The management at Mangal Credit & Fincorp Limited is pleased forthe year 2017- topresent the financial
18. At the onset let me tell you that we are immensely humbled andgrateful to each and every one of you who have shown utmost trust and confidence in ourmanagement our business model and our strategy. The sector of Non-Banking FinancialCompany in which we operate play an important role in nation building and financialinclusion by complementing the banking sector in reaching out credit to the unbankedsegments of society especially to the micro small and medium enterprises (MSMEs) whichform the cradle of entrepreneurship and innovation. Our ground-level understanding of thecustomers' profile and their credit needs gives us an edge as does our ability toinnovate and customise products as per our client's needs. The NBFC sector in
India has undergone a significant transformation over the past fewyears. It has come to be recognised as one of the systemically important components of thefinancial system and has shown consistent year-on-year growth.
I am pleased to share with you that this year marks 56th year of ourcompany being in business. Our total income grew from
863 Lakhs to 983 Lakhs a growth of 14% over the period as compared toprevious year. Our EBITDA grew from 567 Lakhs to 844 Lakhs a growth of 49%. Profit aftertax grew from 270 Lakhs to 458 Lakhs a growth of 70%. Our AUM grew to 5148
Value creation for stakeholders investors our esteemed customersemployees and the overall community is the backbone of the vision of our businesses. Longlasting and transformational value creation for each of them is our main focus. I'm happyto inform you that your company has received BB+ rating.
There have been notable trends in the NBFC space. NBFCs are animportant alternative source of financing.Given that banks are prohibited from fundingM&A transactions NBFCs fit in perfectly.
In addition to this there have been few positive developments in thepast couple of years that have increased the attractiveness of NBFCs. In August 2016 theGovernment extended the applicability of the Securitisation and Reconstruction ofFinancial Assets and Enforcement of Security Interest Act 2002 to enable important NBFCsto enable them to enforce security interest in relation to secured debt of Indian Rupeesone crore or more. In the year 2016 the Government liberalised the foreign directinvestment (FDI) norms in relation to the other financial services by allowing 100% FDIunder the automatic route in regulated financial services was permitted under theautomatic route for only 18 specified financial services that applied to FDI in NBFCs werealso done away with.
As per the RBI's report published in the year 2017 the financialperformance of NBFCs has been better in comparison to the banks in the medium term. Theshare of NBFCs in the total credit granted by NBFCs as well as banks rose from 9.5% in2008 to 15.5% as of March 2017.
The NBFC segment is a catalyst to the economic development of thecountry. The RBI is constantly striving to bring necessary changes in the NBFC regulatoryspace to proactively provide regulatory support to the segment and also to ensurefinancial stability in the long run. We hope that the forthcoming changes in the pipelinewill further strengthen the robustness of the sector and allow us to operate in anenabling regulatory environment.
In our Annual Report theme which we call Defining Diversity' ourvision as a group is to widen the compass of our business diversifications to rationalizeand globalize in all the possible fields in which we can make complete use of ourresources to have a better future for Mangal Group our clients stakeholders and thesociety as a whole. Thus we recently have strategically ventured into such new foray ofmining business through our subsidiary Mangal Mines and Minerals Pvt. Ltd. The demand foriron and steel is set to continue given the strong growth expectations for theresidential and commercial building industry. The entire land for mining is partly ownedby promoters. The land area is spread across 51.54 acres and the major activity carriedout will be Iron Ore mining with grade of 52% and above. Thus the revenue generated bythis subsidiary will help substantially in the growth plans of your company.
Your company since last five years has always focussed onstrategically diversifying business which have fetched stable returns and will continuethe trend. I would like to avail the opportunity to share with the shareholders about thesubsidiaries businesses which have contributed to create immense triumph as a whole MangalGroup.
Mangal Buildhome Pvt Ltd has performed very well over the years. Thecompany has been specialized with luxurious residential projects all in prime locationsof Mumbai. The company has completed 5 projects with 2 projects work in progress. Recentlythe company has completed feasibility study of a site with luxurious sea facing dreamproject with all the modern amenities and an awesome view. The company is expected tofinalize the same by the end of year. The company has also explored a new revenue model inreal estate business called Project Management Consultancy under which the companyinvolves itself as consultant for the construction project being developed by anotherentity and our company undertake the charge of completing that project and liasioning& administration of project related tasks by way of capitalizing its core expertise inthis area with 10 years of experience in this field and in turn minimising the riskinherited to real estate business.
Currently the company is having three projects in Mumbai under thisrevenue model which will be realizing the company a revenue approx. 30 crores by the endof 2020.
Mangal Compusolutions Pvt Ltd is specialized in providing customizedsolutions for various hardware and software rental needs. The company is a well-known namein IT Sector and has a varied client base including MNCs from various sectors. The companyis also planning to expand its business beyond the limits of Mumbai and into IT Hubs likeHyderabad & Bangalore.
This company is having a rich cash flows & assets undercapitalisation.
Satco Capital Markets Pvt Ltd is a registered capital and commoditymarket intermediary. The company is well known amongst retail HNI and NRI community. Thecompany has a pan India presence. It has over 20 branches and over 281 registered subbrokers across Pan India. In FY2018 the company opened
1370 accounts. Thus the total client base of the company is 11513.
IndTrans Containers Lines Pvt Ltd is a well know name in the logisticssector. The company is specialised in providing services end to end solution in export& import like loading/unloading stuffing road transportation ocean freight CustomClearance
Custom Brokerage and Warehousing/Distribution. The company hadsuccessfully handled volume of 3285 exports containers dispatched all over world. Thecompany expects the number to increase to 4250 number in upcoming year. The company ishaving presence in Singapore since last three years. Now the company is also planning tomark presence in Malaysia in coming year to capture business routing through Malaysiaalso.
Mangal Global Marble Pvt Ltd is a prominent player in manufacturing ofmarbles and also is a key supplier of marbles from the countries like Vietnam EgyptOman Etc. The company also has expanded its product portfolio to high quality Indian andimported granite slabs. In FY2018 the company has started production with a wholly ownedand managed production facility at Kishangarh. The unit has been installed with bestquality equipments and machinery to provide high quality granite slabs. Presently thecompany has two sales points located in Kishangarh and Varanasi. This company is nowplanning to expand its presence by way of opening point of sales (POS) outlets throughoutthe country as well as overseas markets.
I would like to congratulate our shareholders that our parent companyalong with its group companies are now entering into growth phase rapidly. our subsidiarycompanies have also begun to distribute its profits in form of dividends & ultimatelycreating the wealth to our esteemed shareholders.
Finally I would also like to thank all our stakeholders for reposingtheir faith in us and thank our regulators & bankers for their constant support andguidance. We will continue to stay focussed on creating value for both external andinternal stakeholders. I wish to express my thanks to all our Directors for their valuablecontribution. I would like to assure you that all our employees are working extremely hardwith great dedication high energy and strong commitment through the year for yourCompany. I sincerely thank them all. I thank you all once again and offer my best wishesfor a very bright and prosperous year ahead.
Meghraj S. Jain
Chairman & Managing Director