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MAS Financial Services Ltd.
6, Ground Floor,Narayan Chambers,
B/h.Patang Hotel, Ashram Road,Ahmedabad . PIN - 380009.
State: Gujarat, Country : IndiaPh. No.: +91 79-30016500, Fax: +91 79 30016597
Website : www.mas.co.in
Information Memorandum
Introduction
In existence since last 23 years. Turned corporate in the year 1995.
A retail finance company focused on Financial Inclusion. Total 65 branches and 2300 locations reach in the state of Gujarat, Maharashtra ,Rajasthan, Tamil Nadu and Madhya Pradesh.
Has created the expertise in the distribution of credit and a base of more than 4,00,000 customers.
BOARD OF DIRECTORS
• More than two decades of experience in the industryMr. Kamlesh GandhiFounder and Managing Director
• Chairman of Gujarat Finance Company Association & committee member of Finance Industry Development Council (FIDC), visiting faculty ICFAI
Mr. Mukesh GandhiCo founder and Director Finance
• Formerly associated with Gujarat Industrial Investment Corporation &Dean of ICFAI Business School Ahmedabad & till recently with Shanti Business School (Ahmedabad)
Mr. Bala Bhaskaran Professional Director
• Former General Manager of Gujarat state Finance Corporation & director of Som Lalit Institute of Management, Ahmedabad
Mr. Jagdish JoshipuraProfessional Director
• More than 25 years of experience in Banking and Finance and a practicing Chartered Accountant
Mr. Chetan Shah Professional Director
• Director at ICICI Venture Fund Management Co• More than 15 years of experience in Project Management,
Investment Banking and Corporate Finance
Mr. Subir NagNominee Director
• Senior Investment Officer (Private Equity - FMO)Mr. Cornelis Jan de Kruijf
Nominee Director
VISION
To be one of the most efficient distributor of financial services
and create value on a very large scale.
VISION 2015
MISSION
To constantly endeavour, to attain excellence and create a very wide
Financial distribution network and to be catalyst; in providing the most
efficient financial services which we term as financial inclusion.
VISION 2015
To attain AUM of `5,000 Cr.` 3500 Crores : Retail assets (Approx.)
` 1500 Crores : Housing (Approx.)
Customer base
Presence in approximately 5000 locations covering 6-7 states.
No. of Customers
Income Range
6 Lacs `5000 p.m. to `35000 p.m.
VISION 2015
MSME & SME Loan `1500 Cr.
Two wheeler loan `1000 Cr.
Commercial Vehicle Loan `1000 Cr.
VISION 2015
The Impact
The Impact
VISION 2015
HELP 35,000 House Holds Realize their dream of “owning a home.”
PROMOTE 300,000 Micro, Small & Medium Entrepreneurs to scale up their business.
PROVIDELivelihood Financing to 270,000 House Holds through SRTO and Two Wheeler financing especially in Rural and Semi Urban Areas.
Will :
Enablers
Thrust on Providing Affordable Financial Services.
Business Model, Products & Market Size
Distribution Network.
Liability Management.
Human Resource Development.
VISION 2015
Distribution of Network
Target to have close to 200 branch offices and 5000 centers reach.
To cover 6-7 statesCurrent Networking Status – 65 Branches. Gujarat - 44 Branches. Rajasthan - 7 Branches Maharashtra - 12 Branches Started Operations in
Madhya Pradesh - 1 Branch Tamil Nadu - 1 Branch
Two more Potential States will be covered depending upon market condition and the potentiality.
VISION 2015
Network
INDIA
VISION 2015
Network
Such penetrative network will be replicated in other states.
VISION 2015
Business Model & Products * Promoting Financial Inclusion *
To concentrate on the business model and products, which ensures scalability and sustainability. Home loans
• 35% from Rural• 40% from Semi urban.• 25% from Urban MIG LIG customers.
