loan AUM growth
Key business metric - Loan AUM growth Core loan products AUM has grown at 23% CAGR over last 5 years Latest quarter Key business metrics Loan AUM (₹ Cr) Mix % Q4FY23 Q4FY22 YoY % Q3FY23 QoQ % Loan AUM growth Subsidy ~₹120cr was received in Portfolio Yield Home Loan 34% 21,800 17,727 23% 20,389 7% Q4
Slide 12: Key business metric – Portfolio yield
Key business metric – Portfolio yield Yield is improving with focus on small ticket granular loans Latest quarter Key business metrics Portfolio yield % Q4FY23 Q4FY22 YoY % Q3FY23 QoQ % Loan AUM growth Home Loan 10.9% 10.0% 1.0% 10.9% 0.0% Portfolio yield Gold Loan 17.5% 16.3% 1.2% 17.8% (0.2%) Cost
Slide 13: Key business metric – Cost of borrowing
Key business metric – Cost of borrowing International rating upgrade by Moody’s; repaid high cost dollar borrowing Last 5 years Key business metrics Average cost of borrowing % IIFL Finance: AA/Stable by Loan AUM growth CRISIL, ICRA, CARE and A1+ by 9.3% CRISIL, ICRA Portfolio yield 9.0% 8.8% II
Slide 14: Key business metric – Asset quality
Key business metric – Asset quality Non performing assets have consistently been lower than the peer group through cycles Latest quarter Key business metrics Reported GNPA spike for FY22 is due to change in Loan AUM growth GNPA % Q4FY23 Q4FY22 YoY % Q3FY23 QoQ % NPA recognition norms pursuant to RBI
Slide 15: Key business metric – Profitability
Key business metric – Profitability Net profit has grown at CAGR of 28%, despite covid & liquidity squeeze periods Latest quarter Key business metrics (₹ Cr) Q4FY23 Q4FY22 YoY % Q3FY23 QoQ % Average Interest spread % Loan AUM growth Total Income1 1,379.2 1,124.9 23% 1,318.4 5% Portfolio yield Operat
Slide 16: Key business metric – Capital & gearing
Key business metric – Capital & gearing Robust financials with capital adequacy at over 20% and gearing close to 3.5x Latest quarter Key business metrics (₹ Cr) Q4FY23 Q4FY22 YoY % Q3FY23 QoQ % Loan AUM growth ADIA invested ₹2,200cr for a 20% Portfolio yield Networth (Excl. Minority) 8,790 6,274 40%
Slide 17: Key business metric – Liquidity
Key business metric – Liquidity Well covered to not only meet obligations but sustain growth as well Latest quarter Key business metrics Asset Liability Match (ALM) ₹ Cr There is surplus in every bucket & no ALM Loan AUM growth Surplus across all buckets mismatch in any bucket Portfolio yield 54,712
Slide 18: Business Segments Overview
Financial Performance Q4FY23 and FY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 33 Corporate, Strategy and Others 35 – 44 Financials of the Subsidiaries 46 – 59 Link to download databook 60 17
Slide 19: Home loan – Industry overview and our Right to win
Home loan – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN LEADING HFC IN AFFORDABLE HOUSING SPACE • Housing shortage (EWS/LIG): 9.5 Cr units • Formidable player in the sub ₹20L loan ticket size • EWS/LIG account for 95% of potential category demand in the housing space
Slide 20: Home loan – Product overview
Home loan – Product overview Small loans for affordable homes, in small towns and suburbs of metros Distribution of AUM as at March 31,2023 (₹ Cr) Primary focus on affordable and non-metro customers. Tamil Nadu, Kerala, 2% West Bengal, 2% Rajasthan, 5% Maharashtra 86% of home loans under Priorit
Slide 21: Home loan – financial overview
Home loan – financial overview Improving yields and asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 2,428 2,132 10.9% 1,951 1,814 1,882 10.3% 10.3% 1,591 9.8% 10.0% 9.6% FY18 FY19 FY20 FY21 FY22 FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GNPA (%) Salaried and Self Employed Mix (
Slide 22: LAP – Industry overview and our Right to win
LAP – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN LEADING PLAYER WITH A WELL ESTABLISHED NETWORK • 64 Mn MSMEs in India with only 14% having access to credit TOTAL ADDRESSABLE • Leading player in the sub ₹30L secured loan ticket size • 40% have been denied credit due
Slide 23: Loan Against Property (LAP) – product overview
Loan Against Property (LAP) – product overview Focus on digital lending to MSME sector and individuals Distribution of AUM as at March 31,2023 (₹ Cr) For secured business loans against residential, commercial and industrial property West Bengal, 2% Gujarat, 5% Rajasthan, 5% Andhra Pradesh, End u
Slide 24: Loan Against Property (LAP) – financial overview
