The COVID-19 pandemic has been an incredibly challenging for the worldat large. It has compelled people all over the world to make changes in their way ofworking and living. During the year gone by the safety and health of our employees hasbeen of utmost importance to the Company.
The pandemic continues to be an incomparable challenge that the countryand the world is facing. However it has been aptly said that only in times of adversitydo true leaders' shine. Despite the dislocation from the global pandemic in the last 15months Your Company takes pride in the substantial traction on the liability side of ourbalance sheet having taken your company's net worth up 3x to approximately INR 100Croreand adding 11 lenders to the roster which include the likes of HDFC Ltd. SBI NABARDBank of India Northern Arc Central Bank of India A.K. Capital MAS Financial CSB Bankand two foreign lenders.
Your Company boasts of a diversified product offering today includingAtma Nirbhar business loans gold loans medical loans and education loans. Disbursementson a quarter-over-quarter basis increased from INR 4.82 Crores in Q1 2021 to INR 20.6crores in the second quarter INR 22.1 crores in the third quarter and finally INR 40.5crores in the fourth quarter to close the year at an annual disbursement of INR 88 croresversus INR 8.78 crores in the preceding12months.
Your Company was able to do that because of the single- minded focus onthe liability side of the balance sheet collaborations with captive channel partners manyof whom provide the company a first loss default guarantee and a robust collectionsplatform. On the pertinent topic of risk and impact of COVID -19 on the portfolio - todayloans backed by gold as collateral are 17% of the loan book. The percentage of loans tothe essential good segment which comprises of health wellnes technology convenience andmedical stores food and drinksis 41% of the portfolio. Loans backed by a first lossdefault guarantee are 17% of the loan book.
As you know the lending landscape is evolving rapidly as companies trynewer ways to reach out to the last mile customer. Your Company has spent a substantialamount of time to increasingly digitize the systems and processes to ensure that thebusiness volumes grow strongly and at the same time ensure safety of team members.
We also want to emphasise that your Company believes in stronggovernance with the board today comprises of nine members of which five are independentdirectors. When we emerge from the pandemic I have no doubt that the world will recogniseand celebrate Companies that are exemplars of good governance and sustainable growth. Youcan count on your Company as being one of them.
If the history of the last century is anything to go by every crisisbe it a world war the Great Depression or the Global Financial crisis was followed by aperiod of strong growth and considerable innovation. We expect the same this time aroundas well even though at the time of writing it is not possible to forecast when we willemerge from the current pandemic. We need to be prepared for both the growth and thechanges that will follow and be equipped to capitalize on the opportunities that emerge.
I would like to extend my gratitude to all our regulators esteemedpartners customers and shareholders for continuing to put their faith in us. Finally Iwould like to thank the management and all my colleagues and their families more soduring these unprecedented times working with unstinted dedication and passion evenwhile juggling the demands of working from home. Your Company has always believed inbalanced and sustainable growth and is well placed to continue the momentum built over theyears.
|Yours Sincerely |
|Rakesh Sethi |