Small, Medium & Micro Enterprise Loan• Individual lending model
Two wheeler• 60% from Rural• 40% from Semi urban
Contd…
VISION 2015
Business Model & Products
SRTO (Small Road Transport Operators)
• Three Wheelers• Four Wheelers• Multi Utility Vehicle• Sports Utility Vehicle• Light Commercial Vehicle
SME• Partnership (SIDBI and Likes)• Direct funding
Non fund based• Insurance• Syndication
VISION 2015
Affordable Financial Services
To offer affordable financial services thereby acting as the catalyst to expand the market size.
Strive hard to reduce the cost of operations by efficient management.
To raise capital & debt on most competitive terms.
To maintain ROA of 3.0% to 3.5%.
VISION 2015
Capital & Liability Management
To remain adequately capitalized.•Estimated internal accruals over the period will be approx. `250cr.•Capital raising estimated at ` 350cr. approximately during the period.
To dilute up to 25% inclusive of the IPO offer. Unlocking close to `800cr. To `1000cr. (depending upon the timing of an IPO) available for investment to carry on future expansion plans.
To go for an IPO between 2014 to 2016, depending upon the situation of the market.
To have the ideal debt resource mix, that ensures continuous flow of funds at the most competitive terms.
VISION 2015
Human Resource Development
To retain and strengthen the core team of dedicated, proven, loyal personnel and hire the best talents as per requirement.
To constantly endeavour to develop the human resource, which commensurate with the growth plans.
To ensure that the organization imbibes the culture of being a learning organization.
VISION 2015
A very systematic exercise will be undertaken to project the strengths and the working of the company as the company in activity of financial inclusion for more than two decades. Visualized the opportunity of financial inclusion very early.Financial inclusion activities covering more than 35Crores of population and catering to their multiple needs by offering products ranging from Micro loans to home loans.Presence of financial services across income segments ranging from `5000 p.m. to `35000 p.m.Detail action plan will be formulated till then catering to more than 4.00 lakhs customers satisfactorily is very concentrated efforts in itself to build up the brand.
Brand Building
VISION 2015
VISION 2015
Business Overview
KEY INVESTORS and SHAREHOLDING PATTERN
Investment horizon
Amount(INR Cr)
Type
Bellwether 2006-2010 6.5 Tier II
ICICI Ventures 2008-2012 40.0 Tier II
FMO 2008 44.0 Tier I
Shareholding Pattern MARCH 2011
Promoters & Family 99.99 %
Others 0.004%
Investment by reputed international investors and credit relationship with most of the leading banks
Total active Clients is 2,68,222 as on 31st March 2011
SR. NO Bank/ FI Relationship Since 1 AXIS BANK LTD. 20032 BOI 20063 CENTRAL BANK OF INDIA 20094 DCB 20075 DENA BANK 19966 HDFC BANK LTD. 20047 ICICI BANK LTD. 20048 IDBI BANK LTD. 20059 ING VYSYA BANK LTD. 2008
10 PUNJAB NATIONAL BANK 200811 SBI 200712 SIDBI 200613 STANDARD CHARTERED BANK 200614 STATE BANK OF PATIALA 200915 UNITED BANK OF INDIA 2009
16 DHANLAXMI BANK 2010
17 CITY UNION BANK 2010
Credit relationship with over Seventeen banks and financial institutions
KEY BANKING RELATIONSHIPS
Operational Overview
VISION 2015
RISK CONTROL
Process Control
Client Adoption
Credit Approval
RobustTechnology
Platform Recovery
Portfolio Monitoring
Robust KYC process Tie up with banks for
no frills saving accounts for all customers
Credit Scoring model - Rule based lending norms, On site/Off site verification
Centralized credit approval rendering effective control
In house IT team Technology supports
FAS module (used by credit and accounting ) and MIS module (for management, recovery and marketing)
Internal Audit – Random audit of the loans approved to validate compliance
Review of sourcing and recovery targets – Regular monitoring of the business sourced and amounts recovered
Post Dated Cheques For the installments
Hub and Spoke model for recovery and settlement
Robust client adoption process, credit checks and technology ensures efficient recovery and process control
Key Management Personnel - MFSL
VISION 2015
Mr. Kamlesh Gandhi Managing Director Has been on the helm of affairs of the company since last 22 years
Mr. Mukesh Gandhi Director Finance Masters in commerce and has been actively involved in strategic decisions and resource raising for the company
Mr. Saumil Pandya Vice-President (Sales & Marketing) Having 16 years of experience in the company; handles sales, marketing and product development
Ms. Darshana Pandya Chief Operating Officer Having 16 years of experience in the company and currently handles Operations, credit and risk management.
