Poonawalla Fincorp Limited · NSE:POONAWALLA
Poonawalla Fincorp — Magma Fincorp — Q3 FY20 Earnings Presentation
62 slides from Poonawalla Fincorp's earnings presentation, Jan 31, 2020
Slide 1: Intimation to stock exchanges on investor presentation
Magma Plnearp UwM Kegd. Office Development House 24 Pork Street, Kolkoto 700 016 Tel : 91 7596067686 91 33 44017350 % ;91 33 44017428 ON : LSI 504WB1978PLC031813 W^b; wvyw.magma.eo-iR investing in th^ smollest ^rearn 31 Unwary aotO Corporate Relationship Department Company Code - 524000 USE Limited
Slide 2: Towards a Robust, Sustainable and Profitable Growth
Towards a Robust, Sustainable and Profitable Growth Magma Fincorp Limited Investor Presentation – Q3 FY20
Slide 3: Agenda
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may dif
Slide 4: Quick Snapshot
Quick Snapshot Company into 32nd year of retail Strong technology platform, financing business systems & processes Strong management team with Robust risk management extensive industry experience framework AUM1 – Rs. 16,574 Crore ~ 3.0 Million Customers serviced Evenly spread across India since ince
Slide 5: Financing Solutions to Underbanked Customers in 'Rurban' India
Provide Financing Solutions to Underbanked Customers in ‘Rurban’ India Recognised and Trusted Brand in ‘Rurban’ India • Taxi / Truck driver / operators, • Self employed customer with Small Farmers informal income sources (Home / Car buyer) Customer Focus Underserved ‘Rurban’ India • Customers with i
Slide 6: Financing & General Insurance Solutions
Focus on Higher Cross-Selling of Products for Deep Customer Engagement Customer Segments Illustrative Asset Profile Average Self Employed Small & Limited Average Average First Time Loan to Non Medium banking / Ticket Size Tenure Buyers Value Professionals Entrepreneurs credit history (Rs lakh) (mont
Slide 7: A well diversified portfolio across segment and geography
A well diversified portfolio across segment and geography Diverse Product Offerings Zone-wise Breakup Asset Backed Finance (ABF) North, AUM1 : Rs. 10,678 crs 36% West, 22% East, 17% South, Total AUM1 : 25% Affordable Housing Finance SME Finance Rural-Urban Breakup AUM1 : Rs. 2,067 crs Rs. 16,574 crs
Slide 8: Extensive Pan India Network
Extensive Pan India Network Asset Light Branch Network 326 Branches as on 31st December, 2019 Himachal Pradesh, 3 Delhi, 5 • Wide retail presence through hub and spoke model Uttarakhand, 3 Punjab, 9 • Technology solutions enable FOS to conduct business Uttar Pradesh, 41 Haryana, 19 from channel/cust
Slide 9: Magma Culture Code
Magma Culture Code Integrity Collaboration Respect Do the right thing (end), the right Invite ideas and inspiration for all Treat people equally way (means) all the time 8
Slide 10: Financial Performance – Q3 FY20
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may dif
Slide 11: External Environment not too favourable despite government interventions
External Environment not too favourable despite government interventions.. Liquidity crisis in financial services sector since Sep-18 resulted in broader economic slowdown impacting all sections of economy Liquidity significantly eased in Q3FY20, consequent to decisive government interventions
Slide 12: Key highlights & priorities
Key highlights & priorities Comfortable liquidity during and at the end of quarter; Raised Rs. 2,195 crs of long term funds in Q3 FY20. Good visibility for new funding lines to meet business requirements till end of Q1 FY21 ALM fully matched over Q2 FY20, surplus of assets over liabilities in ea
Slide 13: Key Financial Highlights Q3 FY20
