LETTER TO SHAREHOLDERS
My Dear fellow Members
It gives me immense pleasure to share with you all the highlights of your company'sperformance during the year 2015-2016.
The promises made by us to the shareholders last year were fulfilled to a great extentby the Company in addition to some remarkable achievements earned during the year.
Year 2015-16 was a Landmark year for the company. The benchmark of any Finance companydepend upon it's NPA (Non performing Assets). This year our company's portfolio hasincreased with reducing NPA percentage.
Our main objective is the maximization of wealth of shareholder's which also reflectsin our financial statement. The EPS (Earning per share) of your company has been increasedfrom 1.43 to 1.65 this year.
During the year ended March 31st 2016 Company's gross total incomeincreased from Rs. 687.36 Lacs to 1025.41 Lacs Profit Before Tax (PBT) also increasedfrom Rs. 226.91 Lacs to 276.98 Lacs and Profit After Tax (PAT) increased from Rs. 153.58Lacs to 186.74 Lacs.
We are ISO 9001:2008 Certified Company whereby we focus on customer satisfaction byservicing them on time with fullest quality.
Our greatest strength and confidence emanates from the trust of people we touch everyday. We have empowered millions of people and now we are back with renewed optimism. Thehardships and challenges are behind us and our performance during FY 2015-16 has beenencouraging.
In our drive to expand the business horizons of the company we have opened ourCorporate Office in Mumbai. This step is going to reward us in increasing numbers ofprofitability according to Management's plan of business development.
The government has been at the forefront in pushing India's housing finance sector thisyear. Many new initiatives and policies focused on lending for housing were introduced inthe last 12 months. The biggest highlight was bringing loans up to Rs 28 lakhs in urbanand 20 lakhs in other centres under Priority Sector Lending. The decision of the RBI toincrease LTV ratio to 90 per cent for loans up to 30 lakhs or less was another positivestep which will enable home finance companies to lend more to LMI customers therebyenabling them to own a home. The launch of "Housing-For-All by 2022" scheme in2015 heralded a new era in the housing finance sector. It delivered much-needed boost tothe real estate and housing finance industry by creating an enabling and supportiveenvironment for expanding credit flow and increasing home ownership.
With the recent notification 41 housing finance companies were approved under TheSecuritisation and Reconstruction of Financial Assets and Enforcement of Security InterestAct (SARFAESI) which is a significant step towards bringing HFCs at par with banks byenabling speedier loan recovery.
We are excited to be able to contribute towards India's drive for socio-economicempowerment. I am grateful to all our shareholders and the larger stakeholder fraternityfor their unwavering support and guidance to the Company through Its days of challenge anduncertainties.
Going ahead our future priorities will be to:
Expand the branch network and visibility to maintain our market leadership positioncontinue to target new customer segments ensure access to low-cost and diversifiedsources of funds strengthen our operating processes and risk management systemsstrengthen our balance sheet ensuring financial flexibility.
I would like to express my gratitude to our Board of Directors for their support andguidance. I am also grateful to all our stakeholders who have reposed their trust in usand given us constant support.
With best wishes
Vinod K. Jain