Mr. Joby Joseph HR Manager Having wide experience of HR filed and managing the entire HR related activities in the Company
Mr. Sunil Shah Head Credit & Recovery Oversees credit & Recovery function of the company; 12 years of working experience in MFSL.
Mr. Gaurang Kasudia EDP In Charge In charge of electronic data processing centre and managing information requirement for the company; 16 years experience in MFSL.
Ms. Prachi Kanodia Company Secretary Responsible for legal compliances of the company.
Mr. Ankit Jain EA to Director Finance Involved in Strategic Planning, Resource mobilization and budgeting.
Organization Structure - MFSL
VISION 2015
Business Plan – MFSL Key Trends 1/3
VISION 2015
LOAN PORTFOLIO O/S (Rs. In Cr.) CAPITAL ADEQUACY
RONW/ROA OPERATING COST TO INCOME
CAGR 49%
Company on an inflection point to assume exponential growth and profitability
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
388 512 7251278
2067
3304
4368
5518
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
4.3% 3.9% 3.1% 3.4% 3.4% 3.4% 3.7% 3.7%
11.6%13.5%
11.6%
20.1% 20.6% 20.7%23.9%
24.6%
ROA RONW
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
33%
33%
29% 29% 30% 30%27% 27%
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
35%
28%
23%
16% 15% 16% 16% 16%
Business Plan – MFSL Financial Projections 2/3
VISION 2015
KEY FINANCIAL PROJECTIONS STATUTORY AUDITOR: DELOITTE HASKINS & SELLS
Growth in Asset book and Income levels without compromising on credit quality, the key to consistent growth
INR Mn. FY11 FY12 FY13 FY14 FY15 FY16 FY17 Total Income 907 1280 2502 4107 6592 9284 11871 Total Expenditure 661 958 1863 3059 4917 6735 8590 PBT 237 312 625 1028 1644 2522 3252PAT 157 203 408 672 1075 1656 2137 LIABILITIES Share Capital 930 1430 1760 2640 3840 4290 4290Reserve & Surplus 235 314 268 626 1365 2639 4396Net Worth 1165 1744 2028 3266 5205 6929 8686Loans 3415 6836 12850 20787 33120 43504 54881Total Liabilities 4580 8579 14878 24052 38325 50433 63567 ASSETS Fixed Assets 62 62 74 112 101 90 81Net Current Assets 4427 8367 14614 23641 37845 49742 62885Misc Assets 92 150 190 300 380 600 600Total Assets. 4580 8579 14878 24052 38325 50433 63567
Business Plan – MRHMFL Financial Projections 3/3
VISION 2015
KEY FINANCIAL PROJECTIONS
Housing Finance subsidiary key to future growth; Company poised to leverage on it’s distribution network and huge market size.
INR Mn. FY11 FY12 FY13 FY14 FY15 FY16 FY17 Total Income 17 85 315 796 1591 2776 4479 Total Expenditure 12 54 229 597 1207 2117 3423 PBT 5 31 85 199 384 660 1055PAT 4 23 62 145 280 482 770 LIABILITIES Share Capital 107 107 207 357 657 1007 1307Reserve & Surplus 7 22 70 190 424 835 1513Net Worth 114 129 277 547 1081 1842 2820Loans 10 1033 3444 8219 15311 25729 40619Total Liabilities 124 1162 3720 8765 16392 27571 43439 ASSETS Fixed Assets 0.33 0.33 0.45 6 8 9 10Loan Portfolio 98 1055 3427 8127 15313 25846 40783Net Current Assets 26 107 293 632 1071 1716 2645Misc Assets 0 0 0 0 0 0 0Total Assets. 124 1162 3720 8765 16392 27571 43439
Best Wishes