Key Financial Highlights Q3 FY20 Parameter Q3 FY20 Q2 FY20 QoQ Q3 FY19 YoY AUM Rs. 16,574 crs Rs. 16,463 crs 0.7% Rs. 16,396 crs 1.1% Disbursement Rs. 2,014 crs Rs. 1,015 crs 98.4% Rs. 2,132 crs 5.5% NIM 7.8% 7.9% 0.1% 8.4% 0.6% Opex Ratio 4.2% 4.1% 0.1% 4.3% 0.1% NCL 2.9% 2.9% 0.0% 1.3% 1.6% Net NP
Slide 14: Assets Under Management – Product mix moving towards focus products
Assets Under Management (AUM) – Product mix moving towards focus products 16,574 16,463 16,396 17,029 16,574 16,396 1,798 1,573 22% 18% 19% 11% 10% 23% Focus 14% Focus 13% 12% 12% products products 58% 50% 18% 19% 21% 23% 14,776 14,823 12% 11% 89% 90% 10% 9% 17% 17% 18% 15% 18% 19% 21% 20% Q3 FY20 Q
Slide 15: Disbursals back on track
Disbursals back on track QoQ growth in Disbursement YoY Change in Disbursement Mix 2,586 2,014 2,132 2,132 2,014 Affordable 14% 23% Housing 1,015 SME & Others 20% Focus Focus products 19% products 81% 60% ABF-Used Assets 26% Q3 FY20 Q2 FY20 Q3 FY19 Q4 FY19 ABF-Agri 39% 5% Q3 FY20 Disbursals back t
Slide 16: Assets Quality
Assets Quality Particulars Q3 FY20 Q2 FY20 Q3 FY19 FY19 Gross Stage 1 and Stage 2 Assets 13,790 13,653 13,913 14,898 ECL Provision – Stage 1 and 2 277 286 333 293 Stage 1 and Stage 2 Coverage Ratio (%) 2.0% 2.1% 2.4% 2.0% Gross Stage 3 Assets 987 928 910 747 Net Stage 3 Assets 647 599 586 472 Gross
Slide 17: Credit Losses – Stable QoQ
Credit Losses – Stable QoQ, not confirming to historical Q3 trends Table A Rs. Crs Housing and SME loans perform in line with expectations. ~80% Particulars Q3 FY20 Q2 FY20 Q3 FY19 of the NCL is contributed by the vehicle loans Net ECL Provision* 62.0 72.0 22.4 • Disproportionate NCL coming from CV:
Slide 18: Liability Profile – Structural Shift to Long Term Liquidity
Liability Profile – Structural Shift to Long Term Liquidity On Balance Sheet Debt 13,091 12,568 12,017 13,401 13% 14% 27% 32% 6% 37% 30% 5% 4% 4% 59% 55% 39% 44% 8% 8% 7% 8% Q3 FY20 Q2 FY20 Q3 FY19 FY19 Perpetual & Sub Debt Term Loan Incl PTC NCD Working Capital Commercial Paper Instrument Rating •
Slide 19: Borrowing Profile
Borrowing Profile Fresh Borrowings in Q3 FY20 Instrument MFL MHFL Consolidated Term Loans 550 400 950 NCDs 350 - 350 Securitization 552 343 895 Total 1,452 743 2,195 Borrowing Mix as at 31 December 2019 Particulars Fixed Rate Borrowings Floating Rate Borrowings MFL 50% 50% MHFL 27% 73% Consolidated
Slide 20: Structural Liquidity for MFL: Positive ALM in all buckets
Structural Liquidity for MFL as at Dec 19: Positive ALM in all buckets 4,000 398% 390% 3,487 3,500 340% 3,000 2,741 2,783 290% 2,463 2,500 2,177 240% 292% 1,975 2,000 186% 190% 1,500 157% 140% 1,000 90% 1% 500 18% 15% 40% 105 Regulatory 0 -10% Norm of (15%) -500 1 month 2 month 3 month 6 month 1 yea
Slide 21: Capital and Profitability
Capital and Profitability Net Worth Capital Adequacy* 2,775 2,752 2,662 2,744 26.9% 27.6% 21.7% 24.9% 54 54 54 54 3.1% 3.4% 4.1% 3.6% 2,721 2,698 2,608 2,690 23.8% 24.2% 18.1% 20.7% Q3 FY20 Q2 FY20 Q3 FY19 FY19 Q3 FY20 Q2 FY20 Q3 FY19 FY19 Reserves and Surplus Share Capital Tier 1 Tier 2 ROA ROE 2.0
Slide 22: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 FY19 Net Revenue 322 335 347 979 1,052 1,391 Expenses 174 175 175 525 513 684 Operating Profit 148 160 172 454 539 707 Net Credit Loss 120 123 52 372 224 265 Profit Before Tax 28 38 120 83 315 442 Tax 7 11 43 23 99 1
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars 31-Dec-19 31-Dec-18 31-Mar-19 Cash and Cash Equivalents 1,384 464 957 Loans and Advances 14,091 14,190 15,018 Other Assets 757 603 612 Fixed Assets 201 199 203 Total Assets 16,432 15,546 16,789 Borrowings 12,686 12,043 13,401 Other Liabilities 971 752 644 Share
Slide 24: Business Strategy – Asset Backed Finance (ABF)
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy – Asset Backed Finance (ABF) 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in thi
Slide 25: ABF Business Momentum
