It is a great honour and privilege for me to communicate with esteemed shareholders ofthe Company through this letter.
The Sector of Non-Banking Finance Company in which we operate accounts for 12% oftotal assets of the total financial system has emerged as a vital intermediary forfinancing and is complementary to the banking system which is capable of spreading risksin times of financial distress. However due to subdued economic environment last fewyears have been challenging for the sector with the moderation in the rate of assetgrowth rising delinquencies resulting in higher provisioning thereby impactingprofitability. However the comfortable capital adequacy shift towards secured lendinglower ALM risks have helped the sector to absorb the cyclical stress on the asset qualityand profitability. The NBFC sector has been gaining systemic importance in the recentyears with the growing of NBFC assets steadily from 10.7 % of banking assets in 2009 to14.3% of banking assets in 2014.
Looking into this the performance of your company during the financial year 2015-16was modest and acceptable. The business model of the Company equipped us with the abilityto deliver exceptionally well both in good and bad times. During the stressed economicenvironment and in the adverse situation your company ended the financial year withpositive note with the pre-tax profits of Rs. 6859.86 lacs and post-tax profits of Rs.4513.14 lacs and recorded the growth of 2.84 % in terms of pre tax profits and have alsomaintained the asset quality and increase in customers base.
As the Hon'ble Prime Minister of India came up with innovative ideas to improve theIndian economy we at SEIL also endeavour to come out with solutions through innovationsand technological integration into our processes. In the same line management of SEILcoined an idea of "Digital Loan Process". The main reason of same was toautomate the loan process increase efficiency decrease the loan processing time savecosts to maximize revenue profit and value to shareholders.
And further with the vision and mission of our Hon'ble Prime Minister Shri NarendraModi Ji of "Digital India" whereby current government under his able leadershipstarted an Initiative called "JAM" i.e. Jan Dhan Aadhar Mobile for layingfoundation of mission "Digital India". After launch of "JAM"government has already made phenomenal progress in opening Jan Dhan Saving Bank Accountsand Aadhar (A unique Identity of each citizen of India). Now it was our turn to takeforward the dream of our Hon'ble Prime Minister by starting a "Digital LoanScheme" for mobile financing and to equip maximum citizens of India with power ofsmart phone so that each individual and inturn the whole country can progress at maximumpace.
Keeping this in mind during the Financial year 2015-16 Company has opened nine newbranches in the State of Rajasthan to explore the opportunities available at that regionand added a product "Mobile Financing" in the product line with the objectiveof making smart phones available to customers at cheaper and easy finance with a motto of"minimum process maximum progress" with "Digital loan process". Now weare able to do mobile loan financing in just 24 Hrs. All it requires is Aadhar Card andBank account and with the help of technology we use we are able to deliver "SmartPhone" within 24 hrs even in remote locations where the company operates.
We are looking forward to in the coming years which would be full of opportunities forthe Company and are confident about our future endeavour's. Management of the Companyremains committed to sustained growth; improve Company's performance continually and liveup to your expectations.
Before conclusion I would like to place on record your Company's sincere appreciationfor the continuing patronage and support extended by valued shareholders and wish toconvey earnest thanks to them for their continued support and trust in us. This motivatesus to excel in all our pursuits and constant endeavours to create value for you.
I would like to thank the Board of Directors of the Company for their valuable guidanceand contribution in steering the Company to higher levels of achievement.
I would also like to express my gratitude to all our Bankers and business associatesfor their continuous trust support and cooperation.
Above all I would like to place on record the commendable efforts and commitmentsshown by our most valued resource i.e. the Human Resource of the Company as our employeeshave always contributed their best for the Company to set new benchmarks.
I thank you all once again and offer my best wishes for a very bright and prosperousyear ahead.