Loan Against Property (LAP) – financial overview Improving yields and asset quality; disbursals turning granular Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 17.9% 982 14.2% 14.3% 14.8% 15.1% 15.0% 792 743 720 561 FY18 FY19 FY20 FY21 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GNPA (%) Onboar
Slide 25: Digital loan – Industry overview and our Right to win
Digital loan – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN EXPANDING REACH DIGITALLY • Of the 64 Mn MSMEs, only 14% have access • 100% digital journey enabled through Account to credit TOTAL ADDRESSABLE Aggregator, o-KYC, e-KYC & c-KYC, OCR checks to limit • MSME cre
Slide 26: Digital loan – product overview
Digital loan – product overview Focus on digital lending to MSME sector and individuals Distribution of AUM as at March 31, 2023 (₹ Cr) Odisha, 2% For business loans backed by cash flows Madhya Pradesh, Chattisgarh, 3% Sikkim & 7 N.E.States, 2% Kerala, Lakshwadeep, 1% Bihar, Jharkhand , 3% Focus
Slide 27: Digital Loan – financial overview
Digital Loan – financial overview Improving yields and asset quality; disbursals turning granular Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 898 23.3% 693 716 661 20.8% 501 20.6% 19.9% 19.9% 19.7% FY18 FY19 FY20 FY21 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GNPA (%) Onboarding Average Ti
Slide 28: Gold loan – Industry overview and our Right to win
Gold loan – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN LARGE BRANCH NETWORK BUILT ON CUSTOMER FOCUS • Gold holdings in India: 28,000 tonnes TOTAL ADDRESSABLE • Our market share among NBFCs is ~14%, having grown • % holdings in form of jewellery: 65% at a CAGR of 39%
Slide 29: Gold loans – product overview
Gold loans – product overview Secured low-risk short term loans to neighborhood customers Distribution of AUM as at March 31,2023 (₹ Cr) Assam, Tripura, 3% In-house loan origination through growing network of Bihar, Jharkhand, 2% Tamil Nadu, Puducherry, 3% branches and increasing use of digital te
Slide 30: Gold loans – financial overview
Gold loans – financial overview Stable yields and asset quality Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 19.0% 11,245 17.8% 18.1% 18.0% 17.5% 17.5% 7,997 7,135 6,811 7,177 FY18 FY19 FY20 FY21 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GNPA (%) Onboarding Average Ticket Size (₹ ‘000) 0.9%
Slide 31: Microfinance – Industry overview and our Right to win
Microfinance – Industry overview and our Right to win INDUSTRY OVERVIEW IIFL’s RIGHT TO WIN • Potential Households in eligible income ESTABLISHED BASE AND CONSISTENT TRACK RECORD category (HHs): 20.32 mn • MFI Outreach: 28.5% • Major microfinance player with diversified geo presence • Average loan o
Slide 32: Microfinance loans – product overview
Microfinance loans – product overview Focus on self employed, low income women groups for micro business Distribution of AUM as at March 31,2023 (₹ Cr) Small-ticket loans for purpose of income generation Jharkhand 2% Chhattisgarh, 1% Maharashtra,Goa 2% activities Assam,Tripura & Arunachal Pradesh
Slide 33: Microfinance loans – financial overview
Microfinance loans – financial overview Improving yields and asset quality; disbursals picking up Portfolio Yield (%) Quarterly Disbursements (₹ Cr) 3,750 24.8% 23.4% 23.8% 22.6% 22.3% 21.9% 2,699 2,516 1,834 1,374 FY18 FY19 FY20 FY21 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GNPA (%) MFI - Non M
Slide 34: Construction Real Estate (CRE) & Capital Market
Construction Real Estate (CRE) & Capital Market Not core but businesses synergistic to Group’s core businesses Construction and Real Estate (CRE) CRE Asset Under Management (₹ Cr) • IIFL Finance will continue to provide funding for completion of its already funded projects, with appropriate 5,055 4,
Slide 35: Corporate, Strategy and Others
Financial Performance Q4FY23 and FY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 33 Corporate, Strategy and Others 35 – 44 Financials of the Subsidiaries 46 – 59 Link to download databook 60 34
Slide 36: Retail Lending: Phygital and Partnership model
Uniquely placed to dominate non banking retail lending Our business is built on Phygital and Partnership model Retail Lending Strong collateral or cash flow backed loans, in segments with robust growth potential Phygital Partnerships Physical Digital Banks Fintechs Network of 4,200+ Innovative digit