ABF Business Momentum Disbursal % (Value) Product-wise AUM Contribution 1,424 1,644 1,375 566* 1,168 11,191 11,591 11,655 10,923 10,678 26% 28% 30% 31% 35% 39% 40% 45% 63% 68% 18% 16% 15% 14% 8% 7% 13% 7% 6% 53% 53% 7% 56% 56% 55% 54% 51% 48% 30% 25% Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q
Slide 26: ABF Disbursal Strategy focused on used assets
ABF Disbursal Strategy focused on used assets Used Asset Disbursement (Units) Used Asset Disbursement 21,440 793 18,639 664 17,654 618 550 554 15,036 14,972 477 448 414 422 12,453 12,701 11,992 10,875 3 Yr CAGR – 35% 332 3 Yr CAGR – 36% 9,349 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 27: Asset Backed Finance (ABF) Business
Asset Backed Finance (ABF) Business Cross sell Disbursement Direct Business % of total ABF Disbursal (Units) 387 47% 41% 40% 230 235 38% 37% 201 36% 182 35% 35% 152 162 130 33% 105 31% 78 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 FY18 FY19 FY20* FY18 FY19 FY20* • Significant growth
Slide 28: Portfolio Quality Indicators
Portfolio Quality Indicators EWI Trend for ABF CPMI Trend for ABF 13.0% 12.2% 20.9% 18.2% 9.3% 9.5% 14.8% 10.6% 5.9% 5.4% 7.9% 8.1% 8.2% 8.3% 9.0% 4.7% 4.7% 8.2% 8.4% 8.4% 8.6% 9.1% 4.6% 4.6% 7.4% 4.2% 4.5% 4.3% 4.4% 4.4% 4.5% 5.7% Dec'14 Dec'15 Dec'16 Dec'17 Dec'18 Jun'19 Sep'19 Dec'19 Dec'14 Dec'1
Slide 29: Business Strategy – Affordable Housing Finance (AHF)
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy – Affordable Housing Finance (AHF) 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios
Slide 30: Affordable Housing Finance Business (AHF)
Affordable Housing Finance Business (AHF) Home Loan Disbursement Total AHF* Disbursement Affordable Housing Franchise gains national prominence Industry leading relationship based direct origination model 261 455 252 402 199 179 308 289 ~46% PMAY penetration in fresh Home Loan on-boarding Q3 FY20 Q2
Slide 31: AHF – Home Loan share increasing
Affordable Housing Finance Business (AHF) – Home Loan share increasing AUM MIX 3,828 3,540 2,967 3,160 1% 1% 1% 1% 53% 55% 65% 60% 46% 44% 38% 34% Q3 FY20 Q2 FY20 Q3 FY19 FY19 Home Loan LAP CF • Home Loan has increased to 46% of total Mortgage AUM from 34% in Q3 FY19 Values in Rs Crore; HL does not
Slide 32: AHF - Business Initiatives
AHF - Business Initiatives Go Home Loan Go Direct HL Ratio (Units) Direct Ratio (Units) 81% 83% 68% 67% 68% 70% 66% 77% 80% 79% 80% 63% 68% 56% 59% 43% 47% 40% 33% 33% 26% 28% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY18 FY19 FY20 FY18 FY19 FY20 Key Takeaways • HL Ratio has
Slide 33: AHF Disbursement - Diversified Business
AHF Disbursement - Diversified Business Geography 455 308 289 402 • Focused deep market penetration in 103 locations across 19 5% 6% 6% 4% states using unit model implementation • Well-balanced national scale portfolio with minimal 32% 37% concentration risks 34% 38% • Unique affordable finance comp
Slide 34: AHF - Early Indicators: ID & ED Trends
AHF - Early Indicators: ID & ED Trends ID & ED Trend for AHF 6.0% 5.0% 4.23% 4.0% 3.28% 3.0% 3.05% 1.79% 1.80% 2.0% 1.36% 2.52% 1.27% 0.73% 0.70% 0.45% 1.0% 1.55% 1.29% 0.70% 1.06% 0.44% 0.39% 0.0% 0.62% 0.39% 0.54% Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 ED ID ED Bench
Slide 35: Business Strategy – SME and Others
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy – SME and Others 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentati
Slide 36: SME and Others
SME and Others Disbursement 540 “Mscore” SME Credit Scorecard launched pan India across 80+ 419 branches 391 60% of logins following Straight-Through- 140 Processing Q3 FY20 Q2 FY20 Q3 FY19 Q4 FY19 SME Product bouquet enhanced with GST Product launch Focus on high quality assets in current condition
