I am delighted to present the 22nd Annual report of the company.The year gone was ayear of some major developments on economic front. Where we witnessed one of the boldestmoves taken by the government in recent times: Demonetisation. I believe it will prove tobe a positive development bringing a greater share of financial transactions to the formalsystem strengthening credit growth and enabling wider financial inclusion.
The financial service sector has a tremendous upside to capture from the moveespecially for business like ours which focuses on providing financial credit to unbanked.
India's GDP grew 7.1% in full financial year 2016-17 slower than that of the PreviousYear. The decrease in growth of GDP in the FY 201617 was due to the impact ofDemonetisation. However such impact of Demonetisation is only temporarily as the growthof GDP would re- bound to 7.6% to 7.8% in FY-2017-18. India's unemployed rate declined to4.8% in February 2017 compared to 9.5% in August 2016.
At S R G Securities we are making our efforts in increasingly filling the gaps left bybanks in rural/semi-rural and urban markets and we are also trying to develop small andmicro businesses through our local presence and strong customer relationships.
We have led financial product innovation through meeting financing needs of theunder-served segments of society such as small enterprises. We are also leading inproviding small ticket personal loans financing for working capital requirements alongwith Business Loans- Micro Finance and Enterprise Loans Vehicle finance equipmentfinance etc.
Let me now share with you all the financial highlights of the company for the F.Y.ended March 312017.
Profit After tax grew by 44.64% from Rs.26 Lacs in previous year to Rs. 38 Lacsin year 2017.
Profit Before Tax grew by 42.43% from Rs. 38 Lacs as on March
2016 to Rs. 54 Lacs as on March 2017.
Loan Portfolio grew by 18.38% from Rs. 1143 Lacs in previous year to Rs. 1353Lacs in year 2017.
Gross Revenue grew by 33.73% from Rs. 197 Lacs in previous year to Rs. 263 Lacsin 2017.
Net Interest Income grew by 19.85% from Rs. 139 Lacs as on March 2016 to Rs.166 Lacs as on March 2017.
The Compounded Annual Growth Rate of Profit After Tax reached at 27.45% and ofthe Revenue from Operations reached at 26.14%
Capital Adequacy Ratio of the Company reached at 48.69% as on March 31st 2017.
Earnings per share increased from Rs. 0.68 in 2015-16 to Rs. 0.98 in 2016-17.
EBIT grew by 67% to Rs. 154 Lacs in 2016-17 from Rs. 92 Lacs in 2015-16.
The Gross NPA of the Company reduced to 1.65% as on March
2017 from 2.13 % as on March 2016.
The Net NPA of the Company reduced to 0.98% as of March 2017 from 1.43% as ofMarch 2016.
Return on Equity rose from 3.66% as of March 2016 to 5.09% as of March 2017.
Return on Average Assets rose from 2.14% as of March 2016 to 2.44% as of March2017.
I firmly believe that the developments of past year will change the way Indians spendsand live in the future. This will lead to an accelerated evolution and transformationalbusiness landscape wherein SRGSFL will continue its contribution in the nation's growth.
I would like to thank each one of you for contributing to our vision and buildingSRGSFL a successful and meaningful entity. With government making financial inclusion apriority your company will continue to deliver profitable growth and contribute to nationbuilding by aligning to larger cause of the country.
Vinod K. Jain