Slide 37: Recent partnerships with banks for co-lending and co-origination
Our recent partnerships with banks for co-lending, co-origination and business correspondence.. Gold Loan tie-ups Home Loan tie-ups MFI tie-up New Tie-ups (Q4FY23) Gold Loan MSME LAP tie-ups Micro LAP Co-Lending/ Co-Origination/ Business Correspondence disbursement picking up Gold Loans Home Loans C
Slide 38: Marquee global investors and shareholding pattern
Since inception, marquee global investors have reposed faith in our business & management Shareholding Pattern % holding Promoters 24.9 Institutional Investors 53.9 (Formerly CDC Group) Fairfax 22.2 2010 2016 Capital Group 8.0 Bank Muscat India Fund 3.3 Vanguard 2.9 Ward Ferry 2.4 2007 2011 2022 Bav
Slide 39: Distinguished Board of Directors
Distinguished Board of Directors IIFL Finance – Board of Directors Nirmal Jain R Venkataraman A K Purwar Managing Director Joint Managing Director Chairman and Independent MBA, IIM Ahmedabad; MBA, IIM Bangalore; Director Rank holder CA & Cost accountant B-Tech, IIT Kharagpur M Com., Allahabad Univer
Slide 40: Experienced senior management team
Experienced senior management team IIFL Finance IIFL Home Finance IIFL Samasta Finance N Venkatesh Kapish Jain Monu Ratra Chief Executive Officer Chief Financial Officer Chief Executive Officer Strategic leadership Program Chartered Accountant Qualified architect and MBA in microfinance at Harvard O
Slide 41: ESG - Environment
ESG - Environment Supporting a sustainable economy through focus on environment Adopting environmentally conscious solutions in our business initiatives as well IIFL has signed a US$ 68 million Pioneered Green Building concept in loan with Asian Development Bank (ADB) to partnership with housing dev
Slide 42: ESG - Social
ESG - Social Promoting financial inclusion IIFL is firmly committed to support economic activity and financial inclusion through its loan offerings while adapting to changes in the external environment. 68% of gold loan disbursed are of less than ₹ 50,000 value 75% of the Unsecured MSME loans gi
Slide 43: ESG - Social: CSR projects
ESG - Social CSR projects continue with creative use of technology Smart Shaala – Rajasthan (3 Districts) Annual Medical Camps– Pandharpur, Maharashtra/Barsana, UP IIFL Foundation, has implemented the biggest TV based learning Annual Medical Camp was conducted at Barsana, District - Mathura, pro
Slide 44: ESG - Governance
ESG - Governance Conducting our business with integrity Establishing vision, mission and values and determining, reviewing the goals and policies of the Company from time to time Promote sound corporate governance practices, Corporate policies and guidelines: Board Diversity Policy, ethical standard
Slide 45: Brand and credibility recognized at various forums
IIFL’s brand and credibility recognized at various forums IIFL Finance was received ‘Most innovative IIFL Finance received ‘Customer Services IIFL Finance received ‘Marketing Campaign Fintech Product Award’ at National Awards Excellence Award’ at the Asia Awards for of the Year’ Award at Global Bran
Slide 46: Financials of the Subsidiaries
Financial Performance Q4FY23 and FY23 3-8 Key Business Metrics 10 – 16 Business Segments Overview 18 – 33 Corporate, Strategy and Others 35 – 44 Financials of the Subsidiaries 46 – 59 Link to download databook 60 45
Slide 47: Loan asset split based on Group entity booking the same
Loan asset split based on Group entity booking the same IIFL Finance is listed holding NBFC with 2 subsidiaries for housing & Micro-finance IIFL Finance IIFL Home IIFL Samasta IIFL Finance As on Q4FY23 (₹ Cr) Standalone Finance Finance Consolidated Home Loans - 21,800 - 21,800 Gold Loans 20,733 - -
Slide 48: Reconciliation of reported consolidated results with Group entities
Reconciliation of reported consolidated results with Group entities Year end results for the period ended March 31, 2023 IIFL Finance IIFL Home IIFL Samasta Intergroup IIFL Finance ₹ Cr Standalone Finance* Finance adjustments Consolidated Interest income 2,656.6 2,067.9 1,465.9 50.0 6,240.3 Interest
Slide 49: IIFL Finance (Standalone): Quarterly Results
IIFL Finance (Standalone): Quarterly Results ₹ Cr Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q Interest income 671.0 710.4 (6%) 675.2 (1%) Interest expense (369.6) (384.5) (4%) (365.0) 1% Net interest income 301.4 325.8 (8%) 310.2 (3%) Non-fund based income 400.0 331.2 21% 310.5 29% Total income 701.4 657.0 7%
