Mas Financial Services Ltd.
You can view the entire text of Notes to accounts of the company for the latest year
ISIN No INE348L01012 52Wk High (Rs.) 637 BV (Rs.) 131.69 FV (Rs.) 10.00
Bookclosure 23/11/2018 52Wk Low (Rs.) 368 EPS (Rs.) 19.17 P/E (X) 29.13
Mkt Cap. (Rs. Cr.) 3,052.60 P/BV (X) 4.24 Div Yield (%) 0.66 Mkt Lot 1
2018-03

1 . CORPORATE INFORMATION

MAS Financial Services Limited is a public company domiciled in India and incorporated under the provisions of Companies Act, 1956. It is registered as a Non-Banking Finance Company (NBFC) with Reserve Bank of India. The Company is engaged in the business of providing Micro Enterprise Loans, SME Loans, Two Wheeler Loans, Commercial Vehicle Loans, Agri Based Loans and loans to Micro Financial Institutions (MFI) and NBFCs. During the year, the equity shares of the Company were listed on BSE Limited and National Stock Exchange Limited pursuant to the Initial Public Offering (“IPO”) and Offer of Sales(“OFS”).

2.1 Issue of Share capital

(a) Pursuant to the Private Placement offer letter (“Offer Document”) dated 30th March 2017, the Company has allotted 10,34,553 number of equity shares on 19th April 2017 having face value of Rs.10/- per share at a premium of Rs.328.31/per share under the second tranche of the Offer Document. The Company has raised total of Rs.13,500 lakhs towards private placement offer letter as of date.

(b) Pursuant to the Initial Public Offering (“IPO”), the Company has allotted 50,92,829 equity shares of Rs.10/- each as fresh issue of equity shares. Out of which, 1,69,082 equity shares were allotted to eligible employees at premium of Rs.404 per share and 49,23,747 were allotted to public at premium of Rs.449 per share.

(c) Pursuant to the conversion of various compulsorily convertible instruments as mentioned in Note 3.3 below, the Company has issued and alloted 55,78,479 equity shares to the convertible instrument holders. Out of converted equity shares, 49,46,448 equity shares were offered for sale by the convertible instrument holders.

2.2 Conversion of Compulsorily Convertible instruments

All the compulsorily convertible instruments were converted into Equity Shares as per agreements, amended from time to time, in the following manner:

(a) 0.01% Compulsorily Convertible Cumulative Preference Shares were converted into 17,39,865 Equity Shares having face value of Rs.10/- each at a premium of Rs.114.93/share;

(b) 13.31% Compulsorily Convertible Cumulative Preference Shares were converted into 12,80,723 Equity Shares having face value of Rs.10/- each at a premium of Rs.159.71/share;

(c) 9.75% Compulsorily Convertible Cumulative Preference Shares were converted into 87,716 Equity Shares having face value of Rs.10/- each at a premium of Rs.446/share; and

(d) 13% Compulsorily Convertible Debentures were converted into 24,70,175 Equity Shares having face value of Rs.10/at a premium of Rs.192.33/share.

2.3 Details of bonus shares issued during the five years immediately preceding the Balance Sheet date:

(a) 60,00,000 Equity Shares of Rs.10 each fully paid-up were allotted as bonus shares by capitalisation of Capital Redemption Reserve during 2013-14

(b) 2,40,00,188 Equity Share of Rs.10 each fully paid-up were allotted as bonus shares by capitalisation of free reserves during 2016-17

Note: Cash Credits/Overdrafts/Short Term Loans from Banks are secured by hypothecation of movable assets of the Company and goods covered under HP Agreements/ Loan cum Hypothecation Agreements and relative book debts, receivables, loans and advances and entire portfolio outstanding (except specific portfolio generated from various term loans sanctioned by various banks/FIs on an exclusive basis) and equitable mortgage/negative lien by deposit of title deeds on some of the Company’s immovable properties, as collateral security. The loans are also guaranteed by Mr. Kamlesh Chimanlal Gandhi, Mr. Mukesh Chimanlal Gandhi and Mrs. Shweta Kamlesh Gandhi.

Note

1. Earnings per share calculations are done in accordance with Accounting Standard 20 “Earnings Per Share”. As per the requirements of AS 20 “Earnings Per Share”, the weighted average number of equity shares considered for calculation of Basic and Diluted Earnings per Share.

3. The Company has incurred various expenditure of Rs.2,399.91 lakhs during the year and Rs.2,766.99 lakhs (net of recovery from selling shareholders Rs.832.50 lakhs) as at 31st March 2018 respectively towards private placement of equity shares, IPO and OFS. The Company has adjusted the expenses incurred to the Security Premium account.

4. Corporate Social Responsibility (OSR) Expenses:

The Gross amount required to be spent by the Company during the year towards Corporate Social Responsibility is Rs.161.92 lakhs (Previous year: Rs.124.90 lakhs) as per section 135 of Companies Act, 2013. Details of amount spent towards CSR as below: .

5. The company sells loans through securitization and direct assignment transactions.

The information of securitization /direct assignment by the company as originator as required by RBI Circular DNBS. PD. No. 301/3.10.01/2012-13 dated 21st August 2012 is as under:

6. Disclosures for operating leases under Accounting Standard 19 - “Accounting for Leases”.

(a) The Company has entered into leave and license agreements for taking office premises along with furniture and fixtures as applicable and godown premises on rental basis ranging from 11 to 60 months. The specified disclosure in respect of these agreements is given below:

(b) The company has let out portions of office premises along with furnitures & fixtures and other amenities on operating lease to its subsidiary MAS Rural Housing & Mortgage Finance Limited. Lease rental income recognised in the Statement of Profit and Loss is as follows:

7. Employee Benefits

Disclosures as required as per Accounting Standard AS-15 (revised) - “Employee Benefits”, in respect of Gratuity are as under:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

8. Segment Reporting

The Company is engaged primarily in the business of Financing and all its operations are in India only. Accordingly, there are no separate reportable segments as per Accounting Standard 17 - “Segment Reporting”.

9. The Company has not received any intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for the year. Hence information relating to amounts due to micro enterprises and small enterprises as required by the Act has not been given.

10. During the year, pursuant to initial public offering (IPO) and Offer For Sale, the Company has offered 1,00,39,277 equity shares out of which:

(i) 50,92,829 equity shares of Rs.10/- each were allotted as fresh issue of equity shares. Out of which, 1,69,082 equity shares were allotted to eligible employees at premium of Rs.404 per share and 49,23,747 equity shares were allotted to public at premium of Rs.449 per share.

(ii) 49,46,448 equity shares of Rs.10/- each were offered for sale by the existing shareholders at premium of Rs.449 per share.

11. The disclosures required in terms of Annexure XII of the RBI Master Direction DNBR. PD. 008/03.10.119/2016-17 dated September 01, 2016 “Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 are given in Annexure A forming part of these Financial Statements.

12. The disclosures required in terms of Paragraph 13 of the Master Direction - Non-Banking Financial Company -Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 are given in Annexure B forming part of these Financial Statements.

13. The Board of directors recommended dividend of Rs.2.16/- per equity share of face value of Rs.10 each, which is subject to approval by shareholders of the Company.

14. Previous year figures have been regrouped / reclassified to conform to current year’s classification.