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SRS Finance Ltd.

BSE: 536799 Sector: Financials
NSE: N.A. ISIN Code: INE002J01019
BSE LIVE 15:01 | 21 Aug 10.60 -0.64
(-5.69%)
OPEN

10.20

HIGH

11.50

LOW

10.12

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 10.20
PREVIOUS CLOSE 11.24
VOLUME 4001
52-Week high 19.55
52-Week low 7.00
P/E
Mkt Cap.(Rs cr) 104
Buy Price 10.50
Buy Qty 50.00
Sell Price 10.60
Sell Qty 1348.00
OPEN 10.20
CLOSE 11.24
VOLUME 4001
52-Week high 19.55
52-Week low 7.00
P/E
Mkt Cap.(Rs cr) 104
Buy Price 10.50
Buy Qty 50.00
Sell Price 10.60
Sell Qty 1348.00

SRS Finance Ltd. (SRSFINANCE) - Chairman Speech

Company chairman speech

Dear Shareholders

As every year I am thrilled to bring to your attention the going- about of SRS. Thegrowth has been noteworthy inspite of having a challenging market to contend with. Withapt strategies and their operative execution your company is well on course to greatersuccess and progress.

Many in the financial services industry will agree that the challenge has been way morestringent today. Regulatory compliance has relentlessly moved up in the list of prioritiesand often adopts a starring role in discussions. Frequent changes in regulations havenecessitated more qualified and updated personnel thus increased spending onadditional/skilled staffing new technologies in the financial services sector etc.. Thechanges have affected the finance in such a way that even the indirect partners andvendors that serve the financial institutions have been impacted.

India has an extended financial sector undergoing rapid expansion. The sector comprisescommercial banks insurance companies non-banking financial companies co-operativespension funds mutual funds and other smaller financial units. The new entities emergingin the finance sector are given leverage through the banking sector. However thefinancial sector in India is monopolized by a deep rooted banking sector with commercialbanks both the PSUs and the Private Banks accounting for a major chunk.

Our company is a NBFC {Non Deposit Taking Non-Systemically Important Non-BankingFinance Company (ND NSI NBFC)}. The operating profit of Financing Division has seen anincrease from Rs.24.41 Cr to Rs.26.26 Cr and a growth of 7.58% on FY 15-16with revenue offinancing division of the company growing by 15.18% from Rs.25.95 Cr to Rs. 29.89 Cr. Thecompany's loan book portfolio has witnessed an increase in turnover from Rs.162.84 Cr toRs.213.36 Cr thus registering a Y-O-Y growth by 31.02%.

The revenues have seen a shift back with the Securities and Investing Divisionreporting reduction in Revenue from Rs.50.43 Cr. for FY 2014-15 to Rs. 23.04 Cr. for FY2015-16. The decline in Revenues is attributed to low Capital Market sentiments. ThePromoters have taken a conscious decision to reduce the activity related to trading instocks and focus on financing activity under NBFC Division.

Despite an overall satisfactory performance the External Credit Rating of the companywas impacted adversely and downgraded from 'BBB-' to 'D'. The downward revision wasattributed to the fact that some of the customers of the Company defaulted in the paymentof Interest which in turn resulted in the slight delay in servicing of Interest with theBankers. However the Company has not accepted such rating and is contemplating surrenderof rating which is under process.

The company availed of an additional Cash Credit Limit of Rs.10.00 Cr. from TheKarnataka Bank Limited and has also been permitted enhancement in the existing Cash CreditLimit from the Corporation Bank and Bank of Baroda from Rs.25.00 Cr. to Rs.35.00 Cr. andfrom Rs.50.00 Cr. to Rs.65.00 Cr. respectively making it fiscally strong for post 2016operations.

An organization's primary focus should be to build up all-encompassing business modelsthat make services widely accessible and functional to even a layman. Limitations in thesystem however lead to inclusive business hazards which often require harmonisingstrategies to be feasible. There is significant opportunity for commercial banks to playguidance roles in institutional capacity-building applying their expertise to reinforceentire systems. SRS Finance Limited aims to capitalize this point to continue to launchitself on to a growth trajectory.

In the financial services sector tie ups with microfinance institutions internationalfinancial institutions and multilateral and bilateral donors is common chiefly aroundmicrofinance. Large commercial banks have the potential to serve as lynchpins in theactive transformation of financial markets to offer expanding economic opportunity to thepoor. Strong collaboration capabilities will almost certainly be essential both within thefinancial sector and beyond. Collaboration with small factions will lead to furtheringgrowth for your company.

Before I close my address I take this opportunity to convey our appreciation to ourstakeholders customers for reposing their faith in us employees whom we recognize as ourcore assets for their enthusiasm unstinted devotion co-operation and commitment towardsthe quest for excellence our Members of the Board for their valuable guidance andcontinuous support; management team for efficiently steering the company's resources andyou our shareholders for your unstinted and continued support to the endeavours of thecompany. I would like to end by mentioning that determination trust action andsolidarity will be our tools to accomplish our Corporate objectives. We have all but allthat is needed is their further efficient execution and appropriate implementation in theface of challenges and the triumph am sure will certainly be ours.

Thank you

Managing Director & CEO