Slide 50: IIFL Finance (Standalone): FY23 Results
IIFL Finance (Standalone): FY23 Results ₹ Cr FY23 FY22 Y-o-Y Interest income 2,656.6 3,005.4 (12%) Interest expense (1,456.0) (1,615.6) (10%) Net interest income 1,200.6 1,389.8 (14%) Non-fund based income 1,340.3 950.5 41% Total income 2,540.9 2,340.2 9% Operating expense (1,304.5) (1,006.7) 30% Pr
Slide 51: IIFL Finance (Standalone): Financial trends
IIFL Finance (Standalone): Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) Off Book (assignment, securitisation & colending) On Book 25,573 806 21,109 745 19,199 16,066 16,057 14,460 451 343 226 15,948 149 11,858 10,879 10,726 10,636 14,048 FY18
Slide 52: IIFL Finance (Standalone): Key ratios trends
IIFL Finance (Standalone): Key ratios trends Income, return, asset & leverage ratios Operating Expenses to Average AUM (%) Net Gearing Branch expansion 4.5 5.7% 5.6% 5.3% 3.5 3.2 4.4% 4.2% 3.0 2.7 3.6% 2.2 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Provisions to PPOP (%) Provisions
Slide 53: IIFL Home Finance (Standalone): Quarterly Results
IIFL Home Finance (Standalone): Quarterly Results ₹ Cr Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q Interest income 582.0 431.4 35% 539.0 8% Interest expense (317.4) (278.9) 14% (294.3) 8% Net interest income 264.6 152.5 74% 244.7 8% Non-fund based income 114.0 182.9 (38%) 143.2 (20%) Total income 378.6 335.4 1
Slide 54: IIFL Home Finance (Standalone): FY23 Results
IIFL Home Finance (Standalone): FY23 Results ₹ Cr FY23 FY22 Y-o-Y Interest income 2,067.9 1,657.2 25% Interest expense (1,182.1) (1,062.5) 11% Net interest income 885.8 594.8 49% Non-fund based income 558.3 553.8 1% Total income 1,444.1 1,148.5 26% Operating expense (358.5) (253.0) 42% Pre provision
Slide 55: IIFL Home Finance (Standalone): Financial trends
IIFL Home Finance (Standalone): Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) Off Book (assignment, securitisation & colending) On Book 28,512 790 23,617 20,694 18,495 578 18,158 14,321 401 306 232 245 18,055 15,261 12,501 12,961 12,173 14,330
Slide 56: IIFL Home Finance (Standalone): Key ratios trends
IIFL Home Finance (Standalone): Key ratios trends Income, return, asset & leverage ratios Operating Expenses to Average AUM (%) Net Gearing 8.2 Branch expansion 6.9 1.8% 6.0 1.7% 5.6 1.4% 1.4% 4.6 1.2% 1.2% 2.4 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Provisions to PPOP (%) Provis
Slide 57: IIFL Samasta Finance: Quarterly Results
IIFL Samasta Finance: Quarterly Results ₹ Cr Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q Interest income 455.5 272.7 67% 363.0 25% Interest expense (175.2) (114.2) 53% (151.2) 16% Net interest income 280.3 158.5 77% 211.8 32% Non-fund based income 92.1 29.8 209% 90.3 2% Total income 372.3 188.3 98% 302.1 23% O
Slide 58: IIFL Samasta Finance: FY23 Results
IIFL Samasta Finance : FY23 Results ₹ Cr FY23 FY22 Y-o-Y Interest income 1,465.9 946.0 55% Interest expense (587.0) (395.1) 49% Net interest income 879.0 550.9 60% Non-fund based income 267.8 57.7 364% Total income 1,146.8 608.6 88% Operating expense (552.7) (328.6) 68% Pre provision operating profi
Slide 59: IIFL Samasta Finance: Financial trends
IIFL Samasta Finance : Financial trends Robust financial performance and growth Loan AUM (₹ Cr) Profit after tax (PAT) (₹ Cr) Off Book (assignment, securitisation & colending) On Book 128 107 10,552 6,484 66 4,796 53 51 3,400 2,285 7,999 841 5,773 4,117 1 1,946 2,301 791 FY18 FY19 FY20 FY21 FY22 FY2
Slide 60: IIFL Samasta Finance: Key ratios trends
IIFL Samasta Finance : Key ratios trends Income, return, asset & leverage ratios Operating Expenses to Average AUM (%) Net Gearing 9.4% 8.0% 5.6 7.2% 5.3 7.1% 6.9% 4.9 4.7 4.6 5.5% 3.4 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Provisions to PPOP (%) Provisions to Average Loan Book
Slide 61: Link to download data book
Link to download data book Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website. The Link for the data book is hosted below. Click here to download excel 60
Slide 62: Thank you
Thank you Published in April 2023 IIFL Finance Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. This report is for information purposes only and does not construe to be any investment, legal or taxati