Chethana 14-15 - Chetana Financial Services Ltd

Chetana Financial
Services Limited
Annual
Report
2014-2015
MISSION and VISION - CFSL
“To provide customized financial assistance to the
needy and unbanked segment of the society”.
“To be a leading financial services provider in semiurban and rural India.”
- CFSL
ancial assistance to the
of the society”.
ervices provider in semi-
PHOTO
GALLERY
ANNUAL REPORT 2014-15
CONTENTS
1.
Management
a.
Directors
b. Key Person
2.
Company Profile
3.
Directors’ Report
a.
Report
b. Board Meeting
4.
The Progress
a.
Operational Highlights
b. Financial Highlights
c.
Key Parameters
5.
Impact
6.
Audited Report 2014-15
a.
Balance Sheet and Profit & Loss Account for the year
7.
Our Bankers
8.
Photo Gallery
ANNUAL REPORT 2014-15
BOARD OF DIRECTORS
Mr. Nagendra V Mali
Chairman
Mr. Manjunath K
Mr. Maruti F B
Mrs Chandrakala N Mali
Managing Director
Director
Director
ANNUAL REPORT 2014-15
KEY PERSONALS
Mr. T Vishwanath Rai
Mr. R P Vohra
Vice President, Finance
Advisor
Roopa H S
Laxman G
Savita B
Niranjan B K
Chief Accounts Officers
Senior Manager
Manager Credit
Internal Auditor
Santosh Jadav
Sunil B
Shambulinga B C
Ismail Itagi
Branch Manager
Branch Manager
Branch Manager
Branch Manager
ANNUAL REPORT 2014-15
COMPANY PROFILE
OVERVIEW
Chetana Financial Services Limited is a part of Navachetana group of institutions. The vision of all
Navachetana institutions is a society in which all people have the skills and resources necessary to be
financially independent and secure.
Navachetana Microfin Services Private Limited is one of the major institutions of Navachetana group,
is a Non-Banking Finance Company-Micro Finance Institution (NBFC-MFI) that extends micro-loans to
poor women who are excluded from mainstream banking services. These loans directly enable
marginalized women to engage in income-generating activities that enhance their livelihoods.
Navachetana Microfin Services Private Limited has a strategy to lend microfinance activities only
through JLG model. Currently NMSPL promotes Joint Liability Groups (JLGs) consisting of women
members and operates in urban, semi-urban and rural areas.
To cater financial need in individual segment and to strengthen Small - Medium Enterprises, Chetana
Financial Services Limited came into existence. Chetana Financial Services Limited (CFSL) extends
loans in rural/semi-urban/urban areas of Karnataka. It extend loans for business segment - business
expansion, new business start-up, working capital requirement, personal loans - consumption
purpose, marriage, education etc , mortgage loans - house extension, repair and vehicle loans - Two
Wheeler, Four Wheeler.
BRIEF HISTORY
Chetana Financial Services Limited (CFSL) formerly known as Nimba Finance and Leasing Private
Limited (NFLPL) is a Non Banking Finance Company (NBFC) registered with Reserve Bank of India
(Reg No-B.02.00139) incorporated in the year 1996 under the provisions of Companies Act, 1956
(CIN- U85110KA1996PTC021326).
Chetana Financial Services Limited (CFSL) is a Non Banking Finance -Non deposit accepting Company
engaged in the business of originating SME, Mortgage, Vehicle and Personal loans.
ANNUAL REPORT 2014-15
1
GENERAL
1.1
Address of Head
Registered Office
: Mali Compound, Shivabasava Nagar,
Haveri – 581110
Office
Head Office : “Hitaishi”, Shirur Group, P B Road,
Haveri – 581110
1.2
Phone No. & Fax No.
Cell: 09480696158, 09480696169
1.3
E-mail & Website
Email
1.4
Registration Status
: [email protected]
Acts under
which
Registered
Date
of Place
of Registration
Registration
Registration
No.
20.11.2012
Bangalore
B.02.00139
Section 45
IA of the
RBI Act,
1934
13.10. 1996,
Fresh
Certificate of
Companies
Registration
Act,1956
upon change of
U85110KA1
Bangalore
996PTC0213
26
name on
conversion date
26.04.2012
FIDC
1.5
Constitution
04.08.2015
Mumbai
NBFC-AFC
Chetana Financial Services Limited is a Limited Company
registered under Indian Companies Act, 1956.
ANNUAL REPORT 2014-15
2.1
Type of
Activity/Operati
1. Type of Activity :
Vehicle, SME and Mortgage
Loans.
onal Area
2. Area of Operations: Haveri,Davangere, Gadag districts.
2.2
Present
Capital
Structure
Paid-up Equity Capital
Individual/
Percentage
No. of
Amount
Shares
Infused
2520000
25200000
87.96%
Promoter
255000
2550000
8.90%
Individuals
90000
900000
3.14%
TOTAL
2865000
28650000
100%
Institutional Investor
NavachetanaVividoddesh
stake as on
31.03.2015
Souharda Sahakari
Niyamit, Haveri
2.3
Year in which
13-10-1996
operations
was started
Repayment
Monthly
mode
2.4
Management Information System
Which MIS
Tally.erp 9.3 and daily updated – Manually and FIMO Software
maintained
purchased from Jayam Solutions, Hyderabad (Web based application)
manually or
automated
MIS in the
In all decision making steps, MIS places a vital role in it. Data can be
decision
availed at various levels.
making
ANNUAL REPORT 2014-15
Our Area of Operation:
At present we have operating in the northern Karnataka districts of Haveri, Davangere & Gadag.
Our Products:
Chetana Financial Services Limited (CFSL) extends loans in rural/semi-urban/urban areas of Karnataka.
It extend loans for Business segment-business expansion, new business start-up, working capital
requirement, personal loans-consumption purpose, Marriage, education etc., mortgage loans-House
extension, repair and vehicle loans-Two Wheeler, Four Wheeler.
1.
Individual Loan:
a)
MSME Loan (Business loan)
The purpose of this loan is to serve the small business, self employed segment like traders (all
kinds of shop), manufactures (small manufacturing industries, mills etc.) and services (hotel industry,
garages, etc.) requiring larger amount for the betterment of their enterprise through capital
expenditure and/or operational/working capital expenditure.
b)
Mortgage Loan (Home loan)
This loan is offered for house extension, renovation, repair purposes and the amount of loan vary
from 1 lakh to 5 lakhs depend upon the requirement of the customer.
2.
Vehicle Loan:
We extend loans for purchase of new vehicles and used vehicle, loan will be considered upto
60% of the ex-showroom price and loan is sanctioned for the purchase of a new two, three and four
wheeler vehicle. The time for sanction of a loan is usually 3 – 4 days from the date of submission of the
complete documents. However, this may vary depending on the nature of the loan, the quantum of
funding, etc.
Tenure of Loan:
•
The tenure of the loan may vary from 12 to 36 months, depending upon the nature of the
deal and the repayment capacity.
•
Repayment can be made through post-dated cheques (PDCs) / ECS or through Auto-Debit
•
A full pre-payment of the loan is accepted. Part pre-payment is not allowed.
Details of loan products
Sl.
Product Name
No.
1
Two/Four Wheeler Loan
2
3
Small Business Loan,
Personal loan
Mortgage loan
Loan Size
Installments
Security
20000-50000
12 To 24
Hypothecation
50000-100000
12 To 18
PDC/IT Return
100000 To 500000
12 To 36
Mortgage
*KYC documents have to be submitted along with the loan documents.
ANNUAL REPORT 2014-15
Navachetana Vividoddesha Souharda Sahakari Niyamit
Navachetana Vividoddesha Souharda Sahakari Niyamit, Haveri (NVSSN) is one of the major
Institutional Investors of Chetana Financial Services Limited holding 87.96% of stakes as on Mar 2015.
Navachetana Vividoddesha Souharda Sahakari Niyamit was set up in the year 2006 under Karnataka
Souharda Cooperative Act, 1997 with an initial membership of 300 people. The main objective of
NVSSN is to serve the under privileged and unbanked section of the society. Currently NVSSN is
operated through 10 branches in North Karnataka. NVSSN is providing loan and saving schemes for
Rural, Semi Urban, Small and Medium Enterprises and Individual Development. Following are the type
of loan and Saving Schemes of NVSSN.
Savings Scheme
Loan Scheme
Savings Bank Account
Pigmy Loan
Joint Account
Staff Loan
Fixed Deposits
OD Loan
Recurring Deposit
SHG Loan
Current Account
Surety Loan
Pigmy Savings
Deposit Loan
E-Stamping:
E-stamping is a computer based application and a secured electronic way of stamping documents.
The prevailing system of physical stamp paper/franking is being replaced by E-stamping system. There
is a tie-up between the Souharardha Federation and the Stock Holding Corporation of India Limited
for E-Stamping.
Financial Review: 2014-15
Particulars
Amount (Rs. in Lakh)
Member Deposit Account
763.93
Member Loan Account
363.71
Investment
266.45
Deposit with Banks
Cash & Bank
Profit
76.56
100.04
4.6
ANNUAL REPORT 2014-15
DIRECTOR’S REPORT
To,
The Members,
CHETANA FINANCIAL SERVICES LIMITED
HAVERI
The Directors of your Company are pleased to present, the 19th Annual Report, on the working and
progress of the Company, along with audited accounts, for the year ended on 31st March, 2015 and
Report of Auditors thereon.
FINANCIAL RESULTS:
The Company’s performance during the year is summarized as follows: (in Lacs)
Particulars
As on Mar-2014-15
As on Mar-2013-14
Revenue from operations
39.11
8.10
Interest on Loan
31.22
7.76
Loan processing fees
7.89
-
Depreciation
0.98
0.70
Profit before tax
4.47
0.33
Current Tax
1.39
0.24
Profit after tax
3.07
0.095
Surplus transfer to Reserves
3.07
0.095
FINANCIAL REVIEW:
v
Total revenue from operations for the year ended 31st March 2015 is Rs. 39,11,403/- as
against Rs. 8,10,063/- in the previous financial year.
v
?The Employees cost for the year is Rs. 23,46,422/- as against Rs. 3,61,000/- in the previous
financial year due to recruitment of employees for extension of operations.
v
The Financial cost for the year ended 31st March 2015 is Rs. 5,62,761/- as against Rs. 392/- in
the previous financial year. The financial cost of the Company is increased due to credit
facilities for extended operations.
NATURE OF BUSINESS:
There is no change in the nature of business compared to previous year and there are no material
changes and commitments affecting the financial position of the Company during the year.
SUBSIDIARIES:
The Company is neither a subsidiary nor having any subsidiary Companies.
DIVIDEND:
ANNUAL REPORT 2014-15
The Company, with a view to increase its resources, has not recommended any dividend for the
financial year.
PARTICULARS OF EMPLOYEES:
As per Rule 5 (2) of the Appointment and Remuneration of Managerial Personnel of the Companies
Rules 2014, None of the employees who were in receipt of remuneration of Rs.60 lakhs or more
throughout the financial year and Rs. 5 lakhs per month or more in any part of the financial year.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 134(5) of the Companies Act, 2013, Directors hereby confirm that:
a) in the preparation of the annual accounts, the applicable accounting standards have been
followed along with proper explanation relating to the material departures;
b) appropriate accounting policies have been selected and applied consistently, and have
made judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31, 2015 and of the loss of the
Company for the year ended March 31, 2015;
c) proper and sufficient care has been taken for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 2013 for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
d) the annual accounts have been prepared on a going concern basis;
e) had devised proper systems to ensure that compliance with the provisions of all applicable
laws and that such systems were adequate and operating effectively.
DEPOSITS:
The Company has not accepted any Public deposit during the financial year. Therefore, disclosure
under section 76 of the Companies Act, 2013 regarding acceptance, unpaid or unclaimed and default
in repayment of deposits or interest thereon, does not arise.
FOREIGN EXCHANGE EARNING AND OUTGO:
There were no Foreign Exchange earnings and outgo of Foreign Exchange during the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION:
The Company continues to strengthen the conservation of energy and it consumed very less power
for its day to day operations. The Company putting all its effort to minimize the Consumption of
energy wherever possible. The Company has not adopted any foreign technology.
AUDITORS:
The Board recommend to appoint M/s. Girija S Bijaspur & Co, Chartered Accountants, (Membership
No.230944) Hubli, as Statutory Auditors’ of the Company for five consecutive financial years from the
Conclusion of this Annual General Meeting subject to ratification by the Members at every AGM. The
Company has received the necessary certificates from them to the effect that if they are appointed, it
would be in accordance with the provisions of the Companies Act, 2013.
LOANS, GUARANTEES OR INVESTMENTS:
The company has neither advanced any loans or guarantees nor made any investments under section
186 of the Companies Act, 2013.
ANNUAL REPORT 2014-15
DIRECTORS APPOINTMENT AND RESIGNATION:
During the year Mr. Manjunath K, Director, appointed as Managing Director and Mr. Nagendra V Mali,
Director appointed as Chairman of the Company with effect from 23/12/2014.
DIRECTORS RE APPOINTMENT:
As per provisions of the Companies Act 2013, Smt. Chandrakala N Mali (DIN: 03317812) Director who
retire at the ensuing Annual General Meeting, being eligible and seek re appointment. The Board
recommends her re appointment.
As regards statement as per Sub-Section (6) of Section 149 of the Act, pertaining to independent
Directors, the said provision is not applicable to the Company.
CORPORATE SOCIAL RESPONSIBILITY:
The provisions of Corporate Social Responsibility under section 135 of the Companies Act, 2013 is not
applicable to your company. Therefore, disclosure regarding the policy developed, implemented,
initiatives taken by the Company and the formation of Committee does not arise.
RISK MANAGEMENT POLICY:
There are adequate Risk management controls which has been developed and implemented since the
Company’s inception.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The Company has a proper and adequate system of internal control procedures, commensurate with
its size and nature of business, to provide reasonable assurance that all assets and resources are
safeguarded and protected against loss from unauthorized use or disposition, and that transactions
are authorized, recorded and reported correctly. The Internal Control system provides for well
documented policies, guidelines, authorizations and approval procedures.
ACKNOWLEDGEMENT:
Your Directors place on record their appreciation for the co-operation extended by the Bankers of the
Company. They also acknowledge and thank the employees for their active support and assistance,
which has improved your Company’s operations considerably.
For and on behalf of the Board
Date : 30.06.2015
Place : Haveri
Nagendra V Mali
Chairman
DIN: 02235648
ANNUAL REPORT 2014-15
BOARD MEETING
The Board met 12 times during the year. The following data shows the number/percentage of meeting
attended by each director during the year 2014-15.
Name of Director
No. of Meetings
Held
Attended
Percentage
Mr. Nagendra V Mali
12
12
100%
Mrs. Chandrakala N Mali
12
12
100%
Mr. Manjaunath K
12
12
100%
Mr. Maruthi F B
12
12
100%
Dates of Board Meeting:
01st Apr, 2014
28th April, 2014
22nd May, 2014
14th Jun,2014
30th Jun, 2014
02nd Jul, 2014
05th Jul, 2014
30th Sep 2014
23rd Dec, 2014
11th Feb, 2015
04th Mar, 2015
27th Mar, 2015
ANNUAL REPORT 2014-15
THE PROGRESS
OPERATION HIGHLIGHTS: 2014-15
Rs in lakhs
Particulars
2013
2014
2015
Total Borrowers
230
364
1029
Active Members
199
215
759
Loan Disbursement (Rs)
35.00
47.00
490.45
Loan Outstanding (Rs)
32.05
51.75
265.68
Loan Borrowed from Banks(Rs)
0.00
0.00
300.00
Equity Infusion
0.00
0.00
252.00
NOF
34.61
52.70
303.99
CRAR
95.65%
99.25%
112.23%
A)
Total Borrowers
B)
Active Borrowers
ANNUAL REPORT 2014-15
C)
Loan Disbursement
47.00
35.00
D)
Loan Outstanding
E)
Product wise Disbursement: FY 2014-15
Loan Product
Disbursement Amount (Rs in lakhs)
Two Wheelers
96.90
Mortgage
Others
Total
299.10
94.45
490.45
ANNUAL REPORT 2014-15
F)
Product wise Outstanding: FY 2014-15
Loan Product
Outstanding Amount (Rs in lakhs)
Two Wheelers
74.93
Mortgage
144.97
Others
45.78
Total
265.68
FINANCIAL HIGHLIGHTS: 2014-15
Name of the Bank / FI
Dena Bank
Rs in lakhs
Facility
Sanction
Outstanding
Term/WC
limit(Rs)
Mar.2015(Rs)
Term Loan
300.00
300.00
Portfolio/ Financial Indicators:
Outstanding dimension:
CFSL Outstanding as on 31st March, 2015 was Rs. 265.58 lac against Rs. 51.57 lac as on 31st March,
2014. The average loan size per borrower is reported to Rs 73,752 during the year.
NOF and CRAR:
Net Owned Fund is Rs. 303.99 lacs; Capital Risk Adequacy Ratio (CRAR) is 112.23% (Tire I & Tier II).
ANNUAL REPORT 2014-15
IMPACT
NAME OF CUSTOMER : MARISIDDAPPA I PUJAR
PLACE
: LAXMESHWAR
A/C OPENING DATE
: 3-Nov-2014
TYPE OF LOANS
: VEHICLE AND BUSINESS LOAN
LOAN AMT
: Rs 40,000 Vehicle and
Rs 1,00,000 Business Loan
Marishiddappa I Pujar: He is a valuable and standard customer of Chetana Financial Services Limited.
He was working as a worker for daily wages in Someshwar spinning mill, Laxmeshwar. On 15th May
2015, he wants to take a Two Wheeler loan and approached Laxmeshwar Branch and obtained loan.
His repayment was regular and on time. After two months, he left his work for self employment and
received provident fund from earlier company. After receiving the amount he closed the two wheeler
loan and obtained business loan of Rs 1, 00,000-00 from our company for purchasing TRUCK – Goods
Carrier. Currently his loan is regular and on time. He has generated employment for two peoples.
IMPACT
NAME OF CUSTOMER : TIPPANNA P PARAKKANAVAR
PLACE
: NEAR UDASI
KALYANAMATAPPA
T G ROAD HANAGAL
A/C OPENING DATE
: 16 May 2014
TYPE OF LOANS
: BUSINESS LOAN
LOAN AMT
: Rs. 1, 50,000
Tippanna P Parakkanavar is popular for variety Sarees collection. He opened a saree center at Hanagal
since from 2012. In the month of May 2015 he has approached Chetana Financial Setvices Limited for
Business Loan. He owes Rs 1, 50,000 loan from Company and with this amount along with his own
savings he opened another shop in the market area which has doubled his income. Now, he is
planning for all kinds of garments shop. His repayment is 100% accurate and regular.
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OUR BANKERS
Name of the
Bank/FI
Term Loan/ Working
capital
Dena Bank
Term Loan
Sanctioned
Amount
Outstanding
Amount
Percentage
300
300
100%
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GALLERY
Annual
Report
2014-2015
Regd. Office: Mali Compound, 3rd Cross,
Shivabasava Nagar, Haveri – 581 110.
Phone No: 9480696158, 9480696169
Email Id: [email protected]
Website: www.chetanafinancial.com