Slide 37: SME and Others
SME and Others AUM Growth Geographical Diversification 2,278 2,238 North, 17% East, 21% 2,067 2,000 West, 29% South, 33% Q3 FY20 Q2 FY20 Q3 FY19 FY19 Prudence adopted in unsecured SME business given tough Geographically well diversified portfolio as on Dec’19 macro conditions Values in Rs crore 39
Slide 38: SME Finance - Early Indicators: ID & ED Trends
SME Finance - Early Indicators: ID & ED Trends ID & ED Trend for SME Finance ID ED 0.81% 0.81% 1.73% 1.60% 1.66% 1.52% 1.57% 0.67% 1.47% 1.44% 1.43% 0.64% 1.32% 0.58% 0.51% 0.48% 0.40% 4.6 4.4 4.6 4.4 0.34% 21.5 17.6 18.9 18.1 3.3 15.2 16.7 3.1 3.0 13.3 13.5 2.7 2.7 13.0 Q3 FY18 Q4 FY18 Q1 FY19 Q2 F
Slide 39: Business Strategy – MHDI
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy – MHDI 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These
Slide 40: Magma HDI General Insurance
Magma HDI General Insurance Gross Written Premium 30.5% growth in GDPI for Q3FY20 vs industry growth of 948 13.1% 42% 667 Commenced business with new OEM tie-up and 83% integration is under process for 365 358 one of OEM 267 34% Bancassurance growth driven on the back of penetration of existing and
Slide 41: Magma HDI General Insurance: Portfolio
Magma HDI General Insurance: Portfolio Portfolio Construct Retail Run Rate 309 4% Q3FY19 Q3FY20 4% 261 6% 4% 241 235 218 Motor OD 181 23% 11% 23% 12% Motor TP 103 80 78 87 60 73 Fire 55% Marine & Other 58% Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Rs. 667 Cr. Rs. 948 Cr. Qtrly Retail Business
Slide 42: Magma HDI General Insurance: Robust Growth
Magma HDI General Insurance: Robust Growth Combined Ratio Movement Investment Book & Leverage ratio YTD-O-YTD 124.7% Q-O-Q Investment Corpus Leverage Ratio @ 124.0% 5.5 4.7 4.4 4.4 120.3% 120.5% 3.5 117.8% 2,115 1,471 1,369 900 1,137 9M FY18 9M FY19* 9M FY20 Q3 FY19* Q3 FY20 FY17 FY18 FY19 Q3 FY19 Q
Slide 43: Magma HDI General Insurance: Profit & Loss Statement
Magma HDI General Insurance: Profit & Loss Statement Ind AS Particulars Q3 FY20 Q3 FY19 Q2 FY20 9M FY20 9M FY19 FY19 Gross Written Premium 358.3 267.0 300.3 948.5 667.3 1,025.8 Net Written Premium 227.4 153.8 195.6 589.8 292.8 516.9 Net Earned Premium 180.9 133.6 169.2 514.4 196.7 384.9 Net Claims I
Slide 44: Business enablers to drive sustainable growth
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may dif
Slide 45: Enterprise wide, independent risk management framework
Enterprise wide, independent risk management framework An integrated approach covering entity wide risks Board of Directors Risk Management ALCO Audit Committee ITSC Committee Independent Risk Management Unit 1st line of defense 2nd line of defense 3rd line of defense Operational and Business Credit
Slide 46: Business enablers – Technology
Business enablers to drive sustainable growth – Technology Enterprise Transformation ‘Project Navoday’ launched in order to modernize entire Technology stack: Loan Origination System, Loan Management System, Data Warehouse, ERP, Mobility solutions etc. Proposed features will be Automation of Wor
Slide 47: Business enablers – People
Business enablers to drive sustainable growth – People Fully functional role based and state of the art learning tools aimed at enhancing productivity and behavior Structured Onboarding Program across levels for smooth onboarding and integration. Development interventions through International
Slide 48: Business enablers – Customer Service
Business enablers to drive sustainable growth – Customer Service Healthy trends observed in Net Promoter Score survey which is the leading indicator of customer loyalty. Asset Finance business has an extremely healthy NPS score in the range of 40 – 45 which is one of the best in the industry.
