The Financial year 2015-2016 was a mixed bag of offerings for NBFCs. The last budgethad nothing much to offer to the NBFC sector. But this year the Union Budget has cheeredthe NBFC sector by offering 5% deduction in respect of provision for bad and doubtfuldebts FDI will be allowed beyond the 18 specified NBFC activities in the automatic routein other activities which are regulated by financial sector regulators and full-filled thelong standing demand and additional options to banking companies and financialinstitutions including NBFCs for reversal of input tax credits with respect to non-taxable services. Also NBFCs were not allowed deduction under Income tax Act for NPAprovisions. The boost to housing sector would be benefiting the housing finance companies.Meanwhile the move to hike foreign investment limit in Indian stock exchanges willimprove competitiveness of stock exchanges and speed up adoption of technology and globalpractices. The move to strengthen ARCs would be strongly benefitted them allowing them toraise more capital and funds.
One of the main risks for all financial institutions banks and NBFC is rising ofNon-Performing Assets of the Company/ Banks. The present environment did not reallyencourage the NBFCs to accept mortgages on real estate as for the enforcement of securityinterests in immovables they had to take the help of judiciaries. On the other handbanks had the privilege of the SARFAESI which is powerful weapon with regards to recoveryof loans against immovables. But now the extension of SARFAESI to NBFC having asset ofRs. 500 crore has changed the direction of lending for the NBFCs. We are looking forwardthe same benefit to small NBFC also in near future.Project finance and working capitalloans are something that the NBFCs have not explored much mainly due to the difficultiesassociated with the enforcement of immovables and floating charges. But due to theextension of SARFESI now it enable the NBFCs to explore these areas. This will also actas booster for those NBFCs which are engaged in the business of loan against properties(LAP). Your Company (India Finsec Limited) has shown a remarkable growth in providing LAP(Loan against Properties). During the year it has widen its products like personal loanInter Corporate Deposits IPO Funding Funding against Shares and Securities and Loanagainst Properties (LAP).
Moreover financial year 2015-2016 was the historic period for the India Finsec Limited(the Company). It has migrated from SME platform to Main Board i.e. BSE.Thismove excites the Company to grow more and achieve the threshold for graduating to the nextlevel. The Company has also acquired a subsidiary i.e. "IFL Enterprises Limited"during the financial year. IFL Enterprises Limited mainly deals in providing financialconsultancy. This will not only help our Company to expand its activities in its core areabut also helps in exploring other business line. It will enhance the brand image of theCompany.
In monetary terms the Company has also performed outstanding the net profit of theCompany has increased from Rs. 249034/- to Rs. 5558346/- during the financial yearended March 31 2016. This is a remarkable profit for the Company.We are confident thatthis figure will come in seven figures in next financial year.
Lastly I would like to thank each shareholder and stakeholder for their support andtrust on us and on the Company. It would not be possible without your investment trustand time that you have devoted in the Company. We always try to fulfill all yourexpectations that you have with the Company and in future we will maximize ourshareholders wealth with complete dedication. I promise to all my shareholders/stakeholders that your company will soon reach new highs in the coming years.
Chairman & Managing Director