Slide 49: Leadership Team & Shareholding Structure
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may dif
Slide 50: Board of Directors
Board of Directors Promoter Directors Non Promoter Directors Mayank • Supports policy He is on the Board of He served as the Chairman Narayan K Poddar formulation and guidance companies including and Managing Director of Seshadri VK Viswanathan Chairman to the Management/Board Clearing Corporation o
Slide 51: Management Team
Management Team Business CEO / Functions Sanjay Chamria Support Functions VC and MD Rajive Kumaraswami Harshvardhan Chamria Rajneesh Mishra Deepak Patkar Kailash Baheti Manish Jaiswal Mahender Bagrodia MD & CEO - HFC, MD & CEO -MHDI Chief Business Officer - ABF Chief Digital Officer Chief People Off
Slide 52: Holding Structure & Shareholding Pattern
Holding Structure & Shareholding Pattern Magma Fincorp Limited 100% 35.41% Magma Housing Finance Magma HDI General Limited Insurance Company Limited Share Price Performance Shareholding (31-Dec-2019) 200.00 Public, Promoters, 32.23% 24.40% 150.00 100.00 50.00 Overseas Bodies, 0.00 9.68% Domestic May
Slide 53: Thank You
THANK YOU
Slide 54: Glossary
Glossary AUM Assets Under Management: On-Book & Off-Book Loan Assets Average AUM (AAUM) Average of opening and closing AUM FOS / Field Officer Feet on Street ABF Asset Backed Finance AHF Affordable Housing Finance HL Home Loan LAP Loan against property SME Small & Medium Enterprises NDSA Non-dealer
Slide 55: Annexures
1 Company Overview 2 Financial Performance – Q3 FY20 3 Business Strategy 4 Business enablers to drive sustainable growth 5 Leadership Team & Shareholding Structure 6 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may dif
Slide 56: MFL Standalone Profit & Loss Statement
Magma Fincorp Ltd. (MFL) Standalone Profit & Loss Statement Particulars Q3 FY20 Q2 FY20 Q3 FY19 9MFY20 9MFY19 FY19 Net Revenue 271 290 311 846 954 1,267 Expenses 148 150 155 448 457 602 Operating Profit 124 140 157 398 498 665 Net Credit Loss 117 122 51 363 220 262 Profit Before Tax 7 18 105 35 277
Slide 57: MFL Standalone Balance Sheet
Magma Fincorp Ltd. (MFL) Standalone Balance Sheet Particulars 31-Dec-19 31-Dec-18 31-Mar-19 Cash and Cash Equivalents 1,133 463 933 Loans and Advances 11,866 12,545 13,149 Other Assets 837 717 722 Fixed Assets 185 183 187 Total Assets 14,021 13,908 14,991 Borrowings 10,726 10,869 11,828 Other Liabil
Slide 58: MHFL Standalone Profit & Loss Statement
Magma Housing Finance Ltd. (MHFL) Standalone Profit & Loss Statement Particulars Q3 FY20 Q2 FY20 Q3 FY19 9MFY20 9MFY19 FY19 Net Revenue 50 45 36 141 98 132 Expenses 26 25 20 78 56 82 Operating Profit 25 20 15 63 42 50 Net Credit Loss 4 0 1 9 4 3 Profit Before Tax 21 20 14 55 38 47 Tax 6 6 4 15 10 13
Slide 59: Rewards & Recognition
Rewards & Recognition Corporate Social Responsibility Magma has received 13 awards since 2015 for the various CSR activities covering Education, Health and Environment Sustainability. The latest recognition was received in November 2019 from UBS Forums – for Excellence in CSR – Magma Highway Heroes
Slide 60: Community Commitment: Corporate Social Responsibility
Community Commitment: Corporate Social Responsibility Magma Highway Heroes Magma M-Scholar • Magma M Scholar offers Scholarship to meritorious students from poor • A programme for Truck Drivers to train them on Road Safety and vehicle families maintenance. The lone formal Training camp run by PCRA,
Slide 61: Disclaimer
Disclaimer This presentation has been prepared by Magma Fincorp Limited (the “Company”), for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of a
Slide 62: Disclaimer (Contd.)
Disclaimer (Contd.) The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability what